Posted at 17 March 2021 / Categories Market Roundups
Market Roundup
•Canada Trimmed CPI (YoY) 1.9%, 1.8% previous
•Canada Median CPI (YoY) 2.0% ,1.4% previous
•Canada Common CPI (YoY) 1.3%,1.3% previous
•US Feb Building Permits (MoM) -10.8% ,10.7% previous
•Canada CPI (MoM) 0.5%, 0.7% forecast, 0.6% previous
•US Feb Building Permits 1.682M 1.750M forecast, 1.886M previous
•US Feb Housing Starts 1.421M, 1.560M forecast, 1.580M previous
•US Feb Housing Starts (MoM) -10.3%, -6.0% previous
•Canada Feb CPI (YoY) 1.1% 1.3% forecast, 1.0% previous
• Canada Feb Core CPI (YoY) 1.2%, 1.4% forecast, 1.6% previous
•Canada Core CPI (MoM) 0.3%,0.5% previous
•US Crude Oil Inventories 2.396M ,2.964M forecast, 13.798M previous
•US Gasoline Production 0.472M ,0.704M previous
•US Fed Interest Rate Decision0.25, 0.25% forecast, 0.25% previous
Looking ahead economic data (GMT)
•21:30 New Zealand GDP Expenditure (QoQ) (Q4) -0.2% forecast, 15.6% previous
•21:30 New Zealand GDP Annual Average (Q4) -2.6% forecast, -2.2% previous
•21:30 New Zealand GDP (QoQ) (Q4) 0.1% forecast, 14.0% previous
•23:50 Japan Foreign Bonds Buying 98.9B previous
•00:30 Australia Feb Employment Change 30.0K forecast, 29.1K previous
•00:30 Australia Feb Unemployment Rate 6.3% forecast, 6.4% previous
•00:30 Australia Full Employment Change 59.0K previous
Looking ahead events and other releases (GMT)
•01:05 Australia RBA Assist Gov Kent Speaks
Currency summaries
EUR/USD: The euro strengthened against dollar on Wednesday after the Federal Reserve projected a bigger jump in economic growth with no interest rate hikes through 2023. The U.S. central bank projected U.S. economic growth of 6.5% this year as the COVID-19 crisis winds down, up from the 4.2% projection at its December meeting. It also repeated its pledge to keep its target interest rate near zero for years to come. The euro rose 0.7% against the dollar to $1.1978. Immediate resistance can be seen at 1.1988 (38.2%fib), an upside break can trigger rise towards 1.2040 (30DMA).On the downside, immediate support is seen at 1.1879(23.6%fib), a break below could take the pair towards 1.1829 (March 9th low).
GBP/USD: Sterling strengthened against the dollar after the Fed repeated its pledge to keep its target interest rate near zero for years to come even as it projected a rapid jump in U.S. economic growth and inflation this year. In a statement after the Fed held interest rates steady, the U.S. central bank said it expects a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down, and vowed to keep its target interest rate near zero for years to come. The dollar fell after the U.S. central bank projected a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down . Immediate resistance can be seen at 1.3994 ( March 11th high), an upside break can trigger rise towards 1.4022(23.%fib).On the downside, immediate support is seen at 1.3967(30DMA), a break below could take the pair towards 1.3992(38.2%fib).
USD/CAD: The Canadian dollar rose to a three-year high against its U.S. counterpart on Wednesday, after a dovish forecast by the Federal Reserve for the path of interest rate hikes pressured the greenback and domestic data showed inflation edging higher. The price of oil, one of Canada's major exports, slipped for a fourth day, weighed down by expectations of weaker demand in Europe and by rising U.S. crude inventories. U.S. crude prices settled 0.3% lower at $64.60 a barrel. The Canadian dollar was trading 0.3% higher at 1.2410 to the greenback, or 80.58 U.S. cents, its strongest level since February 2018. Immediate resistance can be seen at 1.2441 (5 DMA), an upside break can trigger rise towards 1.2541 (38.2%fib).On the downside, immediate support is seen at 1.2393 (Saily low), a break below could take the pair towards 1.2350 (23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Wednesday after the Federal Reserve said it does not expect to raise interest rates through all of 2023, contrary to market expectations. In a statement after the Fed held interest rates steady, the U.S. central bank said it expects a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down, and vowed to keep its target interest rate near zero for years to come. The dollar against the yen fell 0.1% to 108.87 yen. Strong resistance can be seen at 109.43 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.78 (5DMA), a break below could take the pair towards 108.53(38.2%fib).
Equities Recap
European stocks dropped on Wednesday, with most investors on the sidelines ahead of the U.S. Federal Reserve’s policy decision, while BMW shares jumped after the German carmaker forecast significant profit growth in 2021.
UK's benchmark FTSE 100 closed down by 0.60 percent, Germany's Dax ended up by 0.27 percent, France’s CAC finished the day down by 0.01percent.
The S&P 500 and Dow Jones Industrial Average closed at record highs on Wednesday after the Fed predicted a fast economic recovery from the coronavirus pandemic and said it would maintain its interest rate at close to zero.
Dow Jones closed down by 0.58 percent, S&P 500 closed up by 0.29 percent, Nasdaq settled up by 40 % percent.
Commodities Recap
Gold prices rose over 1% on Wednesday after the U.S. Federal Reserve reiterated its accommodative monetary policy which also weakened the dollar.
Spot gold rose 0.8% to $1,743.93 per ounce by 1642 EDT, after gaining as much as 1.2%.U.S. gold futures GCv1 settled 0.2% down at $1,727.10.
Oil slipped for a fourth day on Wednesday, weighed down by expectations of weaker demand in Europe and by rising U.S. crude inventories.
Brent crude settled 39 cents, or 0.6% lower, at $68 a barrel while U.S. West Texas Intermediate (WTI) crude dropped 20 cents, or 0.3%, to end at $63.68. Both contracts fell by more than $1 during the session