Market Roundup
• US Jan Real Earnings (MoM) 0.8%, 0.1% previous
• US Jan CPI Index, s.a 262.23,261.56 previous
• US Jan CPI, n.s.a (MoM) 0.43%,0.09% previous
• US Jan Core CPI Index 270.03,269.94 previous
• US Jan Core CPI (MoM) 0.0%,0.2% forecast, 0.1% previous
• US Jan Core CPI (YoY) 1.4%, 1.5% forecast,1.6% previous
• US Jan CPI (MoM) 0.3%,0.3% forecast 0.4% previous
• US Wholesale Inventories (MoM) 0.3%,0.1% , 0.0% previous
• US Crude Oil Inventories -6.644M,0.985M forecast, -0.994M previous
• US Federal Budget -163.0B-430.0 previous
Looking Ahead - Economic Data (GMT)
• 23:30 Australia Westpac Consumer Sentiment-4.5% previous
•00:00 Australia MI Inflation Expectations 3.4% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Wednesday as dollar was weighed down by U.S. data showing tepid inflation and lower Treasury yields. The dollar extended losses after data showed underlying U.S. inflation remained benign. Excluding the volatile food and energy components, the CPI was unchanged for a second straight month. The euro edged up to $1.2126, adding to a three-day gain and hitting its highest since the start of February. Immediate resistance can be seen at 1.2177 (61.8%), an upside break can trigger rise towards 1.2196 (Ichimoku cloud base).On the downside, immediate support is seen at 1.2109 (50%fib), a break below could take the pair towards 1.2043 (38.2%fib).
GBP/USD: Sterling edged up against the dollar on Wednesday, breaking above $1.38 and touching its highest level in almost three years as Britain’s speedy coronavirus inoculation programme supports the currency. The pound has gained broadly in the past few weeks amid optimism over Britain’s rapid COVID-19 vaccination roll-out, while its Brexit deal with the European Union has also removed some pressure from the currency.Sterling was up 0.3% to $1.3858 against the dollar as of 12:30 GMT, hitting its highest level since April 27, 2018.Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CAD: The Canadian dollar was unchanged against its U.S. counterpart on Wednesday, holding near its strongest level in nearly three weeks as oil extended its winning streak and the greenback broadly declined. The price of oil, one of Canada's major exports, rose for a ninth day, its longest winning streak in two years, supported by producer supply cuts and hopes that vaccine rollouts will drive a recovery in demand. The loonie was unchanged at 1.2693 to the greenback, or 78.78 U.S. cents, having touched its strongest intraday level since Jan. 22 at 1.2667. Immediate resistance can be seen at 1.2734(21DMA), an upside break can trigger rise towards 1.2783(38.2%fib).On the downside, immediate support is seen at 1.2640 (23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as optimism on the global outlook supported the U.S. dollar. Expectations of a $1.9 trillion U.S. stimulus rose as an economic recovery appeared to be slowing down in the country, while most global central banks have indicated they will maintain loose policy to tackle the COVID-19 pandemic's impact. The dollar gained 0.1% against the yen to 104.64 yen. The Japanese currency earlier hit its highest against the greenback since Jan. 29. Strong resistance can be seen at 104.88 (38.2%fib), an upside break can trigger rise towards 105.45(23.6%fib ).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European shares ended lower on Wednesday, as Wall Street’s retreat from record highs dragged Europe down from an early rise on upbeat earnings reports from firms including SocGen that fed optimism around a broader economic rebound.
UK's benchmark FTSE 100 closed up by 0.11 percent, Germany's Dax ended down by 0.56 percent, France’s CAC finished the day down by 0.36 percent.
The S&P 500 and the Nasdaq edged slightly lower on Wednesday as big tech stocks slid amid an ongoing rotation of portfolio holdings that gave a boost to energy shares and kept the overall market near record highs.
Dow Jones closed up by 0.20 percent, S&P 500 ended lower by 0.03 percent, Nasdaq was finished the day down by 0.25 percent.
Treasuries Recap
Benchmark U.S. Treasury yields tumbled on Wednesday after data showed that inflation stayed benign in January, disappointing investors betting that price pressures would increase more than they did.
The weak data also likely helped demand for a $41 billion sale of 10-year notes, which drew strong interest despite the lower yields.
Commodities Recap
Gold rose on Wednesday, hovering near a one-week peak hit in the previous session, as a weaker dollar and rising hopes of a U.S. stimulus package elevated bullion's appeal as a hedge against inflation.
Spot gold , rose 0.3% to $1,842.66. U.S. gold futures settled up 0.3% at $1,842.70.
Oil prices rose on Wednesday, extending its rally for a ninth day, its longest winning streak in two years, supported by producer supply cuts and hopes vaccine rollouts will drive a recovery in demand.
Brent crude was up 30 cents, or 0.5%, at $61.39 by 10:54 EST (1654 GMT) after touching a 13-month high of $61.61 earlier in the session. U.S. crude was up 22 cents, or 0.3%, to $58.57, having touched $58.76, also a 13-month high.
