Market Roundup
•U.S. producer prices rise, consumer spending falls
• US Jobless Claims 4-Week Avg. 208.00K, 212.25K previous
• US Continuing Jobless Claims 1,811K,1,900K forecast, 1,906K previous
• US Initial Jobless Claims 209K, 218K forecast, 217K previous
• US Feb Retail Sales (MoM) 0.6%,0.8% forecast,-0.8% previous
• Canada Jan Manufacturing Sales (MoM) 0.2%, 0.3% forecast,-0.7% previous
• US Feb Retail Sales (YoY) 1.50%,0.65% previous
• US Feb PPI ex. Food/Energy/Transport (YoY) 2.8%,2.6% previous
• US Feb PPI ex. Food/Energy/Transport (MoM) 0.4%, 0.6% previous
• US PPI (YoY) 1.6%,1.1% forecast,0.9% previous
• US Feb PPI (MoM) 0.6%,0.3% forecast,0.3% previous
• US Feb Core Retail Sales (MoM) 0.3%,0.5% forecast,-0.6% previous
• US Feb Retail Control (MoM) 0.0%, -0.4% previous
• US Feb Core PPI (MoM) 2.0%, 0.2% forecast,0.5% previous
• US Jan Business Inventories (MoM) 0.0%,0.2% forecast,0.4% previous
• US Jan Retail Inventories Ex Auto 0.3%,0.3% forecast,0.4% previous
• US Atlanta Fed GDPNow (Q1)2.3%,2.5% forecast,2.5% previous
Looking Ahead Economic Data(GMT)
• 01:30 China Feb House Prices (YoY) -0.7% previous
• 02:00 Japan Mar Thomson Reuters IPSOS PCSI 40.20 previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Thursday as dollar was boosted by data showing hotter-than-expected producer prices last month and fewer people seeking unemployment claims, which suggested that the Federal Reserve could reduce the number of rate cuts this year. Data on Thursday showed the U.S. producer price index for final demand rose 0.6% in February after advancing by an unrevised 0.3% in January. Economists had forecast the PPI climbing 0.3%.A separate report from the Labor Department was also better than expected, showing that U.S. initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 209,000 for the week ended March 9. Economists had forecast 218,000 claims in the latest week. Immediate resistance can be seen at 1.0915 (38.2%fib), an upside break can trigger rise towards 1.0961 (Higher BB).On the downside, immediate support is seen at 1.0881 (Daily low), a break below could take the pair towards 1.0849 (50%fib).
GBP/USD: The pound declined on Thursday a stronger than expected reading on U.S. inflation cast doubt on the timing and size of interest rate cuts from the Federal Reserve this year.The producer price index (PPI) for final demand rose 0.6% last month, above the 0.3% climb forecast by economists polled , after advancing by an unrevised 0.3% in January, the Labor Department said. A reading on consumer inflation earlier this week also showed some stickiness in inflation.Other data showed U.S. retail sales rebounded last month with a 0.6% rise, but were below the 0.8% estimate, while weekly initial jobless claims fell to 209,000 versus the 218,000 forecast. Immediate resistance can be seen at 1.2774(38.2%fib), an upside break can trigger rise towards 1.2830(23.6%fib).On the downside, immediate support is seen at 1.2722(50%fib), a break below could take the pair towards 1.2686(61.8%fib).
USD/CAD: The Canadian dollar weakened to an eight-day low against its U.S. counterpart on Thursday as stronger-than-expected U.S. inflation data spooked investors counting on the Federal Reserve to begin cutting interest rates this year ..Canadian factory sales grew by 0.2% in January from December on higher sales of motor vehicles, as well as chemical products, but falling short of estimates for a 0.4% increase. The price of oil was a bright spot for the loonie. It increased 2.4% to $81.60 a barrel as the International Energy Agency's predicted a tighter market in 2024 and raised its view on oil demand growth this year. The Canadian dollar was trading 0.4% lower at 1.3525 per U.S. dollar, or 73.94 U.S. cents, after touching its weakest intraday level since March 6 at 1.3534. Immediate resistance can be seen at 1.3541 (23.6%fib), an upside break can trigger rise towards 1.3603 (Higher BB).On the downside, immediate support is seen at 1.3483 (38.2%fib), a break below could take the pair towards 1.3442 (Lower BB).
USD/JPY: The dollar rose against the yen on Thursday as strong US data pared back rate cut forecasts this year. U.S. producer prices increased more than expected in February amid a surge in the cost of goods like gasoline and food, which could fan fears that inflation is picking up again.The Bank of Japan also meets next week. Officials including Governor Kazuo Ueda have sought to temper expectations of an imminent shift out of negative interest rates, which has set the yen on course for its worst weekly performance in a month. The dollar strengthened 0.29% to 148.17 against the Japanese yen. Strong resistance can be seen at 148.52 (Daily high), an upside break can trigger rise towards 149.17(23.6%fib).On the downside, immediate support is seen at 147.51 (38.2%fib), a break below could take the pair towards 146.82 (Lower BB).
Equities Recap
European shares lost momentum on Thursday after hitting a series of record highs in the past few sessions, as further evidence of sticky U.S. inflation led to doubts about the timing of interest rate cuts, while weakness in miners added to the declines
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The UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended down by 0.11percent, and France’s CAC finished the up by 0.29 percent.
U.S. stocks dropped on Thursday, with chipmaker stocks extending losses for a second day, and as a jump in producer prices left investors wondering if the Federal Reserve might wait longer than expected to cut interest rates.
Dow Jones closed lower at 0.35 percent, S&P 500 closed lower at 0.29 percent, Nasdaq closed lower at 0.30 percent.
Commodities Recap
Gold slid on Thursday after a larger-than-expected rise in February's U.S. producer price index (PPI) cooled expectations of early rate cuts by the Federal Reserve, boosting Treasury yields and the dollar.
Spot gold was down 0.6% at $2,161.39 per ounce as of 2:32 p.m. EDT (1832 GMT), moving away from a record peak of $2,194.99 hit on March 8.U.S. gold futures settled 0.6% lower at $2,167.5.
Oil prices rose on Thursday to settle at four-month highs as the International Energy Agency predicted a tighter market in 2024 and raised its view on oil demand growth this year.
Brent crude oil futures for May climbed $1.39, or 1.7%, to settle at $85.42 a barrel, the highest close since Nov. 6.
U.S. West Texas Intermediate (WTI) crude for April rose $1.54, or 1.9%, to end at $81.26, also its highest since early November.
