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America's Roundup: Dollar dips vs Japanese yen on growth worries, trade tensions, Wall Street ends down, Gold eases, Oil settles down 2 pct as slowed global growth, rising supplies-January 23rd ,2019

Market Roundup

• Trump plan to reopen govt., build border wall undercut by U.S. high court

• Pompeo voices optimism for good outcome on US-China trade

• U.S. rejects offer from China for preparatory trade talks -FT

• Opposition leader pushes for parliament vote on new Brexit referendum

• Surging labour market boosts UK economy ahead of Brexit

• Oil drops nearly 3 pct on rising supplies, China slowdown

• US Dec Existing Home Sales % chg, -6.4%, -1.0% forecast, 1.9% forecast, 2.1% revised

• US Dec Existing Home Sales, 4.99 mln, 5.25 mln forecast, 5.32 mln forecast, 5.33 mln revised

• CA Nov Wholesale Trade M/M, -1.0%, 0.0% forecast, 1.0% previous, 0.7% revised

• CA Nov Manufacturing Sales M/M, -1.4%, -0.9% forecast, -0.1% previous

Looking Ahead - Economic Data (GMT)

• 22 Jan 21:45 New Zealand Q4 CPI Q/Q, 0.0% forecast, 0.9% previous

• 22 Jan 21:45 New Zealand Q4 CPI Y/Y, 1.8% forecast, 1.9% previous

• 22 Jan 21:45 New Zealand Q4 CPI Index Number, 1,024.0 previous

• 22 Jan 23:50 Japan Dec Exports Y/Y, -1.9% forecast, 0.1% previous

• 22 Jan 23:50 Japan Dec Imports Y/Y, 3.7% forecast, 12.5% previous 

• 22 Jan 23:50 Japan Dec Trade Balance Total Yen, -29.5 bln forecast, -737.7 bln previous

Looking Ahead - Events, Auctions, Other Releases (GMT)

• N/A ECB Vice President Luis de Guindos participates in ECOFIN meeting in Brussels, Belgium

• N/A Bank of Japan holds monetary policy meeting (to Jan 23) in Tokyo

Currency Summaries

EUR/USD: The euro slipped to a three-week low against the U.S. dollar on Tuesday, as weak data and a cut in European growth forecast by the International Monetary Fund prompted investors to turn bearish on the single currency. Data comes on the heels of an overnight reduction in Europe's growth forecasts by the IMF which trimmed its growth projections in the euro zone to 1.6 percent in 2019 from 1.8 percent in 2018, 0.3 percentage point lower than what was projected three months ago. The single currency was down 0.1 percent at $1.1359, its lowest since Jan. 4. It has weakened nearly 2 percent against the dollar over the last two weeks. Immediate resistance can be seen at 1.1416 (21 DMA), an upside break can trigger rise towards 1.1459 (100 DMA).On the downside, immediate support is seen at 1.1313 (Lower Bollinger Band), a break below could take the pair towards 1.1269 (14th Dec 2018 Low).

GBP/USD: Sterling strengthened against the dollar on Tuesday, after data showed that, Britain's labour market remained solid despite an economic slowdown ahead of Brexit. The pound slumped 7 percent in 2018 on Brexit concerns but it has started the year on the front foot with some investors viewing medium-term sterling valuations as decently priced. The British currency rose half a percent on Tuesday and neared $1.30 after data showed British workers' pay grew at the fastest pace in over 10 years. Immediate resistance can be seen at 1.3000 (Jan 17th high), an upside break can trigger rise towards 1.3086 (200 DMA).On the downside, immediate support is seen at 1.2853 (11 DMA), a break below could take the pair towards 1.2769 (21 DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday, as investors worried about the global growth outlook and weaker-than-expected data added to evidence that Canada's economy slowed at the end of 2018. Canadian factory sales decreased by 1.4 percent in November from October on lower petroleum and coal product sales, while November wholesale trade was down 1.0 percent. At (2100 GMT), the Canadian dollar was last trading 0.4 percent lower at 1.3348 to the greenback. The currency touched its weakest intraday level since Jan. 7 at 1.3355. Immediate resistance can be seen at 1.3400 (Psychological Level), an upside break can trigger rise towards 1.3469 (61.8% retracement level).On the downside, immediate support is seen at 1.3287 (5 DMA), a break below could take the pair towards 1.3192 (100 DMA).

USD/JPY: The U.S. dollar dipped against the yen on Tuesday, as worries about flagging global growth and concerns about continuing U.S.-Chinese trade tensions drove investors to switch to safe-haven assets. The dollar was 0.20 percent lower against the yen, which tends to benefit during geopolitical or financial stress as Japan is the world's biggest creditor nation. Strong resistance can be seen at 108.88 (11 DMA), an upside break can trigger rise towards 111.09 (Higher Bollinger Band).On the downside, immediate support is seen at 108.88 (11 DMA), a break below could take the pair towards 108.17 (61.8% retracement level). 

Equities Recap

European shares extended their slide on Tuesday as growth worries weighed on global markets while results from Switzerland's UBS dragged on the banking sector.

The UK's benchmark FTSE 100 closed down by 0.5 percent, FTSEurofirst 300 ended the day down by 0.54 percent, Germany's Dax ended down by 0.5 percent, and France’s CAC finished the down by 0.6 percent.

U.S. stocks ended lower on Tuesday,
snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment.

Dow Jones closed down by 1.19 percent, S&P 500 ended down 1.38 percent, Nasdaq finished the day down by 1.85 percent.

Treasuries Recap

U.S. Treasury yields dropped on Tuesday as investors shifted some cash back into the bond market, prompted by worries over slowing global growth and trade tensions between China and the United States.

The yield on benchmark 10-year Treasury notes was 2.737 percent, down 4.5 basis points from Friday's close. It reached a three-week peak at 2.799 percent on Friday.

Commodities Recap

Gold held firm on Tuesday, propped by interest from investors seeking refuge from concerns over slowing global growth, while gains for the metal were limited as the dollar held near a multi-week peak.

Spot gold was up 0.38 percent at $1,284.86 an ounce at (2020 GMT), recovering from a dip on Monday to its lowest since Dec. 28 at $1,276.31.U.S. gold futures settled up 0.1 percent to $1,283.4.

Oil prices dropped about 2 percent on Tuesday over concerns the world's stumbling economy could pinch fuel demand as U.S. shale fields surge and cuts by Russia come in below expectations.

Brent oil futures settled down $1.24, or 2 percent, at $61.50 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.23, or 1.9 percent, to $52.57.
 

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