Market Roundup
• Canada Dec Housing Starts 197.3K, 210.0K forecast, 204.3Kprevious
• US Continuing Jobless Claims 1,803K, 1,728Kprevious
• US Initial Jobless Claims 214K 220K forecast, 223K previous
• US Jobless Claims 4-Week Avg. 224.00K . 233.50K previous
• Canada Nov Building Permits (MoM) -2.4% , 1.0% forecast, -1.5% previous
Looking Ahead - Economic Data (GMT)
• 00:30 Japan Dec Foreign Reserves (USD) 1,317.3B previous
• 01:00 Australia Nov Retail Sales (MoM) -0.3% previous
• • 05:00 Japan Nov Coincident Indicator (MoM) -5.1% previous
• 05:00 Japan Leading Index 90.6, 91.6 previous
• 05:00 Japan Leading Index (MoM)
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro was little changed against the U.S. dollar on Thursday, as investors took on greater risk in a relief rally after the United States and Iran moved to defuse escalating tensions in the Middle East. U.S. President Donald Trump refrained from ordering more military action and Iran’s foreign minister said the missile strikes had concluded Tehran’s response. Trump’s decision helped to soothe markets and increase demand for risk assets. The euro was up 0.02 percent at $1.1108. An index that tracks the dollar versus a basket of six major currencies was down 0.11 at 97.42 on Monday. Immediate resistance can be seen at 1.1136 (21 DMA), an upside break can trigger rise towards 1.1168 (Jan 8th High).On the downside, immediate support is seen at 1.1088 (50 DMA), a break below could take the pair towards 1.1063 (100 DMA).
GBP/USD: Sterling declined against dollar on Thursday, after Bank of England chief Mark Carney said that there could be a “relatively prompt response” from the bank if it looked like weakness in the economy will persist. His comments sent sterling to a near two-week low against the U.S. dollar as he outlined a debate on the Monetary Policy Committee about whether interest rates needed to be cut now. Money markets now price in a roughly 14% chance of a rate cut at the BoE’s Jan. 30 meeting. Immediate resistance can be seen at 1.3113 (21 DMA), an upside break can trigger rise towards 1.3210 (Jan 7th high).On the downside, immediate support is seen at 1.3005 (50 DMA), a break below could take the pair towards 1.2901(23rd Dec low).
USD/CAD: The Canadian dollar weakened to a near two-week low against its U.S. counterpart on Thursday as the greenback broadly rose, but the loonie clawed back some of its decline ahead of the release of crucial employment data on Friday. The December jobs report could help guide expectations for the Bank of Canada interest rate outlook. Data for November showed that Canada's economy shed more than 70,000 positions, the most for any month since the global financial crisis. At (00:15 GMT), the Canadian dollar was trading 0.1% lower at 1.3055 to the greenback. The currency touched its weakest intraday level since Dec. 27 at 1.3104. Immediate resistance can be seen at 1.3106 (Jan 9th High), an upside break can trigger rise towards 1.3173 (50 DMA).On the downside, immediate support is seen at 1.3025 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday, as the United States and Iran moved away from an all-out conflict, prompting investors to take on more risky assets and focus more on an upcoming U.S.-China trade deal. The yen, seen as a safe haven in times of geopolitical turmoil because of its deep liquidity and Japan's current account surplus, reversed the gains it made against the dollar after Iran's missile strike. The dollar was last up 0.2% at 109.39 yen, after earlier hitting 109.48 yen, its highest since Dec. 30. Strong resistance can be seen at 109.60 (Jan 9thhigh), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.96 (5 DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European stocks picked up their record rally on Thursday as the United States and Iran signalled a desire to avoid further conflict, while rising expectations that a Phase 1 U.S.-China trade deal will be signed next week also provided a lift.
UK's benchmark FTSE 100 closed up by 0.31 percent, Germany's Dax ended up by 1.31 percent, France’s CAC finished the day up by 0.19 percent.
U.S. stocks hit record highs on Thursday as optimism about a U.S.-China trade deal firmed and as Apple and other market heavyweights posted strong gains.
Dow Jones closed up by 0.74 percent, S&P 500 ended up by 0.67 percent, Nasdaq finished up by 0.81 percent.
Treasuries Recap
Treasury yields fell on Thursday afternoon after strong demand at a $16 billion auction of 30-year bonds drove prices higher.
The 10-year Treasury yield has swung nearly 20 basis points this week on the headlines, dropping to a month low of 1.705% in overnight trade between Tuesday and Wednesday. It was last trading down 1.4 basis points at 1.860%.
Commodities Recap
Gold prices slid on Thursday, retreating further from a near 7-year peak scaled in the previous session as tensions between the U.S. and Iran eased following conflict over the U.S. killing of an Iranian general Spot gold fell 0.2% to $1,552.74 per ounce by 1250 GMT, having earlier slipped to $1,539.78 an ounce. U.S. gold futures fell 0.4% to $1,553.70 per ounce.
Oil prices retreated further on Thursday, adding to sharp losses in the previous session as the market shifted focus toward rising U.S. crude stocks and away from worries about the conflict between the United States and Iran.
Brent crude futures settled down 5 cents at $65.37 a barrel. West Texas Intermediate fell 7 cents to $59.56 after sliding nearly 5% the previous day.
