Market Roundup
•German economy likely in recession in Q1 -Bundesbank
•UK economy moving in right direction for cuts -BoE
•US Mar Philly Fed Business Conditions 38.6, 7.2 previous
•US Philly Fed Prices Paid 3.70, 16.60 previous
•US Mar Philly Fed New Orders 5.4,-5.2 previous
•US Mar Philly Fed Employment -9.6,-10.3 previous
•US Mar Philadelphia Fed Manufacturing Index 3.2,-2.6 forecast,5.2 previous
•US Current Account (Q4) -194.8B,-209.0B forecast,-200.3B previous
•US Mar Philly Fed CAPEX Index 23.60, 12.70 previous
•Canada Feb New Housing Price Index (MoM) 0.1%,0.1% forecast,-0.1% previous
•US Initial Jobless Claims 210K, 212K forecast,209K previous
•US Continuing Jobless Claims 1,807K, 1,811K previous
•US Jobless Claims 4-Week Avg 211.25K,208.00K previous
•US Mar Manufacturing PMI 52.5,51.8 forecast,52.2 previous
•US Mar Services PMI 51.7,52.0 forecast,52.3 previous
•US Mar S&P Global Composite PMI 52.2,52.5 previous
•US Feb Existing Home Sales 4.38M,3.95M forecast,4.00M previous
•US Feb Existing Home Sales (MoM) 9.5%,3.1% previous
•US Feb US Leading Index (MoM) 0.1%, -0.1% forecast, -0.4% previous
Looking Ahead Economic Data(GMT)
•00:00 Australia MI Inflation Expectations 4.5%
Looking Ahead Events And Other Releases(GMT)
•00:30 Australia RBA Financial Stability Review
Currency Summaries
EUR/USD: The euro dipped against dollar on Thursday after data showing continued strength in the U.S. economy helped the greenback notch broad-based gains. The U.S. S&P Global manufacturing purchasing managers' index improved in early March to 52.5 from 52.2 in February, while the U.S. Labor Department reported the number of people filing for unemployment benefits unexpectedly fell last week, suggesting job growth remained strong in March. The National Association of Realtors also reported that U.S. existing home sales increased to a one-year high in February. The dollar index , a measure of the U.S. currency against six major trading partners, rose 0.75% . The euro fell 0.51% to $ 1.0862 . Immediate resistance can be seen at 1.0930 (23.6%fib), an upside break can trigger rise towards 1.0982(Higher BB).On the downside, immediate support is seen at 1.0884 (38.2%fib), a break below could take the pair towards 1.0783(50%fib).
GBP/USD: Sterling fell on Thursday after the Bank of England kept interest rates unchanged and Governor Andrew Bailey said Britain's economy is "moving in the right direction" for the central bank to start cutting interest rates. As widely expected, the BoE kept its benchmark rate at 5.25%, its highest level since 2008, a day after data showed inflation fell to its lowest in almost two-and-a-half years but stayed too high for comfort. The BoE's interest rate setters voted 8-1 to keep borrowing costs at a 16-year high of 5.25% as two officials who had previously called for higher rates changed their stance. The BoE's decision came a day after data showed inflation fell to its lowest level in almost two-and-a-half years - even if it remains higher than the bank wants. Sterling was last 0.99% lower at $1.266. Immediate resistance can be seen at 1.2756(23.6%fib), an upside break can trigger rise towards 1.2804(Daily high).On the downside, immediate support is seen at 1.2642(38.2%fib), a break below could take the pair towards 1.2581(Lower BB).
USD/CAD : The Canadian dollar weakened against its U.S. counterpart on Thursday as the Bank of Canada welcomed signs of cooler inflation and data showing continued strength in the U.S. economy helped the greenback notch broad-based gains. The currency was shedding some of the gains it posted on Wednesday when the release of the Federal Reserve's latest policy statement and updated economic projections briefly weighed on the greenback. Bank of Canada Deputy Governor Toni Gravelle said the central bank is likely to wrap up its quantitative tightening (QT) program in 2025, later than some analysts have expected, and that February's inflation figures were "very encouraging.Data on Tuesday showed Canadian inflation cooling to an annual rate of 2.8% last month, its slowest pace since June. The loonie was trading 0.3% lower at 1.3535 to the U.S. dollar. Immediate resistance can be seen at 1.3542 (23.6%fib), an upside break can trigger rise towards 1.3642(Higher BB).On the downside, immediate support is seen at 1.3480 (38.2%fib), a break below could take the pair towards 1.3399(50%fib).
USD/JPY: The dollar strengthened against the yen on Thursday following reassurances from the Federal Reserve regarding potential rate cuts this year. Fed Chair Jerome Powell said told reporters after the Fed's policy meeting on Wednesday that inflation reports "haven't really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road to 2%. In the meantime, however, economic data released earlier on Thursday added to investors' bullish moods.The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while sales of previously owned homes increased by the most in a year in February, signs the economy remained on solid footing in the first quarter. Strong resistance can be seen at 151.95 (23.6%fib), an upside break can trigger rise towards 152.52(Higher BB).On the downside, immediate support is seen at 150.16 (38.2%fib), a break below could take the pair towards 149.52 (Feb 20th low).
Equities Recap
European shares scaled record-high levels on Thursday, boosted by basic resources-linked stocks and a strong risk appetite, ahead of a day packed with central bank decisions.
The UK's benchmark FTSE 100 closed up by 1.88 percent, Germany's Dax ended up by 0.88 percent, and France’s CAC finished the up by 0.22 percent.
Wall Street's three major stock indexes on Thursday registered record closing highs for the second day in a row after the Federal Reserve reassured investors about the prospects for rate cuts this year while chip stocks rallied after Micron Technology's upbeat forecast.
Dow Jones closed up by 0.68 percent, S&P 500 ended up 0.32 percent, Nasdaq finished the day down by 0.20 percent.
Commodities Recap
Gold eased slightly on Thursday, hitting pause after a blistering rally that got an extra fillip after Federal Reserve Chair Jerome Powell hinted that the central bank was on course for three interest rate cuts in 2024.
Spot gold fell 0.3% to $2,180.49 per ounce at 1:50 p.m. EDT (1750 GMT) after hitting an all-time high of $2,222.39 earlier in the session.U.S. gold futures settled 1.1% higher at $2,184.7.
Oil prices settled slightly lower on Thursday, pressured by weaker U.S. gasoline demand data and reports of a United Nations draft resolution calling for a ceasefire in Gaza.
Brent crude futures for May settled down 17 cents, or 0.2%, to $85.78 a barrel, while U.S. West Texas Intermediate futures for May settled own 20 cents, or 0.3%, to $81.07 a barrel after a fall of about 1.8% in the previous session.
