- It has been a quiet start to the week as markets await the 3 P’s – politics, Powell and payrolls. Super Tuesday is the first of the P’s later today as voters in the US choose candidates for this year’s Presidential elections, which looks set to be another Trump v Biden contest. Powell’s testimony before Congress and the US Non-farm Payroll jobs report come later in the week as currency markets tread water ahead of these key events.
- EURUSD is little changed, continuing to trade mid-1.08, with support at 1.08 holding steady and resistance at 1.0925 some way off with the pair continuing to trade in a tight range. Ahead this morning we await euro area PPI data along with final Services and Composite PMI for February. Events later in the week including Powell’s testimony and the ECB policy meeting are likely to have a greater impact on EURUSD in the coming days, so the recent levels seen at the start of the week are likely to hold.
- China’s parliament, the National People’s Congress (NPC) kicked off its annual session today, as it set its annual growth target at around 5%. The number appears ambitious and will likely put pressure on leaders to deliver further stimulus amidst an ongoing property slump and entrenched deflation.
- This afternoon we look forward to the release of US ISM Services Index which will be closely watched especially following Friday’s downside miss in the Manufacturing reading. Factory Orders and Durable Goods are also on the docket, although events later in the week are expected to take centre stage.
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