Market Roundup
• US GDP (QoQ) (Q4) 3.2%,3.3% forecast, 4.9% previous
• US GDP Sales (Q4) 3.5%,3.2%forecast,3.6% previous
•US PCE Prices (Q4) 1.8%,1.7% forecast,2.6% previous
• US Real Consumer Spending (Q4) 3.0%,2.8% forecast,3.1% previous
• US Core PCE Prices (Q4) 2.10%,2.00% forecast,2.00% previous
• US GDP Price Index (QoQ) (Q4) 1.7%, 1.5% forecast ,3.3% previous
• US Jan Retail Inventories Ex Auto 0.3% , 0.4% previous
• US Jan Goods Trade Balance -90.20B ,-88.40B forecast ,-88.46B previous
• US Crude Oil Inventories 4.199M,3.100M forecast , 3.514M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jan Large Scale Retail Sales YoY (YoY) 3.0% previous
•23:50 Japan Jan Retail Sales (YoY) 2.0% forecast ,2.1% previous
•23:50 Japan Industrial Production forecast 2m ahead (MoM) 2.2% previous
•23:50 Japan Feb Industrial Production forecast 1m ahead (MoM) 6.2% previous
•23:50 Japan Jan Industrial Production (MoM) -6.7% forecast ,1.4% previous
•00:00 New Zealand Feb ANZ Business Confidence 36.6 previous
•00:00 New Zealand Feb NBNZ Own Activity 25.6% forecast ,00:30 previous
•00:30 Australia Jan Private Sector Credit (MoM) 0.4% forecast ,0.4% previous
•00:30 Australia Jan Housing Credit 0.4% previous
•00:30 Australia Jan Retail Sales (MoM) 1.6% forecast ,-2.7% previous
•00:30 Australia Private New Capital Expenditure (QoQ) (Q4) 0.4% forecast ,0.6% previous
•05:00 Japan Jan Housing Starts (YoY) -7.6% forecast ,-4.0% previous
•05:00 Japan Jan Construction Orders (YoY) 0.4% previous
•05:00 Japan BoJ Core CPI (YoY)2.3% forecast ,2.6% previous
Looking Ahead Events And Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday as markets awaited crucial economic data which help shape investors' view on the timing of interest rate cuts. The U.S. inflation reading is due on Thursday while the euro zone data is scheduled for Friday. Consumer price data for Germany, France and Spain is also due on Thursday, ahead of euro area figures on Friday. Preliminary February Consumer Price Index (CPI) data for the euro zone is expected to drop to 2.9%, within a percentage point of the European Central Bank's 2% target for the first time in two years, keeping the ECB on track for rate cuts starting in June. The dollar index was last up 0.12% at 103.96. The euro dipped 0.11% to $1.0832.Immediate resistance can be seen at 1.0866(Daily high), an upside break can trigger rise towards 1.0906 (23.6%fib).On the downside, immediate support is seen at 1.0803(38.2%fib), a break below could take the pair towards 1.0742 (50%fib).
GBP/USD: The British pound slipped against the stronger dollar, its first daily drop against the U.S. currency in seven trading days, with investors avoiding risks before key inflation data that could determine when central banks begin easing policy.Thursday brings the release of the U.S. personal consumption expenditures price index for January, the Federal Reserve's targeted measure of inflation, which investors were watching for clues on when it might cut interest rates. Analysts expect the PCE price index to moderate to 2.4% on an annual basis and the core measure to slow to 2.8%.The pound was last at $1.2659 against the dollar, down 0.3% and on track for its biggest one-day drop in over three weeks.Immediate resistance can be seen at 1.2685(Daily high), an upside break can trigger rise towards 1.2709(23.6%fib).On the downside, immediate support is seen at 1.2633(50%fib), a break below could take the pair towards 1.2552(61.8%fib).
USD/CAD: The Canadian dollar weakened to a 2-1/2 month low against its U.S. counterpart on Wednesday as investors braced for domestic GDP data that could offer clues on the interest rate outlook. Canada is also due to release major economic data on Thursday, which is expected to show the economy expanding at an annualized rate of 0.8% in the fourth quarter. The Canadian central bank is expected to leave its benchmark interest rate on hold at 5% at a policy decision next Wednesday. The loonie was trading 0.4% lower at 1.3580 to the U.S. dollar, , after touching its weakest intraday level since Dec. 13 at 1.3605. Immediate resistance can be seen at 1.3591 (23.6%fib), an upside break can trigger rise towards 1.3608(Higher BB).On the downside, immediate support is seen at 1.3538 (Daily low), a break below could take the pair towards 1.3508 (38.2%fib).
USD/JPY: The dollar edged higher against yen on Wednesday as traders awaited key U.S. inflation reading due on Thursday that could give clues on the timing of rate cuts by the Federal Reserve. Traders also awaited U.S. core personal consumption expenditures (PCE) price index data - Fed's preferred measure of inflation - scheduled for release on Thursday. The PCE is expected to have risen 0.3% on a monthly basis in January, according to a poll showed. Markets currently anticipate June to be the starting point of the Fed's easing cycle compared with March at the start of the year. The dollar was last up 0.12% at 150.68 yen .Strong resistance can be seen at 151.00(23.6%fib) an upside break can trigger rise towards 151.69(Higher BB).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
Europe's benchmark stock index fell on Wednesday as a raft of downbeat corporate earnings bruised sentiment, while investors globally braced for crucial euro zone and U.S. inflation data later in the week for fresh clues on interest rate outlooks.
The UK's benchmark FTSE 100 closed down by 0.76percent, Germany's Dax ended up by 0.25 percent, and France’s CAC finished the down by 0.08 percent.
U.S. stocks closed slightly lower on Wednesday, a day ahead of a key inflation reading that could heavily influence expectations for the timing of an interest rate cut from the Federal Reserve.
Dow Jones closed lower by 0.06percent, S&P 500 was down 0.17 percent, Nasdaq was down by 0.55 percent.
Commodities Recap
U.S. crude oil futures settled lower on Wednesday after the Federal Reserve held firm on its decision to hold off cutting interest rates in the near future, while growing U.S. crude stockpiles added further pressure.
Brent crude futures settled 3 cents higher, or up 0.04% at $83.68 a barrel. U.S. West Texas Intermediate futures (WTI) settled 33 cents lower, or down 0.42% at $78.54. Both benchmarks had fallen $1 in earlier trading.
Gold prices ticked up on Wednesday as traders strapped in for key economic data and comments from U.S. central bank officials on the timeline of interest rate cuts.
Spot gold was up 0.1% at $2,031.71 per ounce at 14:27 p.m. ET (1926 GMT).U.S. gold futures settled 0.1% lower at $2,042.7 per ounce.
