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Europe Roundup: Euro slips further as focus shifts to U.S. stimulus, European stocks rises,Gold edges lower, Oil prices ease as pandemic outweighs Chinese and U.S. data-January 14th,2021

Market Roundup

• Investors bet on bigger fiscal package by Joe Biden

• Fed Chair Jerome Powell to attend virtual event at 1730 GMT

• German GDP Annual -5.00%,0.60% previous   

• Greek Dec CPI (YoY) -2.3%, -2.1% previous      

•Greek Dec HICP (YoY)  -2.4%, -2.1% previous   

•Greek Nov Credit Expansion (YoY)  12.5% , 9.2% previous          

•Italian 30-Year BTP Auction 1.470%,1.480% previous

•Irish Dec CPI (MoM)  0.3%, 0.3% previous

•Irish Dec HICP (YoY)  -1.0%, -1.0% previous

Looking Ahead – Economic Data (GMT)

•13:30  US Jobless Claims 4-Week Avg  818.75K previous

•13:30  US Initial Jobless Claims 795K forecast, 787K previous

•13:30  US Continuing Jobless Claims 5,061K forecast, 5,072K previous

•13:30  US Dec Export Price Index (MoM)  0.4% forecast, 0.6% previous

•13:30  US Dec Import Price Index (MoM)  0.7% forecast, 0.1% previous

•15:30  US Natural Gas Storage -130B previous

Looking Ahead - Economic events and other releases (GMT)

•16:00 US FOMC Member Bostic Speaks

•18:00 US FOMC Member Kaplan Speaks

Fx Beat 

EUR/USD: The euro declined on Thursday as expectations that President-elect Joe Biden will lay out a new U.S. $2 trillion stimulus programme boosted dollar. The dollar has risen in four of the last five trading sessions. Expectations are high, but many analysts believe the spending push has already been priced in. The euro slipped 0.05% to $1.214 after sliding 0.4% on Wednesday.  Immediate resistance can be seen at 1.2213 (38.2%fib ), an upside break can trigger rise towards 1.2325 (23.6%fib).On the downside, immediate support is seen at 1.2121 (50%fib), a break below could take the pair towards 1.2025  (61.8%fib).

GBP/USD: Sterling rose on Thursday as pushed-back expectations for negative interest rates from the Bank of England and hopes for a quicker economic recovery in Britain given its lead in vaccinations across Europe buoyed the currency. The pound has gained against the dollar , 1.5% respectively this week after Bank of England Governor Andrew Bailey threw a dampener on market expectations for sub-zero rates in Britain. Market pricing for negative interest rates from the central bank has been pushed back by nearly a month, with negative rates now expected in June 2021, compared with May 2021 earlier. Immediate resistance can be seen at 1.3682 (23.6%fib), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3607 (38.2%fib), a break below could take the pair towards 1.3548 (50%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as expectations for President-elect Joe Biden’s fiscal stimulus boosted dollar. The dollar has risen in four of the past five trading sessions as the prospect of more stimulus. Expectations are already running high for the stimulus, but many analysts believe the spending push has already been priced in. Immediate resistance can be seen at 0.8910 (Daily high), an upside break can trigger rise towards 0.8919 (23.6%fib).On the downside, immediate support is seen at 0.8890 (38.2%fib), a break below could take the pair towards 0.8866 (50%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday on a report that President-elect Joe Biden will announce a stimulus package as big as $2 trillion. Biden is due to outline his economic plans later on Thursday and U.S. Federal Reserve Chairman Jerome Powell will also speak, either one of which could set yields rising again. The dollar advanced 0.13% to 104.02 yen. Strong resistance can be seen at 104.05(38.2%fib), an upside break can trigger rise towards 104.40 (23.6%fib).On the downside, immediate support is seen at 103.75 (50%fib), a break below could take the pair towards 103.47 (23.6%fib).

Equities Recap

European shares rose for a third straight session on Thursday, as hopes of a large stimulus under incoming U.S. President Joe Biden and upbeat Chinese export data boosted sentiment.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.52 percent, Germany's Dax was up  by 0.25 percent, France’s CAC  was up by 0.07 percent.

Commodities Recap

Gold prices edged lower on Thursday as the dollar steadied and U.S. Treasury yields held near 10-month highs, with markets waiting for President-elect Joe Biden to reveal details of his stimulus plan.

Spot gold was 0.2% lower at $1,840.40 per ounce by 1232 GMT, while U.S. gold futures        slipped 0.7% to $1,841.60.

Oil prices dipped on Thursday as bullish signals from Chinese import data and U.S. crude oil stocks draws were outweighed by surging coronavirus cases in Europe and new lockdowns in China.

Brent crude oil futures fell 36 cents to $55.70 a barrel by 0917 GMT, while U.S. West Texas Intermediate (WTI) dropped 26 cents to $52.65.

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