Market Roundup
•Canada Feb Core CPI (MoM) 0.1% ,0.1% previous
•Canada Feb CPI (MoM) 0.3%, 0.6% forecast,0.0% previous
•US Feb Building Permits 1.518M ,1.500M forecast,1.489M previous
•US Feb Building Permits (MoM) 1.9%, -0.3% previous
•US Feb Housing Starts 1.521M , 1.430M forecast,1.331M previous
•Canada Feb Trimmed CPI (YoY) 3.2%, 3.4% forecast,3.4% previous
•Canada Feb CPI (YoY) 2.8% ,3.1% forecast,2.9% previous
•Canada Feb Common CPI (YoY) 3.1% ,3.4% forecast,3.4% previous
•Canada Feb Core CPI (YoY) 2.1% ,2.4% previous
•Canada Feb Median CPI (YoY) 3.1% ,3.3% forecast,3.3% previous
•US Redbook (YoY) 3.4% ,3.0% previous
•GlobalDairyTrade Price Index -2.3% previous
•US Atlanta Fed GDPNow (Q1) 2.3% forecast,2.3% previous
Looking Ahead Economic Data(GMT)
•02:00 Australia MI Inflation Expectations 4.5% previous
Currency Summaries
EUR/USD: The euro declined on Tuesday as dollar firmed ahead of the Federal Reserve's monetary policy decision due on Wednesday. The Federal Reserve's two-day meeting wraps up on Wednesday, and central banks in Britain, Norway, and Switzerland meet Thursday. All are expected to keep rates steady, though markets are not ruling out a move in the Alps.When it comes to the Fed, the market's attention is on policymakers’ updated economic and interest rate projections and comments from Chair Jerome Powell. Last week's stronger than expected inflation reports led traders to reduce their bets on rate cuts this year, with markets now pricing in 71 bps of easing in 2024. At the start of the year, traders were pricing in 150 bps of cuts. Immediate resistance can be seen at 1.0885 (38.2%fib), an upside break can trigger rise towards 1.0905(Match 18th high).On the downside, immediate support is seen at 1.0821 (38.2%fib), a break below could take the pair towards 1.0783(Lower BB).
GBP/USD: Sterling initially dipped Tuesday but recovered ground as investors awaited Bank of England’s rate decision. Bank of England will deliver its decision on interest rates on Thursday. It is not expected to make any change to the Bank Rate, but investors will scour the central bank's statement for any indication of when monetary policy might change.Wednesday brings data on UK inflation, which is expected to have cooled in February.A poll of economists offers a median forecast for a rise of 3.5% in the headline consumer price index from January's 4% rate, while the core rate is expected to have slowed to 4.6% from 5.1%. Immediate resistance can be seen at 1.2728(Daily high), an upside break can trigger rise towards 1.2774(23.6%fib).On the downside, immediate support is seen at 1.2669(38.2%fib), a break below could take the pair towards 1.2594(Lower BB).
USD/CAD: The Canadian dollar weakened to a three-month low against its U.S. counterpart on Tuesday as an unexpected cooling in domestic inflation bolstered expectations the Bank of Canada would begin cutting interest rates in the coming months. Canada's inflation rate cooled in February to an annual rate of 2.8%, its slowest pace since June, and closely-watched core inflation measures eased to more than two-year lows.The loonie was trading 0.3% lower at 1.3565 per U.S. dollar, or 73.72 U.S. cents, after touching its weakest intraday level since Dec. 12 at 1.3613. Money markets see a 75% chance of the BoC easing in June, up from roughly 50% before the data.Immediate resistance can be seen at 1.3569 (23.6% fib), an upside break can trigger rise towards 1.3616 (Higher BB).On the downside, immediate support is seen at 1.3505(38.2% fib), a break below could take the pair towards 1.3438(50%fib).
USD/JPY: The dollar strengthened against the yen on Tuesday after the Bank of Japan met market expectations and ended eight years of negative interest rates. BOJ heralded a new era as it shifted away from years of ultra-easy monetary policy. It also abandoned bond yield curve control and dropped purchases of riskier assets, including exchange-traded funds. BOJ Governor Kazuo Ueda said in his press conference that accommodative financial conditions will be maintained for the time being and the pace of further hikes will depend on the economic and inflation outlooks. The yen weakened, with the dollar up 1% to 150.64. Strong resistance can be seen at 150.92(23.6%fib), an upside break can trigger rise towards 151.92 (Higher BB).On the downside, immediate support is seen at 149.00 (38.2%fib), a break below could take the pair towards 147.68(50%fib).
Equities Recap
European stocks ended higher on Tuesday buoyed by strength in financial and energy sectors, while investors turned their focus to upcoming interest rate decisions from global central banks, including the U.S. Federal Reserve.
UK's benchmark FTSE 100 closed down by 0.20 percent, Germany's Dax closed down by 0.31 percent, France’s CAC closed up by 0.65 percent.
Wall Street's three major indexes closed higher on Tuesday after shares in hotshot chipmaker Nvidia shook off early losses and investors looked ahead to the Federal Reserve's policy meeting conclusion on Wednesday for clues on interest rate policy.
Dow Jones was up by 0.83%percent, S&P 500 was up by 0.56% percent, Nasdaq was up by 0.39% percent.
Commodities Recap
Gold prices retreated on Tuesday as the dollar strengthened a day before the Federal Reserve signals its interest rate stance at the end of the U.S. central bank's two-day policy meeting.
Spot gold fell 0.2% to $2,155.93 per ounce as of 2:18 p.m. EDT (1817 GMT), hovering close to the one-week low reached on Monday.U.S. gold futures settled 0.2% lower at $2,159.7.
Oil prices rose to multi-month highs for the second straight session on Tuesday as traders assessed how Ukraine's recent attacks on Russian refineries would affect global petroleum supplies.
U.S. West Texas Intermediate crude futures gained 75 cents, or 0.9%, to settle at $83.47 a barrel, the highest since Oct. 27. Global benchmark Brent crude settled 0.6% higher at $87.38 a barrel, the highest since Oct. 31.
