Market Roundup
• Italian Industrial Production (YoY) (Dec)3.2%, 1.4% previous
• Italian Industrial Production (MoM) (Dec)-0.4%, -0.6% forecast,1.5% previous
• Italian 12-Month BOT Auction 2.068%, 2.112% previous
•US Unemployment Rate (Jan): 4.3%, 4.4% forecast, 4.4% previous
•Canada Building Permits (MoM) (Dec): 6.8%, 4.9% forecast, -13.2% previous
•US Private Nonfarm Payrolls (Jan): 172K, 70K forecast, 64K previous
•US U6 Unemployment Rate (Jan): 8.0%, 8.4% previous
•US Average Hourly Earnings (YoY) (Jan): 3.7%, 3.6% forecast, 3.7% previous
•US Participation Rate (Jan): 62.5%, 62.4% previous
•US Payrolls Benchmark, n.s.a. (2025): -862K, -825K forecast, -911K previous
•US Manufacturing Payrolls (Jan): 5K, -5K forecast, -8K previous
•US Government Payrolls (Jan): -42K, -16K previous
• US Average Weekly Hours (Jan): 34.3, 34.2 forecast, 34.2 previous
• US Payrolls Benchmark: -898K, -589K previous
Looking Ahead Economic Data (GMT)
•15:30 US Cushing Crude Oil Inventories -0.743M previous
•15:30 US Gasoline Inventories 0.685M previous
•15:30 US Crude Oil Imports 1.101M previous
•15:30 US Distillate Fuel Production -0.005M previous
•15:30 US Heating Oil Stockpiles -0.160M previous
•15:30 US Gasoline Production -0.565M previous
Looking Ahead Events And Other Releases (GMT)
•17:00 ECB's Schnabel Speaks
•17:50ECB Supervisory Board Member Tuominen Speaks
Currency Summaries
EUR/USD : The euro dipped on Wednesday as greenback firmed following surprisingly strong employment data that suggested underlying U.S. economic health.UNonfarm payrolls increased by 130,000 jobs last month after a downwardly revised 48,000 rise in December, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled had forecast payrolls advancing by 70,000 jobs. Estimates ranged from a loss of 10,000 jobs to a gain of 135,000 positions. The unemployment rate fell to 4.3% in January from 4.4% in December. The dollar rose 0.13% to 0.769 against the. The euro down 0.13% against the dollar at $1.1879. Immediate resistance can be seen at 1.1872(38.2%fib), an upside break can trigger rise towards 1.1974(Jan 30th high).On the downside, immediate support is seen at 1.1783(SMA 20), a break below could take the pair towards 1.1724(50%fib).
GBP/USD: Sterling retreated on Wednesday after data showed the U.S. economy created far more jobs than expected in January, which could make it more difficult for the Federal Reserve to keep cutting rates this year.Labor Department data showed 130,000 workers were added to nonfarm payrolls in January, well above forecasts for a rise of 70,000, while both November and December were revised down a touch.The unemployment rate ticked lower to 4.3% from 4.4% in December, below forecasts for a reading of 4.4%. Part of the better-than-expected increase in payrolls was because seasonally sensitive industries like retailers and delivery companies hired fewer holiday workers than usual last year. January is typically the biggest month for holiday-related layoffs. Immediate resistance can be seen at 1.3663(38.2%fib), an upside break can trigger rise towards 1.3733(Feb 4th high).On the downside, immediate support is seen at 1.3583 (SMA 20), a break below could take the pair towards 1.3512(50%fib).
AUD/USD: The Australian dollar rose to a fresh three-year high on Wednesday as the central bank reinforced its hawkish stance, while the U.S. dollar weakened on softer economic data. RBA Deputy Governor Andrew Hauser said inflation remains elevated and the economy is near capacity, strengthening expectations of further tightening. The RBA lifted its cash rate to 3.85% last week, with markets pricing about a 70% chance of a hike to 4.10% in May following Q1 inflation data. Supporting the tightening outlook, Q4 mortgage lending surged 9.5% and investment loans reached a record high. Immediate resistance can be seen at 0.7126(23.6%fib), an upside break can trigger rise towards 0.7202(Higher BB).On the downside, immediate support is seen at 0.7068(Daily low), a break below could take the pair towards 0.6700(Psychological level)
USD/JPY: The U.S. dollar initially dipped on Wednesday but recovered some ground as dollar briefly cut its losses US labor data. U.S. job growth accelerated in January and the unemployment rate fell to 4.3%, signs of labor market stability that could give the Federal Reserve room to keep interest rates unchanged for some time while policymakers monitor inflation. Nonfarm payrolls increased by 130,000 jobs last month after a downwardly revised 48,000 rise in December, the Labor Department's Bureau of Labor Statistics said on Wednesday. Economists polled by had forecast payrolls advancing by 70,000 jobs. Estimates ranged from a loss of 10,000 jobs to a gain of 135,000 positions. The yen was last up nearly 0.5% on the day at 153.4 per dollar, having traded at 153.6 right before the U.S. jobs report . Immediate resistance can be seen at 153.65(50%fib) an upside break can trigger rise towards 154.00(Psychological level) .On the downside, immediate support is seen at 151.89 (Lower BB) a break below could take the pair towards 151.29 (Lower BB).
Equities Recap
European shares fell on Wednesday, weighed down by technology and financial stocks amid concerns that newer AI models could reduce profit margins for traditional software companies.
UK's benchmark FTSE 100 was last trading up at 0.92 percent, Germany's Dax was down by 0.06 percent, France’s CAC was last up by 0.24 percent.
Commodities Recap
Gold prices rose on Wednesday but trimmed earlier gains after a strong U.S. jobs report reinforced expectations that the Federal Reserve may keep interest rates steady for longer.
Spot gold was up 0.8% at $5,067.09 per ounce by 09:02 a.m. ET (1402 GMT), after rising as much as $5,118.47 earlier in the session.
U.S. gold futures for April delivery gained 1.1% to $5,087.80 per ounce.
Oil prices rose more than 2% on Wednesday, supported by supply concerns amid rising U.S.–Iran tensions, while declines in crude stockpiles pointed to stronger demand.
Brent crude oil futures were up $1.52, or 2.2%, at $70.32 a barrel by 1320 GMT. U.S. West Texas Intermediate crude rose $1.50, or nearly 2.4%, to $65.46.
