Stock markets in Asia were down on Wednesday following a weak close in Wall Street as market sentiment was hit by the testimony of Fed Chair Jerome Powell in Congress.

“We’ve seen some data that will in my case add some confidence to my view that inflation is moving up to target,” said Powell, adding that “We’ve also seen continued strength around the globe, and we’ve seen fiscal policy become more stimulative.”

His remarks increased expectations for further monetary policy changes later this year. The US regulator has anticipated at least three rate hikes in 2018.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 87 percent probability of a 25 basis-point rate hike by March.

The Dow Jones industrial average dropped nearly 300 points on Tuesday to finish at 25,410.03, with Disney and Home Depot leading decliners.

The S&P 500 was down 1.27 percent to end at 2,744.28, with real estate, consumer discretionaries and telecommunications all moving to the downside simultaneously.

The Nasdaq composite eased 1.23 percent to 7,330.35, with heavyweight technology companies like Facebook, Amazon, Apple, Netflix and Alphabet in red territory.

In Japan, the Nikkei 225 fell about one percent, with manufacturers, technology, automakers and financials all heading south. South Korea’s Kospi lost more than 0.85 percent, with Samsung Electronics leading the list of decliners.

Sydney’s S&P/ASX 200 eased 0.70 percent, with materials and telecommunications as worst performers of the session. Rio Tinto was down 0.99 percent in the day.

<<< Asian Stock Indexes >>>

Australia ASX S&P -42.00 -0.68% 6,117.30

Shanghai Composite -20.04 -0.61% 3,272.03

Hong Kong Hang Seng -399.84 -1.28% 30,868.82

Japan Nikkei 225 -321.62 -1.44% 22,068.24

Taiwan TSEC 50 Index -21.23 -0.20% 10,815.47

<<< Next in Europe >>>

Ahead in today’s session, the Gfk consumer climate for March is up at 07:00 GMT, followed by the unemployment rate and change as of 09:00 GMT.

In the Eurozone, focus will be directed to the consumer price index for February at 10:00 GMT.

<<< Next in United States >>>

Investors will be looking at a revision of the fourth-quarter gross domestic product as of 13:30 GMT. Pending home sales for January will be released at 15:00 GMT.

FortFS

GOLD

Gold prices were near breakeven in Asian trading hours on Wednesday, with market participants looking ahead to fresh economic data later in the session.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.02 percent at $1.318.80 a troy ounce as of 06:30 GMT.

The yellow metal ended on Tuesday sharply lower amid a strong upward correction of Treasury bond yields and the dollar following remarks by Federal Reserve chair Jerome Powell.

Powell, who testified for the first time before Congress as head of the Federal Reserve, said he has noticed increasing inflationary pressure since December.

“We’ve seen some data that will in my case add some confidence to my view that inflation is moving up to target, [...] We’ve also seen continued strength around the globe, and we’ve seen fiscal policy become more stimulative.”

His comments boosted expectations for further monetary policy changes later this year. The US regulator has anticipated at least three rate hikes in 2018.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

The US dollar index, which measures the greenback against six major currencies, was trading 0.09 percent higher at 90.37 by the time of this writing.

On the wake of the event, the American currency soared to a three-week peak, while the benchmark 10-year bond yields rebound from local lows about three percent.

On the data front, durable goods orders notched down 3.7 percent in January, more than an estimated drop of 2.4 percent. The goods trade deficit expanded to $74.4 billion from a prior $71.58 billion. February’s CB consumer confidence came in above expectations at 130.8.

Ahead in the day, investors will be looking at a revision of the fourth-quarter gross domestic product as of 13:30 GMT. Pending home sales for January will be released at 15:00 GMT.

OIL

Oil benchmarks were down in early trading hours on Wednesday, as market participants prepared for official inventory data later in the session.

The US West Texas Intermediate crude contracts were down 0.60 percent to $62.63 per barrel as of 06:30 GMT. Meanwhile, Brent futures eased 0.63 percent to $66.21 a barrel.

Crude benchmarks settled in red territory on Tuesday after the International Energy Agency (IEA) said that the fast pace of US production may extend beyond 2018.

"US shale growth is very strong, the pace is very strong ... The United States will become the #1 oil producer sometime very soon," IEA Director Fatih Birol told Reuters.

These remarks renewed fears that the United States output will counteract efforts made by the Organization of the Petroleum Exporting Countries and a group of independent producers led by Russia to rebalance and stabilize the oil market.

OPEC and Russia agreed to extend output cuts until the end of 2018, despite some voices have already expressed the possible need to put a break to them to avoid disbalances.

Saudi Arabian oil minister Khalid al-Falih said on Monday his nation is fully committed with the deal, along with all parts involved, and anticipated further reductions in exports.

Also contributing to the down move were expectations that US crude and refined products inventories by the Energy Information Administration, which are set for release on Wednesday, will expose a rise in domestic stockpiles.

The American currency strengthened in late trading hours on Tuesday following a speech by Federal Reserve chair Jerome Powell before Congress.

Powell, who testified for the first time before Congress as head of the Federal Reserve, said he has noticed increasing inflationary pressure since December.

His comments boosted expectations for further monetary policy changes later this year. The US regulator has anticipated at least three rate hikes in 2018.

FortFS

I mean… you obviously heard about the word “breakout” by now. If not, I suggest you start reading this blog more often or check out some of the technical analysis our team prepares on daily basis to help you improve your trading.

Where was I… Oh yes. A breakout. In case you don’t know what is a breakout, this is your lucky day. Below you can find a simple explanation and ways to differentiate them.

Definition by Investopedia

“A breakout is a price movement of a security through an identified level of resistance, which is usually followed by heavy volume and an increased amount of volatility.”

In Forex, a breakout can happen not only in one direction. As traders have the ability to trade currency pairs up or down, breakouts can happen in both, resistances and support levels.

If a currency pair moves above a resistance level, we call it a breakout. If a currency pair moves below a support level, we also consider it a breakout. In both scenarios, the price is breaking a certain mark, possibly opening the doors to an extension in that same direction.

Once a breakout takes place, the resistance or support level that has been penetrated changes for a new one, which can be close to the initial mark or not so close. Depends on many factors.

Trading breakouts is not easy. Well… Nothing about Forex is really easy, except for the fact that if you have a few winning positions, you can make a great amount of money. Dot.

Once the price breaks above or below a certain key level, traders should keep monitoring volumes. A break above a resistance when volume is strong can indicate an upward extension. On the contrary, if trading volumes are down, then a correction is likely.

