Market Roundup
• Gold eyes $1,600/oz- analyst
• World stocks slump, erase new year's gains
• Canada Nov IPPI (MoM) 0.1%,0.2% forecast, 0.1% previous
• Canada Nov IPPI (YoY) -0.4%,-1.4% previous
• Canada Nov RMPI (MoM) 1.5% , 1.0% forecast, -1.9% previous
• Canada Nov RMPI (YoY) 9.3%,-5.1% previous
• US Dec Markit Composite PMI 52.7, 52.2 forecast, 52 previous
• US Dec Services PMI 52.8, 52.2 forecast, 51.6 previous
Looking Ahead - Economic Data (GMT)
• No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events.
Currency Summaries
EUR/USD: The euro edged higher against the U.S. dollar on Monday, as worries about a broader escalation of conflict in the Middle East after the United States killed Iran’s most prominent military commander kept investors away from the market. On the data front, euro zone business activity hovered near stagnation in December, according to IHS Markit’s final composite PMI (purchasing managers’ index) figures published Monday.The euro was last trading up at 0.28 percent at $1.1191. Immediate resistance can be seen at 1.1239 (Dec 31st high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1138 (11 DMA), a break below could take the pair towards 1.1100 (Psychological level).
GBP/USD: The British pound strengthened against dollar on Monday, as investors who had sold the currency for safe havens after the United States killed Iran’s top military commander returned to the pound. Investors have remained cautious about the pound since Prime Minister Boris Johnson’s Conservatives won a big majority in the vote. They worry about more political uncertainty down the road with Britain set to leave the European Union on Jan. 31 and the two sides then beginning negotiations on their future trading relationship. The UK parliament returns on Tuesday and will debate the Brexit bill, which includes a clause ruling out any extension of the transition period for trade talks beyond December 2020. Immediate resistance can be seen at 1.3174 (Daily high), an upside break can trigger rise towards 1.3274 (31st Dec high).On the downside, immediate support is seen at 1.3062 (11 DMA), a break below could take the pair towards 1.3000 (Psychological level).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as Middle East tensions boosted oil prices and the greenback broadly fell, but the loonie traded in a narrow range, stopping short of a 14-month high it posted last week. The price of oil, one of Canada's major exports, rose as investors fretted that the killing of Iran's most prominent military commander by the United States could trigger a broader Middle East conflict. At (2007 GMT), the Canadian dollar was trading 0.1% higher at 1.2981 to the greenback, or 77.04 U.S. cents. The currency, which strengthened 0.7% last week, traded in a range of 1.2965 1.2990. Immediate resistance can be seen at 1.2997 (5 DMA), an upside break can trigger rise towards 1.3063 (11 DMA).On the downside, immediate support is seen at 1.2949 (Jan 2nd low), a break below could take the pair towards 1.2900 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as escalating tensions between the United States and Iran kept investors cautious. U.S. President Donald Trump warned of a “major retaliation” if Iran hit back, while Iran’s replacement commander vowed to expel the United States from the region. Iraq's parliament called on Sunday for U.S. and other foreign troops to leave, while Iran lambasted U.S. President Donald Trump after he threatened to hit 52 Iranian sites, including targets important to Iranian culture, if Tehran were to retaliate. Strong resistance can be seen at 108.62 (5 DMA), an upside break can trigger rise towards 109.03 (11 DMA).On the downside, immediate support is seen at 107.76 (Daily low), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares slipped on Monday as investors continued to trim risky bets amid escalating tensions between the United States and Iran, but shares of jeweller Pandora soared after it said it would meet 2019 sales targets.
The UK's benchmark FTSE 100 closed down by 0.62 percent, Germany's Dax ended down by 0.70 percent, and France’s CAC finished the down by 0.70 percent.
Wall Street’s major indexes fell from record highs on Friday after a U.S. air strike in Iraq killed a top Iranian commander, sharply escalating geopolitical tensions in the Middle East and sending investors scurrying to safe-haven assets.
AT (GMT 2010 ),Dow Jones was last down by 0.02 percent, S&P 500 was up at 0.15 percent, Nasdaq was up by 0.33 percent.
Treasuries Recap
The Treasury yield curve was flatter on Monday morning as heightened tensions between the United States and Iran continued to boost demand for safe-haven assets.
The benchmark 10-year yield has fallen 5.36% since the close on Jan. 2, just before an overnight U.S. air strike in Baghdad ordered by President Donald Trump killed Qassem Soleimani, Tehran’s most prominent military commander. It was last down 0.3 basis point, but a rise in two-year yields flattened the yield curve to 24.6 basis points from 30.6 at last Thursday’s close.
Commodities Recap
Gold prices surged on Monday as the U.S. killing of a top Iranian military commander triggered fears of a wider conflict in the Middle East, prompting a rush to the metal's safety, while palladium soared past $2,000 an ounce for the first time.
Spot gold was up 1.1% at $1,567.80 per ounce as of ET (1529 GMT), after rising to $1,579.72 earlier inthe session, its highest since April 2013.
Oil prices edged up on Monday, after Brent touched above $70 a barrel, as rhetoric from the United States, Iran and Iraq fanned tensions in the Middle East after a U.S. air strike killed a top Iranian military commander.
Brent crude futures rose 22 cents to $68.82 a barrel by 12:19 p.m. EST (1719 GMT), after soaring to a high of $70.74 a barrel from Friday’s settlement.
U.S. West Texas Intermediate crude was up 7 cents at $63.12 a barrel after touching $64.72, its highest since April.
