Market Roundup
•US Redbook (YoY) -1.6%, 3.9% previous
•US Redbook (MoM) 4.4%,-2.0% previous
•New Zealand GlobalDairyTrade Price Index1.8%, 4.8% previous
•US Jan Jan ISM NY Business Conditions 51.2%,61.3% previous
•US Jan ISM-New York Index 818.2,817.6 previous
•US IBD/TIPP Economic Optimism51.9, 50.1 previous
Looking Ahead - Economic data (GMT)
•21:30 Australia Dec AIG Construction Index 55.3 previous
•21:30 New Zealand Employment Change (QoQ) (Q4) -0.8% forecast, -0.8% previous
•21: 45 New Zealand Unemployment Rate (Q4) 5.6% forecast, 5.3% previous
•21: 45 New Zealand Labor Cost Index (QoQ) (Q4) 0.5% forecast, 0.4% previous
•21:45 New Zealand Participation Rate (Q4) 70.20% forecast, 70.10% previous
•21:45 New Zealand Labor Cost Index (YoY) (Q4) 1.5% forecast, 1.6% previous
•00:00 New Zealand ANZ Commodity Price Index (MoM) 1.8% previous
•00:00 Japan Services PMI 47.7 previous
•00:30 Australian Dec Building Approvals (MoM) 2.6% previous
•00:30 Australian Dec Private House Approvals 6.1% previous
Looking Ahead - Economic events and other releases (GMT)
•00:30 Australian RBA Governor Lowe Speaks
EUR/USD: The euro declined against dollar on Tuesday as markets saw a widening disparity between the strength of U.S. and European economic recoveries from the coronavirus pandemic. Moves in Washington toward more stimulus spending and progress with vaccinations in the United States contrasted with European lockdowns and expectations for a steepening decline in euro zone GDP, despite data on Tuesday that showed less of a contraction in the fourth quarter than had been anticipated. The euro was trading at $1.2035 against dollar . It has weakened more than 2% from an early January peak of near $1.2350. Immediate resistance can be seen at 1.2059 (38.2%fib), an upside break can trigger rise towards 1.2092(5 EMA).On the downside, immediate support is seen at 1.2000 (Psychological level), a break below could take the pair towards 1.1977(100 DMA).
GBP/USD: Sterling gained against the dollar on Tuesday as analysts bet a faster pace of vaccinations in Britain and the scope for a faster economic recovery would boost the currency this year.The pound has gained amid optimism over Britain's lead in vaccinations against COVID-19, with analysts pinning their hopes on a faster economic recovery relative to other regions whose vaccine rollout is lagging, such as the rest of Europe.Risk sentiment in markets has also benefited the pound, as has the Bank of England's pushing back market expectations of negative interest rates.y 12:40 GMT, sterling was up 0.06% against the dollar at $1.3665. Immediate resistance can be seen at 1.3707(Daily high), an upside break can trigger rise towards 1.3755(23.6%fib).On the downside, immediate support is seen at 1.3639 (38.2%fib), a break below could take the pair towards 1.3600 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, rebounding from an earlier one-week low as Wall Street fluctuated and the Bank of Canada said that measures taken to ease financial market strains were working. In an annual review of Canada's financial systems, the central bank said that "access to liquidity has greatly improved in key financial markets" even as it expressed concern over vulnerabilities in the energy sector. The Canadian dollar was last trading 0.2% higher at 1.4066 to the greenback. Immediate resistance can be seen at 1.2871 (38.2%fib), an upside break can trigger rise towards 1.2878 (50%fib).On the downside, immediate support is seen at 1.2800 (38.2%fib), a break below could take the pair towards 1.2710 (23.6%fib).
USD/JPY: The dollar rose against the Japanese yen on Tuesday as markets saw the U.S. as likely to rebound sooner than Europe from the coronavirus pandemic.The view was bolstered by moves in Washington toward more stimulus spending. Also supporting the dollar on Tuesday were steps by Democrats in Congress toward fast-track passage of U.S. President Joe Biden's $1.9 trillion COVID-19 relief package even without Republican support. Strong resistance can be seen at 105.09 (23.6%fib), an upside break can trigger rise towards 105.46(12 Nov high).On the downside, immediate support is seen at 104.79 (Daily low), a break below could take the pair towards 104.64 (38.2%fib).
Equities Recap
European shares rose on Tuesday on hopes of a faster economic recovery, with some upbeat economic growth data and encouraging outlook on big names such as Airbus and LVMH putting a pan-regional index on course to erase last week’s hefty losses..
UK's benchmark FTSE 100 closed up by 0.78 percent, Germany's Dax ended up by 1.56 percent, France’s CAC finished the day up by 1.86 percent.
U.S. stocks finished up sharply for a second straight day on Tuesday, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a U.S. pandemic relief package.
Dow Jones closed up by 1.57% percent, S&P 500 closed up by 1.35 % percent, Nasdaq settled up by 1.56% percent.
Treasuries Recap
U.S. Treasury yields climbed on Tuesday and the yield curve steepened on supply concerns asbCongressional Democrats were set to take initial steps ton advance President Joe Biden's massive COVID-19 relief plan.
The benchmark 10-year yield was last up 2.8bbasis points at 1.1048%.
Commodities Recap
Silver slid more than 8% on Tuesday as small investors retreated after a rally to a near eight-year peak the previous session fuelled by a social media-driven trading frenzy.
Spot silver fell 8.2% to $26.59 an ounce by 1:54 p.m. EST (1854 GMT). On Monday, it surged 7.3% to its highest since February 2013.
Spot gold, meanwhile, fell 1.4% to $1,835.11 per ounce. U.S. gold futures settled down 1.6% at $1,833.40.
Oil prices rose 2% on Tuesday, reaching their highest in 12 months after major producers showed they were reining in output roughly in line with their commitments.
Brent crude settled up $1.11, or 2%, at $57.46 a barrel, after its third straight day of gains. During the session, it touched $58.05, the highest levels since January last year.
U.S. oil gained $1.21, or 2.3%, to close at $54.76, after hitting a session high of $55.26, the highest in a year.
