Market Roundup
• Canada Jan New Housing Price Index (MoM) -0.1%, 0.1% forecast,0.0% previous
• Redbook (YoY) 3.0%,5% previous
•EU Feb Consumer Confidence -15.5,-16.0 forecast,-16.1 previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Foreign Investments in Japanese Stocks 621.3B previous
•23:50 Japan Foreign Bonds Buying 1,499.3B previous
•00:30 Japan Feb Manufacturing PMI 48.2 forecast,48.0 previous
•00:30 Japan Services PMI 53.1 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro edged higher against dollar on Wednesday following the release of Federal Reserve's January meeting minutes, which largely met expectations and revealed policymakers' concerns about the risks of premature interest rate cuts. Traders have pushed back expectations on when the Fed will begin cutting rates to June as officials caution that they want to see more evidence that inflation will continue to decline.The dollar index extended losses for the third straight day, turning the greenback-priced bullion more appealing to overseas buyers. The euro gained 0.1% to $1.0815. Immediate resistance can be seen at 1.0830(Daily high), an upside break can trigger rise towards 1.0837 (23.6%fib).On the downside, immediate support is seen at 1.0771(38.2%fib), a break below could take the pair towards 1.0705 (50%fib).
GBP/USD: Sterling steadied on Wednesday shrugging off Britain's highest ever monthly budget surplus in January ahead of finance minister Jeremy Hunt's annual budget in March.Britain ran a budget surplus of 16.7 billion pounds ($21.1 billion) in January, due to record seasonal tax inflows. This is up from 7.5 billion pounds a year earlier although below economists' 18.7 billion pound forecast in a poll. Analysts on Wednesday debated what the January budget surplus could mean for the Bank of England (BoE) monetary outlook and for the March annual budget. The BoE is expected to cut interest rates in June. Immediate resistance can be seen at 1.2631(Feb 19th high), an upside break can trigger rise towards 1.2659 (23.6%fib).On the downside, immediate support is seen at 1.2567(38.2%fib), a break below could take the pair towards 1.2497(50%fib).
USD/CAD: The Canadian dollar strengthened against U.S. counterpart on Wednesday after minutes from the Federal Reserve's last meeting showed concerns about cutting interest rates too soon. The minutes kept market sentiment subdued as the bulk of Fed policymakers worried about moving to quickly to cut rates amid broad uncertainty about how long borrowing costs should stay at their current level, minutes of the Jan. 30-31 meeting showed. Markets now expect 86 basis points (bps) of cuts from the Fed this year, closer to the U.S. central bank's own projection of 75 bps of easing - or half the 150 bps of cuts priced in by traders at the start of the year. The loonie was trading up 0.03% lower at 1.3501 to the greenback . Immediate resistance can be seen at 1.3528 (38.2%fib), an upside break can trigger rise towards 1.3565 (23.6%fib).On the downside, immediate support is seen at 1.3490 (50% fib), a break below could take the pair towards 1.3448(61.8% fib).
USD/JPY: The dollar steadied against yen on Wednesday after minutes from the Federal Reserve's last meeting showed concerns about cutting interest rates too soon. Traders have pushed back expectations on when the Fed will begin cutting rates to June as officials caution that they want to see more evidence that inflation will continue to decline.Richmond Fed President Thomas Barkin said Wednesday that the inflation data will complicate upcoming Fed rate decisions.The dollar index was last down 0.04% on the day at 104.00, after reaching 103.79 on Tuesday, the lowest since Feb. 2. The greenback rose 0.13% to 150.19 yen .Strong resistance can be seen at 150.78 (Higher BB) an upside break can trigger rise towards 151.56(23.6%fib).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
European stocks ended on a mixed note on Wednesday with investors reacting to some disappointing quarterly earnings updates
UK's benchmark FTSE 100 closed down by 0.75 percent, Germany's Dax ended up by 0.29 percent, France’s CAC finished the day down by 1.65 percent.
The S&P 500 and Dow Jones industrials eked out small gains on Wednesday, while the Nasdaq closed lower for a third straight session as investors awaited the release of Nvidia's earnings that could determine near-term momentum for equities.
Dow Jones closed down by 0.13% percent, S&P 500 closed up by 0.13% percent, Nasdaq settled down by 0.22% percent.
Commodities Recap
Gold prices rose on Wednesday as elevated tensions in the Middle East fuelled a rush into safe-haven, while the market focus shifted to the minutes from the U.S. Federal Reserve's latest policy meeting for cues on interest rate cut timeline.
Spot gold was up 0.3% at $2,029.29 per ounce as of 9:39 a.m. ET (1439 GMT). Prices climbed to their highest since Feb. 9 earlier in the session.
Oil prices rose 1% on Wednesday as geopolitical tensions raged on in the Middle East and traders assessed signs of near-term supply tightness.
U.S. West Texas Intermediate crude futures (WTI) rose 87 cents, or 1.1%, to settle at $77.91 a barrel, while Brent crude rose 69 cents, or 0.8%, to $83.03 a barrel.
