Market Roundup
•Canada Jan Exports 62.29B, 64.07B previous
•US Unit Labor Costs (QoQ) (Q4) 0.4%,0.7% forecast,0.5% previous
•US Nonfarm Productivity (QoQ) (Q4) 3.2%,3.1% forecast, 3.2% previous
•Canada Jan Trade Balance 0.50B,-0.10B forecast,-0.31B previous
•Canada Jan Imports 61.79B,64.39B previous
•Canada Jan Building Permits (MoM) 13.5%,4.6% forecast,-14.0% previous
•US Jan Trade Balance -67.40B ,-63.40B forecast,-62.20B previous
•US Initial Jobless Claims 217K, 217K forecast,215K previous
•US Continuing Jobless Claims 1,906K,1,889K forecast, 1,905K previous
•US Jobless Claims 4-Week Avg. 212.25K,212.50K previous
•US Jan Consumer Credit 19.49B, 10.10B forecast,1.56B previous
•US Fed's Balance Sheet 7,539B7,568B previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Jan Household Spending (MoM) 0.4% forecast,-0.9% previous
•23:30 Japan Jan Household Spending (YoY) -4.1% forecast,-2.5% previous
•23:50 Japan Feb Bank Lending (YoY) 3.2% forecast, 3.1% previous
•23:30 Japan Jan Adjusted Current Account 2.07T forecast,1.81T previous
•23:30 Japan Jan Current Account n.s.a. -0.330T forecast,0.744T previous
•05:00 Japan Jan Leading Index (MoM) 2.1% previous
•05:00 Japan Jan Coincident Indicator (MoM) 1.3% previous
Looking Ahead Events and Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro rose against the dollar on Thursday after European Central Bank left interest rates unchanged as expected on Thursday but acknowledged that inflation is easing faster than once thought. The euro initially stumbled after the ECB kept rates steady despite acknowledging cooling inflation, but recovered to log its biggest daily gain against the greenback in about a month.ECB chief Christine Lagarde emphasised the bank would have seen a lot more data in June.Lagarde was as explicit as she could be for a June rate cut", said Danske Bank chief analyst Piet Christiansen. Markets now see the ECB lowering rates by just over 95 bps this year, versus just over 90 bps before the meeting. The euro was 0.45% up against the dollar at $1.0944.Immediate resistance can be seen at 1.0893(23.6%fib), an upside break can trigger rise towards 1.0915(Higher BB).On the downside, immediate support is seen at 1.0840(March 6th low), a break below could take the pair towards 1.0810(38.2%fib).
GBP/USD: The pound rose against the dollar on Thursday following UK Finance Minister Jeremy Hunt's spring budget announcement, which included several tax cuts. However, the market wasn't particularly surprised by the budget, shifting attention more towards the trajectory of the U.S. dollar. In his budget on Wednesday, Hunt trimmed national insurance contributions by 2 pence in the pound but stuck to a fiscally cautious mandate that eased anxiety about Britain's $3 trillion debt burden, boosted consumer stocks and helped the pound stay robust against other major currencies. Sterling rose 0.2% to $1.2802, its highest in around a month. Immediate resistance can be seen at 1.2750(23.6%fib), an upside break can trigger rise towards 1.2768(Higher BB).On the downside, immediate support is seen at 1.2725 (Daily low), a break below could take the pair towards 1.2685(50%fib).
USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Thursday as dovish comments by Federal Reserve Chair Jerome Powell pressured the greenback and domestic data showed the trade balance swinging into surplus in January . Canada recorded a bigger-than-expected trade surplus of C$496 million ($367.73 million) in January after a revised C$863 million deficit in December, but the details didn't impress some economists, showing a decline in both export and import volumes. Canadian employment data, due on Friday, could offer further clues on the strength of the economy. Economists forecast Canada's economy adding 20,000 jobs in January. The loonie was trading 0.4% higher at 1.3455 per U.S. dollar, its strongest level since Feb. 22. Immediate resistance can be seen at 1.3525 (Daily high), an upside break can trigger rise towards 1.3538 (Daily high).On the downside, immediate support is seen at 1.3449 (38.2% fib), a break below could take the pair towards 1.3408 (Lower BB).
USD/JPY: The dollar declined on Thursday as yen strengthened across the board on growing speculation that the Bank of Japan could finally raise rates this month. BOJ board member Junko Nakagawa said on Thursday Japan's economy was moving steadily towards sustainably achieving the central bank's 2% inflation target.The yen has been under pressure for most of the past two years because of the gap between sub-zero Japanese interest rates and a global rise in rates, as other major central banks aggressively hiked interest rates to tame inflation. The dollar against the yen was down 0.92 % at 148.04 , the weakest in more than a month. Strong resistance can be seen at 147.84(Feb 5th high),an upside break can trigger rise towards 149.33 (23.6%fib).On the downside, immediate support is seen 147.75(50%fib)a break below could take the pair towards 146.00(38.2%fib).
Equities Recap
European stocks closed on a firm note on Thursday as investors reacted positively to the European Central Bank's inflation forecast, and on optimism about interest rate cuts by the Federal Reserve this year.
UK's benchmark FTSE 100 closed up by 0.17 percent, Germany's Dax ended up by 0.14 percent, France’s CAC finished the day up by 0.77 percent.
Wall Street charged ahead on Thursday, with the S&P 500 rising 1% to a record closing high while the Nasdaq composite finished up 1.5%, with the biggest boosts from technology and growth stocks on increasing investor optimism about prospects for Federal Reserve rate cuts this year.
Dow Jones closed up by 0.34% percent, S&P 500 closed up by 1.03 % percent, Nasdaq settled down by 1.51% percent.
Commodities Recap
Gold raced to an all-time high on Thursday, extending its record run this week as increasing bets for U.S. monetary easing added to sustained tailwinds for bullion from central bank buying and safe-haven demand.
Spot gold was up 0.4% at $2,156.93 per ounce as of 02:00 p.m. ET (1900 GMT), hitting record high of $2,164.09 during the Asian trading hours.U.S. gold futures settled 0.2% higher at $2,165.2.
Oil prices were little changed on Thursday as markets weighed new economic data from China against increasing supply from the Western Hemisphere.
Brent crude futures settled flat at $82.96 a barrel. U.S. West Texas Intermediate crude futures ended 20 cents lower at $78.93.
