Market Roundup
• Swiss Feb CPI (MoM) ) 0.2%, 0.4% forecast, 0.1% previous
• Swiss Feb CPI (YoY) -0.5%,-0.3% forecast, -0.5% previous
•French Jan Government Budget Balance -21.9B, -178.1B previous
•Italian Feb Composite PMI 51.4, 49.1 forecast, 47.2 previous
•French Feb Services PMI 45.6, 43.6 forecast, 47.3 previous
•German Feb Services PMI 45.7 , 45.9 forecast, 46.7 previous
•German Feb Composite PMI 51.1, 51.3 forecast, 50.8 previous
•EU Feb Services PMI 45.7, 44.7 forecast, 45.4 previous
•EU Feb Markit Composite PMI 48.8, 48.1 forecast, 47.8 previous
•UK Feb Composite PMI 49.6, 49.8 forecast, 41.2 previous
•UK Feb Services PMI 49.5, 49.7 forecast, 39.5 previous
•EU Jan PPI (YoY) 0.0%, -0.4% forecast, -1.1% previous
Looking Ahead - Economic data (GMT)
•13:15 Canada Feb ADP Nonfarm Employment Change 177K forecast, 174K previous
•13:30 US Jan Building Permits (MoM) 3.5% forecast,-4.1% previous
•13:30 US Feb Services PMI 58.9 forecast, 58.3 previous
•14:45 US Feb Markit Composite PMI 58.8 forecast, 58.7 previous
•15:00 US Feb ISM Non-Manufacturing Employment 55.2 previous
•15:00 US ISM Non-Manufacturing New Orders 61.8 previous
•15:00 US Feb ISM Non-Manufacturing Prices 64.2 previous
•15:00 US ISM Non-Manufacturing PMI 58.7 forecast, 58.7 previous
•15:30 US Crude Oil Inventories -0.928M,1.285M previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US Chicago Fed President Evans Speaks
•17:00 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday as market participants focused on comments from European Central Bank policymakers. European Central Bank policymaker Fabio Panetta said that the ECB should “not hesitate” to increase the volume of its bond-buying to rein in yields.Striking a dovish tone, Panetta argued that the risk of providing too little policy support far outweighed the risk of doing too much. Market participants are waiting for further hints from ECB policymakers who are due to speak today, before the quiet period, in which they will avoid making comments that could influence expectations before its monetary policy meeting on March 11. Immediate resistance can be seen at 1.2110(50%fib), an upside break can trigger rise towards 1.2184(61.8%fib).On the downside, immediate support is seen at 1.2029 (Lower BB), a break below could take the pair towards 1.1989(2nd March low).
GBP/USD: Sterling steadied against the dollar on Wednesday and gained against the euro before the announcement of what is expected to be an expansive budget designed to prop up the economy as Britain prepares for a reopening from lockdowns. Sterling is the best performing G10 currency this year, up about 2% versus the dollar as investors bet the speed of Britain’s vaccination programme will enable a faster reopening of its economy. The pound was 0.1% higher at $1.39760 by 1230 GMT, after falling to its lowest in 2-1/2 weeks on Tuesday. It was 0.2% higher against the euro at 86.41 pence. Immediate resistance can be seen at 1.4000(Psychological level), an upside break can trigger rise towards 1.4042 (23.6%fib).On the downside, immediate support is seen at 1.3915 (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 Wednesday as a retreat in U.S. Treasury yields fuelled demand for riskier assets. The yield on 10-year Treasury notes stood at 1.41%, down from last week’s one-year high of 1.61%, before a slew of U.S. economic data set for release later this week. Bond yields rise when prices fall.Surging yields across the world, fuelled by moves in Treasuries, have buffeted financial markets in recent weeks. Investors were betting a strong U.S. economic rebound amid ultra-loose monetary conditions would fuel inflation. Immediate resistance can be seen at 0.9197 (23.6%fib), an upside break can trigger rise towards 0.9243(Sep 30th high 2020).On the downside, immediate support is seen at 0.9134(38.2%fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as a retreat in U.S. Treasury yields fuelled demand for riskier assets. The yield on 10-year Treasury notes stood at 1.41%, down from last week’s one-year high of 1.61%, before a slew of U.S. economic data set for release later this week. Bond yields rise when their prices fall. Surging yields across the world, fuelled by moves in Treasuries, have buffeted financial markets in recent weeks. Investors were betting a strong U.S. economic rebound amid ultra-loose monetary conditions would fuel inflation. Still, optimism that more imminent U.S. stimulus will energise the global economic recovery. Immediate resistance can be seen at 107.06 (38.2%fib), an upside break can trigger rise towards 107.54 (23.6%fib).On the downside, immediate support is seen at 106.52 (5DMA), a break below could take the pair towards 106.29 (61.8%fib).
Equities Recap
European stocks rose for a third straight session on Wednesday on hopes of a rebound in economic growth as Germany looked set to relax its coronavirus curbs, while investors awaited details on UK’s new budget.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 73 percent, Germany's Dax was up by 0.71 percent, France’s CAC finished was up by 0.51 percent.
Commodities Recap
Gold prices slipped on Wednesday, falling for a sixth session in seven, as expectations that U.S. Treasury yields would move higher on further economic stimulus kept non-yielding bullion under pressure.
Spot gold eased 0.2% to $1,734.26 per ounce by 0743 GMT, having dropped to its lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures dipped 0.1% to $1,731.70.
Oil prices rose on Wednesday, boosted by expectations that OPEC+ producers might decide against increasing output when they meet this week, while signs of progress in the coronavirus vaccine rollout in the United States gave further support.
Brent oil was up $1.28, or 2%, to $63.98 a barrel by 1050 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.17, or 2%, to $60.92 a barrel.
