America’s Roundup: Dollar retreats after Fed meeting, Wall Street gains, Gold rises, Oil mixed as virus fears offset by talk of OPEC cut extension-January 30th,2020

Market Roundup

• Brazil Dec Bank lending (MoM ) 1.6%,    1.1% previous  
 
• US Dec Goods Trade Balance  -68.33B, -68.75B    forecast, -62.99B previous

• US Dec Retail Inventories Ex Auto  0.0%,-0.3%  previous

• US Wholesale Inventories (MoM)  -0.1%,0.1% previous

• US Dec Pending Home Sales (MoM) -4.9%,0.5% forecast, 1.2%    previous

• US Dec Pending Home Sales Index  103.2, 108.5 previous

• US Crude Oil Inventories 3.548M, 0.482M forecast, -0.405M previous  
 
Looking Ahead - Economic Data (GMT)

• 21:45 New Zealand Dec Exports  5.23B previous    

•21:45 New Zealand Dec Imports  5.98B previous    

•21:45 New Zealand Dec Trade Balance (YoY)  -4,820M previous

• 21:45 New Zealand  Dec Trade Balance (MoM)  -753M previous

• 23:50 Japan Foreign Bonds Buying 175.1B previous 175.1B    

• 23:50 Japan Foreign Investments in Japanese Stocks    263.8B 
   
• 00:30 Australia Export Price Index (QoQ) (Q4) -5.4% forecast, 1.3% previous

• 00:30 Australia Import Price Index (QoQ) (Q4)    0.0%, 0.4% previous

Looking Ahead - Events, Other Releases (GMT)    

• 07:00 Japan BOJ Deputy Governor Amamiya Speech

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Wednesday, as investors regained their confidence in the market after an outbreak of coronavirus in China. The newly identified coronavirus has created alarm because it is spreading quickly and there is little known about it. The death toll rose sharply to 132 on Wednesday, with nearly 1,500 new cases identified for a total of nearly 6,000.The euro was down 0.14 percent at $1.1006. Immediate resistance can be seen at 1.1174 (Dec 17th high), an upside break can trigger rise towards 1.1200 (Psychological level).On the downside, immediate support is seen at 1.1079 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Sterling held near 1-week lows against dollar on Wednesday as investors awaited knife-edge rate decision by Bank of England. Money markets currently price a 46% chance of a 25 basis point rate cut to the BoE’s 0.75% policy rate - compared to around 70% at the start of last week. The pound fell 0.1% against the U.S. dollar to $1.3017. It was up 0.1% against the euro at 84.50 pence. Immediate resistance can be seen at 1.3048 (5 DMA), an upside break can trigger rise towards 1.3183 (21 DMA).On the downside, immediate support is seen at 1.2932 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices fell and investors awaited a Federal Reserve interest rate decision, with the loonie nearing a multiweek low it hit the previous day.The price of oil, one of Canada's major exports, has been pressured in recent days by concern that China's coronavirus outbreak could hurt the global economy, weakening demand. U.S. crude oil futures  fell 0.7% to $53.12 a barrel. At (1503 GMT), the Canadian dollar   was trading 0.3% lower at 1.3191 to the greenback. Immediate resistance can be seen at 1.3213 (Higher BB), an upside break can trigger rise towards 1.3270 (Higher BB).On the downside, immediate support is seen at 1.3153 (Daily low), a break below could take the pair towards 1.3100 (Psychological level).

USD/JPY: The dollar was little changed against the Japanese yen on Wednesday, as a risk-off tone returned to markets amid continued uncertainty about the economic fallout of the coronavirus outbreak. Although markets had calmed somewhat overnight and appetite for risk assets returned, weakening the yen and Swiss franc, continued uncertainty about the impact of the virus on China and the knock-on effects globally has kept investors wary.. Strong resistance can be seen at 109.33 (Dec 20th high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.68(100 DNA), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

Banco Santander and Safran ensured European shares ended higher on Wednesday, even as investors weighed the potential impact of the fast-spreading coronavirus and an economist’s prediction on the world No. 2 economy further dampened sentiment.

UK's benchmark FTSE 100 closed up by 0.04 percent, Germany's Dax ended up by 0.16 percent, France’s CAC finished the day up by 0.49 percent.

U.S. stock indexes retreated from early highs on Wednesday as a spate of disappointing earnings reports offset strong gains in Apple and Boeing, while investors assessed the economic impact of the fast-spreading coronavirus outbreak.

Dow Jones closed up by 0.16 percent, S&P 500 ended up by 0.06 percent, Nasdaq finished the up by 0.19 percent.

Treasuries Recap

U.S. Treasury yields fell on Wednesday as the death toll from a Chinese virus rose sharply, though they held above three-month lows reached on Tuesday where there is technical support.

Benchmark 10-year note yields fell two basis points to 1.62%. They dropped to 1.57% on Tuesday, the lowest since Oct. 10, before bouncing sharply higher as stock markets rallied.

Commodities Recap

Gold rose on Wednesday, propped up by lingering concerns over the economic impact of a coronavirus outbreak in China, while investors awaited a policy decision from the U.S. Federal Reserve later in the day.

Spot gold was up 0.2% at $1,569.38 per ounce at 1323 GMT, having fallen about 1% in the previous session after positive U.S. economic data drove a recovery in equities.U.S. gold futures were little changed at $1,569.30 an ounce.

Oil was mixed on Wednesday as worries about the impact of the coronavirus outbreak and swelling crude inventories in the United States weighed on prices, while talk that OPEC could extend oil output cuts provided support.

Brent crude gained 9 cents to $59.60 at barrel by 10:43 a.m. (15:41 GMT). U.S. crude was down 32 cents at $53.16.