Market Roundup
• Italian Jan PPI (MoM) 1.4%, 0.5% previous
• Italian Jan PPI (YoY) -0.3%,-1.8% previous
• Greek Feb CPI (YoY) -1.3%, -2.3% forecast, -2.0% previous
• Greek Feb Greek HICP (YoY) -1.9%,-2.3% forecast, -2.4% previous
Looking Ahead Economic Data (GMT)
•13:30 US Feb Real Earnings (MoM) 0.1% forecast, 0.8% previous
•13:30 US Feb CPI Index, s.a 262.23 previous
•13:30 US Feb CPI, n.s.a (MoM) 0.43% previous
•13:30 US Feb Core CPI Index 270.03 previous
•13:30 US Feb CPI (YoY) 1.7% forecast,1.4% previous
•13:30 US Feb Core CPI (MoM) 0.2% forecast, 0.1% previous
•13:30 US Feb CPI (MoM) 0.4% forecast, 0.3% previous
•13:30 US Feb CPI Index, n.s.a. 263.08 forecast, 261.58 previous
•15:00 US Canada Feb Cleveland CPI (MoM) 0.1% previous
•15:30 US Crude Oil Inventories 0.816M forecast, 21.563M previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 Canada BoC Rate Statement
•15:00 Canada BoC Interest Rate Decision
Fxbeat
EUR/USD: The euro declined on Wednesday as market’s focused mostly on inflation report out of the United States, a day ahead of the bloc’s central bank meeting. The U.S. February inflation reading is due at 1330 GMT. A poll expects inflation to rise to 1.7% year-on-year from 1.4% in January, though a core reading that excludes food and energy is expected to stay unchanged at 1.4%. The euro was 0.05% lower at $1.1894 after bouncing off a 3-1/2-month low of $1.18355 on Tuesday. Immediate resistance can be seen at 1.1907 (50%fib), an upside break can trigger rise towards 1.1979(61.8%fib).On the downside, immediate support is seen at 1.1833 (38.2%fib), a break below could take the pair towards 1.1800(Psychological level).
GBP/USD: The pound was little changed against the dollar on Wednesday as currency markets calmed as investors awaited US inflation data. At 1300 GMT, sterling was up less than 0.1% against the dollar, at $1.3877, having dropped in recent weeks from the three-year high of $1.424 it reached on Feb. 24. Versus the euro, the pound was up around 0.2% at 85.53 pence per euro . Sterling has gained around 4.3% against the euro in 2021. Immediate resistance can be seen at 1.3910 ( 23.6%fib), an upside break can trigger rise towards 1.4011 (March 4th high).On the downside, immediate support is seen at 1.3809 (38.2%fib), a break below could take the pair towards 1.3718 (50%fib).
USD/CHF: The dollar rose against the Swiss franc on Wednesday, clawing back some of its losses sustained overnight, as U.S. yields found a floor following their drop from one-year highs. Investors will have their eye on U.S. inflation numbers due later today.Traders are also wary yields could rise further this week as the market will have to digest a $120 billion auction of 3-, 10-, and 30-year Treasuries, especially after last week’s soft auction and a 7-year note sale that saw a spike in yields. Immediate resistance can be seen at 0.9320 (23.6%fib), an upside break can trigger rise towards 0.9372 (March 9th high).On the downside, immediate support is seen at 0.9259 (38.2% fib), a break below could take the pair towards 0.9214(50%fib).
USD/JPY: The dollar regained some of lost ground against the Japanese yen on Wednesday as U.S. bond yields stabilized following a drop from one-year highs. The yield on benchmark 10-year notes nudged up to 1.557%, having peaked at 1.626% on Friday, after Tuesday’s auction of $58 billion in U.S. 3-year notes was well received.Traders were focused on the U.S. bond auction and inflation data later, as well as Thursday’s European Central Bank meeting where it is expected to respond to the recent jump in borrowing costs. Strong resistance can be seen at 108.92 (23.6% fib), an upside break can trigger rise towards 109.20 (March 9th high).On the downside, immediate support is seen at 108.33 (38.2%fib), a break below could take the pair towards 107.93 (50%fib).
Equities Recap
Europe’s main index hovered near pre-pandemic highs on Wednesday, as a rise in shares of Adidas after an upbeat sales forecast and gains in telecoms stocks outweighed losses in mining and travel sectors.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading up at 10.82 percent, Germany's Dax was up by 0.44 percent, France’s CAC finished was up by 0. 39.5 percent.
Commodities Recap
Gold eased on Wednesday after registering its biggest jump in two months in the last session, as higher U.S. Treasury yields and a stronger dollar remained a stumbling block for bullion.
Spot gold was down 0.2% at $1,711.21 per ounce by 1207 GMT after rising more than 2% on Tuesday. U.S. gold futures fell 0.5% to $1,709.20.
Oil prices were steady on Wednesday, supported by an OECD forecast for the global economic recovery and by OPEC+ oil output curbs but held in check by rising U.S. inventories.
Brent crude fell 3 cents, or less than 0.1%, to $67.49 a barrel by 1137 GMT and U.S. West Texas Intermediate crude rose 10 cents, or 0.2%, to $64.11.
