Posted at 12 February 2025 / Categories Market Roundups
MarketRoundup
•Japan M2 Money Stock (YoY) 1.3%,1.3%forecast, 1.3% previous
•Japan M3 Money Supply (Jan) 2,205.2B,2,200.4B
Looking Ahead Economic Data(GMT)
•09:00 Italian Industrial Production (MoM) (Dec) -0.1% forecast, 0.3% previous
•09:00 Italian Industrial Production (YoY) (Dec) -1.5% previous
•10:10 Italian 12-Month BOT Auction 2.517% previous
•11:00 EU Portuguese CPI (YoY) (Jan) 2.5% forecast, 2.5% previous
•11:00 EU Portuguese CPI (MoM) (Jan) -0.5% forecast ,0.5% previous
Looking Ahead Events And Other Releases(GMT)
•No Data Ahead
Currency Forecast
EUR/USD: The euro edged higher on Wednesday as dollar firmed as traders waited on U.S. inflation data and news on the broader trade front. Economists polled expect core CPI to increase slightly to 0.3% for January and businesses have already started laying the groundwork for future tariff-driven price rises.A rate cut in the U.S. is not fully priced until September and only 35 basis points of easing are priced in for this year. Overnight the European Union, Mexico and Canada condemned Donald Trump's decision to impose 25% tariffs on steel and aluminium imports and the European Commission head Ursula von der Leyen said there would be counter-measures. Immediate resistance can be seen at 1.0328(50%fib), an upside break can trigger rise towards 1.0375(61.8%fib).On the downside, immediate support is seen at 1.0325(38.2%fib), a break below could take the pair towards 1.222(23.6%fib).
GBP/USD: Sterling edged higher on Wednesday as investors assessed the latest U.S. tariff salvo along with Federal Reserve Chair Jerome Powell's signal of a patient path for rate cuts.Financial markets were largely biding time ahead of a reading on U.S. consumer prices due later in the day which could guide the outlook for monetary policy there.Investors also had their eye on any tariff developments, with advisers to U.S. President Donald Trump said to be finalising plans for reciprocal tariffs that he has vowed to impose on every country that charges duties on U.S. imports. Sterling last fetched $1.244. Immediate resistance can be seen at 1.2395(50%fib), an upside break can trigger rise towards 1.2441(61.8%fib).On the downside, immediate support is seen at 1.2345(38.2%fib), a break below could take the pair towards 1.2284(23.6%fib)
AUD/USD: The Australian dollar edged lower on Wednesday as US dollar gained some traction ahead of key U.S. inflation report. Much is riding on a U.S. consumer price report due later in the day where forecasts are centered on a 0.3% increase in the measure of core inflation. Federal Reserve Chair Jerome Powell said overnight that the central bank is in no rush to cut rates. Traders are focusing RBA meetings next week. The Reserve Bank of Australia is expected to cut its cash rate by a quarter point on Tuesday, marking its first rate reduction since late 2020. However, most economists anticipate a hawkish tone due to the strong labor market. At GMT 05:34, The Australian dollar was last trading up 0.02% to $0.6273 .Immediate resistance can be seen at 0.6321(Higher BB), an upside break can trigger rise towards 0.6381(50%fib).On the downside, immediate support is seen at 0.6249(38.2%fib), a break below could take the pair towards 0.6183(Lower BB).
USD/JPY: The U.S. dollar rose higher on Wednesday as dollar gained some traction after Federal Reserve Chair Jerome Powell's hawkish comment cemented views of slower rate cuts this year, while investors awaited a key U.S. inflation report. Powell said on Tuesday the economy is in a good place and the Fed isn't rushing to cut interest rates further, but is prepared to do it if inflation drops or the job market weakens. The U.S. Consumer Price Index (CPI) report is due at 1330 GMT later in the day. The CPI likely rose 0.3% in January, following a 0.4% gain in the prior month.Investors are also closely watching for the Producer Price Index (PPI) data due on Thursday. Immediate resistance can be seen at 154.06(23.6%fib) an upside break can trigger rise towards 155.0(Psychological level). On the downside, immediate support is seen at 152.67(38.2%fib) a break below could take the pair towards 151.55 (23.6%fib).
Equities Recap
Asia stocks gained on Wednesday as investors assessed Federal Reserve Chair Jerome Powell’s remarks on interest rates ahead of key inflation data due later in the day..
Japan’s Nikkei was up 0.47% , South Korea's KOSPI was up by 0.37%,Hang Seng was up by 2.34%
Commodities Recap
Gold prices pulled back on Wednesday from a record high reached in the previous session, as Federal Reserve Chair Jerome Powell's hawkish comments reinforced expectations of slower rate cuts this year. Investors are also awaiting a key U.S. inflation report.
Spot gold fell 0.4% to $2,885.53 per ounce by 0504 GMT. Bullion climbed to a record high of $2,942.70 on Tuesday. U.S. gold futures eased 0.8% to $2,910.70.
Oil prices slipped on Wednesday as an industry report revealed a rise in U.S. crude stockpiles and tariff concerns dampened sentiment. However, stronger refining margins helped limit the market's decline.
Brent futures fell 25 cents, or 0.3%, to $76.75 a barrel by 0408 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 28 cents, or 0.4%, to $73.04 a barrel.