Posted at 17 March 2021 / Categories Market Roundups
Market Roundup
•Italian Feb Car Registration (YoY) -12.3%,-14.0% previous
•Italian Feb Car Registration (MoM) 6.7%, 12.2% previous
•UK Feb Car Registration (YoY) -35.5%,-39.5% previous
• UK Feb Car Registration (MoM) -43.1%, -32.0% previous
• French Feb Car Registration (YoY )-20.9%, -5.8% previous
•German Feb Car Registration (YoY) -19.0%, -31.1% previous
•EU Feb Core CPI (YoY) 1.1%,1.1%forecast, 1.1% previous
•EU Feb Core CPI (MoM) 0.1%,0.1% forecast, 0.1% previous
•EU Feb CPI (YoY ) 0.9%, 0.9% forecast,0.9% previous
•EU Feb CPI (MoM) 0.2%,0.2% forecast, 0.2% previous
•EU Feb CPI ex Tobacco (MoM) 0.2%, 0.2% previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Trimmed CPI (YoY) 1.8% previous
•12:30 Canada Median CPI (YoY) 1.4% previous
•12:30 Canada Common CPI (YoY) 1.3% previous
•12:30 US Feb Building Permits (MoM) 10.7% previous
•12:30 US CPI (MoM) 0.7% forecast, 0.6% previous
•12:30 US Feb Building Permits 1.750M forecast, 1.886M previous
•12:30 US Feb Housing Starts 1.560M forecast, 1.580M previous
•12:30 US Feb Housing Starts (MoM) -6.0% previous
•12:30 US Feb CPI (YoY) 1.3% forecast, 1.0% previous
•12:30 US Feb Core CPI (YoY) 1.4% forecast, 1.6% previous
•12:30 US Core CPI (MoM) 0.5% previous
•14:30 US Crude Oil Inventories2.964M forecast, 13.798M previous
•14:30 US Gasoline Production 0.704M previous
•18:00 US Fed Interest Rate Decision0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 USFOMC Statement
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday as caution set in ahead of the U.S. Federal Reserve’s meeting later on Wednesday. Markets will be focusing on the Fed’s so-called “dot plot”, which shows the outlook for its policy rate. While some economists expect this will show one rate hike for 2023 versus none in December, an unchanged median dot for that year could be interpreted as Fed push-back against the recent bond market sell-off. The euro was down 0.07% at $1.1893 after declining in the past three sessions. Immediate resistance can be seen at 1.1947(38.2%fib), an upside break can trigger rise towards 1.1968 (14DMA).On the downside, immediate support is seen at 1.1886(Daily low), a break below could take the pair towards 1.1839 (23.6%fib).
GBP/USD: Sterling held firm against both the euro and the dollar as Britain’s dismissal of safety concerns over the AstraZeneca vaccine gave the currency some berth to recovery from the previous day’s falls.A number of European countries, including Germany, France and Italy, have suspended AstraZeneca shots following reports of blood coagulation disorders in some recipients. Their safety concerns prompted a selloff in the pound on Tuesday as Britain is continuing to administer the vaccine. By 11:30 GMT on Wednesday, sterling was flat against the dollar at $1.3898. Immediate resistance can be seen at 1.3931 ( 23.6%fib), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3819(38.2%fib), a break below could take the pair towards 1.3781(Lower BB).
USD/CHF: The dollar rose against the Swiss franc on Wednesday ahead of a Federal Reserve policy meeting which could shed some light on the timing of future rate hikes and the central bank’s tolerance for rising yields.With Fed policymakers expected to forecast the fastest U.S. economic growth in decades in the wake of COVID-19 vaccinations and $1.9 trillion in new stimulus, market participants will be focused on clues that the central bank could start raising rates in 2023. Immediate resistance can be seen at 0.9275 (38.2%fib), an upside break can trigger rise towards 0.9323 (23.6%fib).On the downside, immediate support is seen at 0.9234 (38.2% fib), a break below could take the pair towards 0.9200(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investors awaited the outcome of a U.S. Federal Reserve policy meeting. With the U.S. economy picking up steam, investors will be watching for any indications that the Fed could start raising rates earlier than it has previously indicated, which could support a stronger greenback. The greenback firmed 0.15% against the yen to 109.14 yen, hovering near nine-month highs hit this week. 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 ticked lower on Wednesday as most investors stayed on the sidelines ahead of the U.S. Federal Reserve’s policy decision, while German carmaker BMW jumped after forecasting significant profit growth in 2021.
At (GMT 12:30),UK's benchmark FTSE 100 was last trading down at 0.59 percent, Germany's Dax was down by 0.03 percent, France’s CAC was last down by 0.25percent.
Commodities Recap
Gold prices edged up on Wednesday to hover below a two-week high hit in the last session, as markets waited for the conclusion of the U.S. Federal Reserve's two-day policy meeting for its outlook on the economy and interest rates.
Spot gold was up 0.3% at $1,736.23 per ounce by 0714 GMT, having touched a level unseen since March 1 at $1,740.90 on Tuesday. U.S. gold futures were up 0.3% at $1,735.20.
Oil slipped for a fourth day on Wednesday as concerns about weaker demand in Europe outweighed an industry report that showed U.S. crude stockpiles unexpectedly fell last week.
Brent crude fell 66 cents, or 1%, to $67.73 a barrel by 1031 GMT. U.S. West Texas Intermediate (WTI) crude dropped 42 cents, or 0.7%, to $64.38.