Continuation breakout

As a trend develops, markets might feel the necessity to take a breather from time to time. In those periods of time, a continuation breakout can take place. In other words, we are talking about a break and then a consolidation that is later followed by an extension of the trend itself.

Reversal breakout

Same case than the previous one, but instead of continuing in one direction, the consolidation serves as a time to gain strength and move in a different direction.

FortFS

GOLD

Gold prices were higher in Asian hours on Tuesday, amid a weaker dollar and as traders prepared for a widely anticipated speech by the new Fed’s chief.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.16 percent at $1.334.90 a troy ounce as of 05:50 GMT.

The precious metal settled in green territory on Monday, as investors were cautious on the dollar ahead of Federal Reserve Chair Jerome Powell’s testimony before Congress on Tuesday.

The US dollar index, which measures the greenback against six major currencies, was trading 0.09 percent lower at 89.71 by the time of this writing.

Also weighing on the dollar were 10-year bond yields, which continued to drop from a four-year high of 2.957 percent. The data front was not supportive neither, with new home sales showing a 7.8 percent reduction in January to a rate of 593,000.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal less expensive for holders of foreign currencies.

Last week, the yellow metal notched down after the latest monetary policy meeting minutes by the Federal Reserve showed policymakers see inflation and economic growth improving soon.

Those two elements are expected to justify further monetary policy changes as part of the policy normalization plan of the US regulator, especially regarding interest rates.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

Ahead in the day, attention will be directed to durable goods orders for January at 13:30 GMT, along with the goods trade balance and CB consumer confidence gauge at 15:00 GMT.

OIL

Oil benchmarks were up in early trading hours on Tuesday, with market players awaiting fresh inventory data from the American Petroleum Institute later in the day.

The US West Texas Intermediate crude contracts were down 0.11 percent to $63.84 per barrel as of 05:50 GMT. Meanwhile, Brent futures eased 0.07 percent to $67.45 a barrel.

Crude benchmarks retreated in late trading hours on Monday but remained close to two-week highs, supported by Saudi Arabia’s plan to extend output cuts.

Saudi oil minister Khalid al-Falih said the kingdom’s oil production in January-March would be below average, with exports cutting down to about 7 million barrels per day.

Falih also said OPEC and its allies remain committed to bringing stability to the oil market and that he expected it would be possible to reduce output curbs next year.

"A study is taking place and once we know exactly what balancing the market will entail we will announce what is the next step. The next step may be easing of the production constraints, [...] My estimation is that it will happen sometime in 2019".

The Organization of the Petroleum Exporting Countries (OPEC) and a group of independent producers led by Russia agreed in December to keep oil output cuts running throughout 2018.

Crude prices were also boosted by last week’s inventory figures by the US Energy Information Administration, which reported a drop of 1.6m barrels against a 1.8m barrels build seen.

Last week, Baker Hughes said the total oil rig count rose by one to a 799 units.

FortFS

Equity markets in Asia were mostly trading in green territory on Tuesday, following a strong lead from Wall Street for a second consecutive day and as market participants awaited a speech by Federal Reserve Chair Jerome Powell later in the session.

In Japan, the Nikkei 225 index was up by nearly 300 points from its prior close, with technology, financials and manufacturing stocks supporting the positive move.

South Korea’s Kospi added nearly 0.3 percent, with automakers, financials and financials pushing higher. Heavyweight Samsung Electronics rose by more than one percent.

Meanwhile in Sydney, the S&P/ASX 200 advanced a similar 0.3 percent, with financials and materials components contributing most to gains.

Wall Street’s top three indexes ended sharply higher on Monday, with the Dow Jones industrial average adding 399.28 points to finish at 25,709.27. Boing and 3M came on top of the list.

The S&P 500 rose by more than percent to 2,779.60 supported by telecommunications, technology and financials components. The Nasdaq was up 1.15 percent at 7,421.46.

<<< Fed Chair Jerome Powell’s Testimony >>>

Fed Chair Jerome Powell is expected to testify before Congress on Tuesday and Thursday as of 15:00 GMT. The newly appointed Fed chief is expected to keep a neutral tone, analysts said.

In case Powell opts to bring up rate adjustments or shows any signs of enthusiasm regarding policy changes, economic growth or the pace of inflation, the dollar might pop up.

The US dollar index, which measures the greenback against six major currencies, was trading 0.09 percent lower at 89.71 by the time of this writing.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 87 percent probability of a 25 basis-point rate hike by March.

<<< Asian Stock Indexes >>>

Australia ASX S&P +13.20 +0.21% 6,159.30

Shanghai Composite -37.51 -1.13% 3,292.07

Hong Kong Hang Seng -180.20 -0.57% 31,318.40

Japan Nikkei 225 +236.23 +1.07% 22,389.86

Taiwan TSEC 50 Index -21.23 -0.20% 10,815.47

<<< Next in Europe >>>

Ahead in today’s session, investors will be looking at the speech of Buba President Weidmann at 10:00 GMT and the release of February’s German consumer price index as of 13:00 GMT.

<<< Next in United States >>>

Ahead in the day, attention will be directed to durable goods orders for January at 13:30 GMT, along with the goods trade balance and CB consumer confidence gauge at 15:00 GMT.

FortFS

Even if most of us will never admit it, most of us have been there: you are sitting before the screen carefully analyzing price action of your preferred pair and suddenly you spot a change.

Without much hesitation and as the captain of a ship about to crash with an iceberg, you close your existing positions and open new ones in a new direction. It looks right and it feels right. But moments later, disaster. The trend that you followed continues and you are now in the wrong side.

This scenario is not a strange one. It is a very common behavior among new traders and even experienced ones. So honestly, no shame (just pitty for your cash, but that’s all). As almost always in this industry, you can learn from this reality and learn to identify when situations really call for a trend change or not.

Let’s get it clear:

Retracement is a term that should be associated with the word “temporary”. Because that’s exactly what it is: a temporary price move in an opposite direction than the overall trend.

In case you are trading middle or long term, then riding a retracement makes no sense. Although retracement can last a few days sometimes, it is less risky to simply stay away from it.

Reversal, on the contrary, is seen as more substantial change. A change in the overall trend, which justifies closing and repositioning adequately.

Once determined the trend has officially changed, there is no time to lose and proper arrangements should be made in order to make that new trend work in your favor.

Differentiating these two concepts will help you improve your reaction when trading, understanding when it’s time to make a move and when to leave your positions alone.

FortFS

GOLD

Gold traded in green territory on Monday, recovering from its worst week in more than two months as the American currency eased against major rivals.

