Market Roundup
•UK Jan Nationwide HPI (YoY) 6.4%,6.9% forecast, 7.3% previous
•UK Jan Nationwide HPI (MoM) -0.3%,0.3% forecast, 0.8% previous
•French CPI (MoM) 0.2%,-0.1% forecast, 0.2% previous
•French CPI (YoY) 0.6%,0.4% forecast, 0.0% previous
•French HICP (MoM) 0.3%,-0.1% forecast, 0.2% previous
•Italian GDP (QoQ) (Q4) -2.0%,-2.2% forecast, 15.9% previous
•Italian GDP (YoY) (Q4) -6.6%,-6.7% forecast, -5.0% previous
•EU GDP (QoQ) (Q4) -0.7%,12.7% forecast, 12.7% previous
•EU GDP (YoY) (Q4) -5.1% , -4.3% forecast, -4.3% previous
Looking Ahead - Economic data (GMT)
•US Redbook (YoY) 3.9% previous
•US Redbook (MoM) -2.0% previous
•New Zealand GlobalDairyTrade Price Index 4.8% previous
•US Jan Jan ISM NY Business Conditions 61.3% previous
•US Jan ISM-New York Index 817.6 previous
•US IBD/TIPP Economic Optimism 50.1 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar as concerns about extended lockdowns dampened sentiment towards the single currency. Data showed retail sales in Germany, Europe’s biggest economy, plunged by more than forecast in December, amplifying concerns that the euro zone is set for a double-dip recession in the first quarter of 2021. The euro was trading at $1.2035 against dollar . It has weakened more than 2% from an early January peak of near $1.2350. Immediate resistance can be seen at 1.2059 (38.2%fib), an upside break can trigger rise towards 1.2092(5 EMA).On the downside, immediate support is seen at 1.2000 (Psychological level), a break below could take the pair towards 1.1977(100 DMA).
GBP/USD: Sterling gained against the dollar on Tuesday as analysts bet a faster pace of vaccinations in Britain and the scope for a faster economic recovery would boost the currency this year.The pound has gained amid optimism over Britain's lead in vaccinations against COVID-19, with analysts pinning their hopes on a faster economic recovery relative to other regions whose vaccine rollout is lagging, such as the rest of Europe.Risk sentiment in markets has also benefited the pound, as has the Bank of England's pushing back market expectations of negative interest rates.y 12:40 GMT, sterling was up 0.06% against the dollar at $1.3665. Immediate resistance can be seen at 1.3707(Daily high), an upside break can trigger rise towards 1.3755(23.6%fib).On the downside, immediate support is seen at 1.3639 (38.2%fib), a break below could take the pair towards 1.3600 (Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as increased optimism about economic stimulus and global recovery boosted dollar. Markets were buoyant before negotiations Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOP’s $618 billion stimulus plan released early Monday was about a third the size of the President’s proposal. Top Democrats later on Monday filed a joint $1.9 trillion budget measure in a step toward bypassing Republicans. At (GMT 12:40) greenback gained 0.08% versus the Swiss franc to 0.8975. Immediate resistance can be seen at 0.8983 (38.2%fib), an upside break can trigger rise towards 0.9000(Psychological level).On the downside, immediate support is seen at 0.8958 (50%fib), a break below could take the pair towards 0.8938 (61.8%fib).
USD/JPY: The dollar rose against the Japanese yen on Tuesday optimism about U.S. stimulus boosted the dollar. Dollar gained on signs that President Joe Biden was poised to push forward with his $1.9 trillion COVID-19 relief plan even if it fails to draw Republican support. Negotiations resume on Tuesday. The dollar also benefited from a massive bout of short-covering, especially against the yen, where hedge funds had racked up their biggest short bets against the dollar since October 2016.Against the yen, the dollar briefly crossed 105 yen for the first time since mid-November and held firm at 104.875 yen. Strong resistance can be seen at 105.09 (23.6%fib), an upside break can trigger rise towards 105.46(12 Nov high).On the downside, immediate support is seen at 104.79 (Daily low), a break below could take the pair towards 104.64 (38.2%fib).
Equities Recap
European shares rose on Tuesday as investors were hopeful of a faster economic recovery, while technology shares led the advance after French IT consulting group Atos ended talks of a potential takeover of U.S. rival DXC Technology.
At (GMT 12:50),UK's benchmark FTSE 100 was last trading up at 0.53 percent, Germany's Dax was up by 1.07 percent, France’s CAC was last up by 1.58 percent.
Commodities Recap
Silver fell more than 5% on Tuesday as a GameStop-style buying spree among small investors that took prices to a near eight-year peak appeared to fizzle out following a margin hike by the Chicago Mercantile Exchange.Spot silver fell 4.6% to $27.64 an ounce by 1127 GMT.
Oil prices rose more than 2% on Tuesday after major crude producers showed they were reining in output roughly in line with their commitments, extending gains in a market thrown out of kilter by weak demand during the coronavirus pandemic.
Brent crude was up $1.30, or 2.3%, at $57.65 a barrel by 1150 GMT, its third straight day of gains. U.S. oil gained $1.25, also 2.3%, to $54.80. Both contracts rose more than 2% in the previous session.
