Market Roundup
•US Feb Core CPI Index 315.57, 314.44 previous
•US Feb CPI Index, s.a 311.05, 309.69 previous
•US Feb Real Earnings (MoM) 0.0%,-0.3% previous
•US Feb CPI, n.s.a (MoM) 0.62%,0.54% previous
•US Feb Core CPI (MoM) 0.4%, 0.3% forecast,0.4% previous
•US Feb CPI Index, n.s.a. 310.33, 310.30 forecast,308.42 previous
•US Feb Core CPI (YoY) 3.8%,3.7% forecast,3.9% previous
•US Feb CPI (MoM) 0.4%,0.4% forecast,0.3% previous
•US Feb CPI (YoY) 3.2%, 3.1% forecast, 3.1% previous
•US Redbook (YoY) 3.0%,3.1% previous
•US Feb Cleveland CPI (MoM) 0.4%,0.5% previous
•US Feb Federal Budget Balance -296.0B,-298.5B forecast,-22.0B previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged lower against the dollar on Tuesday after data showed U.S. consumer prices increased solidly in February. According to the Labor Department's Bureau of Labor Statistics, the Consumer Price Index (CPI) saw a 0.4% increase last month, following a 0.3% climb in January. Gasoline and shelter, which encompasses rents, played a significant role in contributing over 60% to the CPI's monthly rise. Over the 12 months leading up to February, the CPI showed a 3.2% increase, slightly higher than the 3.1% rise seen in January. Excluding the volatile food and energy components, the CPI increased 0.4% last month after rising by the same margin in January. In the 12 months through February, the so-called core CPI advanced 3.8%. That was the smallest year-on-year increase since May 2021 and followed a 3.9% rise in January .Immediate resistance can be seen at 1.0957(23.6%fib), an upside break can trigger rise towards 1.0993(Higher BB).On the downside, immediate support is seen at 1.0913(Daily low), a break below could take the pair towards 1.0880(38.2%fib).
GBP/USD: Sterling edged lower on Tuesday after data showed that growth in British wages was slightly weaker than expected but failed to affect bets on the Bank of England policy path.Wages grew at their slowest pace since October 2022 while the unemployment rate edged up unexpectedly, according to data which may slightly ease the Bank of England's inflation worries. Money markets fully price a 25 basis points rate cut from the BoE by August and an around 50% chance by June. Sterling was last down 0.1% at $1.2794 after jumping 1.6% last week versus the greenback as investors bet that the BoE will be slower than the European Central Bank and U.S. Federal Reserve in cutting interest rates .Immediate resistance can be seen at 1.2808(38.2%fib), an upside break can trigger rise towards 1.2864(March 11th high).On the downside, immediate support is seen at 1.2756 (50%fib), a break below could take the pair towards 1.2698(61.8%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as investors weighed prospects of central banks delaying a move to interest rate cuts following heated U.S. inflation data. U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. U.S. crude oil futures fell for a fourth straight day, settling 0.5% lower at $77.56 a barrel. The loonie was trading 0.1% lower at 1.3495 to the U.S. dollar, after touching its weakest intraday level since Thursday at 1.3525. Immediate resistance can be seen at 1.3524 (38.2%fib), an upside break can trigger rise towards 1.3554(Higher BB).On the downside, immediate support is seen at 1.3453(50%fib), a break below could take the pair towards 1.3439 (Lower BB).
USD/JPY: The dollar strengthened against the yen on Tuesday after data showed U.S. consumer prices increased in February. U.S. CPI increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor Department's Bureau of Labor Statistics said on Tuesday. Gasoline and shelter, which includes rents, contributed more than 60% to the monthly increase in the CPI. In the 12 months through February, the CPI increased 3.2%, after advancing 3.1% in January. The yen was last 0.1% lower at 147.65 per dollar, its biggest daily fall since Feb. 13. Strong resistance can be seen at 148.10(23.6%fib),an upside break can trigger rise towards 148.10 (Feb 5th high).On the downside, immediate support is seen 146.76(38.2%fib)a break below could take the pair towards 145.71(50%fib).
Equities Recap
European shares closed at a record high on Tuesday, led by automakers and banks, as traders stuck to bets on an interest rate cut by the Federal Reserve in June following keenly awaited inflation data.
The UK's benchmark FTSE 100 closed down by 0.86percent, Germany's Dax ended up by 0.13 percent, and France’s CAC finished the down by 0.25 percent.
U.S. stocks ended sharply higher on Tuesday, with the S&P 500 registering a record high close as Oracle shares surged and consumer price data failed to dampen investors' hopes of interest rate cuts in the coming months.
Dow Jones closed higher by 0.60 percent, S&P 500 was up 1.44 percent, Nasdaq was up by 1.54 percent.
Commodities Recap
Gold prices remained under pressure on Tuesday, dropping more than 1%, after a hot U.S. inflation report dimmed prospects of the Federal Reserve cutting interest rates soon.
Spot gold fell 1.4% to $2,153.05 per ounce as of 3:08 p.m. ET (1908 GMT), retreating from a record high of $2,194.99 reached on Friday.U.S. gold futures settled 1% lower at $2,166.1.
Oil prices dipped on Tuesday, settling slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines.
Brent futures for May delivery settled 29 cents lower at $81.92 a barrel. The April U.S. West Texas Intermediate (WTI) crude contract ended 37 cents lower at $77.56.