The US dollar index, which measures the greenback against six major currencies, was trading 0.24 percent lower at 89.60 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A stronger greenback makes the metal more expensive, less attractive for holders of foreign currencies.

Market players are currently focused on a speech by Federal Reserve Chair Jerome Powell before Congress, which is scheduled on Tuesday as of 15:00 GMT.

Investors are trying to get a closer look at the future plans of the US regulator concerning interest rates. At the time, the benchmark rate stands in a range between 1.25 and 1.50 percent.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.88 percent at $1.342.00 a troy ounce as of 06:15 GMT.

Last week, the yellow metal ended 1.4 percent lower as the dollar was widely supported by minutes of the latest Federal Open Market Committee monetary policy meeting.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

Ahead in the day, FOMC member Bullard and Quarles are due to speak at 13:00 GMT and 20:15 GMT respectively. On the data front, new home sales for Jan are up at 15:00 GMT.

OIL

Oil benchmarks were up in early trading hours on Monday, as a fresh report from Rystad Energy forecasted a 20 percent drop in output in East and Southeast Asia between 2017 and 2025.

The US West Texas Intermediate crude contracts were up 0.46 percent to $63.84 per barrel as of 06:30 GMT. Meanwhile, Brent futures rose 0.28 percent to $67.50 a barrel.

According to the document, total oil production in East and Southeast Asia is expected to fall from 13.1 million barrels of oil equivalent (BOE) per day to 10.4 million BOE/D by 2025.

The lack of new oil discoveries in the region, along with the maturity of the oil fields already in place seem to be the causes of this trend. The limited number of sources is a key factor now.

Despite a weaker production seen, demand for crude and refined products in East and Southeast Asia continues to build, with China leading among buyers.

The Paris-based International Energy Agency estimates that China will produce an average of 3.8 million barrels per day (bpd) in 2018, which would be only 0.5 million bpd less than in 2015.

Ahead this week, market players will be focusing on the release of crude and refined products stockpiles on Tuesday and Wednesday and the weekly rig count on Friday.

Attention will also be directed to the dollar’s dynamic, which has the power to control quotes as commodities are denominated in this currency.

A stronger greenback makes contracts more expensive for investors holding foreign currencies, dampening interest on the commodity.

The US dollar index, which measures the greenback against six major currencies, was trading 0.24 percent lower at 89.60 by the time of this writing.

FortFS

Yes, believe it or not, the dollar was able to end in green territory last week. The dollar index (USDX) closed at 89.88 on Friday, up 0.16 percent, weighing on a vast majority of commodities.

Indeed. Gold and oil prices faced increasing pressure as the greenback recovered against major competitors. Dollar-denominated commodities tend to react negatively to a rising base currency.

A stronger dollar makes these assets more expensive and therefore, it threatens their physical demand, especially when talking about holders of foreign currencies.

The USDX, which measures the greenback against six major rivals, was trading 0.31 percent lower at 88.23 by the time of this writing.

Last week, we observed a volatile dollar start with a moderate recovery and extend losses afterwards, despite positive economic data improving market sentiment.

Market players began to trust again on the American power as the main event of the week got closer. The Federal Open Market Committee released minutes from its latest monetary policy encounter, in which it confirms its willingness to move forward with further rate hikes in 2018.

Earlier this month, Federal Reserve policymakers decided to leave its benchmark interest rate unchanged in a range between 1.25 and 1.50 percent, while reassuring its commitment to increase interest rates at least three times during this year.

Ahead this week, investors will be looking ahead to a series of macroeconomic events, including the releases of new home sales, goods trade orders, a revision on the fourth-quarter gross domestic product, manufacturing activity AND most importantly, fresh labor market data.

The US Labor Department will unveil its latest report on unemployment, nonfarm payrolls and the evolution of average salaries. Those reports will certainly play a huge role for the dollar.

Also, Federal Reserve Chair Jerome Powell will testify before Congress on Tuesday, another event that could offer more clarity on monetary policy and therefore impact on the greenaback.

FortFS

Asian stocks ended mostly higher on Friday as the greenback returned to the bullish vias following an overnight drop, with market players awaiting FOMC speakers later in the session.

Japan’s Nikkei 225 was up 0.72 percent or 156.34 points to finish at 21,892.78, with oil-related components providing support as the US Energy Information Administration reported a decline in supplies for the week ended February 16.

On the data front, the Nippon core consumer price index increased 0.9 percent in January against a 0.8 percent build seen. Technology and automakers also traded upwards.

In Sydney, the S&P/ASX 200 was also up at a closing mark of 5,999.8, with miners such as Rio Tinto and BHP adding nearly one percent in average despite a stronger dollar.

The US dollar index, which measures the greenback against six major currencies, was trading 0.20 percent higher at 89.84 by the time of this writing.

Seoul’s Kospi index added 1.54 percent to 2,451.52, with technology heavyweights contributing most gains. Samsung Electronics rose 0.98 percent in the session.

Markets in China showed moderate gains: the Shanghai composite increased by 0.63 percent to 3,289.24 and the Shenzhen composite finished 0.18 percent to the upside.

<<< Asian Stock Indexes >>>

Australia ASX S&P +47.50 +0.78% 6,105.20

Shanghai Composite +20.47 +0.63% 3,289.02

Hong Kong Hang Seng +302.47 +0.98% 31,268.15

Japan Nikkei 225 +156.34 +0.72% 21,892.78

Taiwan TSEC 50 Index +132.17 +1.24% 10,794.55

<<< Next in Europe >>>

Ahead in today’s session, attention will be directed to the European consumer price index for January, scheduled for release at 10:00 GMT.

<<< Next in United States >>>

Ahead in the day, no macroeconomic reports are due for release, so attention will rather shift to speeches from FOMC members Dudley and Rosengren at 15:15 GMT, Mester at 18:30 GMT and Williams at 20:40 GMT.

FortFS

Let me start with a single question: wouldn’t it be great to sit at a poker table knowing exactly who your opponents were? Of course, that would give you a heads up in the game and while that might not assure you’ll end up winning, your chances might improve anyway.

Hopefully, Forex trading is not a poker game and you are able to understand who participates in the market even before you place your first market order.

Technology advances have made possible for most people to access the Forex market in only a couple of minutes. You can open a real trading account without moving yourself from your desk.

Isn’t it that great? And of course, such a straightforward way to access a transparent, highly-profitable market has attracted a large amount of investors.

There are FOUR market players:

1 - Big Banks

Forex spot market is a decentralized market, meaning that huge capital moves are the ones that control exchange rates ultimately. No retail investors will be pouring so much into the market as JPMorgan, Morgan Stanley, Citi, UBS, Deutsche Bank… Do I have to continue?

