America’s Roundup: Dollar gains as traders balance virus, economic reports, Wall Street slips, Gold rises, Oil prices climb on prospects for deeper OPEC+ output cuts-February 14th,2020

Market Roundup

• Russia Central Bank Reserves (USD) 562.2B, 562.3B previous

• US Continuing Jobless Claims 1,698K, 1,745K forecast, 1,759K previous    

• US Jan Core CPI (YoY) 2.3%, 2.2% forecast, 2.3% previous

• US Jan Core CPI (MoM) 0.2%,0.2% forecast, 0.1% previous

• US Jan CPI (MoM) 0.1%,0.2% forecast, 0.2% previous

• US Jan CPI (YoY) 2.5%, 2.4% forecast, 2.3% previous    

• US Initial Jobless Claims 205K, 210K forecast 203K previous

• US Jobless Claims 4-Week Avg    212.00K, 212.00K previous

• US Natural Gas Storage-115B, -110B forecast, -137B previous  
                             
Looking Ahead - Economic Data (GMT)
    
• 21:30 New Zealand Jan Business NZ PMI 51.0 forecast, 49.3 previous
    
• 21:45 New Zealand Jan FPI (MoM)  -0.2% previous

• 21:50 Japan Foreign Bonds Buying -150.2B previous -150.2B      
 
• 21:50 Japan Foreign Investments in Japanese Stocks -295.6B  
     
• 02:00 Japan Feb Thomson Reuters IPSOS PCSI 41.02 previous

• 02:00    Feb China Thomson Reuters IPSOS PCSI 70.22 previous    

Looking Ahead - Events, Other Releases (GMT)    

• 22:30  US  FOMC Member Williams Speaks  
 
Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Thursday, as concerns about a sharp rise in the number of new cases in the coronavirus outbreak in China led investors to seek out U.S. assets. The death toll from the outbreak in China had reached 1,367 as of the end of Wednesday, up 254 from the previous day. The coronavirus death toll in China’s Hubei province increased by a record 242 on Thursday to 1,310, with a sharp rise in confirmed cases after the adoption of new methodology for diagnosis. The euro dropped as low as $1.0835, the lowest since May 2017. It breached technical support at the October low of $1.0877 on Wednesday. Immediate resistance can be seen at 1.0893(5 DMA), an upside break can trigger rise towards 1.0950 (11 DMA).On the downside, immediate support is seen at 1.0830  (Daily low), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD: The pound jumped against dollar on Thursday  as investors positioned for a higher-spending budget next month under a new British finance minister. In a sign of Boris Johnson tightening his control, the British Prime Minister forced the resignation of Sajid Javid as finance minister on Thursday after Javid refused to sack his advisers and replace them with officials from Johnson’s Downing Street office, according to a source close to Javid. The currency climbed to as high as $1.3069 as the day wore on, up from around $1.2988 before the news. That left the pound up 0.89% on the day, although it was only trading at a one-week high.. Immediate resistance can be seen at 1.3077 (50 DMA), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2977 (11DMA), a break below could take the pair towards 1.2942 (5 DMA).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, holding on to its previous day's gains as oil prices rose and investors assessed a sharp rise in the number of coronavirus deaths and infections. The price of oil, one of Canada's major exports, increased despite lower OPEC and IEA demand forecasts due to the coronavirus outbreak in China, the world's biggest oil importer.U.S. crude oil futures were up 0.9% at $51.64 a barrel. At (1500 GMT), the Canadian dollar was trading nearly unchanged at 1.3247 to the greenback. Immediate resistance can be seen at 1.3269 (5 DMA), an upside break can trigger rise towards 1.3334 (12th feb).On the downside, immediate support is seen at 1.3200  (21  DMA), a break below could take the pair towards 1.3121 (Jan 31st low).

USD/JPY: The dollar declined against the Japanese yen on Thursday, as sharp rise in the number of coronavirus deaths and infections unnerved world markets on Thursday, as traders halted the rally in stocks and retreated to the safety of government bonds and gold. The number of deaths in the province rose by 242, a daily record, to 1,310. Japan’s yen strengthened past 110 per dollar, 10-year U.S. Treasuries fell below 1.6% and European yields dropped 3 basis points. Strong resistance can be seen at 110.02 (7th Feb high), an upside break can trigger rise towards 110.58 (Higher BB).On the downside, immediate support is seen at 109.55 (21 DMA), a break below could take the pair towards 109.41 (30DMA). 

Equities Recap

European shares pulled back from record highs on Thursday as a surge in new coronavirus cases in China surprised investors who were hoping that the outbreak had peaked.

UK's benchmark FTSE 100 closed down by 1.09 percent, Germany's Dax ended down by 0.03 percent, France’s CAC finished the day down by 0.19 percent.

The S&P 500 reversed its losses on Thursday as investors weighed mixed news on the coronavirus and a spate of corporate earnings.

Dow Jones closed down by 0.44 percent, S&P 500 ended down 0.16 percent, Nasdaq finished the day down by 0.14 percent.

Treasuries Recap

U.S. Treasury yields were slightly lower on Thursday as traders balanced worsening news about the coronavirus epidemic in China with positive U.S. economic reports.

 The benchmark 10-year yield was down less than a basis point in morning trading at 1.619%.

Commodities Recap

Gold prices jumped to their highest in more than a week on Thursday after a sharp increase in the number of new coronavirus cases in China renewed fears over global economic impact and persuaded investors to seek lower-risk assets.

Spot gold rose 0.7% to $1,575.75 per ounce by 1554 GMT, its highest since Feb. 4.U.S. gold futures were 0.5% higher at $1,580.
Oil prices edged higher on Thursday as investors hoped the world’s biggest producers would cut output more while they largely shrugged off forecasts of slumping demand due to the coronavirus outbreak in top oil importer China.

Brent crude ended the session up 55 cents, or 1%, at $56.34 a barrel while U.S. West Texas Intermediate (WTI)   settled up 25 cents, or 0.5%, at $51.42 a barrel.