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America’s Roundup: Canadian dollar tumbles to 7-week low, Wall Street drops, Gold hits three-week high, Oil sinks to three-month lows-January 28th,2020

Market Roundup

• Coronavirus death toll rises to 81 in China

• U.S. 10-year Treasury yields fall to over 3-month low

• Fed meeting on Jan. 28-29

• US Dec New Home Sales  694K, 730K forecast, 697K previous

• US Dec New Home Sales (MoM) -0.4%,1.5% forecast, -1.1% previous

• US Jan  Dallas Fed Mfg Business Index  -0.2, -3.1 forecast, -3.2 previous

Looking Ahead - Economic Data (GMT)
    
• Japan    Corporate Services Price Index (CSPI) (YoY)     2.1% previous    

• 00:30 Australia Dec NAB Business Confidence  1, 0  previous    

• 00:30 Australia Dec NAB Business Survey  4 previous    

• 00:30 Japan BoJ Core CPI (YoY) 0.2 previous    

Looking Ahead - Events, Other Releases (GMT)

• No significant events
        
Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Monday, after the Ifo institute said that German business morale deteriorated unexpectedly in January. German business morale deteriorated unexpectedly in January as the outlook for services darkened, a survey showed on Monday, suggesting that Europe’s largest economy got off to a slow start in 2020 after narrowly avoiding a recession last year. Immediate resistance can be seen at 1.1066 (9 DMA), an upside break can trigger rise towards 1.1117(21 DMA).On the downside, immediate support is seen at 1.1065 1.1000 (Psychological level), a break below could take the pair towards 1.0978 (Nov 24th low).

GBP/USD: Sterling declined against dollar on Monday, as investors awaited this week’s Bank of England decision on interest rates.Weak economic data and dovish comments from BoE policymakers have fuelled speculation that the central bank could cut rates at its Jan. 30 policy meeting, though upbeat economic numbers in recent days have cast doubt over that view. In subdued Monday trading, sterling dipped 0.1% to $1.3056 , sliding below a more than two-week high touched briefly on Friday at $1.3180. Immediate resistance can be seen at 1.3085(21 DMA), an upside break can trigger rise towards 1.3201 (Higher BB).On the downside, immediate support is seen at 1.2960 (Jan 20th low), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar sank to a seven-week low against the U.S. dollar on Monday, weighed down by lower oil prices, as investors dumped commodity-linked currencies amid fears about the spread of the latest coronavirus. U.S. crude oil prices fell on Monday to their lowest level n more than three months on concerns that the virus could hamper economic growth and reduce demand for fuel. At (21:52), the U.S. dollar rose 0.3% against the Canadian currency to C$1.3180.  Immediate resistance can be seen at 1.3203 (Higher BB), an upside break can trigger rise towards 1.3270 (Dec 6th high).On the downside, immediate support is seen at 1.3161 (5 DMA), a break below could take the pair towards 1.3102(11 DMA).

USD/JPY: The dollar dipped against the Japanese yen on Monday, as concern about Chinese coronavirus in Wuhan sparked   risk aversion. Health authorities around the world are working to prevent a pandemic. The virus has killed 81 people in China, and nearly 2,800 people have been infected globally. Chinese Premier Li Keqiang will “inspect and direct” efforts to control an outbreak in the central city of Wuhan and promised reinforcements, as people accused provincial authorities of being too slow to respond. Strong resistance can be seen at 109.29 (5 DMA), an upside break can trigger rise towards 109.68 (11 DMA).On the downside, immediate support is seen at 109.69 (Daily low), a break below could take the pair towards 108.00 (Psychological level). 

Equities Recap

European shares dropped sharply   on Monday as growing concerns over the potential economic damage from a fast-spreading coronavirus sapped demand for riskier assets.

The UK's benchmark FTSE 100 closed down by 2.29 percent, Germany's Dax ended down by 2.74 percent, and France’s CAC finished the day down by 2.68 percent.

U.S. stocks fell more than 1% on Monday as investors worried about the economic impact of a virus outbreak in China as containment efforts including travel bans have been put in place in the world’s second largest economy after the country extended the Lunar New Year holiday.

 Dow Jones closed down by 1.56 percent, S&P 500 ended down  1.57 percent, Nasdaq finished the day down  by 1.89 percent.

Treasuries Recap

Benchmark U.S. Treasury yields fell to three-month lows on Monday as investors piled in on concerns about the economic impact of China’s spreading coronavirus, while part of the yield curve reinverted for the first time since December.

Benchmark 10-year note yields fell as low as 1.60%, the lowest since Oct. 10.

Commodities Recap

Gold climbed to a near three-week high on Monday as mounting concerns over the economic fallout of the coronavirus outbreak sent investors scurrying for safe havens.

Spot gold was up 0.4% at $1,577.31 per ounce by 1:50 p.m. EST (1850 GMT). Prices rose to $1,586.43, the highest level since Jan. 8, earlier in the session.U.S. gold futures settled 0.3% higher at $1,577.4 per ounce.

Crude futures dropped 2% to three-month lows on Monday as the death toll from China’s coronavirus grew, curtailing travel and fueling expectations of slowing oil demand.

Brent crude  settled at $59.32 a barrel, losing $1.37, or 2.3%, its lowest since Oct. 21. U.S. crude  settled at $53.14 a barrel, was down $1.05, or 1.9%, its lowest since Oct. 2.
                
 

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