2 - Big Corporations

International companies also play an important role in foreign exchange transactions. Just think of any tech company in the United States that wants to buy products abroad. Yes, it would have to first exchange US dollars into a local currency to process the transaction.

3 - Regulators

Did you really think government will miss the party? While some countries prefer not to interfere with the natural fluctuation of its national currency, others just don’t feel it as a problem. A clear example: the United States and China.

Central banks can access the Forex market as well, buying and selling in order to keep the currency within a reasonable target range that complies with its strategy.

4 - Retail Investors

Yes, we’re finally talking about you. The little, yet not less important kind of actor in the market. Despite not counting on billions to trade, you can still make good profits.

FortFS

GOLD

Gold prices extended their losses on Friday early trading hours as the dollar continued to strengthen against its rivals despite some dovish FOMC remarks.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.29 percent at $1.328.80 a troy ounce as of 07:30 GMT.

The US dollar index, which measures the greenback against six major currencies, was trading 0.25 percent higher at 90.14 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A stronger greenback makes the metal more expensive, less attractive for holders of foreign currencies.

On Thursday, St Louis Fed President James Bullard said increasing interest rates too many times this year could have a negative effect on economic growth.

New York Fed President William Dudley also spoke in the previous session, but did not comment on monetary policy issues. Instead, the policymaker, whose district includes Puerto Rico, said the island should take this difficult moment to rebuild its infrastructure. On September 20, 2017, Puerto Rico was affected by the worst storm in 90 years.

Not many relevant releases were published on Thursday. Initial jobless claims were the main focus. They came in at 222,000 against 230,000 estimated and a prior 229,000.

Ahead in the day, no macroeconomic reports are due for release, so attention will rather shift to speeches from FOMC members Dudley and Rosengren at 15:15 GMT, Mester at 18:30 GMT and Williams at 20:40 GMT.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

OIL

Oil prices were higher on Friday, with market players cheered by an unexpected drop in US crude inventories despite the dollar extended gains against rivals.

The US West Texas Intermediate crude contracts were down 0.05 percent to $62.74 per barrel as of 08:00 GMT. Meanwhile, Brent futures eased 0.03 percent to $66.37 a barrel.

Crude benchmarks are denominated in US dollars. A stronger greenback makes contracts more expensive for investors holding foreign currencies, dampening interest on the commodity.

The US dollar index, which measures the greenback against six major currencies, was trading 0.25 percent higher at 90.14 by the time of this writing.

The Energy Information Administration said crude stockpiles fell by 1.6 million barrels for the week ended Friday 16. Analysts had forecasted a 1.8 million-barrel build.

In other news, American crude exports rose by more than 2 million barrels per day. According to market experts, the US could get ahead of Russian in crude output by late 2018.

At the time, the largest crude terminal in the United States is the Louisiana Offshore Oil Port. The upward move is also supported by a health growth of physical demand in Asia.

Market analysts are expecting US producers to increase their production in the near term, especially after Baker Hughes’ oil rig count showed last week an uptick of 51 rigs to 798.

Ahead in the session, a weekly look at the oil rig count will be published at 18:00 GMT.

FortFS

Monday

Europe: the UK Nationwide HPI is due for release at 07:00 GMT. Gross mortgage approvals will come at 09:30 GMT. BoE MPC member Cunliffe is set to speak at 18:00 GMT.

United States: New home sales for January will be presented at 15:00 GMT, with a 642.000 rate seen and a 2.4 percent increase on the watch.

Tuesday

Europe: Germany’s Buba President Weidmann will offer a speech at 10:00 GMT. Traders will keep an eye on any remarks regarding monetary policy. A preliminary reading on the consumer price index for February will be available at 13:00 GMT.

United States: durable goods orders and trade balance figures for January are up at 13:30 GMT. The Conference Board will unveil its consumer confidence index for February at 15:00 GMT.

Asia: Japan’s industrial production and retail sales for January are up at 23:50 GMT.

Wednesday

Asia: China’s manufacturing and non-manufacturing PMI for February will be out at 01:00 GMT.

Europe: Germany’s Gfk consumer climate for March is set for publishing at 07:00 GMT. The unemployment change and rate for February is due at 08:55 GMT. EU’s consumer price index for February will be released at 10:00 GMT.

United States: a preliminary reading on the gross domestic product for the fourth-quarter is up at 13:30 GMT. The Chicago PMI for February is expected at 14:45 GMT, with pending home sales coming only fifteen minutes later. The Energy Information Administration will present its weekly report on crude and refined products stockpiles at 15:30 GMT.

Thursday

Asia: Caixin manufacturing PMI for February is up at 01:45 GMT. Japan’s jobs/applications ratio and national core CPI for January are scheduled at 23:30 GMT.

Europe: Germany’s manufacturing PMI for February will be next at 08:55 GMT, followed by the Eurozone’s reading on the index at 09:00 GMT and the UK version at 09:30 GMT. The EU unemployment rate for January is scheduled at 10:00 GMT.

United States: Fed’s favorite inflation measure, the core PCE price index for January will be unveiled by 13:30 GMT. Initial jobless claims will be out by the same hour, along with personal spending figures. The manufacturing PMI for February is due at 14:45 GMT and the Institute for Supply Management will present its own PMI at 15:00 GMT.

Friday

Europe: Germany will release retail sales figures for January at 07:00 GMT. The construction PMI for February is due at 09:30 GMT.

United States: Michigan consumer expectations and sentiment for February are up at 15:00 GMT.

FortFS

Equity markets in Asia were down on Thursday, following a weak lead from Wall Street as the latest Federal Reserve minutes added to speculation over future monetary policy adjustments.

In Japan, the Nikkei 225 index traded 1.4 percent lower while South Korea’s Kospi was nearly half a percent down. The negative move was mainly a reaction to Fed minutes.

Sydney’s ASX 200 started the session in green territory but reverted gains later in the day to trade around 0.20 percent down, with energy and materials components weighing on it.

Chinese markets have finally reopened after being closed for nearly a week in observance of the Lunar New Year holidays. Most indexes were trading higher. Hong Kong was down.

Wall Street ended on a lower note, with the Nasdaq easing 53.25 points, the S&P 500 down by 13.75 and the Dow Jones industrial average plunging about 180 points.

