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  |   Market Roundups


America’s Roundup: Dollar gains vs euro as ECB holds policy steady, Wall Street ends lower, Gold dips, Oil falls 2% as spectre of China virus threatens fuel demand-January 24th,2020

Market Roundup 

• ECB's Lagarde says monetary policy to remain accommodative

• US Continuing Jobless Claims    1,731K, 1,746K forecast, 1,768K  previous

• US Initial Jobless Claims 211K, 215K forecast, 205K previous

• US Jobless Claims 4-Week Avg     213.25K, 216.50K previous

• US Dec Leading Index (MoM)  -0.3%,0.1% forecast, 0.1% previous

• US Jan Consumer Confidence  -8.1, -7.8 forecast, -8.1 previous  
• US Jan  KC Fed Composite Index  -1, -5    previous    

• US Jan KC Fed Manufacturing Index  -4, -6 forecast ,-3 previous

• Brazil CAGED Net Payroll Jobs 99.23K previous

• Brazil Dec Federal Tax Revenue  155.00B, 125.16B previous

Looking Ahead - Economic Data (GMT) 
• 21:45 New Zealand CPI (YoY) (Q4) 1.8% forecast,1.5%   previous

• 21:45 New Zealand CPI (QoQ) (Q4) 0.4%,0.7% previous

• 22:00 Australia Manufacturing PMI 49.0, 49.2 previous

•22:00 Australia Services PMI 49.5, 49.8 previous

• 23:30 Japan CPI, N.S.A (MoM    0.1% previous

• 23:30 Japan National Core CPI (YoY)  0.7%,0.5%  previous

• 00:30 Japan Jan Manufacturing PMI  48.4 previous    

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Thursday, after the European Central Bank left unchanged its key interest rates and stimulus programs and launched a broad review of its policy that was likely to see new President Christine Lagarde redefine the ECB’s main goal and how to achieve it. ECB rate-setters did not make any policy change on Thursday, simply standing by their pledge to keep buying bonds and, if needed, cut interest rates until price growth in the euro zone heads back to their goal.The euro was 0.32 % lower against the greenback at $1.1055, its weakest since Dec. 9. Immediate resistance can be seen at 1.1066 (100 DMA), an upside break can trigger rise towards 1.1132 (21 DMA).On the downside, immediate support is seen at 1.1030 (Daily low), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Sterling was steady against dollar on Thursday, as investors weighed up whether the Bank of England would cut interest rates next week. Money markets are now pricing in a slightly more than 50% chance of a 25 basis point rate cut, down from 70% earlier in the week, after a several surveys pointed to a possible upturn in the British economy that BoE policymakers had recently said appeared absent. Sterling slipped 0.1% to $1.3128 in early US trading on Thursday, but it remained some way off the $1.2962 levels it traded at on Monday. Immediate resistance can be seen at 1.3155 (Daily high), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3126 (5 DMA), a break below could take the pair towards 1.3050 (9 DMA).

USD/CAD: The Canadian dollar weakened to a one-month low against its U.S. counterpart on Thursday as the coronavirus outbreak weighed on oil prices, with the loonie adding to its decline since the Bank of Canada opened the door to lower interest rates. The price of oil, one of Canada's major exports, fell on concern that the spread of a respiratory virus from China could lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago. U.S. crude oil futures were down 2.8% at $55.16 a barrel. Immediate resistance can be seen at 1.3179 (100 DMA), an upside break can trigger rise towards 1.3123 (Higher BB).On the downside, immediate support is seen at 1.3125 (5 DMA), a break below could take the pair towards 1.3068 (11 DMA).

 USD/JPY: The dollar edged lower against the Japanese yen on Thursday, as concern of new coronavirus outbreak in China increased demand for Japanese yen. Millions of Chinese are preparing to travel for the Lunar New Year which begins on Saturday, increasing the potential for the disease to spread. The cities of Wuhan and Huanggang, representing a total population of about 18 million people, were put on a travel lockdown to prevent the virus from spreading, a public health measure that the World Health Organization called “unprecedented.”. Strong resistance can be seen at 109.87 (11 DMA), an upside break can trigger rise towards 110.07 (Higher BB).On the downside, immediate support is seen at 109.32(21 DMA), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

European shares fell for a fourth straight session on Thursday as worries over the spread of a new coronavirus in China created uncertainty over the potential economic fallout.

UK's benchmark FTSE 100 closed down by 0.85 percent, Germany's Dax ended down by 0.94 percent, France’s CAC finished the day down by 0.65 percent.
U.S. stock indexes fell on Thursday, as mounting worries over a coronavirus outbreak in China, disappointing corporate earnings and weakness in financial stocks prompted investors to hit the brakes after a strong start of the year.

Dow Jones closed down by 0.14percent, S&P 500 ended up by 0.02 percent, Nasdaq finished up by 0.20 percent.

Treasuries Recap

U.S. Treasury prices rallied on Thursday, pushing yields to multi-week lows, boosted by safe-haven demand on persistent concerns about the impact of the latest coronavirus, which recently broke out in China.

U.S. 30-year yields dropped to a seven-week low, while those on two-year and 10-year notes fell to fresh two-week troughs.

Commodities Recap

Gold eased on Thursday as investors booked profits from recent rallies but held above the $1,550 technical support level on continuing low interest rates and a drop in risk appetite.
Spot gold was down 0.2% to $1,556.05 per ounce by 1340 GMT. U.S. gold futures were little changed at$1,555.70 per ounce.      
Oil prices fell 2% on Thursday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories.

Brent crude   futures fell $1.17, or 1.9%, to settle at $62.04 a barrel. The session low was $61.25, the lowest since early December.

U.S. West Texas Intermediate (WTI) crude ended down $1.15, or 2%, at $55.59 a barrel, after hitting $54.77, its lowest since November.        

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