FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
96,722,113Confirmed
2,068,146Deaths
69,416,699Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason
Currencies Symbols

Earlier in the Day:

Following a busy start to the week, there were no material stats released through the Asian session to provide direction this morning.

While there were no numbers for the markets to consider, economic data out of the U.S on Wednesday reined back the bulls to a certain extent.

It’s all about the U.S – China trade negotiations now. While there’s been plenty of progress, the markets will be looking for the U.S to begin removing the existing tariffs, or at least start talking about it.

For the Majors,

At the time of writing, the Aussie Dollar was up 0.04% to $0.7116, with the Kiwi Dollar up 0.10% to $0.6785 for the session. With the mixed Asian session and U.S futures pointing to a shaky open, the Japanese Yen was up by 0.07% to ¥111.41 against the U.S Dollar. Some reversals following the recent trends can be expected should the markets have little to go on in the day ahead.

In the equity markets, the Nikkei managed a 0.03% gain, while the ASX200 ended the day with a 0.83% loss. At the time of writing, the CSI300 was up 0.79%, while the Hang Seng was down by 0.36%, with some profit-taking contributing to the pullback from levels last hit back in June of last year.

Advertisement

The Day Ahead:

For the EUR

It’s a quieter day ahead on the economic data front, though we can expect the EUR to be on the move through the day. February factory order numbers are due out of Germany in the early part of the day. While forecasts are for a 0.3% rise, it’s going to need to be far better than that to reverse the recent downward trend. Factor orders have fallen for 3 consecutive months and November’s 1% decline was the best of the bunch.

If Germany’s manufacturing PMI numbers are anything to go by,  a 0.3% rise may be on the optimistic side. According to the February PMI survey, the downward trend in new orders accelerated, largely driven by a slide in export sales. New business from abroad fell the most since Oct-2012. Moving to the March PMI survey, new orders saw their largest fall since Apr-2009.

Outside of the numbers, the ECB monetary policy meeting minutes from 7th March are also scheduled for release. Following a particularly dovish press conference and some dovish chatter thereafter, the minutes could further discuss the ECB’s willingness to ease further.

While economic data out of China and hopes of a U.S – China trade agreement may have eased the market angst, the reality remains that the Eurozone economy is struggling.

Service sector PMI numbers released on Wednesday may have been on the more positive side, but the bread and butter manufacturing numbers have not been…

Ahead of the numbers and the minutes, market risk sentiment will continue to influence. The latest MP vote preventing a no-deal Brexit was also a positive for the EUR in the early hours.

At the time of writing, the EUR was up 0.11% at $1.1245.

For the Pound

It’s a particularly quiet day on the economic calendar. With no material stats scheduled for release through the day, the focus will remain on Brexit.

Wednesday was another big day in Parliament, with the key vote being the passing of the Cooper Bill. Labour MP Yvette Cooper’s bill forces Theresa May to request for a long extension to Brexit day in the event that there is no deal by 12th April. The House of Lords will need to approve the bill possibly later today. The bigger hurdle could be EU member state support, however.

It wasn’t a resounding victory, with the bill getting through by just 1 vote. What’s next remains to be seen. Theresa May and Opposition Party leader Corbyn will continue their discussions to find a compromise.

Expect the Pound to continue to bounce around as the news wires deliver updates through the day. Of interest will be whether the House of Lords is willing to favor the bill later today. The speed with which the bill passed through Parliament and the 1 vote majority will test the House.

At the time of writing, the Pound was up 0.14% to $1.3177.

Across the Pond

It’s a quiet day ahead on the economic calendar. The weekly jobless claims figures are the only key stats due out of the U.S.

After the week ADP figures on Wednesday, we can expect a degree of sensitivity to today’s numbers.

Any moves will likely be short-lived, however, with a combination of drivers likely to be in play through the day. Positive sentiment towards U.S trade negotiations and updates on Brexit will likely be the main considerations.

Risk on and expect the Dollar to ease further back. We’ve yet to see any data out of the U.S to support a resumption of rate hikes by the FED.

At the time of writing, the Dollar Spot Index was down by 0.02% to 97.07.

For the Loonie

Following a quiet first half of the week, the Ivey PMI is due out later today. The numbers will have to be impressive for the Loonie to hold onto any gains from the stats. Economic data out of Canada continues to be on the softer side, supporting the BoC’s dovish stance on policy.

Outside of the numbers, crude oil prices will continue to influence. The latest EIA figures didn’t do any favors on Wednesday. A sizeable buildup pinned the Loonie back in spite of the risk on sentiment through the day.

The Loonie was down 0.04% at C$1.3353, against the U.S Dollar, at the time of writing.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US