The latest monetary policy meeting minutes of the Federal Reserve were released in late trading hours on Wednesday. The document solidified expectations that the US regulator is heading to a more aggressive stance on policy normalization.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

<<< Asian Stock Indexes at 08:00 GMT >>>

Australia ASX S&P +10.40 +0.17% 6,057.70

Shanghai Composite +69.40 +2.17% 3,268.56

Hong Kong Hang Seng -414.78 -1.32% 31,017.11

Japan Nikkei 225 -234.37 -1.07% 21,736.44

Taiwan TSEC 50 Index -52.06 -0.49% 10,662.38

<<< Next in Europe >>>

Ahead in today’s session, attention will be directed to German business expectations, current assessment and lfo business climate index for February, all due as of 09:00 GMT.

<<< Next in United States >>>

Ahead in the day, initial jobless claims are due as of 13:30 GMT. Traders will also be paying attention to a series of FOMC speakers, including Dudley at 15:00 GMT, Bostic at 17:10 GMT and Kaplan at 20:30 GMT.

FortFS

GOLD

Gold prices were lower in early trading hours on Thursday, falling under pressure as the dollar continues its way and gets closer to a one-week high against major rivals.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.63 percent at $1.323.70 a troy ounce as of 07:30 GMT.

The dollar-denominated metal is sensitive to changes in the US currency. A stronger greenback makes the metal more expensive, less attractive for holders of foreign currencies.

The US dollar index, which measures the greenback against six major currencies, was trading 0.25 percent higher at 90.14 by the time of this writing.

The American currency was boosted by the latest monetary policy meeting minutes of the Federal Reserve, which were released in late trading hours on Wednesday.

The document solidified expectations that the US regulator is heading to a more aggressive stance on policy normalization, which means interest rates adjustments at a faster pace.

According to Fed funds tracked by CME Group’s FedWatch program, market participants are currently weighing an 85 percent probability of a 25 basis-point rate hike by March.

At the time, benchmark rates stand in a range between 1.25 and 1.50 percent. Federal Reserve policymakers have been mostly supportive of further hikes as labor market conditions continue to improve, as well as prospects for inflation.

Also contributing to the dollar’s strength were activity reports from the manufacturing and services sectors for February. The manufacturing PMI came in at 55.9, above 55.4 seen. The services PMI established at 55.9, outperforming an expected 53.8 reading.

Existing home sales for January came in at 5.38 million, down 3.2 percent. Analysts had estimated 5.61 million and a 0.9 percent build.

Ahead in the day, initial jobless claims are due as of 13:30 GMT. Traders will also be paying attention to a series of FOMC speakers, including Dudley at 15:00 GMT, Bostic at 17:10 GMT and Kaplan at 20:30 GMT.

OIL

Oil prices traded in red territory on Thursday, extending previous session losses as the dollar continues to rise across the board, getting close to a one-week high against major rivals.

The US dollar index, which measures the greenback against six major currencies, was trading 0.25 percent higher at 90.14 by the time of this writing.

Crude benchmarks are denominated in US dollars. A stronger greenback makes contracts more expensive for investors holding foreign currencies, dampening interest on the commodity.

The US West Texas Intermediate crude contracts were down 1.10 percent to $61.00 per barrel as of 07:30 GMT. Meanwhile, Brent futures eased 0.87 percent to $64.85 a barrel.

The dollar’s dynamic is currently one of the main factors weighing on energy prices. Its effect is so powerful that even an estimated reduction in crude supplies was not able to offer support.

Overnight, the American Petroleum Institute reported an unexpected drop in US crude stockpiles by 907,000 barrels for the week ended February 16 to 420.3 million barrels.

Market analysts are expecting US producers to increase their output in the near term, especially after Baker Hughes’ oil rig count showed last week an uptick of 51 rigs to 798.

Many investors feel worried about growing output in the US as it could threaten output cuts promoted by the Organization of the Petroleum Exporting Countries and Russia.

Ahead in the day, traders await official inventories by the US Energy Information Administration as of 16:00 GMT, with economists forecasting a 1.795 million-barrel build.

FortFS

GOLD

Gold futures were lower in early trading hours on Tuesday, extending previous session losses as the dollar continued to strengthen against major competitors.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.20 percent at $1.328.50 a troy ounce as of 08:20 GMT.

The yellow metal dropped sharply in late trading hours on Tuesday amid a rapid strengthening of the US dollar and bond yields as players looked ahead to the latest Fed minutes.

The US dollar index, which measures the greenback against six major currencies, was trading 0.17 percent higher at 89.79 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.

The Federal Open Market Committee will unveil minutes from its latest monetary policy meeting on Wednesday as of 19:00 GMT. In the document, a hawkish rhetoric on further rate hikes is widely expected following numerous evidences of strong market labor conditions and inflation.

While the FOMC estimated three rate hikes for 2018, some policymakers and analysts have recently mentioned a potential fourth increase depending on inflationary developments.

In other news, the upcoming release of over $250 billion of US debt set for later this week has been weighing on Treasury bonds, boosting yields and sending bullion prices to the downside.

On the data front, market players will keep an eye on manufacturing and services PMI indexes for February as of 14:45 GMT. Existing home sales for January are due at 15:00 GMT.

OIL

Crude oil prices were down in early trading hours on Wednesday, as the dollar continued to recover its positions against major rivals across the board.

The US West Texas Intermediate crude contracts were down 1.04 percent to $61.15 per barrel as of 08:30 GMT. Meanwhile, Brent futures eased 0.89 percent to $64.67 a barrel.

A stronger dollar makes crude prices more expensive for investors holding foreign currencies, dampening interest on the commodity.

The US dollar index, which measures the greenback against six major currencies, was trading 0.17 percent higher at 89.79 by the time of this writing.

If the dollar continues to rise in the next few days, we could expect an extended reduction on crude quotes, despite ongoing support by OPEC-led efforts to cut production levels.

In the last few months, we’ve seen crude benchmarks growing consistently following the decision to extend OPEC + Russia output cuts until the end of 2018.

Ahead in the day, the American Petroleum Institute will release its crude and refined products stockpiles estimates for the week ended Friday 16 at 21:30 GMT.

Contributing to support oil prices were Saudi Arabia’s decision to boost production cuts a little more by cutting exports to below 7 million barrels per day next month.

Meanwhile, geopolitical tensions in the Middle East, especially between Israel and Iran due to conflicts in the Syria border, were also supporting sentiment for benchmarks.

Last week, Baker Hughes said on Friday the weekly oil rig count has increased by 51 to 798.

FortFS

Interest rates here, interest rates there. Yes. We are guessing this is not the first time you read about interest rates in the last couple of months. And the reason for so is that they are simply incredibly important to control the temperature of economies.

Following the 2008 financial crisis, world central banks were forced to support their respective economies by pushing interest rates to record-low levels, while promoting super aggressive bond-buying programs. Well… it’s been a decade from that and for some regulators, it seems like the right time for putting an end to those conditions.

