Market Roundup
•US Cushing Crude Oil Inventories -0.220M, 0.701M previous
•US Crude Oil Inventories -1.536M, 0.900M forecast,1.367M previous
•US Heating Oil Stockpiles 0.867M,-0.812M previous
•US Gasoline Inventories -5.662M, -1.900M forecast,-4.460M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Foreign Investments in Japanese Stocks 283.9B previous
•00:01 UK Feb RICS House Price Balance -10% forecast, -18% previous
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against the dollar on Wednesday after release of European Central Bank framework review report . The European Central Bank wants to wean banks off free cash but it will try to do so gently enough not to upset the financial system or lending, the result of its long-awaited Operational Framework Review showed on Wednesday. Under the new framework unveiled on Wednesday, the ECB will give banks more incentive to lend to each other, while providing safety nets to limit the risk that lenders could run out of cash. The ECB said the new framework should make its balance sheet "financially sound after it and the central banks of some euro zone countries suffered large losses as a result of its past largesse. Immediate resistance can be seen at 1.0966(23.6%fib), an upside break can trigger rise towards 1.0993(Higher BB).On the downside, immediate support is seen at 1.0913(March 12th low), a break below could take the pair towards 1.0880(38.2%fib).
GBP/USD: Sterling edged higher on Wednesday after data showed Britain's economy returned to growth in January after entering a shallow recession in the second half of 2023. Britain's economy returned to growth in January after entering a shallow recession in the second half of 2023, offering some relief to Prime Minister Rishi Sunak ahead of an election expected this year, official data showed.Gross domestic product grew by 0.2% month-on-month - boosted by a rebound in retailing and house-building after a fall of 0.1% in December, in line with economists' expectations in a Reuters poll .Immediate resistance can be seen at 1.2808(38.2%fib), an upside break can trigger rise towards 1.2864(March 11th high).On the downside, immediate support is seen at 1.2756 (50%fib), a break below could take the pair towards 1.2698(61.8%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday, supported by higher oil prices and recent signaling from the Bank of Canada it is in no rush to cut interest rates. Last Wednesday, the Bank of Canada said it was too early to consider easing policy as it kept its benchmark interest rate on hold at a 22-year high of 5%.The price of oil , one of Canada's major exports, settled 2.8% higher at $79.22 a barrel on Wednesday after a surprise withdrawal in U.S. crude inventories . The Canadian currency was trading 0.1% higher at 1.3470 per U.S. dollar, or 74.24 U.S. cents, after trading in a range of 1.3460 to 1.3498. Immediate resistance can be seen at 1.3254 (38.2% fib), an upside break can trigger rise towards 1.3319 (50%fib).On the downside, immediate support is seen at 1.3436(50% fib), a break below could take the pair towards 1.3374(61.8%fib).
USD/JPY: The dollar steadied against the yen on Wednesday as investors consolidated gains ahead of this week's economic data that could shed light on when the Federal Reserve might start cutting interest rates this year. Investors are now looking to Thursday's U.S. retail sales data, the producer prices index (PPI) report, and jobless claims for more evidence that the economy is slowing down. Markets see little chance of a Fed cut before the summer, but expectations for rate cuts in June have eased only a touch to about a 67% likelihood versus 71% earlier in the week. The dollar index , which measures the greenback against a basket of six currencies, slipped 0.1% to 102.85. Last week it recorded its biggest weekly decline since early January.Strong resistance can be seen at 148.61(23.6%fib),an upside break can trigger rise towards 149.43 (March 7th high).On the downside, immediate support is seen 146.97(38.2%fib)a break below could take the pair towards 146.35(Lower BB).
Equities Recap
European shares rose on Wednesday, with tech firms benefiting from an overnight Wall Street surge on continued optimism about interest rate cuts as early as next March, and miners benefiting from strong China data.
UK's benchmark FTSE 100 closed up by 0.31 percent, Germany's Dax closed up by 0.14 percent, France’s CAC closed up by 0.63 percent.
The S&P 500 and Nasdaq edged lower on Wednesday as investors took profits in chipmaker stocks, while they braced for producer price data and further clues on the inflation trend ahead of next week's Federal Reserve meeting.
Dow Jones was up by 0.10%percent, S&P 500 was down by 0.19% percent, Nasdaq was down by 0.54% percent.
Commodities Recap
Gold prices remained under pressure on Tuesday, dropping more than 1%, after a hot U.S. inflation report dimmed prospects of the Federal Reserve cutting interest rates soon.
Spot gold fell 1.4% to $2,153.05 per ounce as of 3:08 p.m. ET (1908 GMT), retreating from a record high of $2,194.99 reached on Friday.U.S. gold futures settled 1% lower at $2,166.1.
Oil prices rose about 3% to a four-month high on Wednesday on a surprise withdrawal in U.S. crude inventories, a bigger-than-expected drop in U.S. gasoline stocks and potential supply disruptions after Ukrainian attacks on Russian refineries.
Brent futures rose $2.11, or 2.6%, to settle at $84.03 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.16, or 2.8%, to settle at $79.72.
