Market Roundup
•Swiss Jan Trade Balance 5.054B, 2.881B previous
•Belgium Feb Consumer Confidence -9, -10 previous
•Spanish 10-Year Obligacion Auction0.271%, 0.162% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Jan Housing Starts (MoM) 5.8% previous
•13:30 Canada Jan New Housing Price Index (MoM) 0.3% previous
•13:30 Canada ADP Nonfarm Employment Change-28.8K previous
•13:30 US Import Price Index (YoY) -0.3% previous
•13:30 US Export Price Index (YoY) 0.2% previous
•13:30 US Initial Jobless Claims 765K forecast, 793K previous
•13:30 US Jobless Claims 4-Week Avg 823.00K previous
•13:30 US Continuing Jobless Claims 4,413K forecast, 4,545K previous
•13:30 US Philly Feb Fed CAPEX Index 35.40 previous
•13:30 US Philly Feb Fed Employment 22.5 previous
•13:30 US Feb Philly Fed Prices Paid 45.40 previous
•13:30 US Jan Export Price Index (MoM) 0.7% forecast, 1.1% previous
•13:30 US Jan Import Price Index (MoM) 1.0%forecast, 0.9% previous
•13:30 US Jan Building Permits 1.678M forecast, 1.704M previous
•13:30 US Jan Housing Starts 1.658M, 1.669M previous
•13:30 US Jan Building Permits (MoM) 4.2% previous
•13:30 US Feb Philadelphia Fed Manufacturing Index 20.0, 26.5 previous
Looking Ahead - Economic events and other releases (GMT)
•US FOMC Member Bostic Speaks
Fx Beat
EUR/USD: The euro initially rose against dollar on Thursday but retreated slightly as investors tempered optimism around a vaccine-led global economic recovery. Data on Wednesday showed U.S. retail sales rebounded sharply in January after households received additional pandemic relief money from the government, suggesting a pick-up in economic activity after the restraints imposed by a fresh wave of COVID-19 infections late last year. The euro was little changed at $1.2078 after sliding 0.5% overnight, the most in two weeks. Immediate resistance can be seen at 1.2084(55EMA%), an upside break can trigger rise towards 1.2106 (50%fib).On the downside, immediate support is seen at 1.2022(38.2%fib), a break below could take the pair towards 1.1937(23.6%fib).
GBP/USD: Sterling rose higher against the dollar on Thursday, reaching its highest level since April 2018, amid expectations of a faster economic recovery in Britain thanks to its successful COVID-19 vaccinations. The British currency has risen more than 2% against the euro in February as the aggressive rollout of the COVID-19 vaccination programme in the United Kingdom raised expectations its economy will recover faster than that of its European peers. Immediate resistance can be seen at 1.3964(Daily high), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3919(23.6%fib), a break below could take the pair towards 1.3801 (38.2%fib).
USD/CHF: The dollar retreated against the Swiss franc on Thursday as a recent rise in U.S. treasury yields and upbeat data in the world’s largest economy sapped risk demand and prompted some profit-taking on the recent dollar rally. The U.S. Federal Reserve reiterated its pledge to keep interest rates near zero until inflation is "on track to moderately exceed" its 2% target and the job market approaches maximum employment. Immediate resistance can be seen at 0.8991 (50%fib), an upside break can trigger rise towards 0.9020(38.2%fib).On the downside, immediate support is seen at 0.8959(61.8%fib), a break below could take the pair towards 0.8947 (5EMA).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday as investors avoided making new bets on dollar ahead of data that is expected to show a steady recovery in the labor market.The Labor Department’s report at 8:30 a.m. ET is expected to show that the number of Americans filing new applications for unemployment benefits decreased to 765,000 last week as a drop in COVID-19 cases allowed more businesses to reopen. The dollar was almost flat at 105.875 yen, following a pullback Wednesday after reaching a five-month high of 106.225. Strong resistance can be seen at 105.85 (38.2%fib), an upside break can trigger rise towards 106.16(38.2%fib).On the downside, immediate support is seen at 105.54(61.8%fib), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares inched higher on Thursday as mining stocks tracked a jump in commodity prices and helped outweigh the impact from a clutch of disappointing earnings reports from companies including Airbus and Orange.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading down at 0.64 percent, Germany's Dax was up by 0.18 percent, France’s CAC was last down by 0.23 percent.
Commodities Recap
Gold prices rebounded from a 2-1/2-month low on Thursday, as the non-yielding precious metal found support from easing U.S. Treasury yields and a weaker U.S. dollar.
Spot gold rose 0.6% to $1,786.81 per ounce by 0927 GMT, having dropped to its lowest since Nov. 30 at $1,768.60 on Wednesday. U.S. gold futures advanced 0.8% to $1,786.20.
Oil prices erased early gains after Brent hit a new 13-month high above $65 a barrel on Thursday, as concerns that a rare cold snap in Texas could disrupt U.S. crude output for days or even weeks prompted fresh buying.
Brent crude was down 3 cents at $64.31 a barrel at 1046 GMT, after rising to $65.52 earlier in the session, its highest since Jan. 20, 2020.
U.S. West Texas Intermediate (WTI) crude futures eased 4 cents to $61.10 a barrel, after earlier rising to $62.26, the highest since Jan. 8, 2020.
