Market Roundup
•US Redbook (YoY) 2.1%, 5.5% previous
• US Redbook (MoM) -2.6%,0.5% previous
•US IBD/TIPP Economic Optimism 50.1, 49.0 previous
•US Nov JOLTs Job Openings 6.527M,6.652M previous
•Brazilian Dec IPCA Inflation Index SA (MoM) 0.84% previous
•Russia Jan CPI (MoM0.8%, 0.6% forecast, 0.7% previous
•Russia Dec CPI (YoY) 4.9%, 4.7% forecast, 4.4% previous
Looking Ahead – Economic Data (GMT )
•00:00 New Zealand ANZ Commodity Price Index (MoM) 0.9% previous
•06:00 China FDI 6.30% previous
•06:00 Japan Machine Tool Orders (YoY) 8.0% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currencies Summaries
EUR/USD: The euro strengthened on Tuesday as investors focused on the prospect of larger U.S. stimulus under incoming president Joe Biden. Biden will take office on Jan. 20 with his Democratic party in control of both Houses. In the previous session, investors booked profits following a rally last week after a Democrat sweep in the U.S. Senate elections. Immediate resistance can be seen at 1.2227 (Jan 11th High), an upside break can trigger rise towards 1.2272 (23.6%fib).On the downside, immediate support is seen at 1.2113 (38.2 % fib), a break below could take the pair towards 1.2043(23.6% fib).
GBP/USD: Sterling gained against the dollar on Tuesday as the greenback took a breather from its recent rally, allowing the British currency to gain some respite after four consecutive sessions of losses. On Tuesday, the pound recovered some of those losses as riskier currencies rallied alongside a rebound in stock markets. It traded 0.3% higher to the dollar at $1.3549 and 0.2% higher to the euro at 89.76 pence. Immediate resistance can be seen at 1.3620 (23.6% fib), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3506 (38.2%fib), a break below could take the pair towards 1.3425 (50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil prices rose and the greenback broadly declined, with the currency rebounding from its weakest in nearly two weeks the day before. The loonie was trading 0.5% higher at 1.2714 to the greenback, or 78.65 U.S. cents, having traded in a range of 1.2711 to 1.2791. On Monday, it touched its weakest since Dec. 29 at 1.2835.Immediate resistance can be seen at 1.2736 (38.2%fib), an upside break can trigger rise towards 1.2810 (50%fib).On the downside, immediate support is seen at 1.2652(23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/JPY: The dollar edged lower against the Japanese yen on Tuesday as investors were worried that attempts to impeach President Donald Trump could delay the Joe Biden administration’s first moves on stimulus. Democrats will give Trump one last chance on Tuesday to leave office days before his term expires or face an unprecedented second impeachment over his supporters’ storming of the U.S. Capitol on Jan. 6. The Japanese yen strengthened 0.49% versus the greenback at 103.75 per dollar. Strong resistance can be seen at 104.42 (38.2% fib), an upside break can trigger rise towards 104.72 (100DMA).On the downside, immediate support is seen at 104.10 (50%fib), a break below could take the pair towards 103.71 (61.8% fib).
Equities Recap
European stocks steadied on Tuesday after declining in the last session, as investors looked to the upcoming earnings season and focused on the prospect of larger U.S. stimulus under incoming president Joe Biden.
UK's benchmark FTSE 100 closed down by 0.65 percent, Germany's Dax ended down by 0.08 percent, France’s CAC finished the day down by 0.20 percent.
The S&P 500 was subdued on Tuesday with investors holding off big bets ahead of the earnings season that is expected to throw light on the health of Corporate America and the economy.
Dow Jones closed up by 0.19% percent, S&P 500 closed up by 0.04% percent, Nasdaq settled up by 0.28% percent.
Treasuries Recap
U.S. Treasury yields traded lower on Tuesday as strong demand for the Treasury Department's $38 billion sale of benchmark 10-year notes had traders covering short positions, which reversed an early rise in yields.
Thirty-year bond yields reached 1.915%, the highest since March 20.
Commodities Recap
Gold prices edged higher in a choppy trading on Tuesday as the U.S. dollar and Treasury yields eased, while prospects of higher inflation driven by more U.S. fiscal stimulus provided further support to the metal.
Spot gold was up 0.2% at $1,848.31 per ounce by 02:04 p.m. EST (1904 GMT). On Monday, prices touched their lowest level since Dec. 2. U.S. gold futures settled 0.4% lower at $1,844.20.
Oil hit an 11-month high just below $57 a barrel on Tuesday, bolstered by Saudi Arabia’s plans to limit supply, offsetting worries that rising coronavirus cases globally would curtail fuel demand.
Brent crude settled up 92 cents, or 1.7%, at $56.58 a barrel by after touching its highest level since last February at $56.75. U.S. West Texas Intermediate (WTI) gained 96 cents, or 1.8%, to $53.28.
