Market Roundup
•Sweden Jan PPI (MoM) 0.3%, -1.6% previous
•Sweden Jan PPI (YoY) -2.3%, -7.7% previous
•Sweden Jan Trade Balance 13.30B, 3.80B previous
•Switzerland Feb ZEW Expectations 10.2 forecast,-19.5 previous
•Italian Feb Business Confidence87.3, 88.7 forecast,88.3 previous
•EU Feb Business and Consumer Survey 95.4,96.7 forecast,96.2 previous
•EU Feb Business Climate -0.42 ,-0.40 previous
•EU Feb Services Sentiment 6.0,9.0 forecast,8.8 previous
•EU Feb Consumer Confidence -15.5,-15.5 forecast,-16.1 previous
Looking Ahead Economic Data (GMT)
• 13:30 US GDP (QoQ) (Q4) 3.3% forecast, 4.9% previous
• 13:30 US GDP Sales (Q4) 3.2% forecast,3.6% previous
• 13:30 US PCE Prices (Q4)1.7% forecast ,2.6% previous
• 13:30 US Real Consumer Spending (Q4)2.8% forecast ,3.1% previous
• 13:30 US Core PCE Prices (Q4)2.00% forecast ,2.00% previous
• 13:30 US GDP Price Index (QoQ) (Q4) 1.5% forecast ,3.3% previous
• 13:30 US Jan Retail Inventories Ex Auto 0.4% previous
• 13:30 US Jan Goods Trade Balance -88.40B forecast ,-88.46B previous
• 15:30 US Crude Oil Inventories 3.100M forecast , 3.514M previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro declined against dollar on Wednesday as markets awaited crucial economic data which help shape investors' view on the timing of interest rate cuts. The U.S. inflation reading is due on Thursday while the euro zone data is scheduled for Friday.Preliminary February Consumer Price Index (CPI) data for the euro zone is expected to drop to 2.9%, within a percentage point of the European Central Bank's 2% target for the first time in two years, keeping the ECB on track for rate cuts starting in June.Markets await the U.S. GDP data due at 1330 GMT, while the Federal Reserve's preferred gauge of inflation - the core personal consumption expenditures (PCE) price index is due on Thursday. Immediate resistance can be seen at 1.0866(Daily high), an upside break can trigger rise towards 1.0906 (23.6%fib).On the downside, immediate support is seen at 1.0803(38.2%fib), a break below could take the pair towards 1.0742 (50%fib).
GBP/USD: The British pound slipped against the stronger dollar, its first daily drop against the U.S. currency in seven trading days, with investors avoiding risks before key inflation data that could determine when central banks begin easing policy.Thursday brings the release of the U.S. personal consumption expenditures price index for January, the Federal Reserve's targeted measure of inflation, which investors were watching for clues on when it might cut interest rates. Analysts expect the PCE price index to moderate to 2.4% on an annual basis and the core measure to slow to 2.8%.The pound was last at $1.2645 against the dollar, down 0.3% and on track for its biggest one-day drop in over three weeks.Immediate resistance can be seen at 1.2685(Daily high), an upside break can trigger rise towards 1.2709(23.6%fib).On the downside, immediate support is seen at 1.2640(38.2%fib), a break below could take the pair towards 1.2629(50%fib).
USD/CHF: The dollar eased against the Swiss franc on Tuesday as traders held their fire ahead of a U.S. inflation reading this week that may influence the timing of the Federal Reserve's easing cycle. Markets across major assets were generally quiet, with investor focus squarely on the U.S. personal consumption expenditures price index for January, the Fed's preferred inflation measure, due on Thursday.The index is expected to have risen 0.3% on a monthly basis in January, up slightly from the 0.2% increase seen in December, a Reuters poll showed.A slew of strong economic data, along with sticky inflation, has resulted in traders drastically dialling back their initial expectations of deep and early interest rate cuts from the Fed. Immediate resistance can be seen at 0.8846(23.6%fib), an upside break can trigger rise towards 0.8900(Higher BB).On the downside, immediate support is seen at 0.8756(38.2%fib), a break below could take the pair towards 0.8693(50%fib).
USD/JPY: The dollar dipped against yen on Wednesday as traders remained cautious ahead of a key U.S. inflation reading due on Thursday that could give clues on the timing of rate cuts by the Federal Reserve. Traders also awaited U.S. core personal consumption expenditures (PCE) price index data - Fed's preferred measure of inflation - scheduled for release on Thursday. The PCE is expected to have risen 0.3% on a monthly basis in January, according to a poll showed. Markets currently anticipate June to be the starting point of the Fed's easing cycle compared with March at the start of the year. Strong resistance can be seen at 151.00(23.6%fib) an upside break can trigger rise towards 151.69(Higher BB).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
European shares dipped on Wednesday as a raft of lacklustre corporate earnings weighed on sentiment, while global markets brace for inflation data from the U.S. and Europe later in the week for fresh clues on interest rate outlooks.
At (GMT 13:19 ),UK's benchmark FTSE 100 was last trading down at 0.73 percent, Germany's Dax was up by 0.20 percent, France’s CAC finished was down by 0.04 percent.
Commodities Recap
Gold prices edged down for a third straight day on Wednesday, hurt by a rebounding U.S. dollar, ahead of crucial economic data which help shape investors' view on the timing of the Federal Reserve's interest rate cuts.
Spot gold slipped 0.1% at $2,026.71 per ounce, as of 1049 GMT. U.S. gold futures fell 0.4% to $2,035.90 per ounce.
Oil prices pulled back on Wednesday as the prospect of delays to U.S. interest rate cuts and a jump in U.S. crude stocks that trounced expectations offset a boost from a potential extension to OPEC+ supply curbs.
Brent crude futures fell 76 cents, or 0.91%, to $82.89 a barrel by 1227 GMT. U.S. West Texas Intermediate futures (WTI) were down 83 cents, or 1.05%, at $78.04. Both benchmarks had fallen $1 in earlier trading.
