Market Roundup
• Trump says Phase 1 trade deal to be signed Jan. 15.
* Oil inches higher after tensions in Iraq
• Wall Street opens at record levels
• US Dec Challenger Job 32.843K , 44.569K previous
• Brazil Dec Markit Manufacturing PMI 50.2, 52.6 forecast, 52.9 previous
• US Continuing Jobless Claims 1,728K, 1,717K forecast, 1,723K previous
• US Initial Jobless Claims 222K, 225K forecast 224K previous
• US Jobless Claims 4-Week Avg 233.25K, 228.50K previous
• Canada Dec RBC Manufacturing PMI 50.4, 51.9 forecast, 51.4 previous
• US Dec Manufacturing PMI 52.4, 52.5 forecast, 52.6 previous
• Brazil Dec Trade Balance 5.60B, 4.35B forecast, 3.43B previous
Looking Ahead - Economic Data (GMT)
• 21;30 Brazil Dec AIG Services Index 53.7 previous
• 00:01 UK BRC Shop Price Index (YoY) -0.5% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Thursday, as dollar gained on optimism about the world economy after positive Chinese manufacturing data.. Trading may remain thin until Tuesday, when most European countries open after Monday’s Epiphany holiday but market players will be relieved the dollar navigated the holiday period without experiencing the money market squeezes many had feared.The euro was last trading down at 0.48 percent at $1.1168. Immediate resistance can be seen at 1.1238 (Dec 31st high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1135 (9 DMA), a break below could take the pair towards 1.1068 (24th Dec low).
GBP/USD: The British slipped lower against dollar on Thursday, as euphoria after last month’s British election gave way to anxiety over the risk of a no-deal Brexit at the end of 2020.Market liquidity was thin on the first trading day of the year, but the pound’s decline also reflected worries over Britain’s trade negotiations with the European Union following its expected exit from the bloc at the end of this month. Sterling lost 0.8% to hit a low of $1.3137, pulling away from the two-week high of $1.3284 hit on New Year’s Eve. Immediate resistance can be seen at 1.3288 (Dec 31st high), an upside break can trigger rise towards 1.3338 (Dec 17th high).On the downside, immediate support is seen at 1.3110 (5 DMA), a break below could take the pair towards 1.3059 (11 DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday as Chinese monetary policy easing buoyed global equity markets, with the loonie holding on to its gains from 2019, when it was the top performing G10 currency. U.S. crude prices were up 0.4% at $61.29 a barrel as signs of improving trade relations between the United States and China which eased demand concerns and rising tensions in the Middle East provided support.
At (1922 GMT), the Canadian dollar was trading nearly unchanged at 1.2987 to the greenback. The currency traded in a range of 1.2969 to 1.3008.The loonie, which notched on Tuesday a 14-month high at 1.2952, strengthened 5% in 2019. Immediate resistance can be seen at 1.3047 (5 DMA), an upside break can trigger rise towards 1.3096 (11 DMA).On the downside, immediate support is seen at 1.2949 (Daily low), a break below could take the pair towards 1.2900 (Psychological level).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday, as uncertainties surrounding the U.S.-China trade negotiations kept investors cautious. U.S. President Donald Trump said on Tuesday that a "phase-one" of the deal would be signed on Jan. 15, though considerable confusion remains about its details. The much-awaited trade deal between the world's two largest economies was expected to have been inked by the end of 2019. However, with merely the initial chunk of the deal placed on the table for talks, investors remain apprehensive. Strong resistance can be seen at 109.00 (5 DMA), an upside break can trigger rise towards 109.23 (11 DMA).On the downside, immediate support is seen at 108.21 (Daily low), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European shares started the new decade on a strong note on Thursday as China further eased monetary policy to prop up the economy, with concrete indications of an imminent U.S.-China trade deal also lifting the mood.
The UK's benchmark FTSE 100 closed up by 0.82 percent, Germany's Dax ended up by 1.03 percent, and France’s CAC finished the up by 1.06 percent.
Wall Street hovered at record highs on Friday, as investors paused after a year-end rally that has been fueled by optimism over a U.S.-China trade truce and an improving global economy.
AT ( GMT 1924),Dow Jones closed up by 0.71 percent, S&P 500 ended at 0.44 percent, Nasdaq finished the day down by 0.94 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday in light post-holiday trading, after longer-dated debt posted its highest yearly returns since 2014.
The 10-year yields were last at 1.893%. They are holding below the three-month high of 1.973% reached on Nov. 7, but are up from 1.69% at the beginning of December and a three-year low of 1.43% reached on Sept. 3.
Commodities Recap
Gold prices on Thursday began the year with a healthy start, boosted by doubts surrounding the strength of Wall Street's rally, while platinum added 3% on industrial demand.
Spot gold was up 0.6% at $1,525.57 per ounce as of1:49 p.m. ET (1849 GMT), having notched a three-month high of $1,531.20 earlier in the session. U.S. gold futures settled 0.3% higher at $1,528.10 an ounce.
Oil prices steadied after early gains as signs of improving U.S.-China trade relations eased demand concerns and rising tensions in the Middle East provided support.
Brent crude futures rose 7 cents to $66.07 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 8 cents to $61.14 a barrel.
