27 Feb: Stocks higher, Currencies choppy ahead of Powell’s testimony to Congress.

By | February 27, 2018

 

Stock markets had headed sharply higher while the dollar was choppy on Monday, ahead of a slew of US economic data, with the immediate focus being on the Fed’s Chairman Jerome Powell’s testimony to Congress later today/tomorrow. Stocks seem to have taken their lead from comments by St. Louis Federal Reserve President James Bullard, who said that substantially higher interest rates could risk a policy that is too tight for the current economy, and investors took that as a hint that rates may not rise as sharply as has been recently speculated. In other markets, the metals and oil have also traded sideways ahead of Powell’s testimony.

Tuesday will begin with the release of the NZ Trade Balance for Jan and the Australian New Home Sales although that will be it from Asia, while Europe will focus on the Preliminary German CPI (CPI, exp 0.5%mm, 1.5%yy; HICP, exp 1.3%yy) and the EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment and Business Climate. After that, the US will have a busy, and possibly volatile, session with the January Durable Goods Orders (exp -2.0%mm,  ex Auto exp +0.2%mm), the Case Shiller House Price Index (exp 6.2%), Wholesale Inventories, Richmond Fed Mfg Index, House Price Index, the API Weekly Crude Oil Stock Inventory and finally (and most importantly), a speech from the Fed’s Jerome Powell  who will be testifying to Congress although nothing new is expected to come from him, following on from last week’s Monetary Policy  Statement.

CURRENCIES
EURUSD: 1.2311
Res  1.2335  1.2360  1.2395
Sup  1.2280  1.2260  1.2235
USDJPY: 106.91
Res  107.15  107.40  107.60
Sup  106.65  106.35  106.00
GBPUSD: 1.3966
Res  1.3995  1.4025  1.4050
Sup  1.3950  1.3930  1.3905
USDCHF: 0.9378
Res  0.9390  0.9410  0.9435
Sup  0.9360  0.9335  0.9315
AUDUSD: 0.7851
Res  0.7880  0.7895  0.7920
Sup  0.7825  0.7805  0.7790
NZDUSD: 0.7313
Res  0.7325  0.7345  0.7365
Sup  0.7295  0.7270  0.7240
INDICES / COMMODITIES
S&P: 2773
Res  2775  2785  2795
Sup  2765  2750  2740
DJI: 25630
Res  25675  25750  25900
Sup  25545  25405  25295
ASX SPI: 6040
Res  6050  6065  6080
Sup  6025  6015  6000
XAUUSD: 1333
Res  1335  1340  1345
Sup  1325  1320  1315
XAGUSD: 16.61
Res  16.65  16.75  16.85
Sup  16.50  16.40  16.25
WTI: 63.85
Res  64.20  64.65  65.00
Sup  63.40  63.05  62.40