Market Roundup
•German Jan HICP (MoM) 1.4%,1.4% forecast, 0.6% previous
•German Jan HICP (YoY) 1.6%,1.6% forecast,-0.07 previous
• German Jan CPI (MoM) 0.8%, 0.8% forecast, 0.5% previous
• German Jan CPI (YoY) 1.0%, 1.0% forecast, -0.3% previous
• French Dec Industrial Production (MoM) -0.8%, 0.2% forecast, -0.9% previous
• Portuguese Unemployment Rate (Q4) 7.1%,7.8% previous
Looking Ahead - Economic Data (GMT)
• 13:30 US Jan Real Earnings (MoM) 0.1% previous
• 13:30 US Jan CPI Index, s.a 261.56 previous
• 13:30 US Jan CPI, n.s.a (MoM) 0.09% previous
• 13:30 US Jan Core CPI Index 269.94 previous
• 13:30 US Jan Core CPI (MoM) 0.2% forecast, 0.1% previous
• 13:30 US Jan Core CPI (YoY) 1.5% forecast,1.6% previous
• 13:30 US Jan CPI (MoM) 0.3% forecast 0.4% previous
• 13:30 US Wholesale Inventories (MoM) 0.1% , 0.0% previous
• 15:30 US Crude Oil Inventories 0.985M forecast, -0.994M previous
• 17:30 US Federal Budget-430.0 previous
Looking Ahead - Economic events and other releases (GMT)
•16:30 Canada BoC Gov Council Member Lane Speaks
•17:00 UK BoE Gov Bailey Speaks
•19:00 US Fed Chair Powell Speaks
Fx Beat
EUR/USD: The euro was little changed against dollar on Wednesday as investors looked to US inflation data and a speech by Federal Reserve Chair Jerome Powell for clues on the pace of an economic rebound. Data at (1330 GMT) is expected to show U.S. consumer prices rose 0.3% in January following a 0.4% increase in December. But that is unlikely to have an impact on the Fed, which has signaled it would tolerate higher prices “for some time” as the economy climbs out of a coronavirus-driven recession. Powell will be speaking about the state of the U.S. labor market in a webinar at 2 p.m. ET (1900 GMT).The euro was last trading up 0.3% at $1.0796 . Immediate resistance can be seen at 1.2177 (61.8%), an upside break can trigger rise towards 1.2196 (Ichimoku cloud base).On the downside, immediate support is seen at 1.2109 (50%fib), a break below could take the pair towards 1.2043 (38.2%fib).
GBP/USD: Sterling edged up against the dollar on Wednesday, breaking above $1.38 and touching its highest level in almost three years as Britain’s speedy coronavirus inoculation programme supports the currency. The pound has gained broadly in the past few weeks amid optimism over Britain’s rapid COVID-19 vaccination roll-out, while its Brexit deal with the European Union has also removed some pressure from the currency.Sterling was up 0.3% to $1.3858 against the dollar as of 12:30 GMT, hitting its highest level since April 27, 2018.Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CHF: The dollar held near 10-day low against the Swiss franc on Wednesday, as demand for greenback ebbed. Traditionally viewed as a safe-haven, the dollar has sunk against major peers as optimism over monetary and fiscal support, robust corporate earnings and coronavirus vaccines bolstered risk sentiment.U.S. consumer price inflation numbers for January are due at 1330 GMT, and along with a speech by Federal Reserve Chair Jerome Powell will be key events for the future direction of the dollar. At (GMT 12:29), greenback dipped 0.07% versus the Swiss franc to 0.8915. Immediate resistance can be seen at 0.8934 (38.2%fib), an upside break can trigger rise towards 0.8972 (23.6%fib).On the downside, immediate support is seen at 0.8900 (50%fib), a break below could take the pair towards 0.8867(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as optimism on the global outlook supported the U.S. dollar. Expectations of a $1.9 trillion U.S. stimulus rose as an economic recovery appeared to be slowing down in the country, while most global central banks have indicated they will maintain loose policy to tackle the COVID-19 pandemic's impact. Strong resistance can be seen at 104.88 (38.2%fib), an upside break can trigger rise towards 105.45(23.6%fib ).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European shares rose on Wednesday as upbeat earnings reports from firms including SocGen helped boost optimism around a broader economic rebound, while shipping company Maersk slumped after its quarterly profit missed estimates.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading higher at 0.05 percent, Germany's Dax was down by 0.08 percent, France’s CAC was last down by 0.06 percent.
Commodities Rrecap
Gold rose on Wednesday, hovering near a one-week peak hit in the previous session, as a weaker dollar and rising hopes of a U.S. stimulus package elevated bullion's appeal as a hedge against inflation.
Spot gold rose 0.3% to $1,842.51 per ounce by 0811 GMT. Prices hit their highest since Feb. 2 at $1,848.40 on Tuesday. U.S. gold futures gained 0.5% to $1,846.60.
Oil extended its rally for a ninth day on Wednesday, its longest winning streak in two years, supported by producer supply cuts and hopes that vaccine rollouts will drive a recovery in demand.
Brent crude was up 39 cents, or 0.6%, at $61.48 by 1027 GMT after touching a 13-month high of $61.49 earlier in the session. U.S. crude was up 27 cents, or 0.5%, to $58.63 and touched $58.69, also a 13-month high.
