Market Roundup
• US Dec Core Durable Goods Orders (MoM) -0.1%,0.2% forecast, -0.4% previous
• US Dec Durable Goods Orders (MoM) 2.4%,0.4% forecast, -3.1% previous
• US Dec Durables Excluding Defense (MoM) -2.5%,-0.5% previous
• US Dec Goods Orders Non Defense Ex Air (MoM) -0.9%,0.2% forecast, 0.1% previous
• US Redbook (YoY) 5.3%,5.3% previous
• US Redbook (MoM) 0.1%,0.0% previous
• US Nov S&P/CS HPI Composite - 20 s.a. (MoM) 0.5%,0.4% forecast, 0.5% previous
• US Jan CB Consumer Confidence 131.6, 128.0 forecast, 128.2 previous
• US Jan Richmond Manufacturing Index 20 , 9 forecast, -5 previous
• US Jan Dallas Fed Services Revenues 18.8, 17.9 previous
• US Jan Texas Services Sector Outlook 11.1, 13.5 previous
Looking Ahead - Economic Data (GMT)
• 00:30 Australia CPI (YoY) (Q4) 1.7%,1.7% previous
• 00:30 Australia CPI (QoQ) (Q4) 0.6%, 0.5% previous
• 00:30 Australia Trimmed Mean CPI (QoQ) (Q4) 0.4%,0.4% previous
• 00:30 Australia Trimmed Mean CPI (YoY) (Q4) 1.5%,1.6% previous
Looking Ahead - Events, Other Releases (GMT)
• 19:00 US FOMC Statement
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Tuesday as the common currency was weighed down by fallout from the coronavirus outbreak in China. The euro has been rattled this year by dismal manufacturing data and by worries that deepening economic tensions between the United States and China could slow euro zone economies even further.The euro was down 0.03% at $1.022. An index that tracks the dollar versus a basket of six major currencies was up 0.03 percent at 97.97. Immediate resistance can be seen at 1.1042 (5 DMA), an upside break can trigger rise towards 1.1115 (21 DMA).On the downside, immediate support is seen at 1.0996 (Daily Low), a break below could take the pair towards 1.0938 (Oct 8th low).
GBP/USD: Sterling declined against dollar on Tuesday as concern about Britain’s future relationship with the European Union creeps back onto the radar of currency markets.Ahead of a knife-edge Bank of England interest rate decision on Thursday, sterling has been pushed and pulled this month by speculation over whether an imminent rate cut is likely. Sterling was last down 0.35% at $1.3022, a one-week low. The British currency was a third of a percent weaker against the euro at 84.66 pence, its lowest level in almost a week. Immediate resistance can be seen at 1.3100 (Psychological level), an upside break can trigger rise towards 1.3200 (Higher BB).On the downside, immediate support is seen at 1.2970 (Daily low), a break below could take the pair towards 1.2835 (100 DMA).
USD/CAD: The Canadian dollar was little changed against the greenback on Tuesday, holding close to its weakest level in nearly seven weeks as investors worried that China's spreading coronavirus would drag on global economic activity. Canada is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in the global economy. At (21:33 GMT), the Canadian dollar was trading nearly unchanged at 1.3189 to the greenback. The currency touched its weakest intraday level since Dec. 11 at 1.3206. Immediate resistance can be seen at 1.3206 (Higher BB), an upside break can trigger rise towards 1.3273 (Dec 5th high).On the downside, immediate support is seen at 1.3150 (5 DMA), a break below could take the pair towards 1.3098 (11 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as gained ahead of the U.S. Federal Reserve’s policy meeting. Some economists and strategists expect the Fed to make a slight increase this week on the interest it pays on excess reserves held at the central bank, or IOER. The tweak would be viewed as a mechanical move aimed at lifting the effective federal funds rate, currently near the bottom of the Fed’s target range. Strong resistance can be seen at 109.33 (5 DMA), an upside break can trigger rise towards 109.71 (11 DMA).On the downside, immediate support is seen at 108.74 (11 DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
Banks and luxury goods led a recovery in European shares on Tuesday after heightened concerns about the about the potential impact on businesses from the coronavirus outbreak in China saw the main index post its worst day in about four months.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended up by 0.90 percent, France’s CAC finished the day up by 1.07 percent.
U.S. stocks rose on Tuesday as gains in technology and financial sectors helped major indexes recover from their worst selloff in about four months on worries over a coronavirus outbreak and its impact on the global economy.
Dow Jones closed up by 0.66 percent, S&P 500 ended up by 1.01 percent, Nasdaq finished up by 1.43 percent.
Treasuries Recap
Benchmark 10-year Treasury yields bounced off three-month lows on Tuesday, after a key part of the yield curve briefly inverted for the first time since October, as investors continued to assess the economic impact from a virus outbreak in China.
Benchmark 10-year note yields fell as low as 1.57% overnight, the lowest since Oct. 10, before rising back to 1.62%.
Commodities Recap
Gold fell on Tuesday as equity markets rebounded following positive U.S. economic data while the dollar scaled a near two-month peak ahead of the U.S. Federal Reserve’s policy meeting.
Spot gold was down 0.9% at $1,567.83 per ounce by 10:41 a.m. EST( 1541 GMT), having touched its highest since Jan. 8 on Monday. U.S. gold futures fell 0.7% to $1,567.
Oil futures edged up on Tuesday after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand.
Brent futures rose 19 cents, or 0.3%, to $59.51 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 34 cents, or 0.6%, to $53.48.
