Market Roundup
•Finnish Jan Consumer Confidence -0.9, -4.6 previous
•Finnish Jan Industrial Confidence 0, -5previous
• German Feb GfK Consumer Climate -15.6, -7.9 forecast, -7.3 previous
• French Jan Consumer Confidence 92, 94 forecast, 95 previous
• Italian Dec Trade Balance Non-EU 7.91B, 6.68B previous
•Swiss Jan ZEW Expectations 43.2, 46.8 previous
• France Jobseekers Total 3,586.8K, 3,586.8K previous
•US MBA Mortgage Applications (WoW) -1.9% previous
•US MBA 30-Year Mortgage Rate 2.92%previous
•US Mortgage Refinance Index 4,484.2 previous
•Brazil Dec Current Account (USD) -5.70B, 0.20B previous
•Brazil Foreign Dec direct investment (USD) 3.00B forecast, 1.51B previous
Looking Ahead - Economic Data (GMT)
•13:30 US Dec Core Durable Goods Orders (MoM) 0.5% forecast, 0.4% previous
•13:30 US Dec Durable Goods Orders (MoM) 0.9%, 1.0% previous
•13:30 US Dec Goods Orders Non Defense Ex Air (MoM) 0.6% forecast, 0.5% previous
•13:30 US Dec Durables Excluding Defense (MoM) 0.8% previous
•15:30 US Gasoline Inventories 1.373M previous
•15:30 US Crude Oil Inventories 0.430M forecast, 4.351M previous
•19:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Economic events and other releases (GMT)
•19:00 US FOMC Statement
•19:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday after a European Central Bank official said the ECB was monitoring the single currency closely, while the greenback rose ahead of the Federal Reserve’s meeting . ECB governing council member Klaas Knot said the central bank has room to cut its deposit rate further, should it be necessary to improve financing conditions and reach its inflation target.Knot’s comment constituted the most explicit hint to date from an ECB policymaker about the possibility of a rate cut to stem a rally in the euro. The euro was last down at 0.3% at $1.2112 . Immediate resistance can be seen at 1.2170 (Daily high), an upside break can trigger rise towards 1.2209 (23.6%fib).On the downside, immediate support is seen at 1.2086(55DMA), a break below could take the pair towards 1.2057(38.2% fib).
GBP/USD: Sterling edged higher against dollar on Wednesday ahead of comments from Federal Reserve Chair Jerome Powell, while Britain’s COVID-19 vaccine rollout also offered support to the pound.Expectations of a large U.S. fiscal stimulus package has fuelled risk sentiment in markets in recent weeks, benefiting sterling and market participants are expecting Powell to renew a commitment to ultra-easy policy.Britain’s successful initial vaccine rollout has also helped the pound, although its death toll from the coronavirus pandemic passed 100,000 on Tuesday.Sterling was up 0.01% against the dollar at $1.3708 at 1240 GMT, not far off a May 2018 high of $1.3759 touched earlier . Immediate resistance can be seen at 1.3758 (23.6%fib), an upside break can trigger rise towards 1.3800 (Psychological level).On the downside, immediate support is seen at 1.3687(5DMA) , a break below could take the pair towards 1.3640 (38.2%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as markets waited for comments from Federal Reserve Chair Jerome Powell, who is likely to renew a commitment to ultra-easy policy. The Fed chair is due to speak at a news conference after the central bank’s two-day policy meeting, which ends Wednesday. Earlier this month, he said in a web symposium with Princeton University that the U.S. economy is still far from the Fed’s inflation and employment goals, and it is too early to discuss altering monthly bond purchases. Immediate resistance can be seen at 0.8892 (23.6%fib), an upside break can trigger rise towards 0.8916 (50DMA).On the downside, immediate support is seen at 0.8857 (38.2% fib), a break below could take the pair towards 0.8832 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investors awaited the outcome of the U.S. Federal Reserve’s monetary policy meeting for market cues. Investors eyed Federal Reserve chair Jerome Powell’s news conference later in the day after the U.S. central bank concludes a two-day policy meeting. Analysts expect the Fed to stick to its ultra-easy monetary policy. Strong resistance can be seen at 103.90 (23.6%fib), an upside break can trigger rise towards 104.00(Psychological level).On the downside, immediate support is seen at 103.55 (38.2%fib), a break below could take the pair towards 103.44 (50% fib).
Equities Recap
Europe’s share indexes fell on Wednesday as investors turned more cautious about COVID-19 and stretched stock valuations, with the U.S Federal Reserve meeting and tech giants’ earnings also in focus.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading down at 1.34 percent, Germany's Dax was down by 1.92 percent, France’s CAC finished was down by 1.62 percent.
Commodities Recap
Gold prices held steady on Wednesday ahead of the U.S. Federal Reserve's monetary policy decision due later in the day and as investors awaited a stimulus package in the world's largest economy.\
Spot gold was little changed at $1,849.76 per ounce by 0031 GMT. U.S. gold futures eased 0.1% to $1,848.60.
Oil rose above $56 a barrel on Wednesday after industry data showed U.S. crude inventories fell unexpectedly, outweighing persistent concerns about demand as coronavirus cases top 100 million globally.
Brent crude had climbed 31 cents, or 0.6%, to $56.22 a barrel by 1110 GMT. U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.6%, to $52.94.
