Market Roundup
•German Dec Industrial Production (MoM) 0.0%,0.3% forecast, 0.9% previous
•Finnish Dec Trade Balance 1.00B, -0.18B previous
•Spanish Dec Industrial Production (YoY) -0.6%, -3.8% previous
Looking Ahead Economic Data (GMT
•13:30 French 12-Month BTF Auction -0.642% previous
•13:30 French 3-Month BTF Auction -0.631% previous
•13:30 French 6-Month BTF Auction -0.627% previous
•15:00 US Jan CB Employment Trends Index 99.01 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was little changed against the dollar on Monday, after data showed German industry avoided a contraction in December. Despite coronavirus lockdowns at home and abroad, demand from China helped export-oriented manufacturers in Europe’s largest economy weather the COVID-19 pandemic. Industrial output was flat on the month after an upwardly revised increase of 1.5% in the previous month, figures released by the Federal Statistics Office showed. This was the first stagnation following seven consecutive months of expansions. Immediate resistance can be seen at 1.2046(50%fib), an upside break can trigger rise towards 1.2112 (61.8%fib).On the downside, immediate support is seen at 1.1967 (38.2%fib), a break below could take the pair towards 1.1879 ( 23.6% fib ).
GBP/USD: The pound edged lower against a stronger as hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers boosted dollar, while analysts were bullish on its outlook and latest positioning data showed the overall speculative long position on the British currency had increased. The pound has strengthened against both dollar and euro in February, boosted by heightened risk appetite in global markets, optimism surrounding the UK’s COVID-19 vaccine rollout and a lessening of negative rates expectations. The Bank of England (BoE) reported the findings of its consultation with banks about the feasibility of implementing negative rates last week. Immediate resistance can be seen at 1.3758 (23.6%fib), an upside break can trigger rise towards 1.2800 (Psychological level).On the downside, immediate support is seen at 1.3676 (11 DMA), a break below could take the pair towards 1.3632 (35EMA).
USD/CHF: The dollar edged higher against the Swiss franc on Monday as traders waited for more data on the U.S. economy, after a disappointing jobs report last week ended a rally in the greenback. The U.S. economy created fewer jobs than expected in January and job losses the previous month were greater than initially reported, data at the end of last week showed.U.S. consumer prices and consumer sentiment reports later this week will help determine whether a recent rise in inflation expectations and Treasury yields was justified. Any disappointing numbers from either report could knock the dollar lower.At 12:30 GMT, the dollar was 0.20 percent higher versus the Swiss franc at 0.9006 . Immediate resistance can be seen at 0.9038 (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 0.8952 (11DMA).
USD/JPY: The dollar rose against the Japanese yen on Monday on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. Dollar has scaled record highs against yen in recent days on hopes of faster economic revival led by successful vaccine rollouts and expectations of a large U.S. pandemic relief package. The rallies came even as U.S. data painted a dour picture of the country’s labour market with payrolls rising by 49,000, half of what economists were expecting.The weak report spurred the push for more stimulus, underscoring the need for lawmakers to act on President Joe Biden’s $1.9 trillion COVID-19 relief package. Strong resistance can be seen at 105.78 (23.6% fib), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 105.10 (50%fib), a break below could take the pair towards 104.87 (61.8%fib).
Equities Recap
European shares rose on Monday, led by economically sensitive cyclical sectors, as sentiment was lifted by hopes of a quicker recovery and multi-billion dollar deals in the region.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 1.05 percent, Germany's Dax was up by 0.24 percent, France’s CAC finished was up by 0.69 percent.
Commodities Recap
Gold prices were little changed on Monday as the dollar's slide paused and economic revival hopes boosted equities, weighing on bullion's safe-haven appeal.
Spot gold was steady at $1,812.17 an ounce by 0944 GMT and U.S. gold futures were also little changed at $1,812.80.
Oil prices rose on Monday to their highest in just over a year, with Brent nudging past $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus measures that can boost demand.
Brent was up 71 cents, or 1.2%, at $60.05 a barrel by 0943 GMT, and U.S. West Texas Intermediate rose 64 cents, or 1.1%, to $57.49 a barrel.
