America’s Roundup: Dollar gains on strong U.S. private payrolls, Wall Street rises, Gold gains ,Oil prices jump 2% as virus vaccine reports spur hope-February 6th,2020

Market Roundup

• US Exports 209.60B, 208.10B previous    

• US Imports 258.50B, 251.80B previous                
• US Jan Markit Composite PMI 52.2, 50.9 previous

• US Dec Trade Balance -48.90B , -48.20B forecast,-43.70B previous

• Canada Dec Exports -43.70B , 50.10B forecast, 48.38B  previous

• Canada Dec Trade Balance  -0.40B, -0.61B forecast, -1.20B previous

• US Jan Services PMI  53.4, 53.2 forecast, 53.2 previous

• US Jan ISM Non-Manufacturing Business Activity 60.9, 56.5 forecast, 57.0 previous

• US Jan ISM Non-Manufacturing PMI 55.5, 55.0    forecast, 54.9 previous

• Brazil  Foreign Exchange Flows    -0.384B    , -0.011B previous

Looking Ahead - Events, Other Releases (GMT)    

• 23:50 Japan Foreign Bonds Buying -551.9B previous    

• 23:50  Foreign Investments in Japanese Stocks  -284.3B  previous

•00:30 Australia Dec Exports (MoM)  2% previous

•00:30 Australia Dec Imports (MoM)  -3% previous

•00:30 Australia Dec Retail Sales (MoM)  -0.2% forecast , 0.9% previous

•00:30 Australia Dec Trade Balance 5.950B forecast, 5.800B previous
    
Looking Ahead - Events, Other Releases (GMT)    

•01:30 Japan BoJ Board Member Masai Speaks    

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Wednesday, as risk appetite rose on reports of a possible treatment for the new coronavirus out of China that has gripped the world and caused major disruptions among global businesses. Risk sentiment also improved after U.S. private-sector payrolls increased by 291,000 in January, according to the ADP National Employment Report, far above expectations of an increase of 156,000 jobs. January’s job gains were the largest since May 2015.The euro was down 0.01 percent at $1.1000. Immediate resistance can be seen at 1.1031 (11 DMA), an upside break can trigger rise towards 1.1070 (21 DMA).On the downside, immediate support is seen at 1.0980 (Lower BB), a break below could take the pair towards 1.0940 (Oct 8th low).

GBP/USD: Sterling declined against dollar on Wednesday, as dollar was boosted better-than-expected U.S. jobs data. U.S. private-sector payrolls surprised analysts and rose 291,000 in January, much more than the 156,000 new jobs expected, driving the dollar to its highest in a week against the euro. The pound fell 0.1% against the U.S. dollar to $1.2996. Immediate resistance can be seen at 1.3043 (9 DMA), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2940 (Lower BB), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar weekend against dollar on Wednesday, as investors looks past a mounting coronavirus death toll and policymakers’ concerns for the disease’s economic impact. Bank of Canada official Wilkins said past virus outbreaks   like an episode of Severe Acute Respiratory Syndrome that killed 44 people in the Toronto area in 2003 - showed Canada's economy could be affected even if the epicenter was not domestic. Canada has five cases of coronavirus. Ottawa is trying to evacuate some 300 stranded citizens. The Canadian dollar was last trading 0.01% lower at 1.3283 to the greenback .Immediate resistance can be seen at 1.3310 (Higher BB), an upside break can trigger rise towards 1.3345 (Oct 10th high).On the downside, immediate support is seen at 1.3270 (5 DMA), a break below could take the pair towards 1.3216 (11 DMA).

USD/JPY: The dollar strengthened against the Japanese yen on Wednesday, as investors unwounded their trading position in safe haven assets as China’s responses to the coronavirus outbreak supported investor confidence. The coronavirus outbreak claimed its first life in Hong Kong on Tuesday, as the mainland China death toll rose by 65 to 490 and the number of cases rose to 24,324. At (GMT 22:21), the dollar was 0.01 percent higher versus the Japanese yen at 109.89.Strong resistance can be seen at 109.86 (Daily high), an upside break can trigger rise towards 110.53 (Higher BB).On the downside, immediate support is seen at 109.68(100 DNA), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

A clutch of upbeat earnings and reports of progress in treatment for the fast-spreading coronavirus helped to push European shares towards record highs on Wednesday.

UK's benchmark FTSE 100 closed up by 0.57 percent, Germany's Dax ended up by 1.48 percent, France’s CAC finished the day up by 0.85 percent.

The benchmark S&P 500 posted a record closing high on Wednesday as U.S. stocks rallied for a third straight day on encouraging U.S. economic data and waning fears of the financial fallout from the corona virus in China.

Dow Jones closed up by 1.68 percent, S&P 500 ended up 1.13 percent, Nasdaq finished the day upby 0.43 percent.

Treasuries Recap

U.S Treasury yields rose on Wednesday as traders reacted to positive reports on efforts to counter the coronavirus and a strong private-sector jobs report.

The benchmark 10-year yield was up 3.8 basis points in morning trading at 1.6387%.

Commodities Recap

Gold rose on Wednesday on bargain hunting, reversing course from a two-week low touched earlier, as investors latched on to the metal’s overall uptrend on the back of a low interest rate environment globally and lingering uncertainties.

Spot gold rose 0.38% to $1,558.20 per ounce by 1617 GMT. U.S. gold futures rose 0.4% to $1,562.30.

Oil prices jumped about 2% on Wednesday on media reports that suggested scientists were developing a vaccine for the fast-spreading coronavirus, even as world health experts said treatments have not yet been found.

Brent crude oil futures  ended the session up $1.32, or 2.5%, at $56.46 a barrel while U.S. West Texas Intermediate (WTI) crude gained $1.14, or 2.3%, to settle at $50.75. Both contracts rose more than 4% during the session.