This is what you need to know to trade today Thursday, March 4:
Market sentiment remains damp on Thursday as progress on the stimulus package pushed yields down despite weak US data Tensions rise ahead of Fed Chairman Jerome Powell’s speech at the which will refer to the increase in borrowing costs. US jobless claims and the OPEC + meeting are also in focus, as Bitcoin retreats from the highs.
Yields on US Treasuries at ten years they are below 1.48%, on higher ground. That keeps the dollar strong and weighs on markets, with US stocks set to slide Thursday after falling Wednesday.
All attention is on Jerome Powell, Chairman of the Federal Reserve. The world’s most powerful central banker speaks at 17:05 GMT in his last public appearance before the Fed’s rate decision in two weeks. So far, Powell has ignored higher yields and rising inflation expectations, seeing it as a sign of better growth prospects.
However, Fed Governor Lael Brainard said the pace of the move “caught his eye.” Some suspect Powell may hint that the central bank could intervene, causing a “brief contraction” in bonds and pushing the dollar lower.
See: Powell Speech Preview: Three Scenarios for the Fed to Put Out the Bonds Bonfire – Market Implications
President Joe Biden agreed to lower the cutoff limits for stimulus checks in its $ 1.9 trillion bill. Political analysts suggest that this engagement with moderate Democrats will pave the way for legislation to pass in the Senate, which could happen on Thursday.
Weak US data: ADP’s private sector employment figures fell short of estimates with just 117,000 new jobs in February and the ISM Services PMI Purchasing Managers Index fell short with a score of 55.3 points. The PMI employment component disappointed with a drop, hinting at a dovish figure in Friday’s NFP nonfarm payroll report. Weekly jobless claims are released Thursday.
See: Preview of Initial US Unemployment Claims: On the Verge of an Explosive Recovery?
The pair EUR/USD hovers around the 1.2050 region as EU countries have softened their focus on the AstraZeneca vaccine, potentially increasing distribution. Germany will partially ease restrictions on Monday.
The pair GBP/USD trades around 1.3955 after UK Chancellor of the Exchequer Rishi Sunak set a budget that includes more support for the economy, investment incentives for businesses, but also higher corporate taxes in 2023. Overall, the changes they were well received.
The AUD/USD it has risen above 0.78 after Australia reported a huge trade surplus of over AU $ 10 billion, the highest on record.
The oro it is still under pressure but remains above $ 1,700 for now. The precious metal is suffering from rising US yields. Crude oil WTI it has advanced above $ 61.00 before the OPEC + meeting on Thursday. According to the news, Russia is ready to increase oil production, while Saudi Arabia is reluctant
The Bitcoin it is on the defensive, trading below $ 50,000 after breaking that line earlier in the week. Other cryptocurrencies are following suit.
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