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America’s Roundup: Dollar falls to a more than one-week low, Wall Street ends higher, Gold rises, Oil extends rally to fresh 13-mth highs on tightening supply-February 10th,2021

Market Roundup

 • US Redbook (MoM) -2.5%, -1.6% previous

• US Redbook (YoY) 0.7%, 4.4% previous

• US Dec JOLTs Job Openings 6.646M, 6.500M, 6.527M previous

Looking Ahead - Economic events and other releases (GMT)

• 23:30 Australia FebWestpac Consumer Sentiment  -4.5% previous

• 23:50 Japan Jan PPI (YoY)  -1.6% , -2.0% previous

•23:50 Japan Jan PPI (MoM)  0.4% , 0.5% previous

•00:30 Australia Building Approvals (MoM) 10.9% forecast,2.6%                previous

•01:30 China Jan CPI (MoM)  ) 1.0% forecast,0.7% previous

•01:30 China Jan PPI (YoY)  0.4% forecast, -0.4% previous

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

Currency Summaries

EUR/USD: The euro strengthened against dollar on Tuesday   as investors weighed the effectiveness  of a prospective $1.9 trillion U.S. stimulus package. U.S. President Joe Biden and his Democratic allies in Congress cleared the path for a $1.9 trillion COVID-19 relief package as lawmakers approved a budget outline that will allow them to muscle the plan through without Republican support. Investors' radar was Federal Reserve Chairman Jerome Powell's speech before a virtual Economic Club of New York event at 1900 GMT on Wednesday. The euro extended early gains to rise 0.4% to $1.21025, from a two-month low of $1.9520 touched Friday. Immediate resistance can be seen at 1.2107 (50%fib), an upside break can trigger rise towards 1.2178 (61.8%fib).On the downside, immediate support is seen at 1.2039 (50%fib), a break below could take the pair towards 1.2000 (Psychological level).

GBP/USD: Sterling hit its highest level against the dollar since April 2018 and traded just below eight-month highs against the euro on Tuesday, with analysts citing Britain’s lead in COVID-19 vaccinations as a positive for the currency. Analysts have largely been constructive on the pound - particularly against the euro - this year, noting that Britain’s COVID-19 vaccine rollout has been swifter in comparison to Europe.Helping the pound broadly has also been the Bank of England, which at its meeting last week pushed back at market expectations of negative interest rates.The pound hit $1.3788 against the dollar in early London deals, its highest level against the greenback since Apr. 30, 2018. Immediate resistance can be seen at 1.3787  (Daily high), an upside break can trigger rise towards 1.3800 (23.6%fib).On the downside, immediate support is seen at 1.3729  (5 EMA), a break below could take the pair towards 1.3643 (38.2%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil and stocks consolidated recent gains, with the loonie pulling back from its strongest intraday level in nearly two weeks. U.S. crude prices were down 0.8% at $57.53 a barrel, while the Canadian dollar was trading 0.2% lower at 1.2759 to the greenback. The loonie was the only G10 currency not to gain ground against the greenback. Earlier in the session, it touched its strongest intraday level since Jan. 27 at 1.271. Immediate resistance can be seen at 1.2743(Ichimoku cloud base), an upside break can trigger rise towards 1.2850 (38.2%fib).On the downside, immediate support is seen at 1.2694 (Daily low), a break below could take the pair towards 1.2600 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Tuesday as an overnight slide in U.S. Treasury yields raised doubts on the outlook for the greenback against the backdrop of a looming U.S. fiscal stimulus package. Investors have pushed up the dollar recently as Democrats moved to fast-track President Joe Biden’s $1.9 trillion COVID-19 relief package. But some analysts say massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy will ultimately prove to be a dollar headwind. Strong resistance can be seen at 104.81 (50%fib), an upside break can trigger rise towards 105.18 (38.2%fib).On the downside, immediate support is seen at 104.47 (61.8%fib), a break below could take the pair towards 104.00(Psychological level).

Equities Recap

European shares ended lower on Tuesday after a rally powered by hopes of a swifter global economic recovery and vaccine rollouts showed signs of cooling.

UK's benchmark FTSE 100 closed up by  0.12 percent, Germany's Dax ended down by 0.37 percent, France’s CAC finished the day up by 0.10 percent.                        

The Dow and the S&P 500 eased from record highs on Tuesday as investors digested recent gains while awaiting progress in passing a proposed $1.9 trillion stimulus plan.

Dow Jones closed up by 0.05 percent, S&P 500 closed up by 0.04 percent, Nasdaq settled up   by 0.32 % percent.

Treasuries Recap

Benchmark U.S. Treasury yields made up earlier declines on Tuesday as investors prepared for the U.S. Treasury Department to sell new long-dated debt, but they held below 11-month highs reached on Monday.

Benchmark 10-year yields jumped to their highest since March and 30-year bond yields rose above 2% for the first time since February on Monday as investors prepared for the prospect of faster U.S. growth and inflation, and the new supply.

Commodities Recap

Gold prices rose to a one-week high on Tuesday, as a sliding dollar and hopes of more U.S. fiscal stimulus bolstered its appeal among investors seeking an inflation hedge.

Spot gold  was up 0.3% to $1,835.24 per ounce by 1:38 p.m. EST (1838 GMT), after hitting its highest since Feb. 2 at $1,848.40 earlier in the session.  U.S. gold futures settled up 0.2% to $1,837.50.

Oil prices extended their rally for a seventh session on Tuesday to hit fresh 13-month highs, supported by supply cuts and optimism over a recovery in fuel demand.

Brent was up 24 cents, or 0.8%, to $$61.06 a barrel by 1:03 p.m. EST (1803 GMT).U.S. West Texas Intermediate crude (WTI) for March was at $58.30 a barrel, up 33 cents or 0.6%.

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