China's consumer price index (CPI) declined 0.3% year on year in January, compared with a 0.2% increase in December last year. While on a monthly basis the inflation edged up 1%. On the other hand, the consumer price index rose 1.0% year-on-year after a 0.3% fall in December. Moving ahead to the North American session, the US will release the latest consumer inflation figures at 13.30 GMT.
US futures extends higher on Wednesday on hopes that the expected stimulus package proposed by US President Joe Biden will ultimately lead to an increase in the current account deficit. The bill is expected to be approved by March 15 if the Republican Party does not go along with new Democratic President Joe Biden.
On the earnings front, Coca- Cola (NYSE: KO), General Motors (NYSE: GM), and Under Armour (NYSE: UAA) reporting earnings today before the bell while UBER (NYSE: UBER) and MGM Resorts (NYSE: MGM) is scheduled to report results after the market close.
Crude oil price climbed back to the previous session highs boosted by better-than-expected API inventory data. The data showed the inventory fell by 3.50 million barrels in the week ended February 5th of 2021, following a 4.26 million drop in the previous week.
In the currency market, the commodity currency Canadian dollar trading strong on Wednesday after Crude oil prices closed near the 13-month high during the previous session.
The gold price trading unchanged on Wednesday as the investors are awaiting approval for a $1.9 trillion bailout package for the US economy.
On the data front, the US JOLTS Job Openings were released on Tuesday North American session, showing a rise to 6.65M, against the expected 6.42M.
Moving ahead today, the important events to watch:
US – Consumer price index: GMT – 13.30
US – EIA crude inventory report: GMT – 15.30
Worldwide, the number of COVID-19 cases reported is more than 106.6 million and more than 2.3 million have died. The United States has confirmed over 27.1 million cases and has had more than 465,000 deaths from COVID-19, the highest totals in the world.
Dollar Index: The greenback hits fresh monthly low 90.36 on Wednesday ahead of US inflation data. Overall, the momentum remains bearish throughout this week.
The important levels to watch for today: Support- 90.20 and 89.90 Resistance- 90.60 and 90.95.
GOLD: The yellow metal hovers near the short-term resistance $1845 on Wednesday. During the previous session, the metal closed higher but failed to break above the $1850 zone.
The important levels to watch for today: Support- 1838 and 1830 Resistance- 1850 and 1856.
Quote of the day: Its far better to buy a wonderful company at a fair price than a fair company at a wonderful price- Warren Buffet.
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