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: the market is waiting for the CB meetings
- The US dollar index broke the psychological level at 95 yesterday. It’s a negative signal for the index as this level was a strong support. Up to now, the index has been trying to recover. Traders will have a look at the CPI data (15:30 MT time). The forecast is encouraging. If the actual data is greater than the forecast, the index will be able to recover. It needs to break above 95.10 level to recover. Otherwise, there are risks of the fall to 94.50 (100-day MA). The NAFTA negotiations will be continued today. Positive news will weaken the USD.
- The euro is weak ahead of the ECB meeting (14:45 MT time). The market is looking for clues on the future monetary policy. If the bank is pessimistic, the euro will go further down. The first support is at 1.16. The next one is at 1.1582. If the bank brings hope, the euro will recover. The resistance is at 1.1632. The next one is at 1.1680. However, the bank needs to be too optimistic to help the pair to break above 1.1632.
- The pound is stronger than the euro ahead of the central bank meeting (14:00 MT time). GBP/USD managed to stick above the resistance at 1.3033. The market is waiting for comments from the BOE to forecast the next rate hike. If the BOE is optimistic, the GBP/USD pair will go further up. The next resistance is at 1.3151. If the bank sounds cautious, the pair will break below 1.3033. The next support is at 1.29.
- The USD/CAD pair has been recovering after the breakthrough of the support at 1.3015. The resistance is at 1.3064. If there is a progress in the NAFTA deal, the pair may turn around. The support is at 1.2963.
- Today’s report from the Australian labor market pushed the aussie to make a switch to growth. According to the news, an unemployment rate has remained at the last month’s 5.3%, while the change in the number of employed people in August was positive and reached a higher than expected level (44.0K vs 16.5K).
Up to now, the AUD/USD pair has been continuing its upward movement. The pair has been rising for the 4 days in a row. The resistance is at 0.7210. The growth is caused by the USD weakness. If the US dollar manages to recover, there are risks of the pair’s reversal. The support is at 0.7155. The next one is at 0.71.
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.