Market Roundup
• Canada IPPI Nov (MoM) 0.8%,0.8% forecast , 1.3% previous
•Canada Nov RMPI (MoM) 4.8%, 4.8% previous
•Canada Nov RMPI (YoY) 38.5% ,38.4% previous
•US Dec ISM Manufacturing Employment 54.2, 53.5 forecast,53.3 previous
•US Dec ISM Manufacturing PMI 58.7,60.0, 61.1 previous
•US Nov JOLTs Job Openings 10.562M, 11.075M, 11.033M previous
Looking Ahead Economic Data
•Australia ANZ Job Advertisements (MoM)
Looking Ahead - Events, Other Releases (GMT)
• No data ahead
Fxbeat
EUR/USD: The euro dipped on Tuesday, as dollar gained as investors expected the Omicron variant will not to stall the global economy or delay interest rate hikes anticipated by the Federal Reserve. A rise in U.S. treasury yields on expectations for a Fed rate hike this year have supported the greenback. Investors are gear up for interest rate hikes from the Federal Reserve by mid-year to curb high inflation. U.S. Treasury yields rose for a second trading day. Immediate resistance can be seen at 1.1309(38.2%fib), an upside break can trigger rise towards 1.1342 (23.6%fib).On the downside, immediate support is seen at 1.1280(50%fib), a break below could take the pair towards 1.1256 (61.8%fib).
GBP/USD: Sterling strengthened against the dollar on Tuesday as sterling was supported by a continued rise in gilt yields on growing expectation the Bank of England will raise interest rates next month. Two-year and 10-year British government borrowing costs rose to two-month highs, up six basis points on the day , after Prime Minister Boris Johnson said new measures were not needed to fight the Omicron coronavirus variant and also tracking Monday's rise in U.S. yields. By 0930 GMT, the pound gained 0.22% against the dollar at 1.35, holding close to six-week highs of $1.355 hit on Dec. 31. Sterling dipped 0.05% at $1.3517.Immediate resistance can be seen at 1.3540 (23.6%fib), an upside break can trigger rise towards 1.3577 (Higher BB).On the downside, immediate support is seen at 1.3462(38.2%fib), a break below could take the pair towards 1.3404 (50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the price of oil, one of Canada's major exports, rose and domestic data showed further growth in factory activity. U.S. crude prices settled 1.2% higher at $77.27 a barrel as OPEC+ producers agreed to stick with their planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand. The loonie was trading 0.3% higher at 1.2685 to the greenback, after trading in a range of 1.2668 to 1.2765. Immediate resistance can be seen at 1.2741(38.2%fib), an upside break can trigger rise towards 1.2807 (23.6%fib).On the downside, immediate support is seen at 1.2690(50%fib), a break below could take the pair towards 1.2638 (61.8%fib).
USD/JPY: The U.S. dollar rose to a five-year high versus the yen on Tuesday, boosted by expectations of U.S. Federal Reserve rate hikes, as investors bet that the fast-spreading Omicron coronavirus variant would have limited economic impact. The dollar's gains were helped by a rise in U.S. treasury yields, as investors bet on the Fed raising rates, with the U.S. 2-year and 5-year notes soaring to their highest since March 2020. The Japanese yen weakened 0.76% versus the greenback at 116.20 per dollar, after the dollar reached a high of 116.34 against the yen, its highest level since January 11, 2017.Strong resistance can be seen at 116.28(23.6%fib), an upside break can trigger rise towards 116.13 (Psychological level).On the downside, immediate support is seen at 115.67 (38.2%fib), a break below could take the pair towards 115.54(5DMA).
Equities Recap
European stocks extended their new year rally on Tuesday, led by economically sensitive banks and travel stocks on signs that the Omicron coronavirus variant might be less severe than initially feared.
UK's benchmark FTSE 100 closed up by 1.63 percent, Germany's Dax ended up by 0.82 percent, France’s CAC finished the day up by 1.39percent.
Wall Street's optimistic start to the New Year continued on Tuesday as prices for some stocks, oil and the dollar advanced, but investors dialled back risk-taking elsewhere as data showed U.S. manufacturing slowed and COVID-19 spread.
Dow Jones closed up by 0.59 percent, S&P 500 closed down by 0.06 percent, Nasdaq was down by 1.33 % percent.
Commodities Recap
Gold prices rose on Tuesday as demand for the safe-haven metal was boosted by worries over a surge in COVID-19 cases of the Omicron variant that could threaten global economic recovery.
Spot gold was last up 0.8% at 1,814.45 per ounce by 13:54 ET (1854 GMT). U.S. gold futures settled up 0.8% at $1,814.60.
Global benchmark Brent crude jumped on Tuesday to $80 a barrel, its highest since November, as OPEC+ agreed to stick with its planned increase for February based on indications that the Omicron coronavirus variant would have only a mild impact on demand.
Brent futures settled up $1.02, or 1.3%, at $80 a barrel, almost back to the level they were at on Nov. 26 when reports of the new variant first appeared, sparking a more than 10% decline in prices on that day.
