Market Roundup
•German Jan Current Assessment 89.2, 90.6 forecast, 91.3 previous
•German Jan Ifo Business Climate Index 90.1, 91.8 forecast, 92.1 previous
•German Jan Business Expectations 91.1, 93.2 forecast, 92.8 previous
Looking Ahead - Economic Data (GMT)
•13:00 Brazil CAGED Net Payroll Jobs 415.00K previous
•13:30 US Dec Chicago Fed National Activity 0.27 previous
•14:00 French 6-Month BTF Auction -0.621% previous
•14:00 French 3-Month BTF Auction -0.625% previous
•14:00 French 12-Month BTF Auction -0.614% previous
•14:00 Belgium Jan NBB Business Climate -13.4, -8.4 previous
•15:30 US Jan Dallas Fed Mfg Business Index 9.7 previous
•16:00 Russia Dec Industrial Production (YoY) -3.0% forecast, -2.6% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro edged lower against dollar on Monday as weak economic data from Europe and fresh worries about the coronavirus weighed on euro. Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc’s dominant service industry hard while UK data showed British retailers struggled to recover in December. The euro was last down at 0.14% at $1.2153 . The common currency is capped in part by signs of political instability in Rome. Immediate resistance can be seen at 1.2191 (21DMA), an upside break can trigger rise towards 1.2236 (23.6%fib).On the downside, immediate support is seen at 1.2132 (38.2%fib), a break below could take the pair towards 1.2052(50% fib).
GBP/USD: Sterling strengthened against dollar on Monday as investors returned to risk assets on hopes for more stimulus in the United States, while Britain's COVID-19 vaccine rollout push over the weekend also offered support to the pound. Optimism about a $1.9 trillion fiscal stimulus plan to help revive the U.S. economy sparked interest for riskier assets with sterling also benefiting. The pound was up 0.10% at $1.3685 against the safe-haven dollar at 1230 GMT, after hitting $1.3724 in morning trade. Immediate resistance can be seen at 1.3735 (23.6%fib), an upside break can trigger rise towards 1.3800 (Psychological level).On the downside, immediate support is seen at 1.3664 (5DMA) , a break below could take the pair towards 1.3606 (38.2%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Monday as optimism about U.S. President Joe Biden’s stimulus plans took precedence over the impact of COVID-19. Market sentiment had turned more cautious at the end of last week as European economic data showed that lockdown restrictions to limit the spread of the virus hurt business activity. Immediate resistance can be seen at 0.8871 (38.2%fib), an upside break can trigger rise towards 0.8905 (23.6% fib).On the downside, immediate support is seen at 0.8839 (50% fib), a break below could take the pair towards 0.8810 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as concerns over rising COVID-19 cases and delays in vaccine supplies were eclipsed by expectations of a $1.9 trillion fiscal stimulus plan to help revive the U.S. economy. Dollar also gained against yen on bets COVID vaccines will start to reduce the inflection rates worldwide and on a stronger U.S. economic recovery under President Joe Biden. Strong resistance can be seen at 104.00 (Psychological level), an upside break can trigger rise towards 104.12 (23.6% fib).On the downside, immediate support is seen at 103.60(21DMA), a break below could take the pair towards 103.44 (50% fib).
Equities Recap
European stocks rose on Monday as gains in technology shares and upbeat earnings reports helped investors look past the possibility of extended lockdowns as many countries grapple with new variants of the novel coronavirus..
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading down at 0.90 percent, Germany's Dax was down by 1.14 percent, France’s CAC finished was down by 1.09 percent.
Commodities Recap
Gold prices inched lower on Monday due to concerns that a massive economic stimulus in the United States may not be passed smoothly, although a weaker dollar limited bullion's losses.
Spot gold fell 0.1% to $1,850.91 per ounce by 0822 GMT, having dropped 0.9% in the previous session. U.S. gold futures fell 0.2% to $1,851.80.
Oil prices edged up on Monday as supply jitters and U.S. stimulus plans offset fresh concerns about the hit to global fuel demand from renewed lockdowns to curb spikes in COVID-19 infections.
Brent crude futures for March rose 34 cents, or 0.6%, to $55.75 a barrel by 1008 GMT. U.S. West Texas Intermediate crude for March was up 37 cents, or 0.7%, at $52.64.
