Market Roundup
•Israeli forces intensify strikes on Rafah in southern Gaza
•U.S. weekly jobless claims fell more than expected last week
•US Initial Jobless Claims 218K, 221K forecast, 224K previous
• US Continuing Jobless Claims 1,871K, 1,878K forecast,1,898K previous
• US Jobless Claims 4-Week Avg. 212.25K,207.75K previous
•US Dec Wholesale Trade Sales (MoM) 0.7%, 0.0% previous
•US Dec Wholesale Inventories (MoM) 0.4%,0.4% forecast,-0.2% previous
•US Natural Gas Storage -75B,-73B forecast,-197B previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jan M3 Money Supply 2,125.5% previous
•23:50 Japan M2 Money Stock (YoY) 2.2% forecast,2.3% previous
•03:00 New Zealand Inflation Expectations (QoQ) 2.8% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Thursday as investors digested US jobless claims data. The number of Americans filing for state unemployment benefits dipped to 218,000 during the week ended Feb. 3, compared with economists' forecast of 220,000, data showed. Both U.S. Federal Reserve and European Central Bank policymakers, as well as those in some big emerging markets, have been pushing back against expectations of rapid rate cuts as they gauge whether inflation has been adequately tamed.The likelihood of a Fed rate cut in March slipped 2-1/2 percentage points from Wednesday to 16.5%, according to the CME Group's FedWatch Tool. The probability a week ago was 36.5%. The euro rebounded from a low of 1.074 , gaining 0.02% to $1.0773.Immediate resistance can be seen at 1.0803( 38.2%fib), an upside break can trigger rise towards 1.0861 ( 50%fib).On the downside, immediate support is seen at 1.0722(23.6%fib), a break below could take the pair towards 1.0710(Lower BB).
GBP/USD: Britain's pound eased against the dollar on Thursday as policymakers continue to push back against expectations for early rate cuts. On Wednesday, Bank of England Deputy Governor Sarah Breeden, the Monetary Policy Committee's newest member, said she was now thinking about how long interest rates would need to stay at their current level, in a sign that rates are not expected to fall in the near term. Sterling was last down 0.1% against the dollar at $1.2620, having plumbed to its lowest level since Dec. 13 on Monday at $1.25175. Immediate resistance can be seen at 1.2639(Daily high), an upside break can trigger rise towards 1.2670(23.6%fib).On the downside, immediate support is seen at 1.2595(38.2%fib), a break below could take the pair towards 1.2528(50%fib).
USD/CAD: The Canadian dollar was little changed versus its broadly higher US counterpart on Thursday, as oil prices increased and investors anticipated domestic employment data that might provide light on the Bank of Canada's policy stance. Friday's Canadian employment report is anticipated to reveal a gain of 15,000 jobs in January. The price of oil, one of Canada's major exports, settled 3.2% higher at $76.22 a barrel on concerns of a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas The loonie was trading nearly unchanged at 1.3457 to the greenback, , after touching its strongest intraday level since Friday at 1.3450. Immediate resistance can be seen at 1.3509(38.2%fib), an upside break can trigger rise towards 1.3546 (Higher BB).On the downside, immediate support is seen at 1.3476 (50%fib), a break below could take the pair towards 1.3379 (61.8%fib).
USD/JPY: The dollar rose against the yen on Thursday as data on unemployment benefits showed a healthy US labor market, supporting the Federal Reserve's message that interest rates are unlikely to be reduced in the near future. The number of Americans filing new jobless claims declined more than expected last week, signaling labor market resilience despite a recent surge in layoffs.Initial applications for state unemployment benefits fell 9,000 to a seasonally adjusted 218,000 for the week ending February 3. The dollar index was last up 0.14% at 104.16, after hitting 104.43 following the initial claims report. The greenback was up about 0.82% versus the yen at 149.380.Strong resistance can be seen at 149.26(23.6%fib),an upside break can trigger rise towards 150.02(Higher BB).On the downside, immediate support is seen 148.02 (Daily low)a break below could take the pair towards 147.50(50%fib).
Equities Recap
European shares ended marginally lower on Thursday, as losses in healthcare heavyweights offset gains spurred by strong corporate updates from consumer staples stocks like Unilever and luxury major Kering.
UK's benchmark FTSE 100 closed down by 0.44 percent, Germany's Dax ended up by 0.25 percent, France’s CAC finished the day up by 0.71 percent.
Wall Street's major indexes rose on Thursday buoyed by earnings reports and U.S. jobs data.
Dow Jones closed up by 0.13 % percent, S&P 500 closed up by 0.06 % percent, Nasdaq settled up by 0.24 % percent.
Commodities Recap
Gold prices edged lower on Thursday, hurt by a stronger dollar and elevated bond yields as hopes for an early interest rate cut from the U.S. Federal Reserve diminished, while palladium extended its decline on a dim long-term demand outlook.
Spot gold fell 0.13% to $2,031.58 per ounce, as of 1:42 p.m. ET (1842 GMT).U.S. gold futures settled 0.2% lower at $2,047.9 per ounce.
Oil prices gained more than 3% on Thursday on concerns of a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas.
Brent futures closed up $2.42, or 3%, to $81.36 a barrel. U.S. West Texas Intermediate crude climbed $2.36, or 3.2%, to $76.22.
