Market Roundup
•French 12-Month BTF Auction-0.627%, -0.602% previous
•French 3-Month BTF Auction -0.623%,-0.620% previous
•French 6-Month BTF Auction -0.632%,-0.605% previous
• US Dec CB Employment Trends Index 99.01, 98.81 previous
• US 3-Month Bill Auction 0.090% , 0.090% previous
• US 3-Year Note Auction 0.234%,0.211% previous
Looking Ahead – Economic Data (GMT)
•05:00 Japan Dec Economy Watchers Current Index 45.6 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday as hopes the rollout of vaccines would ultimately lift a global economy boosted euro. With the lag between a full vaccine rollout and a global economic recovery, investors will count on central banks to keep money cheap. On the data front, German factories churned out more goods in December despite a stricter lockdown to head off a spike in coronavirus deaths in Europe’s largest economy, a survey showed on Monday.IHS Markit’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the German economy, rose to 58.3 from 57.8 the previous month. Immediate resistance can be seen at 1.2303 (23.6%fib), an upside break can trigger rise towards 1.2325 (Higher BB).On the downside, immediate support is seen at 1.2210 (38.2%fib), a break below could take the pair towards 1.2177 (21DMA).
GBP/USD: Sterling strengthened against dollar on Monday as upbeat manufacturing data supported sterling across the board. A closely watched gauge of growth in British manufacturing activity rose to its highest level in three years last month, as factories rushed to complete work before the end of the post-Brexit transition period on Dec. 31.The IHS Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) for December rose to 57.5 from November’s 55.6, its highest since November 2017 and slightly above an initial flash estimate of 57.3. Immediate resistance can be seen at 1.3700 (100 DMA), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3640 (38.2%fib), a break below could take the pair towards 1.3597 (Psychological level).
USD/CAD : The Canadian dollar slumped to near a two-week low against its broadly stronger U.S. counterpart on Monday, as investors worried about stricter lockdowns globally to help contain rising coronavirus infections.The Canadian dollar was trading 1.1% lower at 1.2820 to the greenback, or 78.00 U.S. cents, its biggest decline since June 11. The currency touched its weakest intraday level since Dec. 29 at 1.2835.Immediate resistance can be seen at 1.2800 (50%fib), an upside break can trigger rise towards 1.2874 (61.8%fib).On the downside, immediate support is seen at 1.2741 (38.2%fib), a break below could take the pair towards 1.2657 (23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Monday as reports of a possible tightening in coronavirus emergency rules for Tokyo boosted safe-haven yen. The Japanese government said on Monday it was considering declaring a state of emergency in and around Tokyo as coronavirus cases climb, casting fresh doubt over whether it can push ahead with the summer Olympics and keep economic damage to a minimum. Tokyo and the three surrounding prefectures, which have requested an emergency declaration, asked residents to refrain from non-essential, non-urgent outings after 8 p.m. from Friday . Strong resistance can be seen at 102.97 (38.2%fib), an upside break can trigger rise towards 103.10 (50%fib).On the downside, immediate support is seen at 102.79(23.6%fib), a break below could take the pair towards 102.61 (Lower BB).
Equities Recap
European stocks fell on Monday after a strong rally last week took them to the highest level in more than 10 months, retreating as surging coronavirus cases across the continent and mainland China looked likely to dent a global economic recovery.
UK's benchmark FTSE 100 closed up by 1.09 percent, Germany's Dax ended down by 0.80 percent, France’s CAC finished the day down by 0.78percent.
Wall Street’s main indexes closed lower on Monday as investors took some profits after last weeks’ record levels while they waited for earnings season to begin and eyed events in Washington with trepidation.
Dow Jones closed down by 0.29% percent, S&P 500 closed by 0.66% percent, Nasdaq settled down by 0.125% percent.
Treasuries Recap
Benchmark Treasury yields rose to 10- month highs on Monday as investors adjusted for higher government spending under the Joe Biden administration and before the Treasury will sell new long-dated supply.
Benchmark 10-year notes reached 1.138% on Monday, the highest since March 20. The yield curve between two-year and 10-year notes steepened to 99.9 basis points, the widest gap since July 2017.
Commodities Recap
Gold eased on Monday, having touched a six-week low earlier in the session, clamped down by a firm dollar and a rise in U.S. Treasury yields on hopes of more fiscal stimulus.
Spot gold was down 0.1% at $1,846.61 per ounce by 2:08 p.m. EST (1908 GMT), after touching its lowest level since Dec. 2 at $1,816.53.
Oil prices steadied on Monday after strong gains last week, as tough coronavirus lockdowns around the world renewed concerns about global fuel demand, while a stronger U.S. dollar also weighed on prices.
Brent fell 33 cents to settle at $55.66 a barrel, after bouncing off the session low of $54.99. U.S. West Texas Intermediate (WTI) rose a cent to settle at $52.25 a barrel.
