Market Roundup
•French Industrial Investments (Q1) 10.0%,4.0% previous
•German Jan IHS Markit Construction PMI 46.6, 47.1 previous
•UK Jan Construction PMI 49.2, 52.9 forecast, 54.6 previous
•French Industrial Investments (Q1) 10.0%,4.0% previous
•German Jan IHS Markit Construction PMI 46.6, 47.1 previous
•UK Jan Construction PMI 49.2, 52.9 forecast, 54.6 previous
•EU Dec Retail Sales (MoM) 2.0%,1.6% forecast, -6.1% previous
• EU Dec Retail Sales (YoY) 0.6%, 0.3% forecast, -2.9% previous
• UK Feb BoE Interest Rate Decision 0.10% forecast, 0.10% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Central Bank reserves (USD) 592.7B previous
•13:00 Brazil Jan Auto Production (MoM) 12.1% previous
•13:00 Brazil Jan Auto Sales (MoM) 8.4% previous
•13:30 US Unit Labor Costs (QoQ) (Q4) 4.0% forecast, -6.6% previous
•13:30 US Nonfarm Productivity (QoQ) (Q4) -2.8% forecast, 4.6% previous
•13:30 US Initial Jobless Claims 830Kforecast, 847K previous
•13:30 US Jobless Claims 4-Week Avg 868.00K previous
•13:30 US Continuing Jobless Claims 4,700K, 4,771K previous
•13:30 US Dec Factory Orders (MoM) 0.7%,1.0% previous
•13:30 US Durables Excluding Defense (MoM) 0.5% previous
•13:30 US Dec Factory orders ex transportation (MoM) 0.8% previous
•15:30 US Natural Gas Storage-192B, -128B previous
•16:30 US 8-Week Bill Auction 0.065% previous
•16:30 US 4-Week Bill Auction 0.055% previous
Looking Ahead - Economic events and other releases (GMT)
•19:00 US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro held near two month lows on Thursday after steep falls on the previous day as investors focused on former ECB chief Mario Draghi's efforts to form a new government. Markets had cheered the prospect of Draghi, the trusted former central banker, taking over at a time when debt-laden Italy is grappling with a pandemic and a deep recession. But Draghi still needs to win backing from parties across the political spectrum to get a government off the ground. Immediate resistance can be seen at 1.2042 (50% fib), an upside break can trigger rise towards 1.2087(9DMA).On the downside, immediate support is seen at 1.1947 (38.2%fib), a break below could take the pair towards 1.1876 (23.6% fib).
GBP/USD: Sterling initially dipped against dollar on Thursday but recovered some ground after Bank of England kept interest rates unchanged. The Bank of England kept its stimulus programme unchanged on Thursday. The BoE maintained its Bank Rate at 0.1% and left the size of its total asset purchase programme at 895 billion pounds ($1.22 trillion). The currency hit daily low at 1.3516, but later recovered to $1.3635, down 0.2% on the day. Immediate resistance can be seen at 1.3671 (11DMA), an upside break can trigger rise towards 1.3762(23.6%fib).On the downside, immediate support is seen at 1.3592 (38.2%fib), a break below could take the pair towards 1.3442 (50 % fib).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday after data pointed to an improvement in the U.S. economic outlook. Dollar strengthened after ADP payroll data showed an increase in employment on Wednesday and ISM data showed services industry activity in the United States rose to its highest in nearly two years in January.At 12:40 GMT, the dollar was 0.40 percent lower versus the Swiss franc at 0.9025 . Immediate resistance can be seen at 0.9037 (23.6%fib), an upside break can trigger rise towards 0.9100 (Psychological level).On the downside, immediate support is seen at 0.8985 (38.2% fib), a break below could take the pair towards 0.8965 (5DMA).
USD/JPY: The dollar declined against the Japanese yen Thursday as recent signs of strength in the U.S. economy drove buying into the dollar. Increasing optimism over the U.S. economy and a bumper COVID-19 stimulus package attracted investors to the U.S. dollar, pressuring Japanese yen. The Democratic-controlled U.S. House of Representatives approved a budget outline on Wednesday that would allow them to pass President Joe Biden’s proposed $1.9 trillion coronavirus aid plan without Republican support. Strong resistance can be seen at 105.48 (23.6% fib), an upside break can trigger rise towards 106.00 (Psychological level).On the downside, immediate support is seen at 105.05 (38.2%fib), a break below could take the pair towards 104.73 (50%fib).
Equities Recap
European shares were flat on Thursday after a three-day rally on hopes of a swifter global economic recovery and an upbeat sentiment in Italy as former European Central Bank chief Mario Draghi took on the task of forming a new government.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last down at 0.39 percent, Germany's Dax was up by 0.29 percent, France’s CAC was last up by 0.19 percent.
Commodities Recap
Gold slipped on Thursday, as the dollar and U.S. Treasury yields gained and markets awaited clarity on U.S. fiscal stimulus measures and the Bank of England's (BOE) policy outlook.
Spot gold dropped 1.2% to $1,812.50 per ounce by 1039 GMT, after earlier touching a two-month low. U.S. gold futures fell 1.3% to $1,811.90.
Oil prices extended gains on Thursday after the OPEC+ alliance of producers stuck to its reduced output policy and U.S. crude stocks fell, with optimism over a new U.S. pandemic relief bill adding further price support.
Brent crude futures gained 25 cents, or 0.43%, to $58.71 a barrel by 1025 GMT, having earlier hit their highest since Feb. 21 last year.
U.S. West Texas Intermediate (WTI) crude futures climbed 31 cents, or 0.56%, to $56 a barrel after reaching its highest settlement level in a year on Wednesday.
