Market Roundup
• Australia MI Inflation Expectations 3.6%, 4.6% previous
• Australia Building Approvals (MoM) (Jan) 6.3%, 6.3% foreast, 0.7% previous
• Australia Private House Approvals (Jan) 1.1%,1.1%,-3.0% previous
Looking Ahead Economic Data(GMT)
•10:00 EU Industrial Production (YoY) (Jan) -0.9% forecast,-2.0% previous
•10:00 EU Industrial Production (MoM) (Jan) 0.5% forecast -1.1% previous
•10:00 EU Italian 15-Year BTP Auction 3.57% previous
•10:00 EU Italian 3-Year BTP Auction 2.52% previous
•10:00 EU Italian 30-Year BTP Auction 3.940% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro hovered near five-month highs on Thursday as traders digested tit-for-tat U.S.-EU tariffs and a potential Russia-Ukraine ceasefire. Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. president.Trump's hyper-focus on tariffs has rattled investor, consumer and business confidence and raised recession fears. He also has frayed relations with Canada, a close ally and major trading partner, by repeatedly threatening to annex the neighboring country. Investors now await the U.S. Producer Price Index (PPI) data due at 1230 GMT for further insights into the Fed's monetary policy. Immediate resistance can be seen at 1.0959 (23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0804(38.2%fib), a break below could take the pair towards 1.0697(50%fib).
GBP/USD: The British pound edged lower on Thursday as investors worried about the impact of an escalating global trade war. A rise in global trade tensions and worries over U.S. recession risks have rattled global markets and sparked huge volatility in currencies, as traders seesaw between relief and angst over U.S. President Donald Trump's whip-saw policy changes.U.S. inflation rose slightly less than expected in February, but the relief it offers could be temporary as the data did not fully capture the cascade of Trump's tariffs. Markets worry that tariffs could raise prices for businesses, boost inflation and undermine consumer confidence in a blow to economic growth. Immediate resistance can be seen at 1.3003(23.6%fib), an upside break can trigger rise towards 1.3059(Higher BB).On the downside, immediate support is seen at 1.2876(March 11th low), a break below could take the pair towards 1.2822(38.2%fib)
AUD/USD: The Australian dollar edged lower on Thursday as global trade tensions fueled risk aversion, weighing on the risk-sensitive Australian dollar. President Trump issued a new tariff threat against EU goods on Wednesday, further escalating trade tensions. The move comes as key U.S. trading partners vowed to retaliate against his existing trade barriers, raising concerns about a broader economic fallout.Rising global trade tensions and U.S. recession fears have shaken markets, fueling high volatility in market as investors react to Trump's unpredictable policy shifts.At GMT 05:47, The Australian dollar was last trading down 0.14% to $0.6289.. Immediate resistance can be seen at 0.6332(38.2%fib), an upside break can trigger rise towards 0.6382(23.6%fib).On the downside, immediate support is seen at 0.6290(50%fib), a break below could take the pair towards 0.6249(61.8%fib).
USD/JPY: The dollar dipped against the yen on Thursday as expectations that Bank of Japan (BOJ) is expected to keep rates steady at next week's policy meeting increased demand for yen .The Bank of Japan is expected to keep its key interest rate steady at its March 19 meeting, with over two-thirds of economists expecting a 25-basis-point hike to 0.75% in the third quarter, most likely in July. BOJ policymakers expect wage gains to broaden and underpin consumption, allowing the central bank to keep increasing its short-term policy rate from the current 0.5%.At GMT 08:23,the dollar was up 0.07% at 147.37 against Japanese Yen. Immediate resistance can be seen at 148.00(Psychological level) an upside break can trigger rise towards 147.14(March 12th high). On the downside, immediate support is seen at 146.93(23.6%fib) a break below could take the pair towards 146.64(Lower BB).
Equities Recap
Asian markets fell on Thursday, reversing early gains, as concerns over the economic impact of Trump’s trade policies overshadowed initial optimism from a softer U.S. inflation reading.
Japan’s Nikkei 22 was up 0.03% , South Korea's KOSPI was down 0.05 %,Hang Seng was down by 0.64 %,
Commodities Recap
Gold prices edged higher on Thursday, supported by safe-haven demand amid tariff uncertainty. A cooler-than-expected U.S. inflation report reinforced rate cut expectations, lending support to the dollar and market sentiment.
Spot gold gained 0.1% to $2,934.08 an ounce as of 0745 GMT, while U.S. gold futures eased 0.1% to $2,943.70.
Oil prices dip on Thursday after a strong rally, as markets weigh macroeconomic concerns against firm near-term demand following a larger-than-expected drop in U.S. gasoline stocks.
Brent futures were down 3 cents to $70.92 a barrel at 0704 GMT, while U.S. West Texas Intermediate crude futures were down 8 cents to $67.60 a barrel.
