Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

America’s Roundup: Dollar gains after three-day fall ,Wall Street slips, Gold falls more than 1%, Oil falls on China's COVID-19 cases, high crude build January 23rd,2021

Market Roundup

•Canada Nov Retail Sales (MoM)  1.3%,0.1% forecast, 0.4% previous      

•Canada Nov Core Retail Sales (MoM)  2.1%, 0.3% forecast, 1.0% previous

•US Jan Services PMI  57.5, 53.6 forecast, 54.8 previous

•US Jan Manufacturing PMI  56.5 forecast, 57.1 previous

•US Jan Markit Composite PMI 58.0, 55.3 previous

•US Dec Existing Home Sales (MoM)   0.7%,-2.0% forecast, -2.5% previous

•US Dec Existing Home Sales  6.76M, 6.55M forecast, 6.69M previous

•US Natural Gas Storage-187B,-174B forecast, -134B previous

•US Crude Oil Inventories 4.351M, -1.167M forecast, -3.247M previous

Looking Ahead - Economic Data (GMT) 

• No significant data

Looking Ahead - Economic events and other releases (GMT)

• No  significant events

Currency Summaries

EUR/USD: The euro gained against dollar on Friday a day after   the European Central Bank meeting, where the bank’s message was perceived as more hawkish than expected. The ECB maintained its highly accommodative monetary policy, but market participants saw the ECB as emphasizing it would not need to use all the firepower of its pandemic emergency bond purchases (PEPP) if favourable financing conditions can be maintained without exhausting the envelope. Immediate resistance can be seen at 1.2194 (Daily high), an upside break can trigger rise towards 1.2234 (23.6%fib).On the downside, immediate support is seen at 1.2136 (38.2%fib), a break below could take the pair towards 1.2093 (50DMA).

GBP/USD: Sterling fell on Friday as Britain's third national lockdown sparked the sharpest drop in business activity since May, while data showed retail sales remained weak in December after store closures the previous month. IHS Markit/CIPS UK Composite Purchasing Managers' Index fell more than expected to 40.6 in January, well below the 50 threshold that indicates growth and down from 50.4 in December. The weak PMI numbers followed data showing British retailers struggled to recover in December after shops in England emerged from a four-week November lockdown. Immediate resistance can be seen at 1.3735 (Higher BB), an upside break can trigger rise towards 1.3816 (23.6%fib).On the downside, immediate support is seen at 1.3651 (5DMA), a break below could take the pair towards 1.3520 (38.2 % fib).

 USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back much of this week's gains, as new pandemic curbs in China weighed on oil prices and data added to evidence of Canada's economy slowing in December. The loonie was trading 0.7% lower at 1.2718 to the greenback, pulling back from a near three-year high on Thursday at 1.2590. Canadian retail sales jumped by 1.3% in November, much more than expected, but preliminary figures for December suggest a sharp drop as novel coronavirus restrictions were re-imposed. Immediate resistance can be seen at 1.2737 (50%fib), an upside break can trigger rise towards 1.2782 (61.8%fib).On the downside, immediate support is seen at 1.2687 (38.2%fib), a break below could take the pair towards 1.2629 (23.6%fib).

USD/JPY: The dollar gained against the Japanese yen on Friday after three straight days of losses, as bleak economic data gave global equity markets reason to pause after another week of record highs. The dollar had fallen against a basket of currencies for the past three sessions as market optimism about U.S. President Joe Biden’s fiscal stimulus plans prompted traders to seek riskier assets, producing gains. But that trend paused on Friday as market sentiment pulled back. Strong resistance can be seen at 103.73 (38.2% fib), an upside break can trigger rise towards 103.86 (50DMA).On the downside, immediate support is seen at 103.44 (50%fib), a break below could take the pair towards 103.00 (Psychological level).

Equities Recap

European stocks fell on Friday, hit by tighter travel restrictions in the euro zone and weak UK retail sales numbers, while investors awaited the latest batch of business activity data to gauge the pace of recovery from the coronavirus crisis.

UK's benchmark FTSE 100 closed down by 0.30 percent, Germany's Dax ended down by 0.24 percent, France’s CAC finished the day down by 0.56 percent.

Wall Street's main indexes slipped on Friday, dragged down by losses in blue-chip technology stalwarts Intel and IBM following their quarterly results, with concerns about a sharp rise in coronavirus cases also denting sentiment.

Dow Jones was trading  down by 0.57 percent, S&P 500 was trading  down by 0.30 percent, Nasdaq was trading  up by 0.09 percent.

Treasuries Recap

U.S. Treasury yields drifted lower on Friday as the market benefited from a risk-off sentiment sparked in part by coronavirus concerns and a bumpy road ahead for President Joe Biden's massive economic rescue package.

The benchmark 10-year yield was last down 2 basis points at 1.0872%.

Commodities Recap

Gold prices fell more than 1% on Friday as a broader market sell-off weighed on the metal along with a firm dollar, while hopes for further stimulus from the U.S. put bullion on track for its first weekly gain in three.

Spot gold fell 0.8% to $1,855.23 per ounce by 1:42 p.m. EST (1842 GMT), retreating from a two-week high hit on Thursday. The metal was up 1.5% so far this week.

Oil prices fell on Friday, weighed down by a build in U.S. crude inventories and worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer.

Brent crude futures declined 60 cents, or 1.1%, to $55.50 a barrel by 11:58 EDT (1658 GMT).

U.S. West Texas Intermediate (WTI) crude futures fell 68 cents, or 1.3%, to $52.45.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.