Market Roundup
•Russia Central Bank reserves (USD) 590.4B, 597.4B previous
• Canada Dec New Housing Price Index (MoM) 0.3%,0.6% previous
•Canada ADP Nonfarm Employment Change -28.8K,40.8K previous
•US Continuing Jobless Claims 5,054K, 5400K forecast, 5,271K previous
•US Initial Jobless Claims 900K, 910K forecast, 965K previous
•US Jobless Claims 4-Week Av g 848.00K , 834.25K previous
•US Dec Building Permits 1.709M, 1.604M forecast, 1.635M previous
•US Dec Building Permits (MoM) 4.5%, 5.9% previous
•US Dec Housing Starts 1.669M, 1.560M forecast, 1.547M previous
•US Jan Philadelphia Fed Manufacturing Index 26.5, 12.0 forecast, 9.1 previous
• US Jan Philly Fed Business Conditions 52.8, 43.1 previous
•US Jan Philly Fed Employment 22.5, 5.6 previous
•US Jan Philly Fed CAPEX Index 35.40, 23.80 previous
•US Jan Philly Fed Prices Paid 45.40, 24.90 previous
•US Dec Housing Starts (MoM ) 5.8%, 1.2% previous
•US 4-Week Bill Auction 0.070%, 0.075% previous
•US 8-Week Bill Auction 0.080% ,0.080% previous
Looking Ahead - Economic Data (GMT)
•No significant data
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: Euro gained versus an overall weak dollar, even as European Central Bank President Christine Lagarde warned about a renewed surge in COVID-19 infections and the prospect of prolonged restrictions that could challenge the region's economic outlook. The ECB, which kept interest rates steady on Thursday, also pledged to provide more support for the economy if needed. In late afternoon trading, the dollar index fell 0.3% to 90.103, after touching a nearly one-month high of 90.956 on Monday. The euro gained 0.5% against the dollar to $1.2163. Immediate resistance can be seen at 1.2173 (21st Jan high), an upside break can trigger rise towards 1.2235 (23.6%fib).On the downside, immediate support is seen at 1.2137 (38.2%fib), a break below could take the pair towards 1.2097 (50DMA).
GBP/USD: Sterling rose to $1.36 on Thursday and was set to scale the 2-1/2 year highs hit last week as markets awaited confirmation that Britain and the European Union had finally clinched a deal to govern trade when the Brexit transition ends on Dec. 31. The currency has strengthened some 1.5% versus the dollar on Wednesday. It is now around $1.3731, up 0.7% on the day, having hit high of $1.3741 hit earlier. Immediate resistance can be seen at 1.3741(Higher BB), an upside break can trigger rise towards 1.3813 (23.6%fib).On the downside, immediate support is seen at 1.2626 (5DMA), a break below could take the pair towards 1.3522(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a near three-year high against its U.S. counterpart on Thursday, tracking gains for stock markets globally even as U.S. President Joe Biden formally revoked the permit needed to build the Keystone XL oil pipeline. Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. Immediate resistance can be seen at 1.2649 (50%fib), an upside break can trigger rise towards 1.2673 (61.8%fib).On the downside, immediate support is seen at 1.2627 (38.2%fib), a break below could take the pair towards 1.2591 (11 DMA).
USD/JPY: The dollar declined against the Japanese yen on Thursday investors seeking out higher-yielding currencies, as a slew of better-than-expected U.S. data and continued optimism about a massive stimulus package spurred hopes of a recovery in the world's largest economy. On Thursday, U.S. data showed an economy slowly getting some traction, with slightly better-than-expected initial jobless claims, upbeat housing starts data, and a higher factory index for the mid-Atlantic region. In midmorning trading, the dollar index fell 0.3% to 90.11, after touching a nearly one-month high of 90.956 on Monday. Strong resistance can be seen at 103.61 (50%fib), an upside break can trigger rise towards 103.89 (38.2% fib).On the downside, immediate support is seen at 103.33 (61.8%fib), a break below could take the pair towards 103.00(Psychological level).
Equities Recap
European stocks rose on Thursday on hopes of a large U.S. stimulus plan under new President Joe Biden, while investors looked to the European Central Bank for clues on the eurozone’s economic health.
UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day down by 0.67 percent.
Wall Street’s main indexes hovered near record highs on Thursday as investors counted on more pandemic relief and speedy vaccine rollouts under the Biden administration to support the economy after data showed a weakening labor market recovery.
Dow Jones was trading down by 0.04 percent, S&P 500 was trading higher by 0.03 percent, Nasdaq was trading up by 0.55 percent.
Treasuries Recap
U.S. Treasury yields were mostly higher and the yield curve steepened on Thursday after data showed new claims for jobless benefits declined modestly last week.
The benchmark 10-year yield US10YT=RR was last up 2.4 basis points at 1.1143%.
Commodities Recap
Gold prices eased from a two-week high on Thursday as investors booked some profit following a rally in the previous session, while expectations for further stimulus and a weaker U.S. dollar limited losses.
Spot gold was down 0.2% to $1,867.56 per ounce at 01:57 p.m. EST (1857 GMT), after hitting its highest since Jan. 8 at $1,874.86 earlier in the day. Bullion had gained 1.7% on Wednesday.
Oil prices steadied on Thursday after industry data showed a surprise increase in U.S. crude inventories that revived pandemic-related fuel demand concerns, while U.S. stimulus hopes buoyed prices.
Brent crude futures rose 2 cents to settle at $56.10 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 18 cents to settle at $53.13 a barrel.