Market Roundup
•UK Feb CPI (MoM) 0.1% , 0.5% forecast, -0.2% previous
•UK Feb CPI, n.s.a 109.10 , 109.00 previous
•UK Feb Core RPI (YoY) 1.6%,1.6% previous
•UK Feb Core CPI (YoY) 0.9%,1.4% forecast, 1.4% previous
•UK Feb Core CPI MoM 0.0%, 0.5% forecast, -0.5% previous
•UK Feb PPI Output (MoM) 0.6%,0.3% forecast, 1.0% previous
•UK Feb CPI (YoY) 0.4%,0.8% forecast, 0.7% previous
•UK Feb PPI Input (MoM) 0.6%,0.7% forecast, 0.7% previous
•French Mar Manufacturing PMI 58.8, 56.5 forecast, 56.1 previous
•French Mar Services PMI 47.8, 45.5 forecast, 45.6 previous
•German Mar Services PMI 50.8, 46.2 forecast, 45.7 previous
•German Mar Composite PMI 56.8, 51.6 forecast, 51.1 previous
•German Mar Manufacturing PMI 66.6, 60.8 forecast, 60.7 previous
•EU March Manufacturing PMI 62.4, 57.7 forecast, 57.9 previous
•EU March Services PMI 48.8, 46.0 forecast, 45.7 previous
•EU March Markit Composite PMI 52.5 , 49.1forecast, 48.8 previous
•UK March Composite PMI 56.6, 51.1 forecast, 49.6 previous
•UK March Services PMI 56.8, 51.0 forecast, 49.5 previous
•UK March Manufacturing PMI 57.9, 55.0 forecast, 55.1 previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Feb Goods Orders Non Defense Ex Air (MoM) 0.5% forecast, 0.4% previous
• 12:30 US Feb Core Durable Goods Orders (MoM) 0.6% forecast,1.3% previous
• 12:30 US Feb Durables Excluding Defense (MoM) 2.3% previous
• 12:30 US Feb Durable Goods Orders (MoM) 0.8% forecast,3.4% previous
•13:45 US March Manufacturing PMI 59.3 forecast, 58.6 previous
•13:45 US Markit Composite PMI 59.5 previous
•13:45 US March Services PMI 60.0 forecast, 59.8 previous
•14:30 US Crude Oil Inventories-0.272M forecast, 2.396M previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 US Fed Chair Powell Testifies
•17:45 US FOMC Member Williams Speaks
•23:00 FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as sign of growing unease over the euro zone’s economic outlook amid tighter restrictions to contain a fresh wave of COVID-19. Germany extended its lockdown to April 18. A U.S. health agency said the AstraZeneca Plc vaccine developed with Oxford University may have included outdated information in its data, further fueling investor concerns over the economic recovery. The euro edged toward a four-month trough below $1.18355 trading as low as $1.1808 .Immediate resistance can be seen at 1.1885 (5DMA), an upside break can trigger rise towards 1.1925 (38.2%fib).On the downside, immediate support is seen at 1.1806(23.6%fib), a break below could take the pair towards 1.1779 (Lower BB).
GBP/USD: Sterling cut some earlier losses on Wednesday after data showed a rush of new orders by businesses anticipating an easing of Britain’s lockdown prompted a much stronger rebound for UK companies than expected in March. The flash IHS Markit/CIPS UK Composite Purchasing Managers’ Index rose to a seven-month high as Britain’s swift roll-out of COVID-19 vaccines bolstered confidence among British businesses.The pound was down 0.3% to $1.3715 at 11:50 GMT, after falling to its lowest since Feb. 5 of $1.3675 in earlier London trading. Immediate resistance can be seen at 1.3773(50%fib), an upside break can trigger rise towards 1.3823 (5DMA).On the downside, immediate support is seen at 1.3649(38.2 %fib), a break below could take the pair towards 1.3600(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as concerns over a third COVID-19 wave in Europe, potential U.S. tax hikes and escalating tensions between the West and China increased demand for dollar. The dollar index rose to a four-month top of 92.608 in early London trade, its highest since Nov. 23.The index that measures the greenback’s strength against a basket of peer currencies is up nearly 3% year-to-date, confounding widely held expectations among analysts for a decline. Immediate resistance can be seen at 0.9374(23.6%fib), an upside break can trigger rise towards 0.9404(Higher BB).On the downside, immediate support is seen at 0.9298 (5DMA), a break below could take the pair towards 0.9276(38.2%fib).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as concerns over rising COVID-19 cases in Europe pushed up demand for U.S. dollar. Escalating tensions between China and the West also hit sentiment. U.S. manufacturing data was due later on Wednesday.In currencies, the dollar index hit a four-month high of 92.608 against a basket of most major currencies. Strong resistance can be seen at 108.76 (5DMA), an upside break can trigger rise towards 109.20(23.6%fib ).On the downside, immediate support is seen at 108.31(38.2%fib), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European stocks hit a two-week low on Wednesday as renewed lockdowns across the eurozone and a row over the supply of COVID-19 vaccines dented sentiment ahead of the release of business activity data.
At (GMT 11:40),UK's benchmark FTSE 100 was last trading down at 0.23 percent, Germany's Dax was down by 0.51 percent, France’s CAC finished was down by 0.21 percent.
Commodities Recap
Gold prices rose on Wednesday as a pullback in U.S. Treasury yields and worries over lockdowns across the euro zone lifted demand for the safe-haven metal, although a stronger dollar limited bullion's upside.
Spot gold was up 0.3% at $1,731.40 per ounce by 1105 GMT. U.S. gold futures gained 0.3% to $1,730.
Oil rose more than 2% on Wednesday after a ship ran aground in the Suez Canal raising supply concerns, although fears of a slow recovery in demand due to European lockdowns limited gains.
Brent crude rose $1.75, or 2.9%, to $62.54 a barrel by 1021 GMT, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) climbed $1.59, or 2.8%, to $59.35, having lost 6.2% on Tuesday.
