America’s Roundup: Dollar holds gains vs yen,Wall Street hits new highs,Gold gains, Oil prices flat-February 7th,2020

Market Roundup

• US Continuing Jobless Claims 1,751K, 1,720K forecast, 1,703K previous

• US Initial Jobless Claims 202K,  215K forecast 217K previous

• US Nonfarm Productivity (QoQ) (Q4)     1.4%,1.6% forecast, -0.2% previous

• US Unit Labor Costs (QoQ) (Q4) 1.4%,1.4% forecast, 2.5% previous

Looking Ahead - Economic Data (GMT)

• 23:30 Japan Average Cash Earnings (YoY)  0.1% previous

• 23:30 Japan Dec Household Spending (MoM)  2.6% previous

• 23:30 Japan Dec Household Spending (YoY)  -2.0% previous

• 23:30 Japan Dec Overtime Pay (YoY)  -2.00% previous 
       
Looking Ahead - Events, Other Releases (GMT) 
   
• 02:00 Australia RBA Monetary Policy Statement            
              
Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Thursday, as euro was weighed down by data showing German industrial orders unexpectedly plunged in December. German industrial orders unexpectedly plunged in December on weaker demand from other euro zone countries, data showed on Thursday, suggesting that a manufacturing slump will continue to hamper overall growth in Europe’s largest economy. The euro was down 0.01 percent at $1.0980 .Immediate resistance can be seen at 1.1023 (11 DMA), an upside break can trigger rise towards 1.1064 (21 DMA).On the downside, immediate support is seen at 1.0964 (Daily low), a break below could take the pair towards 1.10900 (Psychological level).

GBP/USD: The pound declined against dollar on Thursday as concerns about negotiations between Britain and the European Union for a post-Brexit trade deal rattled investors, while a broadly stronger dollar also weighed. Investors are nervous that British Prime Minister Boris Johnson is taking a hard line in the trade talks with the EU, which need to be concluded before the end of the year to avoid a potentially disruptive break in trading relations. Immediate resistance can be seen at 1.2970 (5 DMA), an upside break can trigger rise towards 1.3028 (11 DMA).On the downside, immediate support is seen at 1.2900 (Psychological level), a break below could take the pair towards 1.2884 (100 DMA)

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, approaching a two-month low it hit the previous day as investors awaited domestic jobs data that could help guide Bank of Canada interest rate expectations. Canada's employment report for January is due on Friday. In 2019, employment increased by 1.7% but all of the job gains were in the first three quarters of the year. Last month, the Bank of Canada opened the door to an interest rate cut should recent weakness in the domestic economy persist.  At   (1440 GMT), the Canadian dollar was trading 0.1% lower at 1.3294 to the greenback. Immediate resistance can be seen at 1.3313 (Higher BB), an upside break can trigger rise towards 1.3349 (Oct 19th high).On the downside, immediate support is seen at 1.3278 (5 DMA), a break below could take the pair towards 1.3233 (11 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday as dollar was bolstered by recent strong U.S. economic numbers as well as ebbing fears about the latest coronavirus that broke out in China few weeks ago. The safe-haven yen struggled for a fourth straight session against the dollar, as investors’ tolerance for risk increased, encouraged by the Chinese government’s efforts to contain the latest coronavirus and limit the economic fallout. The Swiss currency fell to its weakest level in more than a week. The dollar was 0.02 percent  higher versus the Japanese yen at 109.98. Strong resistance can be seen at 109.00 (Daily high), an upside break can trigger rise towards 110.57 (Higher BB).On the downside, immediate support is seen at 108.57 (5 DMA), a break below could take the pair towards 108.00 (Psychological level). 

Equities Recap

European shares rose to a record high on Thursday, helped by China’s plan to cut tariffs on some U.S. goods and a swathe of strong earnings.

The UK's benchmark FTSE 100 closed up by 0.88 percent, Germany's Dax ended down by 0.72 percent, and France’s CAC finished the down  by 1.40 percent.

U.S. stocks rose for a fourth straight session on Thursday on China’s efforts to contain the economic fallout from the coronavirus outbreak, while investors assessed a mixed batch of corporate earnings.

Dow Jones closed up by 0.30 percent, S&P 500 ended up 0.33 percent, Nasdaq finished the day up by 0.67 percent.

Treasuries Recap

U.S. Treasury yields were little changed on Thursday as investors weighed whether China's efforts to contain the spreading coronavirus would be enough to minimize its economic impact.

 The benchmark 10-year yield was down less than a basis point at 1.6422% in afternoon trading.

Commodities Recap

Gold rose on Thursday as expectations of central banks keeping interest rates low and uncertainties around the economic impact of the coronavirus epidemic fueled appetite for the safe-haven metal.

Spot gold gained 0.4% to $1,563.01 per ounce by 1554 GMT, having dropped on Wednesday to its lowest since Jan. 21 at $1,546.90. U.S. gold futures rose 0.3% to $1,566.80.

Oil futures gave up early gains and settled narrowly mixed on Thursday, as OPEC and its partner Russia gave mixed signals about possible further output cuts to mitigate the impact of any weakening in global demand due to the coronavirus outbreak.

Brent crude futures lost 35 cents to settle at $54.93 a barrel. U.S. West Texas Intermediate (WTI) crude   futures rose 20 cents to settle at $50.95 a barrel.