Market Roundup
•French Dec Government Budget Balance -178.1B, -176.9B previous
•Spanish Jan Services PMI 41.7, 45.3 forecast, 48.0 previous
•Italian Jan Composite PMI 47.2, 43.0 previous
•Italian Jan Services PMI 44.7, 39.5 forecast, 39.7 previous
•French Jan Markit Composite PMI 47.7, 47.0 forecast, 47.0 previous
•French Jan Services PMI 47.3, 46.5 forecast, 46.5 previous
•German Jan Services PMI 46.7, 46.8 forecast, 46.8 previous
•German Jan Composite PMI 50.8, 50.8 forecast, 50.8 previous
•Russian Feb Forex Intervention 45.6B, 110.0B forecast, 106.3B previous
•EU Jan Markit Composite PMI 47.8, 47.5 forecast, 47.5 previous
•EU Jan Services PMI 45.4, 45.0 forecast, 45.0 previous
•UK Jan Services PMI 39.5, 38.8 forecast, 38.8 previous
•UK Jan Composite PMI 41.2, 40.6 forecast, 40.6 previous
•UK Jan Core CPI (YoY) 1.4%,0.2% forecast, 0.2% previous
•UK Dec PPI (MoM) 0.8%,0.7% forecast, 0.4% previous
•EU Jan CPI (YoY) 0.9%,0.5% forecast, -0.3% previous
•US MBA Mortgage Applications (WoW) 8.1%,-4.1% previous
•US MBA 30-Year Mortgage Rate2.92%,2.95% previous
•US Mortgage Refinance Index 4,746.2, 4,261.5 previous
Looking Ahead Economic Data
•13:45 US Jan ADP Nonfarm Employment Change 49K, -123K previous
•14:45 US Jan Markit Composite PMI 58.0 previous
•14:45 US Jan Services PMI 57.5 previous
•15:00 Brazil Foreign Exchange Flows 3.367B previous
• 15:00 US Jan ISM Non-Manufacturing PMI 56.8, 57.7 previous
• 15:00 US Jan ISM Non-Manufacturing Business Activity 57.3, 60.5 previous
•15:00 US Jan ISM Non-Manufacturing Prices 64.4 previous
•15:00 US Jan ISM Non-Manufacturing Employment 48.7 previous
•15:00 US Jan ISM Non-Manufacturing New Orders 58.6 previous
•15:00 US Crude Oil Inventories 0.446M forecast, -9.910M previous
Looking Ahead - Events, Other Releases (GMT)
•16:45 German Buba Wuermeling Speaks
•17:30 German Buba Vice President Buch Speaks
•18:00 US FOMC Member Bullard Speaks
•19:00 US FOMC Member Harker Speaks
•22:00 US Chicago Fed President Evans Speaks
•22:00 US FOMC Member Mester Speaks
•23:05 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro traded near a 2-month low against the dollar on Wednesday, as investors looked to a widening disparity between the strength of U.S. and European pandemic recoveries . The view was bolstered by moves in Washington toward fast-tracking more stimulus spending that contrasted with concerns about extended European lockdowns and expectations for a decline in euro zone growth this quarter. The single currency was last down 0.27% at $1.2011 against the dollar. Immediate resistance can be seen at 1.2059 (38.2% fib), an upside break can trigger rise towards 1.2105 (11DMA).On the downside, immediate support is seen at 1.2000 (Psychological level), a break below could take the pair towards 1.1947 (50%fib).
GBP/USD: Sterling declined against dollar on Wednesday ahead of a Bank of England meeting this week, while Britain’s COVID-19 vaccine roll-out offered some support to the pound. Market participants are focusing on the Bank of England’s meeting on Thursday at which it is set to publish the findings of a consultation on what negative rates would mean for banks’ operations. Pound was down 0.2% at $1.3639 against a stronger dollar, after touching a one-week low against the greenback on Tuesday. Immediate resistance can be seen at 1.3680 (23.6% fib), an upside break can trigger rise towards 1.2375 (9 DMA).On the downside, immediate support is seen at 1.3620 (Daily low), a break below could take the pair towards 1.3590 (38.2%fib).
USD/CHF: The dollar rose against the Swiss franc on Wednesday as US economy appeared to be experiencing a stronger recovery from the COVID-19 pandemic in comparison with its global peers. The dollar’s advances come despite a rally in equities amid improving risk sentiment, defying the currency’s historical inverse directional relationship with stocks. Immediate resistance can be seen at 0.9000(38.2%fib), an upside break can trigger rise towards 0.9020 (23.6%fib).On the downside, immediate support is seen at 0.8980 (50%fib), a break below could take the pair towards 0.8968 (61.8%fib).
USD/JPY: The dollar rose strongly against the Japanese yen Wednesday as optimism about U.S. fiscal stimulus supported dollar. The dollar also benefited from a massive bout of short-covering, against the yen where hedge funds had racked up their biggest short bets against the greenback since October 2016. The broader dollar index was up 0.15% at 91.238 after rising to a two-month high of 91.283 in the previous session. Strong resistance can be seen at 105.15 (23.6%fib), an upside break can trigger rise towards 105.43 (Nov 12th high).On the downside, immediate support is seen at 104.86 (2nd Feb low), a break below could take the pair towards 104.66 (38.2%fib).
Equities Recap
European shares rose for the third session on Wednesday as focus remained on a busy day of earnings, with positive sentiment spilling over from Asian markets on hopes of a faster global economic recovery.
At (GMT 13:10),UK's benchmark FTSE 100 was last trading down at 0.11 percent, Germany's Dax was up by 0.47 percent, France’s CAC finished was up by 0.16 percent.
Commodities Recap
Silver attempted a rebound on Wednesday after an over 8% plunge in the previous session prompted investors to buy in, although the social media-driven rally that started last week appears to have run out of steam.
Spot silver rose 0.7% to $26.80 an ounce by 0824 GMT. Prices hit $30.03 on Monday, their highest since February 2013, after small investors responding to social media calls flooded the market in a GameStop-style squeeze.
Spot gold eased 0.1% to $1,835.60 per ounce. U.S. gold futures added 0.2% to $1,836.80
Oil hit an 11-month high on Wednesday, boosted by a draw in U.S. crude and gasoline stocks, which fuelled demand recovery hopes as OPEC+ has forecast that the market will be in deficit in 2021.
Brent crude futures were up 48 cents, or 0.8%, to $57.94 a barrel at 0839 GMT, their highest since late February 2020.U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.6%, to $55.10 a barrel. The benchmark hit a one-year high at $55.26 on Tuesday.
