America’s Roundup: Dollar falls on worries about fallout from virus, Wall Street tumbles, Gold gains on epidemic fears, Oil slides as virus outbreak shakes economic growth predictions-February 1st,2020

Market Roundup

• WHO opposes restrictions on travel or trade with China

• US Dec Core PCE Price Index (YoY)  1.6% , 1.6% forecast, 1.5% previous

• US Dec Core PCE Price Index (MoM)  0.2%, 0.1% forecast, 0.1% previous

• US Dec Employment Benefits (QoQ) (Q4) 0.50%,0.60% previous

• US Employment Cost Index (QoQ) (Q4) 0.7%,0.7% forecast, 0.7% previous

• US Employment Wages (QoQ) (Q4) 0.70%    , 0.90% previous

• US Dec PCE price index (MoM)   0.3%,0.1% previous

• US Dec PCE Price index (YoY) 1.6, 1.4 previous

• US Dec Personal Spending (MoM)  0.3%,0.3% forecast, 0.4% previous

• US Dec Real Personal Consumption (MoM)  0.1%,0.3% previous

• Canada Nov GDP (MoM)  0.1%,0.1% forecast, -0.1% previous

• Canada Dec RMPI (MoM)  2.8%, -0.1% forecast, 1.4% previous

• US Jan Chicago PMI 42.9, 48.8 forecast, 48.2 previous

• US Jan US Michigan 5-Year Inflation Expectations 2.50%,2.20% previous

• US Jan US Michigan Consumer Expectations 90.5, 88.9 previous

• Canada Nov Budget Balance (YoY)  -11.75B, -9.05B     previous

• Canada Nov Budget Balance  -2.70B, -3.25B previous  
 
Looking Ahead - Economic Data (GMT)

• No economic data 
   
Looking Ahead - Events, Other Releases (GMT)    

• No significant events    

Currency Summaries

EUR/USD: The euro rose higher against the U.S. dollar on Friday, as dollar dipped as fears escalated about the global economic impact of the latest coronavirus outbreak in China last week. The death toll rose to 213 on Friday, all in China. The number of confirmed cases in China has risen beyond 9,800, Beijing’s envoy to the United Nations in Vienna said, while some 131 cases have been reported in 23 other countries and regions. The euro was up 0.06 percent at $1.1204. Immediate resistance can be seen at 1.1096 (50 DMA), an upside break can trigger rise towards 1.1173 (Jan 16th high).On the downside, immediate support is seen at 1.1066 (100 DMA), a break below could take the pair towards 1.1142 (11 DMA).

GBPUSD: Sterling rose higher against greenback on Friday as the cable rose for second consecutive day following the Bank of England’s decision to keep interest rates steady on signs of a post-election pick-up in growth. The Bank of England kept interest rates steady at Governor Mark Carney’s final policy meeting as it saw signs of a post-election pick-up in growth which weakened the case for immediate action to help the lacklustre economy. Immediate resistance can be seen at 1.3207 (Daily high), an upside break can trigger rise towards 1.3325(Dec 18th high).On the downside, immediate support is seen at 1.3076 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level).

USD/CAD: The Canadian dollar extended its losses, against its U.S. counterpart on Friday as concerns about the economic impact of a virus weighed on sentiment, but some of the loonie's decline was pared after data showed growth in Canada's economy. Canadian gross domestic product edged up by 0.1% in November as increases in utilities as a result of a cold weather snap helped to offset the effects of a rail strike, Statistics Canada said on Friday. At (1412 GMT), the Canadian dollar was trading 0.1% lower at 1.3221 to the greenback. The currency touched its weakest intraday level since Dec. 10 at 1.3245.Immediate resistance can be seen at 1.3236 (200 DMA), an upside break can trigger rise towards 1.3252 (Daily high).On the downside, immediate support is seen at 1.3200(Psychological level), a break below could take the pair towards 1.3180 (100 DMA).

USD/JPY: The dollar weakened against the Japanese yen on Friday, as investors worried over the fallout from China’s coronavirus epidemic. The virus, which is centred on China, has spread to more than 20 other countries and regions. As of Friday China had reported 213 deaths and 9,800 cases, with number of people infected surpassing the total during the 2002-2003 SARS epidemic. The dollar fell 0.5% against the yen to 108.35 yen in afternoon trading, after earlier dropping to a three-week low of 108.33 yen.. Strong resistance can be seen at 106.45 (5 DMA), an upside break can trigger rise towards 107.09 (Aug 6th high).On the downside, immediate support is seen at 105.52 (Lower Bollinger Band), a break below could take the pair towards 105.00 (Psychological level). 

Equities Recap

European shares gave up earlier gains to end firmly in negative territory on Friday after the United Kingdom and Italy confirmed their first coronavirus cases, and with a set of disappointing euro zone indicators also weighing on sentiment.

UK's benchmark FTSE 100 closed down by 1.30 percent, Germany's Dax ended down by 1.33 percent, France’s CAC finished the day down by 1.11 percent.

Wall Street’s main averages tumbled more than 1% on Friday as mixed corporate earnings added to worries over the impact of the coronavirus outbreak on global growth.

Dow Jones closed down by 2.09 percent, S&P 500 ended down by 1.77 percent, Nasdaq finished the down up by 1.59 percent.

Treasuries Recap

Benchmark 10-year Treasury yields dropped to more than three-month lows on Friday and two-year note yields fell to their lowest levels since 2017 as concerns about the spreading coronavirus boosted demand for safe-haven assets.

Benchmark 10-year note yields dropped as low as 1.519%, the lowest since Oct. 8.

Commodities Recap

Gold prices edged higher on Friday and were on track for their biggest monthly gain in five, as concerns of an economic slowdown arising from the coronavirus epidemic kept the safe-haven metal supported.

Spot gold rose 0.4% to $1,580.07 per ounce by 1324 GMT. The metal has gained 4% so far this month, on course for its best month since August. U.S. gold futures declined 0.2% to $1,579.60.

Oil prices fell on Friday and were on track for a fourth straight weekly loss on mounting worries about economic damage from the coronavirus that has spread from China to around 20 countries, killing more than 200 people.

Brent crude   fell 20 cents to $58.09 a barrel by 12:53 p.m. EST (1753 GMT), down 4.1% on the week.

U.S. West Texas Intermediate (WTI)   fell $1 to $51.14 a barrel, down 5.7% on the week.