Market Roundup
•German Jan WPI (MoM) 2.1%,0.6% previous
•German Jan WPI (YoY) 0.0%, -1.2% previous
•Greek Nov Unemployment Rate 16.2%,16.7% previous
Looking Ahead - Economic Data (GMT)
•Russia Dec Trade Balance 7.08B previous
•Russia Central Bank reserves (USD) 589.5B previous
•13:30 US Jobless Claims 4-Week Avg 848.25K previous
•13:30 US Continuing Jobless Claims 4,490K forecast, 4,592K previous
•13:30 US Initial Jobless Claims 757K forecast, 779K previous
•16:00 US Jan Cleveland CPI (MoM) 0.1% previous
•19:00 US US Federal Budget-430.0B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fx Beat
EUR/USD: The euro gained against dollar on Thursday as dovish Federal Reserve outlook and soft U.S. inflation reading weighed on dollar . U.S. core inflation last month was zero, data showed on Wednesday, against market expectations of 0.2%.Currency market moves were small overnight because of the Lunar New Year holidays in Japan and China, but the dollar fell close to two-week lows against a basket of currencies. Immediate resistance can be seen at 1.2164(61.8%), an upside break can trigger rise towards 1.2196 (Ichimoku cloud base).On the downside, immediate support is seen at 1.2109 (50%fib), a break below could take the pair towards 1.2083 (55EMA).
GBP/USD: Sterling traded in recent ranges on Thursday, above the $1.38 mark hit earlier this week in relatively quiet currency markets owing to a Chinese holiday and a sparse data calendar.Optimism over the speed of Britain’s COVID-19 vaccination programme compared to other countries in Europe and expectations of a weaker dollar this year have boosted the pound to nearly 3-year highs against the dollar. A rally above $1.38 this week has made sterling the best-performing G10 currency of 2021, up 1.1% against the dollar and nearly 2% against the euro.Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CHF: The dollar held near two-week low against the Swiss franc on Thursday as soft U.S. inflation and another Federal Reserve promise to keep rates low weakened dollar. U.S. core inflation last month was zero, data showed on Wednesday, against market expectations of 0.2%. In a speech, Fed Chair Jerome Powell focused on still-high unemployment and reiterated that the central bank's new policy framework could accommodate annual inflation above 2% for some time before hiking rates.At (GMT 12:29), greenback dipped 0.06% versus the Swiss franc to 0.8897. Immediate resistance can be seen at 0.8934 (38.2%fib), an upside break can trigger rise towards 0.8972 (23.6%fib).On the downside, immediate support is seen at 0.8900 (50%fib), a break below could take the pair towards 0.8867(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as investors digested benign reading on U.S. inflation and a dovish Federal Reserve outlook. Currency market moves were small because of the Lunar New Year holidays in Japan and China, but the dollar fell close to two-week lows against a basket of currencies. Elsewhere, U.S. President Joe Biden and his Chinese counterpart Xi Jinping spoke for the first time since the U.S. election. Biden said a free and open Indo-Pacific was a priority and raised concerns about China’s actions in Hong Kong, Xinjiang and Taiwan. Strong resistance can be seen at 104.88 (38.2%fib), an upside break can trigger rise towards 105.45(23.6%fib ).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European shares edged higher on Thursday, still on track to end the week flat, as investors kept close watch on a barrage of earnings reports from companies for clues on the pace of business recovery.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading higher at 0.03 percent, Germany's Dax was up by 0.56 percent, France’s CAC was last up by 0.03 percent.
Commodities Recap
Gold edged lower on Thursday as the dollar's recovery from a two-week trough hit in the previous session and a softer U.S. inflation data dampened bullion's appeal.
Spot gold fell 0.3% to $1,837.13 per ounce by 0636 GMT, after hitting a more than one-week high on Wednesday. U.S. gold futures slipped 0.3% to $1,837.40.
Oil prices fell on Thursday, paring recent gains, as renewed lockdowns and the emergence of new coronavirus variants weighed on the prospects for a swift demand recovery.
Brent crude fell 52 cents, or 0.9%, to $60.95 a barrel by 1122 GMT and U.S. West Texas Intermediate crude lost 48 cents, or 0.8%, to $58.20.
