Friday 3rd March: Europea Open Briefing

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Friday 3rd March: Europea Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.60 %, Shanghai Composite lost 0.40 %, Hang Seng declined 0.65 %, ASX 200 lost 0.80 %
  • Commodities: Gold at $1233 (+0.05 %), Silver at $17.78 (+0.15 %), WTI Oil at $52.70 (+0.10 %), Brent Oil at $55.15 (+0.15 %)
  • Rates: US 10-year yield at 2.48, UK 10-year yield at 1.21, German 10-year yield at 0.32

News & Data:

  • Japan CPI Jan (YoY): 0.4%
  • Japan Services PMI Feb: 51.3 (Prior 51.9)
  • Japan Composite PMI Feb: 52.2 (Prior 52.3)
  • Japan Household Spending Jan (YoY): -1.2% (Prior -0.30%)
  • Japan Household Confidence Feb: 43.1 (Prior 43.2)
  • Japan Unemployment Rate Jan: 3.0% (Prior 3.10%)
  • Japan Jobs/Applications Ratio Jan: 1.44 (Prior 1.43)
  • Australia AIG Services Index Feb: 49.0 (Prior 54.5)
  • PBoC Fixes USDCNY Reference Rate At 6.8896 (prev fix 6.8809)

Markets Update:

The US Dollar is showing renewed strength, as the market is clearly expecting a rate hike by the Federal Reserve this month. Several major pairs are approaching key support level. EUR/USD is nearing 1.05 again, while GBP/USD briefly broke below 1.2250 yesterday. A clear break sub-1.2250 would then signal that the downtrend could extend to 1.20. Meanwhile, USD/JPY struggled at 114.50 resistance and reversed. However, demand remains solid and decent buying interest can be expected at 113.80 and again 113.50.

After a period of low volatility, the Australian Dollar is finally moving again. The broad Dollar strength put the commodity currencies under pressure. AUD/USD broke below 0.76 yesterday and momentum selling brought it to a low of 0.7540. Important support is now seen around 0.7510/20. Should it break below that area, a test of 0.73 seems likely.

Upcoming Events:

  • 07:00 GMT – German Retail Sales
  • 08:45 GMT – Italian Services PMI
  • 08:50 GMT – French Services PMI
  • 08:55 GMT – German Services PMI
  • 09:00 GMT – Euro Zone Services PMI
  • 09:00 GMT – Italian GDP
  • 09:30 GMT – UK Services PMI
  • 10:00 GMT – Euro Zone Retail Sales
  • 14:45 GMT – US Services PMI
  • 15:00 GMT – US ISM Non-Manufacturing PMI
  • 18:00 GMT – Fed Chair Yellen speaks

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