Market Roundup
•German Jan Trade Balance 22.2B, 16.4B forecast, 16.1B previous
•Gemran Jan Current Account Balance n.s.a 16.9B, 28.2B previous
•German Jan Imports (MoM) -4.7%, -0.5% forecast, -0.1% previous
•German Exports Jan (MoM) 1.4% , -1.2% forecast, 0.1% previous
•Italian Jan Industrial Production (MoM) 1.0%,0.7% forecast, -0.2% previous
•Italian Jan Industrial Production (YoY) -2.4%, -4.2% forecast, -2.0% previous
•EU Employment Change (YoY) (Q4) -1.9%,-2.0% forecast, -2.3% previous
•EU Employment Change (QoQ) (Q4) 0.3%,0.3% forecast, 1.0% previous
•EU GDP (YoY) (Q4) -4.9%,-5.0% forecast, -4.3% previous
•EU GDP (QoQ) (Q4)-0.7%,-0.6% forecast, 12.4% previous
Looking Ahead Economic Data
•13:55 US Redbook (MoM) -0.3% previous
•13:55 US Redbook (YoY) 4.6% previous
•18:00 US 3-Year Note Auction 0.196% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro firmed against dollar on Tuesday as euro was supported by upbeat German exports data. German exports unexpectedly rose in January, buoyed by robust trade with China in a positive start to the year for manufacturers in Europe’s largest economy. Seasonally adjusted exports increased 1.4% on the month after an upwardly revised increase of 0.4% in December. Imports fell 4.7% after showing no change in the prior month, an upward revision. Immediate resistance can be seen at 1.1913 (50%fib), an upside break can trigger rise towards 1.1983 (61.8%fib).On the downside, immediate support is seen at 1.1837 (38.2%fib), a break below could take the pair towards 1.1740 (23.6%fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as sterling was supported by progress in Britain's speedy vaccination programme . With more than 22 million people having received the first dose of a COVID-19 vaccine in the UK, traders expect the swift inoculation programme to help the economy rebound from its biggest contraction in 300 years. After suffering Europe's highest COVID death toll, in the first step back towards normality, schools in England reopened this week as part of the UK's lockdown-easing plan.The pound versus the greenback rose 0.5% to $1.3873. Immediate resistance can be seen at 1.3912 ( 23.6%fib), an upside break can trigger rise towards 1.4017 (March 4th high).On the downside, immediate support is seen at 1.3803 (38.2%fib), a break below could take the pair towards 1.3706(50%fib).
USD/CHF: The dollar retreated against the Swiss franc on Tuesday as retreat in U.S bond yields eased greenback. U.S. 10-year Treasury bond yields also eased, to 1.5472%. Treasury yields have been advancing in recent months as investors price in higher inflation and more upbeat prospects for the U.S. economy. Investors don’t expect the economic gloom and the fall in yields to last as vaccination programmes progress in Europe and the United States, fuelling an economic recovery from the COVID-19 crisis.Strong economic performance tends to dampen demand for “safe” government bonds.Immediate resistance can be seen at 0.9373(23.6%fib), an upside break can trigger rise towards 0.9400 (Pscyhological level).On the downside, immediate support is seen at 0.9275(38.2% fib), a break below could take the pair towards 0.9255(5DMA).
USD/JPY: The dollar retreated from nine-month high against the Japanese yen on Tuesday as appetite for dollar decreased after U.S. bond yields retreated. U.S. 10-year Treasury bond yields eased to 1.54%, 6 basis points lower than its highest level this year. Longer-dated yields have jumped over the last month as investors price in faster-than-expected economic rebound and higher inflation.Signs that a $1.9 trillion coronavirus relief packaged was closing in on final approval sparked a spike in yields on Monday, pushing dollar higher. Strong resistance can be seen at 109.28 (23.6% fib), an upside break can trigger rise towards 109.84 (5th June).On the downside, immediate support is seen at 108.53 (Daily low), a break below could take the pair towards 108.16 (5DMA).
Equities Recap
European stocks extended gains on Tuesday after posting their best session in four months a day earlier, as gains in shares of oil and utility companies helped counter losses in miners.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading up at 0. 42 percent, Germany's Dax was up by 0,27 percent, France’s CAC finished was up by 0. 25percent.
Commodities Recap
Gold prices rose on Tuesday, as a pullback in U.S. Treasury yields added some lustre to the metal after it hit a nine-month low in the previous session.
Spot gold rose 0.7% to $1,692.21 per ounce by 0703 GMT. Prices had fallen more than 1% on Monday to $1,676.10, their lowest since June 5. U.S. gold futures climbed 0.7% to $1,690.30.
Oil rose to $69 a barrel on Tuesday as investors focused on prospects for tighter supply due to extended OPEC+ output curbs and amid growing hopes of a recovery in demand.
Brent crude was up 89 cents, or 1.3%, at $69.13 by 1200 GMT, after trading as low as $67.61. It reached to $71.38 on Monday, its highest since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) added 82 cents to $65.87, after hitting its highest since October 2018 on Monday.
