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America’s Roundup: Dollar dips on Chinese virus concerns, Wall Street rally pauses, Gold falls 1%, Oil market shrugs off Libya crisis amid ample global supply-Jaynagar 22nd,2020

Market Roundup

• US Nov Manufacturing Sales (MoM)  -0.6%,-0.3% forecast, -0.2% previous

• Belgium Jan Consumer Confidence  -6, -8 previous

• New Zealand GlobalDairyTrade Price Index 1.7% , -0.3% forecast , 2.8% previous

Looking Ahead - Economic Data (GMT)
• 23:30 Australia Jan Westpac Consumer -0.8%,-1.9% previous

Currency Summaries

EUR/USD: The euro rose against the U.S. dollar on Tuesday, as investors awaited European Central Bank (ECB) meeting on Thursday where it is expected to launch a comprehensive review of central bank strategy, including the ECB’s inflation target. The ECB’s first meeting of the year is most likely to launch a rethink of an inflation goal the bank has failed to meet since 2013.The scope and scale of the review will be a key focus for markets given the far-reaching implications for monetary policy. Immediate resistance can be seen at 1.1117 (5 DMA), an upside break can trigger rise towards 1.1128 (11 DMA).On the downside, immediate support is seen at 1.1065 (Dec 24th low), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Sterling strengthened against dollar on Tuesday, as upbeat UK jobs data boosted sterling across the board. Data showed the number of people in employment rose by 208,000 to 32.90 million, the biggest increase since the three months to January 2019 and much stronger than the median forecast in a poll for a rise of 110,000. The data also showed that pay growth slowed a touch to 3.4% annually in November, the slowest since the three months to April 2019. Economists had expected regular pay to grow by 3.4%, although with low inflation earnings are rising in real terms. Immediate resistance can be seen at 1.3024(5 DMA), an upside break can trigger rise towards 1.3060 (11 DMA).On the downside, immediate support is seen at 1.2951 (Jan 14th Low), a break below could take the pair towards 1.2910 (Lower BB).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as oil prices fell and domestic data showed that manufacturing sales dropped for the third month in November. Canadian factory sales decreased by 0.6% in November from October, impacted by rail transportation disruptions. That was weaker than the 0.3% decline that analysts had forecast, although there was an upward revision to the prior month. At   (1926 GMT), the Canadian dollar  was trading 0.1% lower at 1.3072 to the greenback. Immediate resistance can be seen at 1.3106 (Jan 9th High), an upside break can trigger rise towards 1.3173 (50 DMA).On the downside, immediate support is seen at 1.3025 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar dipped against the Japanese yen on Tuesday, as concern about Chinese coronavirus in Wuhan sparked   risk aversion. The outbreak of the disease, which has spread from the central city of Wuhan, is still in its early stages. However, it comes right before the peak travel season during the Lunar New Year holidays, raising risks that it could spread further. The yen edged 0.2% higher to 109.97 per dollar on Tuesday. The dollar index against a basket of six major currencies stood at 97.589, near the highest level in a month. Strong resistance can be seen at 110.30 (Jan 17th High), an upside break can trigger rise towards 111.00 (Psychological level).On the downside, immediate support is seen at 109.69 (11 DMA), a break below could take the pair towards 109.33 (21 DMA). 

Equities Recap

European stocks dipped as financial markets reacted to mounting concern about a new strain of flu-like virus in China.    

The UK's benchmark FTSE 100 closed down by 53 percent, Germany's Dax ended up by 0.06 percent, and France’s CAC finished the day down by 0.54 percent.

U.S. stock indexes slipped on Tuesday as worries about the fallout from a deadly virus outbreak in China and a gloomy growth outlook from the IMF paused a record-setting rally on Wall Street.

At (GMT Dow Jones closed down by 0.63 percent, S&P 500 ended down  0.26 percent, Nasdaq finished the day down  by 0.28 percent.

Treasuries Recap

U.S. Treasury prices surged on Tuesday, pushing yields lower as risk appetite dropped, amid worries about the potential fallout from a lethal virus that has broken out in China.

 U.S. two-year note yields fell to two-week lows, while  those on 10-year and 30-year yields slid after rising in the previous two sessions.    

Commodities Recap

Gold shed 1% on Tuesday in volatile trade as investors booked profits after prices hit a two-week high early in the session, although losses were limited by a slide in equities due to worries about a virus outbreak in China.

Spot gold was down 0.2% at $1,557.90 per ounce by 11:48 a.m. EST (1648 GMT), after hitting its highest since Jan. 8 at $1,568.35 in early trading.U.S. gold futures fell 0.2% to $1,558.

Oil prices fell on Tuesday on expectations that a well-supplied global market, including supplies from growing record U.S. production, would be able to absorb disruptions that have cut Libya’s crude production to a trickle.

Brent  futures fell 46 cents, or 0.7%, to $64.74 a barrel, by 12:45 p.m. EST (1745 GMT). U.S. crude  fell 7 cents, or 0.1%, to $58.47 per barrel.

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