Global Markets:

  • Asian stock markets: Nikkei down 0.35 %, Shanghai Composite lost 1.10 %, Hang Seng declined 0.50 %, ASX 200 gained 0.35 %
  • Commodities: Gold at $1249 (-0.40 %), Silver at $18.17 (-0.45 %), WTI Oil at $49.50 (-0.05 %), Brent Oil at $52.45 (-0.20 %)
  • Rates: US 10-year yield at 2.39, UK 10-year yield at 1.15, German 10-year yield at 0.34

News & Data:

  • Australia HIA New Home Sales (MoM) Feb: 0.2% (prev -2.2%)
  • Australia Job Vacancies (QoQ) Feb: 1.8% (prev 2.2%)
  • PBoC Fixes USDCNY Reference Rate At 6.8889 (prev fix 6.8915 prev close 6.8898)
  • Fed’s Williams: I would not rule out more than three increases total for this year, but emphasis is on ‘gradual’ pace in increases
  • Williams: US economy is as close to Fed’s dual mandate “as we’ve ever been”
  • Fed’s Rosengren: The Economy Is Strong Enough to Have 4 Hikes This Year
  • Asia shares creep up to near two-year peak, dollar firms – RTRS

Markets Update:

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The US Dollar appreciated against most other major currencies following hawkish comments from several Federal Reserve members.

EUR/USD declined to a low of 1.0740 in Asia. Key support is seen ahead of 1.07. Should it break below that level, the technical outlook would look increasingly bearish again. Meanwhile, the Pound declined on the official Brexit Day, but stayed relatively calm in the past two trading sessions. There were no surprised and it was mostly old news. Strong support is seen around 1.2350, and a break below would signal a move back to 1.22. However, GBP/USD remains well bid so far and could have another test of 1.25 resistance soon.

Despite the hawkish Fed comments, USD/JPY was not able to rally much. The pair reached a high of 111.42, but selling interest ahead of the key 111.50 resistance level proved to be decent. Key support is seen at 110.50 and 110.00, while resistance lies at 111.50 and 112.20-25.

Today we will the US GDP number, which could boost volatility in the FX market and set the direction of the US Dollar for the rest of the week.

Upcoming Events:

  • 11:00 GMT – Euro Zone Consumer Confidence
  • 13:00 GMT – German CPI
  • 13:30 GMT – US GDP
  • 13:30 GMT – US Initial Jobless Claims


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