Market Roundup
•Canada GDP (QoQ) (Q4) 2.3%, 8.9% previous
•Canada GDP (YoY) (Q4) -3.23%,-5.16% previous
•Canada GDP Annualized (QoQ) (Q4) 9.6%, 7.5% forecast, 40.5% previous
• Canada GDP Implicit Price (QoQ) (Q4) 1.10%, 2.60% previous
• Canada Dec GDP (MoM) 0.1%,0.3% forecast, 0.7% previous
•US Redbook (YoY) 4.6%, 2.9% previous
•US Redbook (MoM) -0.3%, -0.8% previous
•New Zealand GlobalDairyTrade Price Index 15.0% ,3.0% previous
•US Feb ISM NY Business Conditions 35.5%, 51.2% previous
•US Feb ISM-New York Index 810.0,818.2 previous
Looking Ahead - Economic data (GMT)
•21:30 Australia Feb AIG Construction Index 57.6 previous
•21:45 New Zealand Jan Building Consents (MoM) 4.9% previous
•23:00 New Zealand Services PMI 54.1 previous
•00:30 Japan Feb Services PMI 46.1 previous
•00:30 Australia GDP (QoQ) (Q4) 2.5% forecast, 3.3% previous
•00:30 Australia GDP (YoY) (Q4) -1.8% forecast, -3.8% previous
•01:45 China Feb Caixin Services PMI 52.0 previous
•01:45 China Feb Chinese Composite PMI 52.8 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as comments from European Central Bank officals over rises in bond yields weighed on Euro. President Christine Lagarde said the ECB will prevent a premature increase in borrowing costs for firms and households. Policymaker Francois Villeroy de Galhau was even more explicit, saying some of the recent rises in bond yields were unwarranted and that the ECB must push back using the flexibility embedded in its bond purchase programme. Traders were quick to sense the marked difference in tone between the ECB and the Federal Reserve. Immediate resistance can be seen at 1.2051 (Daily high), an upside break can trigger rise towards 1.2101(50%fib).On the downside, immediate support is seen at 1.1989 (Lower BB), a break below could take the pair towards 1.1924 (23.6%fib).
GBP/USD: Sterling declined against the dollar on Tuesday as the strengthening U.S. currency put a brake on gains that had taken the pound to 2-1/2-year highs last week. The pound has so far been the best performing G10 currency in 2021, up 1.65% against the dollar, although its lead over other currencies is diminishing. Immediate resistance can be seen at 1.4042 (23.6%fib), an upside break can trigger rise towards 1.4100 (Psychological level).On the downside, immediate support is seen at 1.3912 (38.2%fib), a break below could take the pair towards 1.3810(50%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday, adding to the previous day's rally as oil prices rose and domestic data showed faster-than-expected economic growth. Canada’s economy grew at an annualized rate of 9.6% in the fourth quarter, beating analyst expectations of 7.5%, Statistics Canada data showed on Tuesday, with GDP expected to climb 0.5% in January. The price of oil, one of Canada's major exports, rose before this week's OPEC+ meeting where producers are expected to ease supply curbs as economies start to slowly recover from the coronavirus crisis. Immediate resistance can be seen at 1.2665(21DMA), an upside break can trigger rise towards 1.2743(38.2%fib).On the downside, immediate support is seen at 1.2588 (23.6%fib), a break below could take the pair towards 1.2464(25th Feb low).
USD/JPY: The dollar rose against the Japanese yen on Tuesday as optimism over the economic stimulus and promising updates on COVID-19 vaccines lifted demand for dollar. The U.S. House of Representatives approved President Joe Biden’s $1.9 trillion coronavirus relief bill early on Saturday, sending it to the Senate for consideration. The U.S. dollar index was up 0.3% against a basket of currencies to stand at 91.32. Strong resistance can be seen at 107.06 (23.6%fib), an upside break can trigger rise towards 107.56 (20th July 2020 High).On the downside, immediate support is seen at 106.52 (38.2%fib), a break below could take the pair towards 106.15 (50%fib).
Equities Recap
Europe’s benchmark stock index edged higher on Tuesday as stability in the bond market gave stocks some breathing room, with major commodity-linked stocks reversing losses on a turnabout in oil and metal prices.
UK's benchmark FTSE 100 closed up by 0.38 percent, Germany's Dax ended up by 0.19 percent, France’s CAC finished the day up by 0.29 percent.
U.S. stock index futures retreated on Tuesday after Wall Street’s strong start to March as investors closely monitored the bond market as well as progress on the next round of fiscal stimulus.
(At 19:13) Dow Jones was last down by 0.13% percent, S&P 500 was down by 0.30% percent, Nasdaq was down by 1.06% percent.
Commodities Recap
Gold prices rose on Tuesday, inching away from a more than eight-month low, as a retreat in the dollar and U.S. Treasury yields lifted demand for the safe-haven metal.
Spot gold was up 0.8% at $1,737.62 per ounce by 1237 a.m. ET (1737 GMT), after falling to $1,706.70 earlier in the session, its lowest since June 15.
Oil prices were little changed on Tuesday before this week’s OPEC+ meeting, with producers in the group expected to ease supply curbs as economies start to recover from the coronavirus crisis.
Brent futures rose 19 cents, or 0.3%, to $63.88 a barrel by 12:49 p.m. EST (1749 GMT). U.S. West Texas Intermediate (WTI) crude rose 26 cents, or 0.4%, to $60.90.
