SHANGHAI, Mar 20 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
Except for SHFE aluminium, base metals edged down across the board under pressure from cautious sentiment ahead of the Federal Reserve’s meeting that will determine the hike in interest rates. LME copper and nickel fell close to 1%.
The eurozone’s seasonally adjusted trade account stood at 19.9 billion euros in January.
The UK and EU reached a Brexit transition deal with a transitional period from March 29, 2019 to December 31, 2020.
The euro jumped after Reuters reported that the European Central Bank (ECB) policymakers had shifted the debate away from bond purchases to interest rates, suggesting that the ECB may raise rates sooner than previously expected.
Day ahead
Key factors to watch today include the UK February consumer price index (CPI), and March eurozone data such as the consumer confidence index (CCI), and the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index.
The US dollar edged down to 89.9 as the pound and euro strengthened overnight. We expect it to remain rangebound at the current level today. Investors will take more cues from the US Federal Reserve’s decision on interest rates.
Base metals were on downward trend except for aluminium, which inched up overnight. We expect the prices to remain weak in the short term.
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