Today the focus is on low rates in Japan, slipping oil prices, and the UK falling behind.
The eurozone CPI (Consumer Price Index) (YoY) will be released. Forecast: 0.9%. A higher than expected result can be taken as a positive sign for the EUR.
Assets to trade: GBP/EUR, EUR/JPY, EUR/USD
The Canadian Core CPI (MoM) for Feb. will be reported. Previous: 0.5%. If higher than before, the reading can ignite a positive push for the CAD.
Assets to trade: CAD/JPY, USD/CAD, CAD/NZD
US Crude Oil Inventories will be announced. Forecast: 2.715M. If the amount stored is higher than predicted, it could negatively impact oil assets.
Assets to trade: Brent, Chevron, Exxon Mobil
The US Federal Reserve will meet and release its Interest Rate Decision among other things. If the rate remains where it is the USD could receive a positive push.
Assets to trade: USD/JPY, USD/NZD, GBP/USD
Bank of Japan Governor Haruhiko Kuroda said on Tuesday it was important to keep long-term interest rates “stably low” as the economy is still suffering from the impact of the COVID-19 pandemic. Affects JPY
Deutsche Bank has slashed 2021 economic growth forecasts for the euro area by a whole percentage point, citing spillover of the ongoing pandemic-linked activity restrictions but it upped predictions for Britain, the United States, and India. Affects GBP
The European Central Bank is aiming to stop bond yields from rising before the pandemic-hit eurozone economy is ready to digest higher borrowing costs. Affects EUR
Oil prices dropped on Tuesday, extending declines to three consecutive days, as rising stockpiles in the United States added to the risks to a demand recovery after countries including Germany and France halted COVID-19 vaccinations. Affects Brent
Sterling fell against both the euro and the dollar on Tuesday with analysts attributing the move to the news that Germany, Italy, and France suspended AstraZeneca’s COVID-19 shots amid safety fears. Affects GBP
The Sterling has seen better days, as countries across Europe begin to ditch the AstraZeneca vaccine and Brexit continues to weigh on the UK economy. Deutsche Bank’s revised prediction of economic growth shows little faith in British recovery keeping pace with its neighbors.
Having tested the support level around 1.3800 the pair is still not likely to break out of its current channel.
The pair is in a definite downtrend and shows little sign of slowing beyond a possible pullback before continuing down.
The precious metal continues to test its support level around 25.00, but will most likely reflect upward slightly.