America’s Roundup: Dollar dips after U.S. data ,Wall Street gains, Gold rises, Oil falls to new three-month lows-January 31st,2020

Market Roundup

• US Continuing Jobless Claims1,703K, 1,733K forecast, 1,747K previous  
 
• US Core PCE Prices (Q4)  1.30%,1.70% forecast, 2.10% previous
    
• US Core GDP (QoQ) (Q4) 2.1%,2.1% forecast, 2.1% previous  
 
• US GDP Price Index (QoQ) (Q4) 1.5%,1.8% forecast, 1.7% previous  
 
• US GDP Sales (Q4) 3.2%,2.1% forecast, 2.1% previous

• US Initial Jobless Claims    216K, 215K forecast, 223K previous

• US Jobless Claims 4-Week Avg 214.50K. 216.25K previous

• US Real Consumer Spending (Q4) 1.8%,3.2% previous

Looking Ahead - Economic Data (GMT)

• 23:30 Japan Dec Jobs/applications ratio 1.56, 1.57 previous
    
• 23:30 Japan Tokyo Core CPI (YoY) 0.8%,0.8% previous    

• 23:30 Japan Jan CPI Tokyo Ex Food and Energy (MoM)  0.1% previous

• 23:30 Japan Feb Industrial Production forecast 2m ahead (MoM) 2.5% previous

• 23:30 Japan Dec Retail Sales (YoY) -1.8% forecast,-2.1% previous    

• 00:30 Australia Dec Housing Credit   0.2% previous    

• 00:30 Australia PPI (QoQ) (Q4) 0.3% forecast,0.4% previous

• 00:30 Australia PPI (YoY) (Q4) 1.4% forecast, 1.6% previous

• 00:30 Australia Dec Private Sector Credit (MoM)  0.3% previous

• 01:00 Chinese Jan Composite PMI 53.4 forecast. 53.4 previous  
 
• 01:00 Chinese Jan Manufacturing PMI 50.0 forecast. 50.2 previous    

• 01:00 Chinese Jan Non-Manufacturing PMI  53.5 previous
                                                                           Looking Ahead - Events, Other Releases (GMT)    

• No significant events          
      
Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Thursday, as dollar fell on news the U.S. economy posted its slowest annual growth in three years in 2019 and personal consumption weakened dramatically. The American economy missed the Trump administration’s 3% growth target for a second straight year as the slump in business investment deepened amid damaging trade tensions, the Commerce Department reported on Thursday. The euro was up 0.22 percent at $1.1033 .Immediate resistance can be seen at 1.1069 (100 DMA), an upside break can trigger rise towards 1.1093 (50 DMA).On the downside, immediate support is seen at 1.1005 (Daily low), a break below could take the pair towards 1.10988(29th Jan low).

GBP/USD: The pound rose higher against dollar on Thursday after the Bank of England held interest rates at 0.75%, defying money markets that had seen a 50% probability of a cut to help the economy. The Monetary Policy Committee remained split 7-2 as before, with external members Michael Saunders and Jonathan Haskel again voting to lower rates. Sterling rose to $1.3109, up 0.7% on the day and its highest since last Friday, but last traded just below $1.31. Against the euro, the currency gained 0.5% to 84.13 pence . Immediate resistance can be seen at 1.3115 (Daily High), an upside break can trigger rise towards 1.3168 (23rd Jan high).On the downside, immediate support is seen at 1.3000 (Psychological level), a break below could take the pair towards 1.2853 (100 DMA).

USD/CAD: The Canadian dollar weakened to a seven-week low against its U.S. counterpart on Thursday as fears rose that the coronavirus would hurt prospects for the global economy and as investors awaited a speech by a senior Bank of Canada official. Canada is a major exporter of commodities, including oil, so the loonie tends to be sensitive to prospects for global growth. At   (1402 GMT), the Canadian dollar was trading 0.1% lower at 1.3210 to the greenback. Immediate resistance can be seen at 1.3226 (Daily high), an upside break can trigger rise towards 1.3300 (Psychological level).On the downside, immediate support is seen at 1.3178 (5 DMA), a break below could take the pair towards 1.3125 (11 DMA).

USD/JPY: The dollar weakened against the Japanese yen on Thursday as worries about the spread of a new virus from China sent investors switch to the safety of perceived safe-haven assets.  The number of confirmed deaths from the virus in China has climbed to 170 with 7,711 people infected, and more cases are being reported around the world. The dollar was 0.70 percent  lower versus the Japanese yen at 105.98. Strong resistance can be seen at 109.07 (5 DMA), an upside break can trigger rise towards 109.52 (11 DMA).On the downside, immediate support is seen at 108.58 (Daily low), a break below could take the pair towards 108.00 (Psychological level). 

Equities Recap

European shares fell for the first time in three sessions on Thursday on a slate of disappointing earnings updates, with investors also fretting over the economic impact of a virus epidemic in China that has now claimed 170 lives.

The UK's benchmark FTSE 100 closed down by 1.36 percent, Germany's Dax ended down by 1.41 percent, and France’s CAC finished the down  by 1.40 percent.

US stocks strengthen after data showed domestic economy rose at a 2.1% annualized rate in the fourth quarter, in line with expectations.

Dow Jones closed up by 0.23 percent, S&P 500 ended up 0.14 percent, Nasdaq finished the day up by 0.12 percent.

Treasuries Recap

U.S. Treasury yields dipped to three-month lows on Thursday and a closely watched part of the yield curve was briefly inverted as concerns about the economic impact of a virus emanating in China weighed on risk appetite.

Benchmark 10-year note yields fell two basis points to 1.57%. The yields got as low as 1.55% overnight, the lowest since Oct. 10.

Commodities Recap

Oil prices fell more than 2% on Thursday to the lowest in three months on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.

Brent crude was down $1.78, or 3%, to $58.03 a barrel by 1:03 p.m. EST (1803 GMT). The global benchmark earlier dropped to $57.90, its lowest since Oct. 10.

U.S. crude fell $1.49, or 2.8%, to $51.84 a barrel, after hitting a session low at $51.66 a barrel, also its weakest since Oct. 10.

Gold prices rose on Thursday as concerns of a slowdown in global growth due to a virus outbreak in China weakened risk appetite among investors.

Spot gold was up 0.5% at $1,583.93 per ounce by 2:02 p.m. EST (1902 GMT). U.S. gold futures settled 0.8% higher at $1,583.50.