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America's Roundup: Dollar firms on improved risk appetite and upbeat data, Wall Street gains, Gold slips, Oil slides after hitting two-month high-February 5th, 2019

Market Roundup

• US Nov Factory Orders MM, -0.6%, 0.2% forecast, -2.1% previous.

• US Nov Factory Ex-Transp MM, -1.3%, 0.3% previous.

• U.S.-China tariff hike would trigger downturn, trade diversion - U.N.

• Germany facing big budget hole as economy slows -document.

• Germany's Merkel drops hint of a "creative" Brexit compromise.

• EU nations back Venezuela's Guaido as anti-Maduro bloc grows.

• Argentina central bank ups dollar buying to $75 mln to rein in peso.

Looking Ahead - Economic Data (GMT)

• 00:30 Japan Jan Services PMI, 51.0 previous

• 00:30 Australia Dec Retail Sales MM, -0.1% forecast, 0.4% previous

• 00:30 Australia Q4 Retail Trade, 0.4% forecast, 0.2% previous

• 00:30 Australia Dec Trade Balance G&S (A$), 2,300 mln forecast, 1,925 mln previous

Looking Ahead - Events, Other Releases (GMT)

• 00:00 Fed's Loretta Mester speaks on the economic outlook and monetary policy before the 50 Club of Cleveland monthly meeting in Cleveland, Ohio.

• 09:00 ECB chief economist Peter Praet chairing Session 1 "Can the EU respond adequately to the next crisis with its current instruments” at OECD France Strategie Workshop in Paris, France.

• 10:15 ECB supervisory board member Pentti Hakkarainen participates at event "A deepening EMU - where will it leave Sweden and Denmark?" at the European Commission Representation in Stockholm, Sweden.

Currency Summaries

EUR/USD: The euro slipped lower against the U.S. dollar on Monday, as concerns about euro zone economic growth and stronger dollar across the board weighed on single currency. The euro struggled as cautious comments from the European Central Bank at its January meeting reaffirmed worries the euro zone economy was struggling.The euro was down 0.18 percent at $1.1434. An index that tracks the dollar versus a basket of six major currencies was up 0.25 at 95.85 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1471 (50% retracement level), an upside break can trigger rise towards 1.1514 (61.8% retracement level).On the downside, immediate support is seen at 1.1419 (9 DMA), a break below could take the pair towards 1.1373 (23.6% retracement level).

GBP/USD: Sterling fell towards a one-week low against dollar on Monday as Prime Minister Theresa May met lawmakers to try and overcome a parliamentary impasse that has raised fears among investors about a disorderly 'no-deal' Brexit. The pound has held on to most of the gains it racked up in January despite there being less than two months until Britain is due to leave the European Union on March 29 and without an agreement governing future ties with the bloc secured. At 2045 GMT sterling was down 0.2 percent at $1.3038 and down 0.2 percent. Immediate resistance can be seen at 1.3098 (38.2% retracement level), an upside break can trigger rise towards 1.3158 (Jan 31st High).On the downside, immediate support is seen at 1.3012 (50% retracement level), a break below could take the pair towards 1.2948 (21 DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, reversing some of last week's rally, as oil prices fell and the greenback broadly climbed. The price of oil, one of Canada's major exports, pulled back from an earlier two-month high as forecasts of weaker demand and an economic slowdown offset OPEC-led supply cuts and U.S. sanctions against Venezuela's petroleum industry. At (2045 GMT), the Canadian dollar was trading 0.14 percent lower at 1.3180 to the greenback. Immediate resistance can be seen at 1.3154 (5 DMA), an upside break can trigger rise towards 1.3215 (9 DMA).On the downside, immediate support is seen at 1.3070 (Feb 19th low), a break below could take the pair towards 1.300 (Psychological level).

USD/JPY: The dollar gained against Japanese yen on Monday, as Friday's upbeat payroll data and improved risk appetite helped lift the greenback across the board. Dollar sentiment has undergone a U-turn in recent days with weak European data and expanding stimulus in China boosting demand for the greenback. With much of Asia closed by holidays this week, the dollar also took heart from recently concluded trade talks between China and the United States. Against the Japanese yen, which tends to benefit during geopolitical or financial stress as Japan is the world's biggest creditor nation, the dollar rose above 110 yen, for the first time since Dec. 31.Strong resistance can be seen at 110.16 (Higher Bollinger Band), an upside break can trigger rise towards 110.76 (50 DMA).On the downside, immediate support is seen at 109.48 (9 DMA), a break below could take the pair towards 109.12 (21 DMA). 

Equities Recap

European shares were flat on Monday as the heavyweight banking sector fell further following poor results from Julius Baer and as optimism fueled by strong U.S. economic data faded.

UK's benchmark FTSE 100 closed up by 0.10 percent, the pan-European FTSEurofirst 300 ended the day down by 0.11 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the day down by 0.57 percent.

Wall Street gained on Monday, with technology shares leading the advance as investors were optimistic about the prospects for U.S.-China trade relations and quarterly earnings reports.

Dow Jones closed up by 0.69 percent, S&P 500 ended up by 0.68 percent, Nasdaq finished the  up by 1.13 percent.

Treasuries Recap

U.S. Treasury prices fell on Monday in generally thin volume, after trading higher for most of last week, pressured by upcoming debt supply, as well as indications that inflation expectations are rising.

In afternoon trading, U.S. 10-year note yields rose to 2.718 percent, up from 2.691 percent late on Friday.U.S. 30-year bond yields, were also up at 3.05 percent, from 3.032 percent on Friday.

Commodities Recap

Oil prices fell on Monday after disappointing U.S. factory data sparked fresh concerns about a slowdown in the global economy, but losses were limited as OPEC-led supply cuts and U.S. sanctions against Venezuela pointed to tighter supply.

Brent crude futures dropped 24 cents, or 0.38 percent, to settle at $62.51 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 70 cents, or 1.27 percent, to settle at $54.56 a barrel.

Gold retreated to a near one-week low on Monday as the dollar built on momentum from upbeat U.S. economic data, denting bullion's appeal.

Spot gold was down 0.3 percent at $1,313.40 per ounce as of 2:00 pm EST (1900 GMT), having dipped to its lowest level since Jan. 29 at $1,308.20 earlier in the session.U.S. gold futures settled down 0.2 percent at $1,319.3 per ounce.

 

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May 22 08:30 UTC Released

GBCPI NSA

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107.6 Index

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Previous

107 Index

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GBPSNCR, MM GBP

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-7.06 Bln GBP

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8.871 Bln GBP

January 31 00:00 UTC 685979685979m

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January 22 19:00 UTC 697799697799m

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-1541 %

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-1541 %

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2016 bln ARS

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