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The greenback which trades against six other major peers bounced on Tuesday as traders eye US inflation data ahead of the Fed’s meeting next week. Wages data from the UK may suggest a careful BoE at its next meeting. Inflation in Spain cooled less than expected in February.
USDCHF gained +0.10%, trimming 4-day losses as upcoming US CPI data takes centre stage. The dollar eased on Tuesday after the banking crisis-inspired slump on Monday as the focus shifted to US CPI data which may revive volatility in the market. The greenback kept minimal gains as investors preferred the CHF as a safe haven after calls kept bets of unchanged or 25bps rate hike by the fed. The pair was capped at 0.9150 intraday high and may extend a slide to 0.9060 and 0.9000 levels. However, on the upside, bulls may seek the 0.91800/0.9200 resistances.
EURGBP was flat at -0.02% after mixed data from the UK and easing inflation from the Eurozone. The office for National Statistics in the UK showed that earnings excluding bonuses dropped to 6.5% from a previous read of 6.7% in January while the number of unemployed people rose to -11.2K, with the unemployment rate remaining constant at 3.7%. Furthermore, the Spanish CPI data year-on-year missed estimates of 6.1% by 0.1% although it was more than the previous 5.9%. The data was with less impact along with disappointing industrial production data from Italy. Upside moves may face a hurdle at the 0.8820-0.8828 region. However, a continued move lower may give up 0.8750 and 0.8720 in the short term.
CADJPY rallied by +0.61% in European trade ahead of Manufacturing sales data from Canada. Manufacturing sales in the country are forecast to have jumped to 3.9% from -1.5 in January. The commodity-linked CAD held the upper ground despite a sharp fall in crude oil prices. The Japanese Yen was under selling pressure as traders’ bets of a policy change have drawn back to zero ahead of Kuroda’s exit. The interest rate difference between the two countries weighed on the pair. Bulls took over from an 8-week low as 98.00 may be a challenge to the upside. On the downside, sellers may reclaim 94.80 and 93.00 if the current low is breached.
European stocks stabilized on Tuesday after a 3-day slump in the banking crisis. The DAX gained +0.52% after bouncing off the 14900 low. A rebound may give buyers 15200. The CAC40 soared + 0.56% after bears got rejected at the 6966 low and left room for buyers to revisit the 7080 mark. UK100 was flat at -0.02% after sweeping below the 7520 level.
US stock futures steadied along with the dollar as CPI data nears. The US100 futures were up +0.49% near the 12000 mark. However, bulls may be capped at the 12100 level. US500 futures pocketed +0.59% while the 3900 psychological may limit the upside momentum. US30 futures gained +0.35% after poking below the 31700 low and may reclaim 32500.
In commodities, crude oil prices fell as investors avoided risky assets on the day OPEC released its monthly report. The US WTI slumped -1.86% as the $72.50 low became fragile. A move lower may give up $70.00. Brent fell -1.54% with the $77.50 mark as a key figure on the downside.
