Market Roundup
• Russia Central Bank reserves (USD) 589.5B, 592.7B previous
• Brazil Jan Auto Production (MoM) -4.6%,12.1% previous
• Brazil Jan Auto Sales (MoM) -29.8% ,8.4% previous
• US Unit Labor Costs (QoQ) (Q4) 6.8%,4.0% forecast, -6.6% previous
• US Nonfarm Productivity (QoQ) (Q4) -4.8%,-2.8% forecast, 4.6% previous
• US Initial Jobless Claims 779K,830Kforecast, 847K previous
• US Jobless Claims 4-Week Avg 848.25K,868.00K previous
• US Continuing Jobless Claims 4,592K,4,700K, 4,771K previous
• US Dec Factory Orders (MoM) 1.1%, 0.7%,1.0% previous
• US Durables Excluding Defense (MoM) 0.8%,0.5% previous
• US Dec Factory orders ex transportation (MoM) 1.4%, 0.8% previous
• US Natural Gas Storage-192B, -192B, -128B previous
Looking Ahead - Economic Data (GMT)
•00:00 New Zealand ANZ Commodity Price Index (MoM) 3.6%,1.8% previous
•00:30 Japan Jan Services PMI 46.1, 47.7 previous
•00:30 Australia Dec Building Approvals (MoM) 10.9%, 2.6% previous
•00:30 Australia Dec Private House Approvals 15.8%,6.1% previous
•01:45 China Jan Caixin Services PMI 52.0, 56.3 previous
Looking Ahead - Economic events and other releases (GMT)
•01:30 Australia RBA Governor Lowe Speaks
•01:30 Japan BOJ Deputy Governor Wakatabe Speaks
Currency Summaries
EUR/USD: The euro held near two month lows on Thursday as confidence in the U.S. economic outlook and the possibility that Friday’s jobs report will be stronger than expected boosted greenback. The U.S. dollar index rose 0.5% in New York afternoon trading to 91.509, up 1.7% for the year and its highest level in two months.The move came with a 0.6% decline in the euro, which fell to $1.1966, below what had seemed a resistance level of $1.20 earlier this week. It was its first move below $1.20 since Dec. 1. Immediate resistance can be seen at 1.2042 (50% fib), an upside break can trigger rise towards 1.2087(9DMA).On the downside, immediate support is seen at 1.1947 (38.2%fib), a break below could take the pair towards 1.1876 (23.6% fib).
GBP/USD: The pound strengthened against dollar on Thursday as investors interpreted the BoE’s comments as positive. The Bank of England gave British lenders at least six months’ breathing space on Thursday before negative interest rates are a possibility, focusing instead on the prospects for a post-lockdown rebound in a quarterly update on the economy. As expected, the BoE maintained its Bank Rate at 0.1% and left the size of its total asset purchase programme at 895 billion pounds ($1.22 trillion). Immediate resistance can be seen at 1.3671 (11DMA), an upside break can trigger rise towards 1.3762(23.6%fib).On the downside, immediate support is seen at 1.3592 (38.2%fib), a break below could take the pair towards 1.3442 (50 % fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as the greenback added to recent gains against a basket of major currencies and ahead of Canada's monthly jobs report on Friday. The U.S. dollar strengthened to two-month highs as data pointed to an improvement in the U.S. economic outlook, bond yields rose and the price of oil, one of Canada's major exports,hit a one-year high. The loonie was trading 0.3% lower at 1.2814 to the greenback, having traded in a range of 1.2777 to 1.2824. .Immediate resistance can be seen at 1.2850 (Daily high), an upside break can trigger rise towards 1.2873(38.2.%fib).On the downside, immediate support is seen at 1.2761(23.%fib), a break below could take the pair towards 1.2736(21DMA).
USD/JPY: The dollar rose against the Japanese yen on Thursday as recent signs of strength in the U.S. economy drove buying into the dollar. Increasing optimism over the U.S. economy and a bumper COVID-19 stimulus package attracted investors to the U.S. dollar, pressuring Japanese yen. The Democratic-controlled U.S. House of Representatives approved a budget outline on Wednesday that would allow them to pass President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support. Strong resistance can be seen at 105.56 (23.6% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.23 (38.2%fib), a break below could take the pair towards 105.02 (50%fib).
Equities Recap
European shares rose on Thursday, extending a rally for the fourth straight day, as investors were hopeful of a swifter global economic recovery, with German shares leading the advance among European Union members.
UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended up by 0.91 percent, France’s CAC finished the day up by 0.82 percent.
Wall Street’s main indexes climbed on Thursday as investors looked to corporate earnings and signs of progress on a pandemic-relief package after data suggested the labor market was stabilizing.
Dow Jones was up by 1.08 percent, S&P 500 was up by 1.09 percent, Nasdaq was up by 1.23 percent.
Treasuries Recap
Longer-term U.S. Treasury yields were higher on Thursday as investors positioned for a large pandemic relief package from Washington and a stabilizing U.S. labor market.
The benchmark 10-year yield was up a basis point at 1.1409% in afternoon trading.
Commodities Recap
Gold dropped more than 2% on Thursday to break below the key psychological $1,800 level as a rising dollar and U.S. Treasury yields eroded bullion's appeal.
Spot gold fell 2.3% to $1,791.76 per ounce by 1:43 p.m. EST (1843 GMT), after touching a more than two-month low of $1,784.76. U.S. gold futures settled down 2.4% at $1,791.20.
Oil ticked up on Thursday on strong U.S. economic data, falling inventories and the OPEC+ decision to stick to its output cuts, but a stronger U.S. dollar limited the gains.
Brent crude settled at $58.84 a barrel, up 38 cents, having earlier hit its highest level since Feb. 21 at $59.04.
U.S. West Texas Intermediate (WTI) crude settled at $54 a barrel, rising 54 cents after reaching its highest settlement level in a year on Wednesday at $55.69.
