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America’s Roundup: Dollar gains against euro on virus concerns, economic outlook, Wall Street ends higher, Gold hits one-week high, Oil drops to 13-month low-February 11th,2020

Market Roundup

• US Jan CB Employment Trends Index  110.20, 108.80 previous 

• US 3-Month Bill Auction 1.550%,1.550% previous           

• US 6-Month Bill Auction 1.510%,1.520% previous           

Looking Ahead - Economic Data (GMT) 

• 00:30 Australia Home Loans (MoM) 1.8% previous

• 00:30  Australia Invest Housing Finance 2.2% previous

• 00:30 Australia Jan NAB Business Survey,  3 previous

Looking Ahead - Economic Data (GMT) 

• 14:00   ECB President Lagarde Speaks                                 

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Monday, as bullish outlook for the U.S. economy and weak data in the eurozone made the greenback more attractive than the single currency. Strong economic data in the United States made the greenback more attractive. Data on Friday showed that U.S. job growth accelerated in January. By contrast, German industrial output recorded its biggest fall in December since the recession-hit year of 2009, data on Friday showed. Data on Monday also revealed that Italian industrial output was much weaker than expected in December.The euro was down 0.02 percent at $1.1138. Immediate resistance can be seen at 1.0949 (5 DMA), an upside break can trigger rise towards 1.1015 (11 DMA).On the downside, immediate support is seen at 1.0900 (Psychological level), a break below could take the pair towards 1.0876 (Oct 1st low).

GBP/USD: Sterling pulled back from 2-1/2 month lows against dollar on Monday, as investors priced in the risk of Britain failing to agree a trade deal with the European Union in the 11 months left of the Brexit transition period. Having dipped in early Monday trade to a 2-1/2 month low of $1.2873, sterling rebounded to as much as $1.2946 before inching down again to $1.2919 by 1700 GMT, a quarter percent firmer on the day. The pound was 0.6% stronger against the euro at 84.48 pence .. Immediate resistance can be seen at 1.2950 (5 DMA), an upside break can trigger rise towards 1.3001 (11 DMA).On the downside, immediate support is seen at 1.2862 (Daily low), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar declined to a four-month low against its U.S. counterpart on Monday as worries that the coronavirus outbreak would slow global economic growth overshadowed stronger-than-expected domestic housing data.Global shares sank as the death toll from a coronavirus outbreak exceeded that of the SARS epidemic of two decades ago. Canada is a major producer of commodities, including oil, so its economy could be hurt by a slowdown in global growth At (1446 GMT), the Canadian dollar was trading 0.1% lower at 1.3321 to the greenback  .Immediate resistance can be seen at 1.3330 (Saily high), an upside break can trigger rise towards 1.3346 (Oct 10th high).On the downside, immediate support is seen at 1.3301 (5 DMA), a break below could take the pair towards 1.3261 (11 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Monday, as investors remained on side-lines as the death toll from a coronavirus outbreak exceeded the SARS epidemic of two decades ago. Investors continued to monitor the advance of the virus, which had killed more than 900 people as of Sunday, mostly in China’s provincial capital of Wuhan, the epicenter of the outbreak.The full economic impact of the virus is still unknown but is expected to exacerbate a slowdown in the Chinese economy. Strong resistance can be seen at 110.02 (7th Feb high), an upside break can trigger rise towards 110.58 (Higher BB).On the downside, immediate support is seen at 109.38 (9 DMA), a break below could take the pair towards 109.00 (Psychological level).

Equities Recap

Deal talks and a rally in defensive sectors supported European shares on Monday as investors grappled with the potential impact of the coronavirus, while Irish stocks were hit by a strong showing for the left-wing Sinn Fein in a national election.

UK's benchmark FTSE 100 closed down by  0.27 percent, Germany's Dax ended down by 0.15 percent, France’s CAC finished the day down by 0.23 percent.                

Wall Street resumed its rally from last week, with the Nasdaq hitting a record high on Monday, as a recent batch of strong domestic economic data and largely upbeat earnings overshadowed fears about the impact of the coronavirus epidemic on global growth.

Dow Jones closed up by 0.60 percent, S&P 500 ended up by 0.73 percent, Nasdaq finished the down up by 1.13 percent.

Treasuries Recap

Continued demand for safe-haven assets from investors nervous about the economic damage caused by the coronavirus outbreak drove yields lower on Monday, inverting one measure of the yield curve.

The spread between yields of three-month and 10-year Treasuries was at minus 1.21 basis points in afternoon trade, having inverted earlier in the day. The spread was below zero for several days last week.

Commodities Recap

Gold rose to its highest in one week on Monday as the death toll from the coronavirus outbreak rose further and investors sought safe havens from the economic impact.

Spot gold was up 0.3% at $1,574.44 per ounce by 11:33 a.m. EST (1633 GMT). Its session high was the highest since Feb. 4 at $1,576.21. U.S. gold futures were 0.3% higher at $1,577.90.

Oil prices fell to their lowest level since December 2018 on Monday on weaker Chinese demand in the wake of the coronavirus outbreak and as traders waited to see if Russia would join other producers in seeking further output cuts.

Brent futures fell $1.20, or 2.2%, to settle at $53.27 a barrel, their lowest close since Dec. 28, 2018, while U.S. West Texas Intermediate crude fell 75 cents, or 1.5%, to settle at $49.57, the lowest close since Jan. 7, 2019.

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