Market Roundup
• Japan PPI (MoM) (Feb) -0.1%, 0.1% forecast, 0.2% previous
• Japan PPI (YoY) (Feb) 2.0%, 2.2% forecast,2.3% previous
Looking Ahead Economic Data (GMT)
• 07:00 German CPI (MoM) (Feb) 0.2% forecast,0.1% previous
• 07:00 German CPI (YoY) (Feb) 1.9% forecast,2.1% previous
• 07:00 German HICP (YoY) (Feb) 2.0% forecast,2.1% previous
• 07:00 German HICP (MoM) (Feb) 0.4% forecast,-0.1% previous
•08:00 Spanish Retail Sales (YoY) (Jan) 2.9% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro steadied on Wednesday as investors awaited a slew of U.S. economic data this week to gauge the Federal Reserve's policy trajectory.The U.S. and Israel pounded Iran with what the Pentagon and the Iranians on the ground called the most intense airstrikes of the war, despite global markets betting that Trump will seek to end the conflict soon.The war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas, stranding tankers for more than a week and forcing producers to halt output as storage fills, driving energy prices soaring.Markets are now awaiting the U.S. consumer price index for February, due later in the day, and the Personal Consumption Expenditures (PCE) index - the Fed's preferred inflation gauge - on Friday. Immediate resistance can be seen at 1.1670(March 10th high), an upside break can trigger rise towards 1.1739(SMA 20).On the downside, immediate support is seen at 1.1509(March 9th low), a break below could take the pair towards 1.1459(Lower BB).
GBP/USD: The pound edged higher against the dollar on Wednesday as investors monitored developments in the U.S.–Israeli conflict with Iran, though mixed signals about a possible resolution kept sentiment fragile. Markets have been betting that Donald Trump will seek to end the conflict soon, even as he warned of a strong response if Iran disrupts oil flows through the Strait of Hormuz. The U.S. and Israel launched their most intense strikes of the war on Tuesday, while Iran’s Islamic Revolutionary Guard Corps threatened to block Gulf oil shipments unless the attacks stop. Rapid developments in the region have left traders struggling to price the risks, keeping many on the sideline.. Immediate resistance can be seen at 1.3328(38.2%fib), an upside break can trigger rise towards 1.3489(50%fib)).On the downside, immediate support is seen at 1.3118(Lower BB), a break below could take the pair towards 1.3125(23.6%fib).
AUD/USD: The Australian dollar hit multiyear peak Wednesday as expectations of a hawkish Reserve Bank of Australia and improved risk sentiment supported the currency. Deputy Governor Andrew Hauser warned that rising oil prices could lift inflation and increase pressure for a rate hike at next week’s meeting, while Governor Michele Bullock said the March 17 decision is “live” and noted a “genuine debate” on tightening amid Middle East uncertainty. Markets have since lifted the probability of a March hike to about 75%, up from under 30% earlier in the week, with a full move priced in by August, though investors remain cautious amid conflicting developments in the Middle East war. Immediate resistance can be seen at 0.70176(23.6%fib), an upside break can trigger rise towards 0.7194(Higher BB).On the downside, immediate support is seen at 0.7114(Daily low), a break below could take the pair towards 0.7079(SMA 20)
USD/JPY: The US dollar edged higher on Wednesday as traders awaited news on the U.S.–Israeli war with Iran, while mixed messages kept markets cautious. Markets expect Trump to end the Iran conflict soon, but his threats over blocked Strait of Hormuz energy flows keep sentiment mixed. The fast-evolving developments in the Middle East have left traders grappling with how to best price the risk, and for now they appear to be on the sidelines.On the data front, investors will focus on U.S. February inflation data Wednesday, with core prices expected up 0.2% and headline prices up 0.3%.. Immediate resistance can be seen at 158.29(Higher BB) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 156.72(38.2%fib) a break below could take the pair towards 155.44 (SMA 20).
Equities Recap
Asian equities extended gains Wednesday while oil steadied after reports the International Energy Agency may release record reserves to curb soaring prices.
Japan’s Nikkei 225 was up by 2.14% , South Korea’s KOSPI was up at 3.34 %, China A50 was up at 1.00 %
Commodities Recap
Gold edged higher Wednesday as inflation worries eased, while investors awaited a batch of U.S. data to gauge the Federal Reserve’s policy path.
Spot gold was up 0.3% at $5,208.08 per ounce, as of 0243 GMT. U.S. gold futures for April delivery fell 0.5% to $5,216.80.
Oil prices fell further Wednesday after reports that the International Energy Agency is considering the largest reserve release in its history to offset supply disruptions from the U.S.–Israeli conflict with Iran.
Brent futures traded down 88 cents, or 1%, at $86.92 a barrel by 0451 GMT. U.S. West Texas Intermediate (WTI) traded 35 cents lower, or 0.4%, at $83.1 a barrel.
