Market Roundup
•Canada GDP (QoQ) (Q4) 0.2% -0.1%% previous
•Canada GDP Implicit Price (QoQ) (Q4) 1.40%,1.70% previous
•Canada GDP Annualized (QoQ) (Q4) 1.0%,0.8% forecast,-1.1% previous
•US Jan Personal Income (MoM) 1.0%,0.4% forecast,0.3% previous
•US Jan Personal Spending (MoM) 0.2%,0.2% forecast,0.7% previous
•US Jan Real Personal Consumption (MoM) -0.1%,0.5% previous
•US Jan PCE price index (MoM) 0.3%,0.3% forecast,0.2% previous
•US Jan PCE Price index (YoY) 2.4% ,2.4% forecast,2.6% previous
•US Jan Core PCE Price Index (YoY) 2.8%,2.8% forecast,2.9% previous
•US Jan Core PCE Price Index (MoM) 0.4% ,0.4% forecast,0.2% previous
•Canada GDP (YoY) (Q4) 0.93%, 0.47% previous
•Canada Dec GDP (MoM) 0.0%,0.2% forecast, 0.2% previous
•US Initial Jobless Claims215K, 209K forecast, 201K previous
•US Continuing Jobless Claims1,905K,1,874K forecast,1,862K previous
•US Jobless Claims 4-Week Avg. 212.50K, 215.25K previous
•US Feb Chicago PMI 44.0, 48.1 forecast,46.0 previous
•US Jan Pending Home Sales Index 74.3,77.3 previous
•US Jan Pending Home Sales (MoM) -4.9%,1.4% forecast,8.3% previous
•US Feb KC Fed Composite Index -4,-9 previous
•US Feb KC Fed Manufacturing Index 3,-17 previous
•US Atlanta Fed GDPNow (Q1) 3.0%,3.2% forecast,3.2% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jan Jobs/applications ratio 1.27 forecast,1.27 previous
•01:30 China Feb Non-Manufacturing PMI 50.9 forecast,50.7 previous
•01:30 China Feb Manufacturing PMI 49.1 forecast,49.2 previous
•01:45 China Feb Caixin Manufacturing PMI 50.7 forecast,50.8 previous
Looking Ahead Events And Other Releases(GMT)
• 00:05 New Zealand RBNZ Gov Orr Speaks
Currency Summaries
EUR/USD: The euro declined against dollar on Thursday after U.S. inflation data came in line with expectations. U.S. prices accelerated in January amid a surge in the costs of services like housing and finance, but the annual increase in inflation was the smallest in three years, keeping a mid-year interest rate cut from the Federal Reserve on the table.The report from the Commerce Department on Thursday also showed consumer spending slowing last month, restrained by decreases in outlays on goods, including motor vehicles, furniture and other long-lasting household equipment. The dollar index was last up 0.22% on the day at 104.15. It is set for a monthly gain of 0.57%.The euro fell 0.33% to $1.0800 and is set for a monthly loss of 0.15%. Immediate resistance can be seen at 1.0880(Higher BB), 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 pound was set for a small monthly decline against both the dollar and the euro on Thursday, on a busy day for inflation data elsewhere in the world, while investors in Britain's focus began turning to next week's budget. British finance minister Jeremy Hunt is expected to cut taxes but is hemmed in by promises to tackle Britain's approximately 2.5 trillion pounds ($3.2 trillion) of debt.The main event in world markets on Thursday was the release of U.S. PCE inflation, the Fed's preferred gauge, which showed U.S. prices picked up in January, but the annual increase in inflation was the smallest in nearly three years, keeping a June interest rate cut from the Federal Reserve on the table. Sterling was last down 0.06% against the dollar at $1.2654 and heading for a monthly decline of 0.26%. 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 1.2624(38.2%fib), a break below could take the pair towards 1.2629(50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday as domestic data showed the economy staying out of recession, with the currency steadying after it hit a 2-1/2-month low the day before. The Canadian economy expanded at an annualized rate of 1.0% in the fourth quarter, avoiding a second straight quarterly contraction. The growth was stronger than the Bank of Canada had expected but failed to impress some analysts, especially when considering strong population growth in Canada. The loonie was trading nearly unchanged at 1.3570 to the U.S. dollar , after touching on Wednesday its weakest intraday level since Dec. 13 at 1.3605. For the month, the currency was down 1%, due in part to broad-based gains for the U.S. dollar. Immediate resistance can be seen at 1.3590 (23.6% fib ), an upside break can trigger rise towards 1.3724 (Higher BB).On the downside, immediate support is seen at 1.3544(Daily low), a break below could take the pair towards 1.3501 (38.2% fib).
USD/JPY: The dollar dipped against yen on Thursday after Bank of Japan policymaker hinted at the need to exit ultra-easy policies. The dollar was down 0.47% against the yen at 149.98 after Bank of Japan board member Hajime Takata said he felt there were finally prospects for achieving the bank's 2% inflation target, paving the way to leave behind negative rates and yield caps.At one point it was down as much as 0.72%, which would be the dollar's biggest daily fall against the yen in 2024, though that's in large part a reflection of how few days of strength the yen has had this year - the dollar is still up 1.8% on the Japanese currency in February. 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
European stocks climbed on Thursday as investors took comfort in upbeat earnings and an in-line U.S. inflation print, while Germany's benchmark index touched a record after preliminary data showed slowing inflation in the continent's top economy.
UK's benchmark FTSE 100 closed up by 0.07 percent, Germany's Dax ended up by 0.44 percent, France’s CAC finished the day down by 0. 34 percent.
The Nasdaq achieved a record high close on Thursday, marking its first such milestone in over two years. This latest surge is driven by investor confidence in artificial intelligence, notably boosted by companies like Nvidia and other prominent tech stocks.
Dow Jones closed up by 0.12 percent, S&P 500 ended up by 0.52 percent, Nasdaq finished the day up by 0.90 percent.
Commodities Recap
Gold scaled a one-month high on Thursday as the dollar slipped after U.S. inflation data came in line with expectations, with traders' attention turning to further commentary from Federal Reserve officials for cues on interest rate cuts.
Spot gold was up 0.6% at $2,046.29 per ounce as of 14:10 p.m. ET (1910 GMT). U.S. gold futures gained 0.6% to settle at $2,054.7.
Oil prices edged lower on Thursday as U.S. inflation data implied a softening of the world's biggest economy that could weaken crude demand, with rising OPEC production also weighing on prices.
Brent futures for April delivery settled at $83.62 a barrel, down 6 cents. U.S. crude settled at $78.26 a barrel, losing 28 cents.
