Market Roundup
• British Lawmakers vote down no-deal Brexit
• Trump says in no rush to complete China trade deal - Reuters
• US Jan Durable Goods, 0.4%, -0.5% forecast, 1.2% previous, 1.3% revised
• US Jan Durables Ex-Defense MM,0.7%, 1.9% previous, 2.2% revised
• US Jan Durables Ex-Transport, -0.1%, 0.1% forecast, 0.1% previous, 0.3% revised
• US Feb PPI Final Demand YY, 1.9%, 1.9% forecast, 2.0% previous
• US Feb PPI exFood/Energy YY, 2.5%, 2.6% forecast, 2.6% previous
• US Jan Construction Spending MM, 1.3%, 0.4% forecast, -0.6% previous, -0.8% revised
• Atlanta Fed lifts U.S. Q1 GDP growth view to 0.4 pct
• US 8 Mar, w/e MBA Mortgage Applications, 2.3%, -2.5% previous
• US 8 Mar, w/e MBA 30-Yr Mortgage Rate, 4.64%, 4.67% previous
• CA Mar TR IPSOS PCSI, 55.08, 54.12 previous
• Ex-Trump aide Manafort hit with 3-1/2 more years in prison, new charges
Looking Ahead - Economic Data (GMT)
• 14 Mar 02:00 China Feb Industrial Output YY, 5.7% previous
• 14 Mar 02:00 China Feb Retail Sales YY, 8.2% previous
• 14 Mar 02:00 China Feb Urban investment (ytd) yy, 5.9% previous
Looking Ahead - Events, Other Releases (GMT)
• 08:00 European Central Bank policymaker Ewald Nowotny speaks at a closed-door session of an Austrian parliamentary finance committee in Vienna
• 16:00 Irish Central Bank Governor Philip Lane addresses students in Dublin
• 23:05 Bank of Canada senior deputy governor Carolyn Wilkins will give a speech in Vancouver on the "risks to global growth in a time when leverage and protectionist sentiment are running high" in Vancouver.
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Wednesday, after tame inflation data bolstered the likelihood U.S. interest rates will not be raised anytime soon. U.S. producer prices barely rose in February, the U.S. Labor Department reported on Wednesday, resulting in the smallest annual increase in more than 1-1/2 years. This is the latest sign of benign inflation, supporting the Federal Reserve's wait-and-see approach to further interest rate hikes this year.The euro was up 0.41 percent at $1.1332. An index that tracks the dollar versus a basket of six major currencies was down 0.26 at 96.73. Immediate resistance can be seen at 1.1314 (21 DMA), an upside break can trigger rise towards 1.1366 (50 DMA).On the downside, immediate support is seen at 1.1254 (5 DMA), a break below could take the pair towards 1.1175(March 7th low).
GBP/USD: Sterling rose sharply higher against dollar on Wednesday, after British lawmakers voted resoundingly against leaving the European Union in 16 days' time without a transition agreement. Britain’s parliament voted against the risk of a "no-deal" Brexit, 24 hours after a second defeat for Prime Minister Theresa May's divorce agreement left Britain heading into the unknown. Lawmakers will vote on Thursday on delaying Britain's EU departure beyond March 29. The pound rose on hopes of a delayed Brexit, a move which investors said could increase May's chances of getting her deal with the EU through parliament or lead to Brexit being called off altogether if a second referendum is held. The currency was headed for its biggest daily gain against the dollar in 2019. Immediate resistance can be seen at 1.3373 (38.2% retracement level), an upside break can trigger rise towards 1.3472 (23.6% retracement level).On the downside, immediate support is seen at 1.3294 (50% retracement level), a break below could take the pair towards 1.3214 (61.8% retracement level).
US/CAD: The Canadian dollar strengthened to a nine-day high against its U.S. counterpart on Wednesday, as rising stocks and oil prices offset domestic data showing the fifth consecutive monthly decline for home prices. U.S. stocks rose broadly after U.S. producer price data backed the Federal Reserve's patient stance on future interest rate hikes. The price of oil, one of Canada's major exports, rose as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower. The price of oil, one of Canada's major exports, rose as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower.At (2023 GMT), the Canadian dollar was trading 0.5 percent higher at 1.3292 to the greenback. Immediate resistance can be seen at 1.3300 (Psychological Level), an upside break can trigger rise towards 1.3365 (61.8% retracement level).On the downside, immediate support is seen at 1.3273 (21 DMA), a break below could take the pair towards 1.3264 (50 DMA).
USD/JPY: The U.S. dollar dipped against the yen on Wednesday, as tepid U.S. economic data reinforced views the Federal Reserve would be patient on monetary policy. Domestic producer prices in the United States rose 1.9 percent on a year-over-year basis in February, the smallest annual increase since June 2017. Tepid inflation and disappointing producer price data this week support the Fed's stance of keeping interest rates on hold, denting the dollar . The U.S. central bank's rate-setting committee will issue its next policy statement following its March 19-20 meeting. The dollar was 0.19 lower versus the Japanese yen at 111.19. Strong resistance can be seen at 111.46 (38.2% retracement level), an upside break can trigger rise towards 112.12 (23.6% retracement level).On the downside, immediate support is seen at 110.88(50% retracement level), a break below could take the pair towards 110.33 (61.8% retracement level).
Equities Recap
European shares jumped on Wednesday as investors bet British lawmakers would vote to reject a disorderly no-deal Brexit, but underwhelming results from Inditex and Adidas kept gains limited.
The UK's benchmark FTSE 100 closed flat, FTSEurofirst 300 ended the day up by 0.63 percent, Germany's Dax ended up by 0.5 percent, and France’s CAC finished the up by 0.7 percent.
U.S. stocks rose on Wednesday, led by gains in healthcare shares, and Boeing shares edged upward even as the United States grounded the company's 737 MAX jets after a fatal crash in Ethiopia.
Dow Jones closed up by 0.58 percent, S&P 500 ended up 0.69 percent, Nasdaq finished the day up by 0.69 percent.
Treasuries Recap
U.S. Treasury yields rose on Wednesday after falling the previous session, as risk appetite improved and equity markets stabilized, with a poor 30-year bond auction further lifting rates.
In afternoon trading, U.S. 10-year note yields rose to 2.612 percent from 2.605 percent late on Tuesday.
U.S. 30-year bond yields were up at 3.011 percent from 2.99 percent on Tuesday.But yields on both 10-year notes and 30-year bonds have fallen in six of the last eight sessions.
Commodities Recap
Gold hit nearly a two-week high on Wednesday as lackluster U.S. data reinforced views the Federal Reserve would be patient on monetary policy, with bullion's appeal also bolstered by uncertainty over a Brexit deal ahead of a key vote.
Spot gold gained 0.6 percent to $1,309.30 per ounce as of (2056 GMT), its highest level since March 1.U.S. gold futures settled 0.9 percent higher at $1,309.3 per ounce.
Oil futures rallied about 2 percent on Wednesday as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower.
Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent. U.S. crude oil futures settled at $58.26 a barrel, rising $1.39 cents, or 2.44 percent.