While nowadays, the European Central Bank and the Bank of Japan continue to insist on maintaining their current policy configurations, others like the US Federal Reserve have already started to adjust interest rates and reduce monetary stimulus.

In its latest monetary encounter, members of the Federal Open Market Committee agreed to keep the benchmark interest rate unchanged in a range between 1.25 and 1.50 percent.

However, despite that was Janet Yellen’s last meeting as Chairwoman of the Federal Reserve, policymakers opted to safeguard her precious hawkish tone on future policy changes. The regulator estimates at least three rate hikes for 2018.

So, in order to get this idea right… what is the impact of rising interest rates on the economy?

Simply put: when the FOMC increases benchmarks rates, it increases costs of borrowing for the banks, which leads to increases of borrowing costs for consumer, which leads to less people asking for credits, which leads to more people saving, which leads to a stronger dollar.

And how can you benefit from that?

Save

It’s always a good time for investing, but for saving… it’s a bit more difficult. If you a natural saver, then rising interest rates will help add a few more bucks to your account, while enjoying of all the benefits of a stronger currency.

Pay-off debts

In case you have some nasty debts going around… Then it’s time to stretch a bit and say goodbye to them. Higher interest rates, well… it’s pretty clear, isn’t it? Cancel them asap.

FortFS

Asian markets traded mostly lower on Tuesday, with activity levels remaining low as the Lunar New Year holiday continues in China, Taiwan and Vietnam.

In Japan, the Nikkei 225 was down nearly one percent with financials, manufacturing and energy-related stocks pushing to the downside.

In South Korea, the Kospi eased almost 0.9 percent, as heavyweight technology companies dropped: Samsung Electronics plunged 1.86 percent and SK Hynix fell 1.05 percent.

The manufacturing sector was in focus in South Korea, following a reply by the trade ministry over a potential implementation of tariffs on steel imports by the United States.

In Australia, the S&P/ASX 200 remained near breakeven, with traders putting attention on the release of minutes from the Reserve Bank of Australia (RBA).

According to the latest issue, policymakers were positive about the global economic growth rate. Domestically, RBA members said wages are expected to pick up in the near term.

In other news, HSBC showed better-than-expected profits for the year. Full-year profit rose by 10.9 percent to $20.99 billion before taxes. Reuters had forecasted a $19.59 billion profit.

<<< Asian Stock Indexes at 05:50 GMT >>>

Australia ASX S&P -17.00 -0.29% 5,940.00

Shanghai Composite +8.17 +0.26% 3,193.13

Hong Kong Hang Seng +359.73 +1.21% 30,199.26

Japan Nikkei 225 -58.79 -0.28% 21,185.89

Taiwan TSEC 50 Index +49.34 +0.48% 10,421.09

<<< Next in Europe >>>

Traders will be focusing mainly in the European session today, as no economic data is scheduled in the United States. Germany’s producer price index for January is up at 07:00 GMT, followed by ZEW current conditions and economic sentiment for February at 10:00 GMT.

Later on, the United Kingdom will be releasing CBI industrial trends orders by 11:00 GMT.

FortFS

All eyes on the dollar. Yes, that’s the current situation in the Forex market. The American currency is struggling to recover for two weeks already, rising uncertainty about its future.

Meanwhile, the Trump administration insist on the fact they want to see a stronger dollar in the future. The million-dollar-question is: how do they plan to do so?

The Federal Open Market Committee (FOMC) opted to leave its benchmark interest rate steady in a range between 1.25 and 1.50 percent during its last monetary policy encounter.

By the time that meeting took place, market participants did not expect policy adjustments. It was Janet Yellen’s last meeting as Chairwoman of the FOMC.

However, the tone was pleasantly surprising for investors. The Federal Reserve said it remains consistent on its plan to hike rates in at least three opportunities this year.

Why am I telling you this? On Wednesday, the Fed will present its minutes from its latest monetary policy meeting, which offer more clarity over the future plans of the regulator.

On the sidelines, we are expecting FOMC members to give a series of speeches that could potentially offer verbal support for the greenback.

On Thursday, Randal Quarles is set to speak at 05:15 GMT, followed by William Dudley at 15:00 GMT and Raphael Bostic at 17:10 GMT.

On Friday, Dudley will take the lead with a speech scheduled at 15:15 GMT, Loretta Mester at 16:30 GMT and John Williams set for 20:40 GMT.

Speeches are likely to boost speculation on further monetary changes for the near future, which ultimately helps the dollar increase its physical demand and position against competitors.

The US dollar index, which measures the greenback against six major currencies, was trading 0.31 percent lower at 88.23 by the time of this writing. Last week, the USDX fell 1.46 percent.

Ahead in the week, these publications are expected to create more volatility for the dollar:

• Manufacturing and services PMIs for February
• Existing home sales
• FOMC minutes
• Initial jobless claims

FortFS

GOLD

Gold futures were lower in early trading hours on Monday, with market players looking ahead to fresh data later this week, while keeping an eye on the dollar’s dynamic.

On the Comex division of the New York Mercantile Exchange, gold futures were down 1.03 percent at $1.342.20 a troy ounce as of 06:25 GMT.

The yellow metal settled in red territory on Monday, as the American currency recovered moderately despite news from the political sphere threatened its position against competitors.

The US dollar index, which measures the greenback against six major currencies, was trading 0.34 percent higher at 89.32 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.

Trading volumes were below average as markets in the United States and China were closed in observance of the President’s Day and the Lunar New Year respectively.

The greenback was supported by last Friday’s homebuilding report, which exposed a build to more than one-year peak in January, while building permits reached its highest since 2007.

These figures were enough to calm down investors, which have been increasingly worried about the estimated US deficit for 2019, nearly $1 trillion.

Market players remained cautious with the dollar as Special Counsel Robert Mueller charged thirteen Russians and three Russian companies for interfering in the 2016 presidential election.

Traders will be focusing mainly in the European session today, as no economic data is scheduled in the United States. Germany’s producer price index for January is up at 07:00 GMT, followed by ZEW current conditions and economic sentiment for February at 10:00 GMT.

Later on, the United Kingdom will be releasing CBI industrial trends orders by 11:00 GMT.

OIL

Crude oil prices were mixed in early Asian hours on Tuesday as traders awaited new crude inventories estimates later this week.

The US West Texas Intermediate crude contracts were up 1.10 percent to $62.23 per barrel as of 06:25 GMT. Meanwhile, Brent futures eased 0.26 percent to $65.50 a barrel.

