Market Roundup
•German GDP (QoQ) (Q4) 0.3%,0.1% forecast, 8.5% previous
•German GDP (YoY) (Q4) -2.7%,-2.9% forecast, -3.9% previous
•French Feb Business Survey 55.5, 43.2 previous
•US Crude Oil Inventories -5.190M forecast, -7.258M previous
Looking Ahead - Economic Data (GMT)
•13:30 Canada Corporate Profits (QoQ) -8.0% previous
•15:00 US Jan New Home Sales 855Kforecast, 842K previous
•15:00 US Jan New Home Sales (MoM) 2.1% forecast, 1.6% previous
Looking Ahead - Economic events and other releases (GMT)
15:00 Fed Chair Powell Testifies
•15:00 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro edged higher against dollar on Wednesday as upbeat German data lifted euro. Strong exports and solid construction activity helped the German economy to grow by a better-than-expected 0.3% in the final quarter of last year, but stricter lockdown measures at home and abroad are clouding the outlook for Europe’s largest economy. The data, published by the Federal Statistics Office on Wednesday, marked an upward revision to its earlier estimate for a 0.1% expansion over the previous quarter. Immediate resistance can be seen at 1.2172(50%fib), an upside break can trigger rise towards 1.223 (61.8%fib).On the downside, immediate support is seen at 1.2112(38.2%fib), a break below could take the pair towards 1.2029 (23.6%fib).
GBP/USD: Sterling jumped above $1.42 against dollar on Wednesday, coming within touching distance of $1.43, as investors retained their bullish views on the currency. The pound is the best-performing G10 currency this year, up nearly 4% against the dollar and 3.2% against the euro as investors bet Britain’s rapid COVID-19 vaccine rollout will lead to a quicker economic rebound. Sterling was 0.5% higher on the day at $1.4136 by 12:00 GMT. Immediate resistance can be seen at 1.4234 (Daily high), an upside break can trigger rise towards 1.4100(23.6%fib).On the downside, immediate support is seen at 1.4087 (5DMA), a break below could take the pair towards at 1.4055 (38.2%fib).
USD/CHF: The dollar rose against the Swiss franc on Wednesday as markets appeared reassured by U.S. Federal Reserve Chair Jerome Powell’s comment that it would take time before the Fed considered changing policy. Pushing back on suggestions that loose monetary policy risked unleashing inflation and financial risks in an emerging boom, Powell said monetary policy needs to continue remaining accommodative. He said the Fed would move carefully, patiently, and with a lot of advance warning” before making changes. Immediate resistance can be seen at 0.9088(38.2%fib), an upside break can trigger rise towards 0.9056(22.6%fib).On the downside, immediate support is seen at 0.9027(50%fib), a break below could take the pair towards 0.9001 (5DMA).
USD/JPY: The dollar strengthened against the yen on Wednesday as investors increased bets that a global economic recovery will boost riskier assets . U.S. Federal Reserve Chair Jerome Powell reiterated on Tuesday that interest rates will remain low and the Fed will keep buying bonds to support the U.S. economy. The dollar rose against traditional safe haven currencies, adding 0.2% to 105.485 Japanese yen.Strong resistance can be seen at 105.88 (50%fib), an upside break can trigger rise towards 106.15(38.2%fib).On the downside, immediate support is seen at 105.58 (61.8%fib), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares rose on Wednesday, supported by stronger-than-expected growth in Germany’s economy, although concerns over a possible rise in inflation and lofty equity valuations kept gains in check.
At (GMT 12: 50),UK's benchmark FTSE 100 was last trading up at 0.27 percent, Germany's Dax was upby 0.83 percent, France’s CAC was last up by 0.22 percent.
Commodities Recap
Gold prices inched higher on Wednesday as Federal Reserve Chair Jerome Powell said the central bank would keep monetary policy accommodative as the U.S. economy still needed support.
Spot gold rose 0.2% to $1,809.17 per ounce by 0111 GMT, having hit its highest since Feb. 16 at $1,815.63 on Tuesday. U.S. gold futures gained 0.1% to $1,807.30.
Oil prices edged higher on Wednesday amid continued outages in the United States and a weaker dollar, but a surprise build in U.S. inventories last week capped gains.
Oil prices edged higher on Wednesday amid continued outages in the United States and a weaker dollar, but a surprise build in U.S. inventories last week capped gains.
Brent crude futures gained 52 cents, or 0.8%, to $65.89 a barrel at 1109 GMT, after hitting a session low of $64.80.
U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.6%, at $62.04 a barrel, after trading as low as $60.97 earlier on Wednesday.
