Market Roundup
•UK Jan Public Sector Net Borrowing -17.62B, -18.40B forecast,6.85B previous
•UK Jan Public Sector Net Cash Requirement -23.344B, 12.863B previous
•Belgium Feb Consumer Confidence -5 ,-2 previous
•UK Feb CBI Industrial Trends Orders -20,-27 forecast,-30 previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Jan New Housing Price Index (MoM) 0.1% forecast,0.0% previous
•12:55 Redbook (YoY) 2.5% previous
•EU Feb Consumer Confidence -16.0 forecast,-16.1 previous
Looking Ahead Events And Other Releases(GMT)
•13:30 Canada BoC Deputy Governor Gravelle Speaks
•15:10 ECB Supervisory Board Member Tuominen Speaks
•18:00 US FOMC Member Bowman Speaks
•19:00 US FOMC Meeting Minutes
Currency Forecast
EUR/USD: The euro edged lower against dollar on Wednesday as investors awaited the minutes of the Federal Reserve's monetary policy meeting later in the day for directional cues. Also, Fed officials Raphael Bostic and Michelle Bowman are set to speak later in the day, with investors looking for additional clues on when the U.S. central bank will start cutting interest rates. Traders are now pricing in 94 basis points (bps) worth of easing by the Fed this year.A slim majority of economists polled by Reuters expects the Fed to cut interest rates in June. Immediate resistance can be seen at 1.0819(Daily high), an upside break can trigger rise towards 1.0848 (23.6%fib).On the downside, immediate support is seen at 1.0771(38.2%fib), a break below could take the pair towards 1.0705 (50%fib).
GBP/USD: The pound gained on Wednesday as dollar dipped ahead of U.S. Federal Reserve's last meeting for clues on its policy outlook. BoE's Bailey said on Tuesday he was comfortable with investors betting on interest rate cuts this year, but pointed to signs that Britain's economy was picking up after falling into recession in late 2023. Atlanta Fed President Raphael Bostic speaks later on Wednesday, as does Bank of England rate-setter Swati Dhingra. Sterling gained 0.02% to $1.2622, having touched a one-week high of $1.2668 in the previous session, due mostly due to broad dollar weakness. Immediate resistance can be seen at 1.2631(Feb 19th high), an upside break can trigger rise towards 1.2659 (23.6%fib).On the downside, immediate support is seen at 1.2567(38.2%fib), a break below could take the pair towards 1.2497(50%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as investors awaited minutes of the Federal Reserve's January meeting. The minutes from the Federal Open Market Committee's most recent policy meeting will not capture the latest data on inflation, which has shown enough of an uptick to prompt investors to rethink when U.S. rates might start to fall.A slim majority of economists polled expects the Fed to cut interest rates in June.Markets expect 92 basis points of cuts from the Fed this year, closer to Fed's own projection of 75 bps of easing and sharply below the 150 bps of cuts priced in by traders at the start of the year. Immediate resistance can be seen at 0.8846(23.6%fib), an upside break can trigger rise towards 0.8874(Higher BB).On the downside, immediate support is seen at 0.8793(Feb 19th low), a break below could take the pair towards 0.8749(38.2%fib).
USD/JPY: The dollar was little changed against yen on Wednesday Federal Reserve's latest policy meeting for cues on timing of interest rate cuts. The minutes of the Federal Reserve's January policy meeting, due at 1900 GMT, could help gauge the timing of the widely-expected interest rate cuts.The dollar edged up against a basket of currencies, rising against the euro, the yen and sterling, which all lost around 0.1% on the day. The changing rates outlook has boosted the dollar and kept the yen, which is extremely sensitive to U.S. rates, near three-month lows.The yen was at 150.07 per dollar, anchored around the key 150 level for the last few days, which is keeping traders on the watch for intervention from Japanese officials. Strong resistance can be seen at 150.78 (Higher BB) an upside break can trigger rise towards 151.56(23.6%fib).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 stocks were mixed on Wednesday as investors awaited FOMC meeting minutes due later in the day for cues on timing of interest rate cuts.
At (GMT 13:15 ),UK's benchmark FTSE 100 was last trading down at 0.97 percent, Germany's Dax was up by 0.23 percent, France’s CAC finished was up by 0.07 percent.
Commodities Recap
Gold prices rose on Wednesday as investors looked to the minutes of the Federal Reserve's latest policy meeting for cues on timing of interest rate cuts, while safe-haven demand buoyed by escalating conflict in the Middle East also lent support.
Spot gold was up 0.2% at $2,027.96 per ounce as of 1012 GMT. Prices had climbed to their highest since Feb. 9 earlier in the session.
Oil prices extended losses from the previous session on Wednesday, as growing expectations that cuts to U.S. interest rates will take longer than thought outweighed ongoing concerns over attacks on shipping in the Red Sea.
Brent crude futures fell by 41 cents, or 0.5%, to $81.93 a barrel by 1223 GMT, while U.S. West Texas Intermediate crude futures (WTI) were lower by 39 cents, or 0.51%, at $76.65.
