Market Roundup
•Canada New Motor Vehicle Sales (MoM) 128.2K, 143.7K previous
•US Cushing Crude Oil Inventories 0.710M, -0.033M previous
•US Crude Oil Inventories 12.018M, 3.300M forecast,5.521M previous
•US Gasoline Inventories-1.160M forecast,-3.145M previous
•US Heating Oil Stockpiles 1.536M,-0.222M previous
•US Distillate Fuel Production -0.281M,-0.028M previous
•US Gasoline Production-0.164M,0.270M previous
Looking Ahead Economic Data (GMT)
• 04:30 Japan Dec Capacity Utilization (MoM) 0.3% previous
• 04:30 Japan Dec Industrial Production (MoM) 1.8% forecast,-0.9% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher on Wednesday after as investors digested slew of euro zone economic data. Euro zone employment rose by 0.3% quarter-on-quarter and by 1.3% year-on-year in the fourth quarter. According to a Reuters poll, employment had been expected to rise 0.2% quarter-on-quarter and 1.1% year-on-year.Economic growth in the region was flat in the last three months of 2023 against the previous quarter and up 0.1% against the same period of 2022. Investors will now focus on U.S. retail sales data due on Thursday and producer price index numbers due on Friday. At least five Fed officials are due to speak this week. Immediate resistance can be seen at 1.0779(38.2%fib), an upside break can trigger rise towards 1.0848 (50%fib).On the downside, immediate support is seen at 1.0693(23.6%fib), a break below could take the pair towards 1.0665 (Lower BB).
GBP/USD: The pound declined on Wednesday after data showed UK inflation did not accelerate in January as expected, possibly relieving some of the pressure on the Bank of England to keep rates where they are for longer. British inflation unexpectedly held steady at 4.0% in January, defying forecasts of a rise, official data showed, offering relief for the Bank of England (BoE) and Prime Minister Rishi Sunak too ahead of a national election expected this year.Economists polled by Reuters had expected an increase in the annual rate to 4.2%.Consumer price inflation which surged as high as a 11.1% in October 2022 is expected to fall further in the coming months, paving the way for the BoE to start cutting borrowing costs from their 16-year high. Immediate resistance can be seen at 1.2600(38.2%fib), an upside break can trigger rise towards 1.2649 (50%fib).On the downside, immediate support is seen at 1.2542(23.6%fib), a break below could take the pair towards 1.2511(Lower BB).
USD/CAD: The Canadian dollar gained strength against the US dollar as financial markets stabilized and Investors assessed the probable timing of interest rate adjustments by both the Bank of Canada and the Federal Reserve. Money markets see a roughly 60% chance that the Bank of Canada will begin cutting interest rates in June, while they are fully pricing in an easing by then from the Federal Reserve.BoC Deputy Governor Toni Gravelle will discuss normalization of the central bank's balance sheet in a speech on March 21, the CFA Society of Toronto said in a post on its website, raising speculation by some analysts that the BoC could soon end its quantitative tightening program. The loonie was trading 0.1% higher at 1.3545 to the U.S. dollar, or 73.83 U.S. cents, after touching on Tuesday its weakest intraday level since Dec. 13 at 1.3586 .Immediate resistance can be seen at 1.3585 (Daily high), an upside break can trigger rise towards 1.3622 (23.6%fib).On the downside, immediate support is seen at 1.3525(38.2% fib), a break below could take the pair towards 1.3344(50% fib).
USD/JPY: The dollar eased against yen on Wednesday after top Japan's currency officials warned against what they described as rapid and speculative yen moves. Japan's top currency diplomat Masato Kanda said the nation would take appropriate actions on forex if needed.The dollar fell 0.1% against the yen to 150.60, and was not too far from a three-month high reached against the Japanese currency on Tuesday. The dollar has added about 10 yen in price since the start of this year.Japan intervened in the currency market three times in 2022 when the yen plunged to 32-year lows near 152 yen to the dollar, conducting rare dollar-selling, yen-buying intervention. Strong resistance can be seen at 151.02 (23.6%fib) an upside break can trigger rise towards 151.40(Nov 15th high).On the downside, immediate support is seen 150.00(Psychological level), a break below could take the pair towards 149.59(38.2%fib )
Equities Recap
European shares regained ground on Wednesday as a softer-than-expected UK inflation report boosted hopes of imminent interest rate cuts by the Bank of England, with a raft of upbeat corporate earnings giving an additional lift.
UK's benchmark FTSE 100 closed up by 0.75 percent, Germany's Dax ended up by 0.38 percent, France’s CAC finished the day up by 0.68 percent.
Wall Street ended sharply higher on Wednesday as ride-hailing platforms Lyft and Uber rallied, while Nvidia displaced Alphabet as the U.S. stock market's third most valuable company.
Dow Jones closed up by 0.40% percent, S&P 500 closed up by 0.96% percent, Nasdaq settled up by 1.30% percent.
Commodities Recap
Gold prices lingered below the key $2,000-per-ounce level on Wednesday after hotter-than-expected U.S. inflation data prompted investors to lower bets for early Federal Reserve interest rate cuts, while palladium jumped over 8%.
Spot gold was steady at $1,991.92 per ounce as of 01:44 p.m. EST (1844 GMT) its lowest price since Dec. 13. Bullion fell about 1.4% on Tuesday.U.S. gold futures settled 0.1% lower to $2,004.3.
Oil futures sank by $1 a barrel on Wednesday as surging U.S. crude inventories pushed down prices and a possible security threat to the U.S. that might dampen oil demand in the world's largest economy.
Brent crude futures settled at $81.60 a barrel, shedding, $1.17, or 1.4%. U.S. West Texas Intermediate (WTI) crude futures settled at $76.64 a barrel, losing $1.23, or a 1.6%.
