A combination of economic data and monetary policy will headline Thursday’s trading session, with none other than the European Central Bank (ECB) scheduled to deliver an interest rate verdict. What else is going to affect markets’ movements? Stay on top of the markets with a glimpse into the 7 March Market moving Fundamental Events.
8 March, HotForex – The slew of data releases helped to shrug off trade concerns. Japan GDP came in higher than expected and showed an annualized quarterly rate of 1.6%, versus Bloomberg expectations of 1.0%.
Japan’s economy has grown for eight straight quarters, as global growth has underpinned export demand, supporting business investment and corporate profits. However, we have yet to see robust wage gains or consumer spending. Inflation has accelerated but remains well short of the BoJ’s 2% target.
Nikkei and Topix rose 0.54% and -.35% respectively, the ASX was up 0.69% at the close, Hang Seng and CSI 300 gained 1.40% and 0.76% so far.
European Market Outlook
Concerns about a global trade war are receding and after European stocks bounced back during the PM session yesterday, Asian markets followed and rebounded from the lows of the previous session, despite a tepid close on Wall Street.
China’s trade surplus also came in better than expected, with exports growth accelerating sharply. The positive sentiment also seems to be spilling over with U.S. futures moving higher.
USDJPY has remained within yesterday’s range so far in Asian trading today, posting a range so far of 105.92-106.20. Market participants are still fathoming Trump’s tariffs, which will reportedly be signed off on today, and become effective in two weeks time, but which will include temporary exceptions on Mexico and Canada (subject to how the Trump administration deems NAFTA negotiations go).
Bitcoin has slumped 10.3% to the $9600 area compared to 24-hour highs of $10,911 and lows of $9,450, breaking back below $10k after a period of consolidation and recovery after its downdraft earlier in the year. Coincidentally, Bloomberg is reporting that the bankruptcy attorney, Nobuaki Kobayashi, for creditors of the failed Mt. Gox bitcoin exchange has sold some $400 mln in Bitcoin and Bitcoin cash since September and has another $1.9 bln to go.
His aim is reported to get the highest price possible and has been averaging as the sale price of $10,015. That’s certainly one whale of a headwind for gains from here, along with SEC crackdown on rogue digital exchanges and other potential regulation.
Main Macro 8 March Market Moving Fundamental Events
- ECB Rates Decision – The ECB is widely expected to keep rates unchanged and confirm the current QE schedule that runs until the end of September, leaving the focus on the forward guidance. ECB officials are increasingly split on the question of the guidance on the QE program, with a growing number of council members arguing for a commitment to an end date for net asset purchases as the economy strengthens.
- Data since the last meeting backed the dovish camp as are political headwinds with trade war fears and Brexit still hanging over markets and underpinning volatility. The Italian election had only temporary impact, however, and Germany’s Merkel was finally confirmed as Chancellor so the hawks also have something to argue with.
- Canadian Building Permits & NHPI – Housing starts are seen edging lower to a 216.6k pace in February from 216.2k in January. Building permits are anticipated to slip 1.0% in January after the 4.8% gain in values during December.
- ECB Press Conference –
- BOC Gov Poloz and Gov council Member Lane Speeches
Support and Resistance Levels
This article about 8 March Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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