Crude benchmarks continued to trade near one-week highs on Monday, as tensions in the Middle East and OPEC-led cuts served a solid support for market sentiment.

Israel Prime Minister Benjamin Netanyahu said over the weekend that his nation could take serious steps against Iran due to ongoing border conflicts in Syria.

United Arab Emirates energy minister Suhail al-Mazroui said the world’s top producers, starring Saudi Arabia and Russia, are discussing a potential long-term agreement to keep output down.

The Organization of the Petroleum Exporting Countries (OPEC) together with Russia and other independent producers agreed in December to extend cuts until the end of 2018.

On the data front, Baker Hughes said on Friday the weekly oil rig count has risen by 51 to 798. This massive build in the count anticipates a potential increase in near-term output.

The US dollar index, which measures the greenback against six major currencies, was trading 0.34 percent higher at 89.32 by the time of this writing.

The American Petroleum Institute is expected to release its crude and refined products stockpiles estimates for last week on Wednesday, a day later than the usual as markets remained closed on Monday in observance of the President’s Day holiday.

FortFS

GOLD

Gold futures were lower in early trading hours on Monday, despite the dollar easing some of its prior gains as interest for risky assets continued to repair.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.24 percent at $1.352.90 a troy ounce as of 03:00 GMT.

The yellow metal settled lower on Friday, moving away from three-week highs as the greenback rebounded against major competitors, although it continued to trade near multi-year lows.

Bullion prices added 3.08 percent for the week, trading near their peaks since mid-2016.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.

The US dollar index, which measures the greenback against six major currencies, was trading 0.15 percent lower at 88.88 by the time of this writing. Last week, the USDX fell 1.46 percent.

The American currency was under pressure as expectations on potential faster monetary adjustments outside the United States continued to build.

Rising speculation that the Federal Reserve will hike rates at a faster pace in 2018 were simply not enough to support the greenback. Benchmark rates remain at the 1.25-1.50 percent range.

The precious metal has also been supported by the Lunar New Year holiday in Asia, which is likely to increase physical demand for gold.

OIL

Crude oil prices were higher in early Asian hours on Monday, extending weekly gains as investors' sentiment remains supported by OPEC cuts.

The US West Texas Intermediate crude contracts were up 1.22 percent to $62.30 per barrel as of 03:00 GMT. Meanwhile, Brent futures added 0.82 percent to $65.37 a barrel.

Crude benchmarks ended in green territory on Friday for a third straight session, with market participants cheered by the ongoing effect of OPEC-led efforts to balance the market.

The US dollar index, which measures the greenback against six major currencies, was trading 0.15 percent lower at 88.88 by the time of this writing. Last week, the USDX fell 1.46 percent.

The American currency was under pressure as expectations on potential faster monetary adjustments outside the United States continued to build.

A weaker base currency makes oil a cheaper investment alternative for market players holding other currencies, a factor typically associated with a boost in demand.

For the week, WTI contracts with delivery in April were up 4.2 percent at nearly $61.55 per barrel, while Brent futures gained 3.3 percent at $64.84 a barrel.

United Arab Emirates energy minister Suhail al-Mazroui said the world’s top producers, starring Saudi Arabia and Russia, are discussing a potential long-term agreement to keep output down.

The Organization of the Petroleum Exporting Countries (OPEC) together with Russia and other independent producers agreed in December to extend cuts until the end of 2018.

On the data front, Baker Hughes said on Friday the weekly oil rig count has risen by 51 to 798. This massive build in the count anticipates a potential increase in near-term output.

Last week, the US Energy Information Administration said crude supplies rose 1.841 million barrels in the week ended Feb 9, compared to a 2.825 million barrels build seen.

FortFS

GOLD

Gold futures were lower in early trading hours on Friday, with expectations on monetary changes setting the tone for the dollar.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.41 percent at $1.360.80 a troy ounce as of 06:50 GMT.

The yellow metal ended flat on Thursday as trading activity was restricted amid rising doubts about inflationary pressure and future monetary policy adjustments by the Federal Reserve.

Inflation and labor market conditions are two of the most important benchmarks for Fed policymakers when deciding about future monetary changes.

The US regulator left unchanged its benchmark rate in a range between 1.25 and 1.50 percent, while insisting that at least three rate hikes could take place during 2018.

The Labor Department said its producer price index rose 0.4 percent in January following a 0.1 percent decline in December. In the twelve months through January, the PPI added 2.2 percent.

A higher inflation anticipates future monetary changes, boosting speculation for rate hikes in the near term, which provides bullish for the American currency.

The US dollar index, which measures the greenback against six major currencies, was trading 0.31 percent lower at 88.23 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.

Ahead in the day, focus will be directed to real estate market data. Building permits for January and housing starts are up at 13:30 GMT. Later on, Michigan University will release its consumer expectations and consumer sentiment gauges for February at 15:00 GMT.

OIL

Crude oil prices were higher in early Asian hours on Friday, with market players looking ahead to the weekly oil rig count and keeping an eye on the dollar’s dynamic.

The US West Texas Intermediate crude contracts were up 0.54 percent to $61.50 per barrel as of 06:50 GMT. Meanwhile, Brent futures added 0.47 percent to $64.63 a barrel.

Crude benchmarks settled to the downside as market participants continued to digest supportive remarks from Saudi Arabia Oil Minister Al-Falih on the future market conditions.

"If we have to overbalance the market a little bit, then so be it," said Al-Falih.

The Organization of the Petroleum Exporting Countries and a group of independent producers led by Russia agreed to extend output cuts by 1.8 million barrels per day until the end of 2018.

However, both parts have been showing constant support to a potential extension in case it is required to prevent oversupply to take over again and push prices down.

Sentiment remained positive, but oil prices gave up some previous session gains as excitement over the latest crude and refined products inventories data.

Earlier this week, the US Energy Information Administration said crude supplies rose 1.841 million barrels in the week ended Feb 9, compared to a 2.825 million barrels build seen.

The agency also said refinery utilization eased to 89.8 percent last week, as the industry entered a period of maintenance, which is expected to last nearly one month.

The US dollar index, which measures the greenback against six major currencies, was trading 0.21 percent lower at 88.82 by the time of this writing.

Ahead in the day, Baker Hughes’ weekly oil rig count is due for release as of 18:00 GMT.

FortFS

Monday

United States: Holiday - Washington’s Birthday

China: Holiday - Lunar New Year

Tuesday

China: Holiday - Lunar New Year

Europe: Germany’s producer price index for January is to be published at 07:00 GMT, followed by ZEW current conditions and economic sentiment for February at 10:00 GMT. UK inflation report hearings are up at 10:00 GMT, while CBI industrial trends orders will be out at 11:00 GMT.

