Market Roundup
• EU slashes euro zone growth outlook, expects inflation to slow.
• Trump, Xi unlikely to meet before March 1 trade deadline -U.S. officials.
• In Brussels, EU gives May glimpse of Brexit hope.
• Bank of England sees weakest UK outlook since 2009 on Brexit, global slowdown.
• Fed's Kaplan reiterates case for pause on rate hikes.
• US Initial Jobless Claims, 234k, 221k forecast, 253k previous.
• US Jobless Claims 4-Wk Avg, 224.75k, 220.25k previous.
• US Continued Jobless Claims, 1.736 mln, 1.720 mln forecast, 1.782 mln previous, 1.778 mln revised.
Looking Ahead - Economic Data
• 7 Feb (18:30 ET/23:30 GMT) Japan Dec All Household Spending YY, 0.8% forecast, -0.6% previous
• 7 Feb (18:30 ET/23:30 GMT) Japan Dec All Household Spending MM, -0.2% forecast,, 1.1% previous
• 8 Feb (18:50 ET/00:50 GMT) Japan Dec Current Account NSA JPY, 429.8 bln forecast,, 757.2 bln previous
Looking Ahead - Events, Other Releases
• 00:30 GMT St. Louis Fed's James Bullard to give presentation on the U.S. economy and monetary policy at St. Cloud State University in Saint Cloud, Minnesota, United States.
• (13:15 ET/18:15 GMT) San Francisco Fed's Mary Daly to participate in a moderated conversation before the Bay Area Council Economic Institute's 12th Annual Economic Forecast Conference in San Francisco, United States.
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Thursday, after the European Commission slashed Eurozone economic growth forecasts due to the expected impact of Global trade tensions. Euro also weakened after data showed German industrial output unexpectedly fell in December.The euro was down 0.10 percent at $1.1350. An index that tracks the dollar versus a basket of six major currencies was up 0.12 at 96.50. Immediate resistance can be seen at 1.1394 (50 DMA), an upside break can trigger rise towards 1.1432 (100 DMA).On the downside, immediate support is seen at 1.1323 (Daily low), a break below could take the pair towards 1.1288 (Jan 24th low).
GBP/USD: Sterling advanced against the dollar on Thursday, as buyers stepped in after the Bank of England kept interest rates unchanged, but concern about the Brexit uncertainty kept gains in check. Sterling initially dipped more than half a percent immediately after BOE left interest rates unchanged, recouped its losses on hopes that Britain will make some progress Brexit.The pound rose a third of a percent to $1.2969, after dropping as low on the day as $1.2854, a two-week low. It carved out a wide daily trading range of more than 1 percent. Immediate resistance can be seen at 1.2690 (10 DMA), an upside break can trigger rise towards 1.2759 (Dec 10th High).On the downside, immediate support is seen at 1.2558(23.6% retracement level), a break below could take the pair towards 1.2474 (Daily Low).
USD/CAD: The Canadian dollar was weakened against the greenback on Thursday, as slumping price of oil and stronger greenback weighed on Canadian dollar. Oil prices fell after data showing a rise in U.S. inventories weighed on sentiment already rattled by the global economy. U.S. crude prices were down 1 percent at $53.46 a barrel. At (2000 GMT), the Canadian dollar was last trading 0.6 percent lower at 1.3300 to the greenback. The currency touched its weakest level since Jan. 30 at 1.3315.Immediate resistance can be seen at 1.3338 (50 DMA), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3205 (100 DMA), a break below could take the pair towards 1.3173 (Jan 11th low).
USD/JPY: The dollar edged lower against the Japanese yen on Thursday, as the threat of another U.S. government shutdown and worries over slowing global economic growth increased demand safe-haven yen. Heightened concerns about U.S.-China trade relations also rattled investors, including news that U.S. President Donald Trump and Chinese President Xi Jinping are unlikely to meet before a March 1 deadline set by their governments to reach a trade deal. The dollar index, which tracks the greenback versus the euro, yen, British pound and three other currencies, was up 0.12 percent at 96.505, on pace for its sixth session of gains. Strong resistance can be seen at 110.63 (50 DMA), an upside break can trigger rise towards 111.00 (Psychological Level).On the downside, immediate support is seen at 109.51 (10 DMA), a break below could take the pair towards 109.25 (21 DMA).
Equities Recap
European shares fell sharply on Thursday ending a seven-session run of gains as a batch of worrying trading updates in a wide range of sectors combined with the European Union cutting its growth forecasts to weigh on markets.
UK's benchmark FTSE 100 closed down by 1 percent, the pan-European FTSEurofirst 300 ended the day down by 1.28 percent, Germany's Dax ended down by 2.52 percent, France’s CAC finished the day down by 1.61 percent.
Wall Street stocks sank more than 1 percent on Thursday as worries that the United States and China would not be able to reach a trade deal intensified earlier concerns about slowing global economic growth.
Dow Jones closed down by 0.85 percent, S&P 500 ended down by 0.93 percent, Nasdaq finished the day down by 1.17 percent.
Treasuries Recap
U.S. Treasury yields fell for a third straight session on Thursday, in line with falls in Europe and Britain, spooked by global stock market weakness amid growth warnings from the European Commission and the Bank of England.
U.S. 10-year note yields fell to 2.673 percent, from 2.704 percent late on Wednesday.U.S. 30-year bond yields were also down, at 3.016 percent, from 3.038 percent on Wednesday.
Commodities Recap
Gold prices rose on Thursday concerns about U.S.-China trade war sapped risk sentiment, driving investors to seek safety in the precious metal.
Spot gold rose 0.4 percent to $1,310.72 an ounce at (2020 GMT) after touching its lowest since Jan. 29 at $1,302.11.U.S. gold futures settled unchanged at $1,314.20.
Oil fell more than 2 percent on Thursday as the market confronted concerns that global demand growth would lag in the coming year.
Brent crude futures fell 1.39 percent, to $61.73 by [2025 GMT].U.S. crude futures were down $1.65 a barrel, or 3.05 percent, at $52.38.
