Market Roundup
• US ADP Nonfarm Employment Change (Jan): 22K, 46K forecast, 37K previous.
•US S&P Global Services PMI (Jan): 52.7, 52.5 forecast, 52.5 previous.
•US S&P Global Composite PMI (Jan): 53.0, 52.8 forecast, 52.7 previous.
•US ISM Non-Manufacturing PMI (Jan): 53.8, 53.5 forecast, 53.8 previous.
•US ISM Non-Manufacturing Employment (Jan): 50.3, 52.3 forecast, 51.7 previous.
•US ISM Non-Manufacturing Prices (Jan): 66.6, 65.0 forecast, 65.1 previous.
•US ISM Non-Manufacturing New Orders (Jan): 53.1, 55.0 forecast, 56.5 previous.
•US ISM Non-Manufacturing Business Activity (Jan): 57.4, 55.2 previous.
Looking Ahead Economic Data (GMT)
•00:30 Australia Trade Balance (Dec) 3.420B forecast, 2.936B previous.
•00:30 Australia Exports (MoM) (Dec) -2.9% previous.
•00:30 Australia Imports (MoM) (Dec) 0.2% previous.
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro initially gained but gave ground on Wednesday as investors digested Eurozone inflation data and waited for Thursday’s ECB rate decision. Eurozone inflation fell below the ECB’s 2% target in January and is projected to remain beneath that level over the coming two years. Eurozone annual inflation eased to 1.7% in January from 2.0% in December, Eurostat said on Wednesday, marking its lowest level since September 2024.The European Central Bank is widely expected to hold rates steady on Thursday, though pressure to restart monetary easing could intensify in the months ahead if current trends continue.ECB President Christine Lagarde is likely to face questions about the dollar’s impact at her post-meeting press conference on Thursday. Immediate resistance can be seen at 1.1908(38.2%fib), an upside break can trigger rise towards 1.1978(Jan 30th high).On the downside, immediate support is seen at 1.1786(50%fib), a break below could take the pair towards 1.1762(SMA 20).
GBP/USD: Sterling dipped on Wednesday as investors awaited the Bank of England's monetary policy decision later this week.British interest rates are likely to fall further this year, but the BoE might be vague on Thursday about when or by how much it will cut borrowing costs, as it awaits a clearer picture on inflation. The BoE is expected to keep its benchmark borrowing costs unchanged at 3.75% on Thursday.Traders priced in 35 bps of BoE rate cuts by year-end, implying one 25 bps move and a 40% chance of an additional cut.On the data front, S&P Global UK Services Purchasing Managers' Index rose to 54.0 in January, the highest since August 2025, up from December's 51.4. Immediate resistance can be seen at 1.3809(Jan 30th high), an upside break can trigger rise towards 1.3855(23.6%fib).On the downside, immediate support is seen at 1.3670 (38.2%fib), a break below could take the pair towards 1.3561(SMA 20).
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Wednesday as stronger dollar and weaker Canada’s services sector data weighed on Canadian dollar .The greenback firmed after the Institute for Supply Management said on Wednesday that the U.S. services sector held steady in January.Canada’s services sector contracted for a third consecutive month in January, as trade uncertainty weighed on activity and new business, according to S&P Global’s Canada Services PMI.Canada’s employment report for January, scheduled for release on Friday, may offer additional insight into the health of the domestic economy, with analysts forecasting a modest gain of 5,000 jobs. The U.S. dollar strengthened against a basket of major currencies, extending gains following President Donald Trump’s selection of former Federal Reserve Governor Kevin Warsh as the next Fed chair. Immediate resistance can be seen at 1.3685 (38.2%fib), an upside break can trigger rise towards 1.3756(SMA 20).On the downside, immediate support is seen at 1.3499(23.6%fib), a break below could take the pair towards 1.3421(Lower BB).
USD/JPY: The U.S. dollar strengthened on Wednesday as yen weakened ahead of elections that are expected to boost Prime Minister Sanae Takaichi's fiscal and defence-spending ambitions. Prime Minister Sanae Takaichi is campaigning on plans for increased spending, tax cuts, and a new security strategy aimed at accelerating Japan’s defense expansion. Takaichi’s earlier remarks this week sparked a yen selloff by raising expectations of policy easing, and despite later clarifications, concerns persist that mixed signals could complicate efforts to stabilize the currency. The yen JPY= was last down 0.7% at 156.82 per dollar, after hitting its weakest level since January 23.The yen has dropped more than 2% since January 30. Immediate resistance can be seen at 157.89(Dec 18th high) an upside break can trigger rise towards 159.21(23.6%fib) .On the downside, immediate support is seen at 155.37(Daily low) a break below could take the pair towards 154.36 (50%fib).
Equities Recap
European stocks closed at a record high on Wednesday, but advances were limited as telecom and consumer stocks helped counter weakness in software shares and losses tied to Novo Nordisk’s disappointing outlook.
UK's benchmark FTSE 100 closed up by 0.85 percent, Germany's Dax ended down by 0.72 percent, France’s CAC finished the day up by 1.01 percent.
U.S. equities ended in the red on Wednesday, led by declines in AMD, Palantir and other tech stocks amid worries over stretched valuations and the sustainability of the AI-driven rally.
Dow Jones closed up by 0.53 percent, S&P 500 closed down by 0.51 percent, Nasdaq settled down by 1.51 percent.
Commodities Recap
Gold slipped on Wednesday, pressured by a firmer dollar and profit-taking after recent gains, with investors focused on upcoming U.S. jobs data and geopolitical risks.
Spot gold was down 0.3% at $4,924.89 per ounce, as of 01:31 p.m. ET (1829 GMT) after rising as much as 3.1% earlier in the session. Prices rose 5.9% rise on Tuesday.
U.S. gold futures for April delivery settled 0.3% higher at $4,950.80 per ounce.
Oil prices surged about 3% on Wednesday after a media report suggested planned talks between the United States and Iran on Friday could collapse.
Brent futures settled $2.13, or 3.16%, higher at $69.46 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.93, or 3.05%, to $65.14.
