Market Roundup
• German Jan Retail Sales (MoM) -4.5%, -0.3% forecast, -9.6% previous
• German Jan Retail Sales (YoY) -8.7%,1.3% forecast, 1.5% previous
•German Feb Unemployment Change 9K, -13K forecast, -41K previous
•German Feb Unemployment 2.752M, 2.729M previous
•German Feb Unemployment Rate 6.0%,6.0% forecast, 6.0% previous
•EU Feb CPI (YoY) 0.9%,0.9% forecast, 0.9% previous
•EU Feb CPI, n.s.a 105.54, 105.32 previous
Looking Ahead - Economic Data (GMT)
•13:30 Canada GDP (QoQ) (Q4) 8.9% previous
•13:30 Canada GDP (YoY) (Q4) -5.16% previous
•13:30 Canada GDP Annualized (QoQ) (Q4) 7.5% forecast, 40.5% previous
•13:30 Canada GDP Implicit Price (QoQ) (Q4) 2.60% previous
•13:55 US Redbook (YoY) 2.9% previous
•13:55 US Redbook (MoM) -0.8% previous
•14:30 New Zealand GlobalDairyTrade Price Index 3.0% previous
•14:45 US Feb ISM NY Business Conditions 51.2% previous
•14:45 US Feb ISM-New York Index 818.2 previous
•15:00 US IBD/TIPP Economic Optimism 51.9 previous
Looking Ahead - Economic events and other releases (GMT)
•US FOMC Member Brainard Speaks
•US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as comments from European Central Bank officals over rises in bond yields weighed on Euro. President Christine Lagarde said the ECB will prevent a premature increase in borrowing costs for firms and households. Policymaker Francois Villeroy de Galhau was even more explicit, saying some of the recent rises in bond yields were unwarranted and that the ECB must push back using the flexibility embedded in its bond purchase programme. Traders were quick to sense the marked difference in tone between the ECB and the Federal Reserve. Immediate resistance can be seen at 1.2051 (Daily high), an upside break can trigger rise towards 1.2101(50%fib).On the downside, immediate support is seen at 1.1989 (Lower BB), a break below could take the pair towards 1.1924 (23.6%fib).
GBP/USD: Sterling declined against the dollar on Tuesday as the strengthening U.S. currency put a brake on gains that had taken the pound to 2-1/2-year highs last week. The pound has so far been the best performing G10 currency in 2021, up 1.65% against the dollar, although its lead over other currencies is diminishing. 12:30 GMT, sterling was 0.2% lower at $1.3922, earlier hitting a 2-1/2 week low of $1.3867.Immediate resistance can be seen at 1.4042 (23.6%fib), an upside break can trigger rise towards 1.4100 (Psychological level).On the downside, immediate support is seen at 1.3912 (38.2%fib), a break below could take the pair towards 1.3810(50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as bets of a faster economic recovery in the United States and expectations that the U.S. Federal Reserve will show greater tolerance of higher bond yields than other central banks supported greenback. The dollar index rose 0.2% to 91.176, hitting a three-week high to edge closer to its February peak of 91.600. Immediate resistance can be seen at 0.9195 (Daily high), an upside break can trigger rise towards 0.9219(23.6%fib).On the downside, immediate support is seen at 0.9164 (38.2%fib), a break below could take the pair towards 0.9122 (50%fib).
USD/JPY: The dollar rose against the Japanese yen on Tuesday as optimism over the economic stimulus and promising updates on COVID-19 vaccines lifted demand for dollar. The U.S. House of Representatives approved President Joe Biden’s $1.9 trillion coronavirus relief bill early on Saturday, sending it to the Senate for consideration. Later in the week, investors will focus on ISM’s service sector survey as well as the monthly U.S. jobs report to ascertain the economic health. Strong resistance can be seen at 107.06 (23.6%fib), an upside break can trigger rise towards 107.56 (20th July 2020 High).On the downside, immediate support is seen at 106.52 (38.2%fib), a break below could take the pair towards 106.15 (50%fib).
Equities Recap
European shares paused on Tuesday as investors sought to guess the bond market’s next move, while weak German retail sales were a stark reminder of continued COVID-19 fallout on the region’s biggest economy.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 0.71 percent, Germany's Dax was up by 0.51 percent, France’s CAC finished was up by 0.61 percent.
Commodities Recap
Gold prices edged higher on Tuesday as a retreat in U.S. Treasury yields and optimism over the $1.9 trillion coronavirus relief bill lifted the allure of the non-yielding metal.
Spot gold was up 0.2% at $1,726.84 per ounce by 0046 GMT. U.S. gold futures added 0.1% to $1,723.80.
Oil prices slipped on Tuesday as expectations that top producers would agree to raise oil supply in a meeting this week weighed on sentiment, already hit by concerns over slowing Chinese demand.
Brent crude dropped 14 cents or 0.2% to $63.55 a barrel by 1145 GMT, after losing 1.1% the previous day. U.S. West Texas Intermediate (WTI) crude fell 2 cents to $60.62 a barrel, having lost 1.4% on Monday.
