Market Roundup
•US Jan Housing Starts (MoM) -6.0%, 5.8% previous
• Canada Jan New Housing Price Index (MoM) 0.7%, 0.3% previous
• Canada ADP Nonfarm Employment Change -231.2K, -28.8K previous
• US Import Price Index (YoY) 0.9%,-0.3% previous
• US Export Price Index (YoY) 2.3%,0.2% previous
• US Initial Jobless Claims 861K, 765K forecast, 793K previous
• US Jobless Claims 4-Week Avg 833.25K,823.00K previous
• US Continuing Jobless Claims 4,494K,4,413K forecast, 4,545K previous
• US Philly Feb Fed CAPEX Index25.20, 35.40 previous
• US Feb Philly Fed Prices Paid 54.40,45.40 previous
• US Jan Export Price Index (MoM) 2.5%,0.7% forecast, 1.1% previous
• US Jan Import Price Index (MoM) 1.4%,1.0%forecast, 0.9% previous
• US Jan Building Permits 1.881M, 1.678M forecast, 1.704M previous
• US Jan Housing Starts 1.580M, 1.658M, 1.669M previous
• US Jan Building Permits (MoM) 10.4% ,4.2% previous
• US Feb Philadelphia Fed Manufacturing Index 23.1, 20.0, 26.5 previous
• US Crude Oil Inventories-7.258M, -2.429M forecast -6.644M previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Jan CPI, n.s.a (MoM) -0.3% previous
•23:50 Japan Jan National Core CPI (YoY) -0.7%, -1.0% previous
•23:50 Japan National CPI (YoY) -1.2% previous
•00:30 Japan Feb Manufacturing PMI 49.8 previous
•00:30 Japan Feb Services PMI 46.1 previous
•00:30 Australia Jan Retail Sales (MoM) -4.2%,-4.2% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
EUR/USD: The euro rose against dollar on Thursday as hopes for a speedy economic recovery from the global heath crisis was dampened by disappointing US abor market data. An unexpected increase in weekly jobless claims dampened enthusiasm over otherwise upbeat data this week, the day after minutes from the U.S. Federal Reserve’s most recent monetary policy meeting showed the central bank was determined to continue supporting the economic recovery. The euro gained 0.38% to $1.2080 after sliding 0.5% overnight, the most in two weeks. Immediate resistance can be seen at 1.2084(55EMA%), an upside break can trigger rise towards 1.2106 (50%fib).On the downside, immediate support is seen at 1.2022(38.2%fib), a break below could take the pair towards 1.1937(23.6%fib).
GBP/USD: Sterling rose higher against the dollar on Thursday, reaching its highest level since April 2018, amid expectations of a faster economic recovery in Britain thanks to its successful COVID-19 vaccinations. The British currency has risen more than 2% against the euro in February as the aggressive rollout of the COVID-19 vaccination programme in the United Kingdom raised expectations its economy will recover faster than that of its European peers. Immediate resistance can be seen at 1.3964(Daily high), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3919(23.6%fib), a break below could take the pair towards 1.3801 (38.2%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday as oil prices rose and the greenback gave back some of this week's broader gains. The price of oil, one of Canada's major exports, was supported by concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks.U.S. crude prices rose 0.8% to $61.61 a barrel, while the U.S. dollar was down 0.4% against a basket of major currencies.The Canadian dollar was trading 0.2% higher at 1.2679 to the greenback , having traded in a range of 1.2665 to 1.2717.Immediate resistance can be seen at 1.2708 (38.2%fib an upside break can trigger rise towards 1.2740(38.2%fib).On the downside, immediate support is seen at 1.2674(23.6%fib), a break below could take the pair towards 1.2600 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Thursday as Investors’ appetite for greenback reduced after data showed the number of Americans filing first-time applications for unemployment benefits unexpectedly rose last week, even though the labor market is steadily recovering as additional fiscal stimulus and falling COVID-19 cases allow more service businesses to reopen. The yen gained some ground against the greenback and was last almost flat at 105.685, but still below its 200-day moving average. Strong resistance can be seen at 105.85 (23.6%fib), an upside break can trigger rise towards 106.00(Psychological level).On the downside, immediate support is seen at 105.54(38.2%fib), a break below could take the pair towards 105.39 (50%fib).
Equities Recap
European shares rose on Thursday as mining stocks tracked a jump in commodity prices and helped outweigh the impact from a clutch of disappointing earnings reports from companies including Airbus and Orange.
UK's benchmark FTSE 100 closed down by 1.40% percent, Germany's Dax ended down by -0.16% percent, France’s CAC finished the day down by 0.65 percent.
Wall St slipsWall Street stocks fell on Thursday as investors shifted out of big technology names, while an unexpected rise in weekly U.S. jobless claims pointed to a fragile recovery in the labor market.
Dow Jones closed down by 0.38%percent, S&P 500 closed down by 0.44% percent, Nasdaq settled down by 0.72%% percent.
Treasuries’ Recap
U.S. Treasury yields turned lower on Thursday as risk appetite waned, pushing Wall Street stock indexes down, while the latest debt auction had a weak showing.
The benchmark 10-year yield, which touched 1.333% on Wednesday, its highest level since Feb. 27, 2020, was last down 1.3 basis points at 1.2855%.
Commodities Recap
Oil prices fell on Thursday despite a sharp drop in U.S. crude inventories, as market participants took profits following days of buying spurred by a cold snap in the largest U.S. energy-producing state.
Brent crude fell 41 cents, or 0.6%, to settle at $63.93 a barrel. During the session it rose as high as $65.52, its highest since January 2020.
U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1%, to settle at $60.52 a barrel, after earlier reaching $62.26, the highest since January 2020.
Gold lingered near 11-week lows in choppy trading on Thursday as investor optimism for a global economic recovery raised U.S. Treasury yields and made the precious metal less attractive.
Spot gold inched 0.1% lower to $1,774.21 per ounce at 1:45 p.m. EST (1845 GMT), near its lowest since Nov. 30 at $1,767.20, hit earlier.
