Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
Daily News: markets are stable
- As no important economic data have been publishing for 3 days, the US dollar index has weakened. The psychological level at $95 is too strong, to break above it. As a result, the index needs an additional support. Up to now, it has been trading near $94.50. The support lies at $94.20. Only significant news will be able to support the index, so it will be able to move to $95 again.
- The euro needs an additional support. EUR/USD tested the resistance at 1.1665 but could stick above it and turned around. Up to now, the pair has tested the support at 1.1645 (the pivot point). No important economic data will be released today. As a result, risks of the further fall exist. The support lies at 1.1565.
The EU is considering talks on cutting car tariffs between the world’s big car exporters to prevent an all-out trade war with the US. The European Commission is going to make a deal with such big exporters as the US, South Korea, and Japan. Under the deal, countries will reduce tariffs to agreed levels for a set of products.
Let’s see whether the EU will put its idea into the practice in the near future. It’s anticipated to have a positive impact on the euro.
- The pound managed to strengthen because of positive economic data. A services PMI figure was greater than the forecast one. As a result, GBP/USD broke the resistance at 1.3180 (the pivot point). The next resistance is at 1.3280. If the sentiment of buyers changes, the pair will appear below 1.3180 again.
- The Australian data were mixed today. A retail sales figure was greater than anticipated. At the same time, trade balance data appeared to be weaker than the forecast. However, the Australian dollar managed to strengthen and test above the trendline. Up to now, AUD/USD has been moving up. The resistance lies at 0.7445. However, as no more important data will be released today, there is a possibility of the fall to 0.7320. Especially, if the USD strengthens.
- Tomorrow crude oil inventories data will be released. According to the private survey, the number of inventories will decline more than expected.
Up to now, bulls have been trying to control Brent trading. The trading isn’t extensive. So the oil benchmark is anticipated to trade within $77.55-$78.20.
WTI is weaker today. The oil benchmark is moving down. The support is at $73.30. If the benchmark is able to recover, the resistance will lie at $75.20.
Tomorrow, traders should look at oil inventories data at 18:00 MT time. If there is a greater decline than anticipated, both oil benchmarks will rise.
That’s all for today! Follow market news with FBS!
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.