Wednesday

China: Holiday - Lunar New Year

Europe: Germany’s manufacturing and services PMIs for February will be out at 08:30 GMT. Same reports are due for the Eurozone at 09:00 GMT. In the United Kingdom, labor data will be in focus at 09:30 GMT, including average earnings and the claimant count change for January, as well as the unemployment rate for December.

United States: manufacturing and services activity indexes by Markit Economics for February will become available as of 14:45 GMT. Existing home sales for January are up at 15:00 GMT. The Federal Reserve will also be releasing minutes of its latest monetary encounter at 19:00 GMT. The American Petroleum Institute unveils its crude supplies estimates as of 21:30 GMT.

Thursday

Europe: Germany’s business expectations, current assessment and lfo business climate index are all due for release at 09:00 GMT. Those reports will be followed by UK business investment measure for the fourth-quarter 2017 and a revision on the GDP half an hour later.

United States: initial jobless claims are set for publishing at 13:30 GMT. FOMC members Dudley and Bostic will offer speeches at 15:00 GMT and 17:10 GMT respectively. The Energy Information Administration will release crude and refined products stockpiles at 16:00 GMT.

Asia: Japan’s core CPI for January will be released as of 23:30 GMT.

Friday

Europe: Germany will present a revision on its fourth-quarter GDP at 07:00 GMT. Later on, the Eurozone will release its consumer price index (CPI) for January at 10:00 GMT.

United States: FOMC members Dudley and Mester are due to speak at 15:15 GMT and 18:30 GMT respectively. Baker Hughes’ weekly oil rig count will be out at 18:00 GMT.

FortFS

Asian equity markets were mostly higher on Thursday, following a strong close in Wall Street as key economic reports came in better than expected in the previous session.

The Nikkei 225 was up one and a half percent, with financials and technology contributing most gains despite a more expensive yen.

Japan’s industrial production increased by 2.9 percent in December, above an originally estimated 2.7 percent growth rate.

In Australia, the S&P/ASX 200 was about one percent into green territory, energy, and materials offering support to the benchmark. Rio Tinto was up 2.93 percent and BHP added 3.48 percent.

The unemployment rate in Australia matched expectations for a 0.1 percent reduction from a prior 5.6 percent in January. Employment change rose by 16,000 in the prior month.

Stock markets in China, South Korea, Vietnam and Taiwan will remain closed on Thursday as these nations have started celebrations for their Lunar New Year holiday.

<<< Asian Stock Indexes at 05:50 GMT >>>

Australia ASX S&P +68.70 +1.16% 6,008.70

Shanghai Composite +14.20 +0.45% 3,199.16

Hong Kong Hang Seng +599.83 +1.97% 31,115.43

Japan Nikkei 225 +309.92 +1.47% 21,464.09

Taiwan TSEC 50 Index +49.34 +0.48% 10,421.09

<<< Next in Europe >>>

Ahead in today’s session, ECB Mersch is due to speak as of 08:15 GMT, followed by ECB Praet at 10:45 GMT and ECB Lautenschlaeger at 12:00 GMT.

Also, Eurozone’s trade balance for December is expected to be released at 10:00 GMT.

<<< Next in United States >>>

Traders will keep an eye on the producer price index for January and initial jobless claims at 13:30 GMT. The NY Empire State and Philadelphia Fed manufacturing indexes will be out too.

Industrial production figures for the previous month will be released at 14:15 GMT. TIC net long term transactions for December are scheduled at 21:00 GMT.

FortFS

GOLD

Gold futures were lower in early trading hours on Thursday, with market participants looking ahead to further economic data to measure its impact on the dollar.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.07 percent at $1.357.10 a troy ounce as of 05:50 GMT.

The yellow metal traded sharply higher in late hours on Wednesday as a weaker dollar continued to support commodity prices following an unconvincing inflation report from the United States.

The US dollar index, which measures the greenback against six major currencies, was trading 0.21 percent lower at 88.82 by the time of this writing.

The dollar-denominated metal is sensitive to changes in the US currency. A weaker greenback makes the metal more attractive for investors holding foreign currencies.

On Wednesday, the US Labor Department said its Consumer Price Index notched up 0.5 percent in Jan, above a prior month 0.2 percent build. On yearly basis, prices gained 1.8 percent.

In other news, the Commerce Department reported a 0.3 percent drop in retail sales for the last month, against expectations for a 0.3 percent increase.

Following these results, investors began to worry about inflation strength and some decided to let go their long positions. In addition, sentiment was under pressure after JPMorgan revised its GDP forecast for the first quarter of this year to 2.5 percent from 3 percent.

Ahead in the day, traders will keep an eye on the producer price index for January and initial jobless claims at 13:30 GMT. By that time, the NY Empire State and Philadelphia Fed manufacturing indexes will be out too.

Industrial production figures for the previous month will be released at 14:15 GMT. TIC net long term transactions for December are scheduled at 21:00 GMT.

OIL

Crude oil prices were higher in early Asian hours on Thursday, with investors continuing to digest official inventory data, while awaiting the weekly oil rig count.

The US West Texas Intermediate crude contracts were down 1.14 percent to $61.29 per barrel as of 05:50 GMT. Meanwhile, Brent futures added 0.99 percent to $65 a barrel.

Crude prices settled on a higher note as official crude inventories in the United States grew below forecast, reducing concerns among investors.

The US Energy Information Administration said crude stockpiles added 1.841 million barrels in the week ended February 9, against expectations for a 2.825 million barrels build.

The report also showed gasoline supplies rising by 3.599 million barrels, while analysts had anticipated an increase of 1.229 million barrels. Distillate products dropped by 459,000 barrels, less than a forecasted decline of 1.130 million barrels.

Refiners are currently in a period of maintenance, which usually translates into higher gasoline inventories. Despite US shale producers trying to take advantage of higher prices, movements in the sector are still slow and prospects for crude benchmarks remain positive.

In other news, Saudi oil minister and OPEC’s de-facto leader Khalid al-Falih said on Wednesday that the cartel will continue to limit production even if that causes a supply shortage.

"If we have to overbalance the market a little bit, then so be it," said Al-Falih.

His remarks came in response to a downbeat monthly report by the Paris-based International Energy Agency, which suggested rising US production would derail OPEC-led efforts.

“All the indicators that suggest continued fast growth in the US are in perfect alignment; rising prices leading, after a few months, to more drilling, more completions, more production, and more hedging," the IEA’s report said.

FortFS