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America’s Roundup: Dollar advances as investors shy away from risk, Wall Street ends mixed,Gold pares gains ,Oil rises 1% on U.S. stimulus hopes, supply concerns-January 26th,2021

Market Roundup

•U.S. Fed's policy meeting starts on Tuesday

•US Dec Chicago Fed National Activity 0.52, 0.27 previous

•French 6-Month BTF Auction -0.624%, -0.621% previous

•French 3-Month BTF Auction -0.624%,-0.625% previous

•French 12-Month BTF Auction -0.621%  ,-0.614% previous

•Belgium Jan NBB Business Climate  -7.5,-13.4, -8.4 previous

•US Jan Dallas Fed Mfg Business Index  7.0,9.7 previous

•Russia Dec Industrial Production (YoY)  -0.2%,-3.0% forecast, -2.6% previous

Looking Ahead - Economic Data (GMT) 

•23: 50 Japan  Corporate Services Price Index (CSPI) (YoY) -1.3% forecast, -0.6% previous

•02:00 New Zealand Credit Card Spending (YoY) -5.6% previous

•05:00 Japan BoJ Core CPI (YoY) -0.1% previous

Looking Ahead - Economic events and other releases (GMT)

•23: 50 Japan Monetary Policy Meeting Minutes

 Currency Summaries

EUR/USD: The euro edged lower against dollar on Monday as weak economic data from Europe and fresh worries about the coronavirus weighed on euro. Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc’s dominant service industry hard while UK data showed British retailers struggled to recover in December. The euro was last down at 0.23% at $1.2142 . Immediate resistance can be seen at 1.2191 (21DMA), an upside break can trigger rise towards 1.2236 (23.6%fib).On the downside, immediate support is seen at 1.2132 (38.2%fib), a break below could take the pair towards 1.2052(50% fib).

GBP/USD: Sterling strengthened against dollar on Monday as investors returned to risk assets on hopes for more stimulus in the United States, while Britain's COVID-19 vaccine rollout push over the weekend also offered support to the pound. Optimism about a $1.9 trillion fiscal stimulus plan to help revive the U.S. economy sparked interest for riskier assets with sterling also benefiting. The pound was up 0.02% at $1.3674 against dollar, after hitting $1.3724 in morning trade. Immediate resistance can be seen at 1.3735 (23.6%fib), an upside break can trigger rise towards 1.3800 (Psychological level).On the downside, immediate support is seen at 1.3664 (5DMA), a break below could take the pair towards 1.3606 (38.2%fib).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as investors weighed the prospect of additional U.S. economic stimulus, with the currency steadying after a large decline on Friday. The loonie  was trading 0.1% higher at 1.2717 to the greenback, having traded in a range of 1.2687 to 1.2736. On Friday, the Canadian currency weakened 0.8%, its biggest decline in nearly three months, as new COVID-19 restrictions in China weighed on oil prices. Oil is one of Canada's major exports .Immediate resistance can be seen at 1.2765 (38.2%fib), an upside break can trigger rise towards 1.2818(50%fib).On the downside, immediate support is seen at 1.2686 (23.6%fib), a break below could take the pair towards 1.2609 (Lower BB).

USD/JPY: The dollar strengthened against the Japanese yen on Monday as a burst of volatility in stock markets around the globe sapped investors’ appetite for riskier currencies. Concerns over the timing and size of additional U.S. fiscal stimulus sent major U.S. stock indexes briefly more than 1% lower before they recovered to trade little changed on the day. 20. The U.S. Federal Reserve meets on Wednesday and Chair Jerome Powell is expected to signal that he has no plans to wind back the Fed’s massive stimulus any time soon - news which could push the dollar down further.Strong resistance can be seen at 104.00 (Psychological level), an upside break can trigger rise towards 104.12 (23.6% fib).On the downside, immediate support is seen at 103.60(21DMA), a break below could take the pair towards 103.44 (50% fib).

Equities Recap

European stock markets closed higher after a volatile session on Monday, recovering losses caused by a collapse in oil prices and fears of the worst quarterly earnings season since the global financial crisis.

UK's benchmark FTSE 100 closed down by  0.83 percent, Germany's Dax ended down by 1.66 percent, France’s CAC finished the day down by 1.57 percent.                

Wall Street fell sharply on Monday after U.S. crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.

Dow Jones closed down by 0.12%percent, S&P 500 closed up by 0.36% percent, Nasdaq settled up by  0.69 % percent.

Treasuries Recap

U.S. Treasury prices rose, pushing long-dated yields to three-week lows on Monday, as risk appetite ebbed amid persistent worries about surging virus cases and their potential for prolonged lockdowns that could further weigh on economic growth.

The U.S. benchmark 10-year yield fell to 1.044%, from 1.091% late on Friday. It earlier fell to 1.038%, its lowest since Jan. 7.

U.S. 30-year yields slid to 1.8% from Friday's 1.856%, after earlier dropping to a three-week low of 1.791%.U.S. 20-year bond yields also weakened to a three-week trough and were last down at 1.608%.

Commodities Recap

Gold prices pared gains on Monday as the dollar edged higher, but expectations of fresh U.S. fiscal stimulus underpinned the bullion ahead of this week's Federal Reserve's meeting.

 Spot gold was up 0.1% at $1,854.81 by 2:22 p.m. EST (1922 GMT), after rising as much as 0.8%. U.S. gold futures settled 0.1% lower to $1,855.20 per ounce.

Oil prices rose about 1% on Monday as optimism around U.S. stimulus plans and some supply concerns boosted futures, but demand worries prompted by coronavirus lockdowns limited gains.

Brent crude futures rose 47 cents, 0.9%, to settle at $55.88 a barrel. U.S. West Texas Intermediate crude ended 50 cents, or 1%, higher at $52.77 a barrel.

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