America’s Roundup: Dollar dips following inflation data, Wall Street ends mixed, Gold recoups losses, Oil ticks up on global economic outlook, plummeting U.S. fuel inventories-March 11th,2021

Market Roundup

• US Feb Real Earnings (MoM) -1.0% , 0.1% forecast, 0.8% previous

• US Feb CPI Index, s.a 263.16, 262.23 revious

• US Feb CPI, n.s.a (MoM) 0.55% ,0.43% previous

• US Feb Core CPI Index 270.30, 270.03 previous

• US Feb CPI (YoY) 1.7% ,1.7% forecast,1.4% previous

• US Feb Core CPI (MoM) 0.1%, 0.2% forecast, 0.1% previous

• US Feb CPI (MoM) 0.4%, 0.4% forecast, 0.3% previous

• US Feb CPI Index, n.s.a. 263.01, 263.08 forecast, 261.58 previous

• US Canada Feb Cleveland CPI (MoM) 0.2%, 0.1% previous

• US Crude Oil Inventories 13.798M,0.816M forecast, 21.563M previous

• Canada BoC Interest Rate Decision 0.25%, 0.25% forecast, 0.25%

Looking Ahead Economic Data (GMT

• 23:50 Japan Feb PPI (MoM) 0.5% forecast, 0.4% previous

• 23:50 Japan Feb PPI (YoY) Feb -0.7%forecast , -1.6% previous

• 00:00 Australia MI Inflation Expectations3.7% previous

• 04:00 Australia HIA New Home Sales (MoM) -69.4% previous

Looking Ahead – Events, Other Releases (GMT)

•22:00 Australia RBA Governor Lowe Speaks


EUR/USD: The euro firmed on Wednesday as dollar dipped after report on U.S. consumer prices. Economic data from the Labor Department said its consumer price index rose 0.4% in February in line with expectations, after a 0.3% increase in January. Core CPI, which excludes the volatile food and energy components, edged up 0.1%, just shy of the 0.2% estimate, after being unchanged the prior two months. Investors focus is now on European Central Bank policy meeting on Thursday, where spotlight will be on the bank’s message after it did not raise its emergency bond purchases during the recent sell-off. Immediate resistance can be seen at 1.1945 (38.2%fib), an upside break can trigger rise towards 1.1968(9EMA).On the downside, immediate support is seen at 1.1870(Daily low), a break below could take the pair towards 1.1830(23.6%fib).

GBP/USD: The pound rose against the dollar as pound was boosted by weaker dollar and Britain’s relative success in COVID-19 vaccination. The pound edged up in early US trading, recovering some of the losses it suffered in the previous session. At 17:00 GMT, sterling was up 0.29% against the dollar, at $1.3926, having recovered from 1.3839 Immediate resistance can be seen at 1.3910 ( 23.6%fib), an upside break can trigger rise towards 1.4011 (March 4th high).On the downside, immediate support is seen at 1.3809 (38.2%fib), a break below could take the pair towards 1.3718 (50%fib).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, as the Bank of Canada said the economy was stronger than expected but stopped short of adjusting its forward guidance on interest rates or the amount of bonds it purchases. The central bank said it now expects positive GDP growth in the first quarter of 2021, rather than the contraction it forecast in January. The Canadian dollar was trading 0.1% lower at 1.2648 to the greenback , having traded in a range of 1.2613 to 1.2683. Last month, the loonie touched a three-year high at 1.2464.Immediate resistance can be seen at 1.2689 (38.2%fib), an upside break can trigger rise towards 1.2734 (Higher BB).On the downside, immediate support is seen at 1.2584(23.6%fib) could take the pair towards 1.2545 (Lower BB).

USD/JPY: The dollar declined against the Japanese yen on Wednesday as a tame U.S. inflation report and a tepid auction of benchmark 10-year Treasury notes weighed on greenback. U.S. consumer prices posted their biggest annual gain in a year, though underlying inflation remained tepid amid sluggish demand for services like airline travel, the data showed.The move was largely in line with economists’ expectations, though core inflation rose 0.1% versus market forecasts for a 0.2% rise.Strong resistance can be seen at 109.18(23.6% fib), an upside break can trigger rise towards 109.86 (June 1st high 2020 ).On the downside, immediate support is seen at 108.33 (38.2%fib), a break below could take the pair towards 107.93 (50%fib).

Equities Recap

European stocks pulled back on Wednesday after surging close to pre-pandemic levels a day earlier, as worries about rising inflation kept investors on edge, with mining and travel stocks leading the retreat.

UK’s benchmark FTSE 100 closed downby 0.07 percent, Germany’s Dax ended up by 0.71 percent, France’s CAC finished the day up by 1.11 percent.

Futures tracking the S&P 500 and the Nasdaq 100 indexes jumped on Wednesday after data showed underlying inflation remained tepid, easing concerns over a rise in borrowing costs in the near term.

Dow Jones closed up by 1.46 % percent, S&P 500 closed up by 0.61% percent, Nasdaq settled down by 0.04% percent.

Commodities Recap

Gold erased earlier losses to hit a one-week high on Wednesday, as U.S. Treasury yields eased after subdued inflation data.

Spot gold rose 0.5% to $1,723.01 per ounce by 1:59 p.m. EDT (1859 GMT), having bounced as much as $1,723.71, its highest since March 3. U.S. gold futures settled 0.3% up at $1,721.80.

Oil prices rose on Wednesday on an upbeat forecast for global economic recovery and as U.S. gasoline inventories plummeted, but prices were limited due to a surge in crude oil inventories in the aftermath of last month’s Texas winter storm.

Brent crude settled at $67.90 a barrel, gaining 38 cents, or 0.6%. U.S. West Texas Intermediate crude settled at $64.44 a barrel, rising 43 cents, or 0.7%.

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