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America's Roundup: Dollar slides on bets of Fed pausing U.S. rate hikes, Wall Street rally, Gold gains, Oil rises; lifted by OPEC cuts, steadying stock market-January 8th,2019

Market Roundup

• Fed's Bostic sees one U.S. interest rate hike this year.

• U.S., China can reach trade deal 'we can live with' -U.S. Commerce secretary.

• US Dec ISM N-Mfg PMI, 57.6, 59.0 forecast, 60.7 previous.

• US Dec ISM N-Mfg Bus Act, 59.9, 64.0 forecast, 65.2 previous.

• US Dec Employment Trends, 111.6, 110.4 previous.

• US Dec ISM N-Mfg Employment Index, 56.3, 58.4 previous.

• US Dec ISM N-Mfg New Orders Index, 62.7, 62.5 previous.

• Trump plans prime-time address, visit to Mexico border.

• EU looks at help for May, but won't rework Brexit deal.

• UK's no-deal Brexit truck 'war game' prompts scorn.

• CA Dec Ivey PMI, 48.2, 57.3 previous.

• CA Dec Ivey PMI SA, 59.7, 56.8 forecast, 57.2 previous.

• Oil rises 3 percent; lifted by OPEC cuts, steadying stock market.

Looking Ahead - Economic Data (GMT)

• 00:30 Australia Nov Trade Balance G&S (A$), 2,230 mln forecast, 2,316 mln previous

• 05:00 Japan Dec Consumer Confid. Index, 42.9 previous

Looking Ahead - Events, Other Releases (GMT)

• No major economic events scheduled

Currency Summaries

EUR/USD: The euro strengthened against dollar on Monday, as greenback was pressured by growing expectations the U.S. Federal Reserve will either pause or halt its interest rate hike cycle. The euro was up 0.70 percent at $1.1472. An index that tracks the dollar versus a basket of six major currencies was down 0.56 at 95.66 after hitting a 16-month high of 97.693 on Monday. Immediate resistance can be seen at 1.1512 (Ichimoku Cloud Top), an upside break can trigger rise towards 1.1550 (Oct 10th high).On the downside, immediate support is seen at 1.1419 (50% retracement level), a break below could take the pair towards 1.1381 (21 DMA).

GBP/USD: Sterling rose to a one-week high against dollar on Monday, as traders prepared for Britain's parliament to reconvene this week and debate Prime Minister Theresa May's Brexit withdrawal agreement. The pound's strengthened   as high as $1.2787,up 0.4 percent on the day, before settling at $1.2750  was largely down to dollar weakness, with a recovery in global risk sentiment since Friday knocking demand for the U.S. currency. Immediate resistance can be seen at 1.2811 (Higher Bollinger Bands), an upside break can trigger rise towards 1.2894(100 DMA).On the downside, immediate support is seen at 1.2691 (5-DMA), a break below could take the pair towards 1.2650 (21 DMA).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as the greenback broadly fell on bets the Federal Reserve will halt its multi-year rate hike cycle and as oil prices rose. The Canadian dollar was last trading 0.59 percent higher at 1.3293 to the greenback. Immediate resistance can be seen at 1.3350 (50% retracement level), an upside break can trigger rise towards 1.3422 (61.8% retracement level).On the downside, immediate support is seen at 1.3278 (38.2% retracement level), a break below could take the pair towards 1.3199 (23.6% retracement level).

USD/JPY: The U.S. dollar strengthened against the yen on Monday, as investors evaluated the likelihood of further Federal Reserve rate hikes this year and as the United States and China resumed trade talks. The U.S. central bank will release minutes from its December meeting on Wednesday. U.S. officials are meeting their counterparts in Beijing this week for the first face-to-face talks since U.S. President Donald Trump and China's President Xi Jinping agreed in December to a 90-day truce in a trade war. The dollar last trading 0.22 percent higher versus the Japanese yen at 108.73. Strong resistance can be seen at 109.53 (9 DMA), an upside break can trigger rise towards 111.35 (21 DMA).On the downside, immediate support is seen at 107.66 (Lower Bollinger Bands), a break below could take the pair towards 107.00 (Psychological level). 

Equities Recap

European shares fell back on Monday, after rebounding at the end of last week, as lingering worries about the euro zone economy, Brexit and the U.S. government shutdown offset hopes for a truce between Washington and Beijing over trade.

UK's benchmark FTSE 100 closed down by 0.7 percent, the pan-European FTSEurofirst 300 ended the day down by 1.37 percent, Germany's Dax ended down by 1.4 percent, France’s CAC finished the day down by 1.7 percent.

Amazon.com Inc and Netflix fueled a second straight session of gains on Wall Street on Monday, as the resumption of U.S.-China trade talks helped ease concerns that have pummeled the market in recent months.

Dow Jones closed up by 0.40 percent, S&P 500 ended up 0.68 percent, Nasdaq finished the day up by 1.22 percent.

Treasuries Recap 

U.S. Treasury prices fell on Monday, extending losses from Friday, as investors evaluated the likelihood of further Federal Reserve rate hikes this year and as the United States and China resumed trade talks.

Benchmark 10-year notes fell 6/32 in price to yield 2.680 percent, up from 2.659 percent on Friday. The yields fell as low as 2.543 in overnight trading on Thursday, the lowest since January 2018.

Commodities Recap

Gold rose on Monday, just below a more than six-month peak hit in the last session, as the dollar slid on reduced chances of further rate hikes by the U.S. Federal Reserve, and as the United States and China resumed trade talks.

Spot gold was up 0.3 percent at $1,288.44 per ounce as of (2149 GMT), having reached $1,298.42 an ounce on Friday, its highest since June 15.U.S. gold futures settled up 0.3 percent at $1,289.9 per ounce.

Oil prices edged higher on Monday, rebounding further from 1-1/2-year lows reached in December, on support from OPEC production cuts and steadying equities markets.

Brent crude futures rose 27 cents to settle at $57.33 a barrel, a 0.47 percent gain. U.S. West Texas Intermediate (WTI) crude futures rose 56 cents to settle at $48.52 a barrel, a 1.17 percent gain.

 

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April 19 08:30 UTC Released

GRCbank C/A YY

Actual

-0.99 0

Forecast

Previous

-1.183 0

April 19 08:00 UTC Released

ITConsumer Confidence

Actual

110.5 %

Forecast

111.2 %

Previous

111.2 %

January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

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2016 bln ARS

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January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

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Forecast

2016 bln ARS

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Bln AR bln ARS

January 22 19:00 UTC 650260650260m

ARTrade Balance

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Forecast

Previous

-1541 %

January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 650260650260m

ARTrade Balance

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Forecast

Previous

-1541 %

January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

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Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

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Forecast

2016 bln ARS

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Bln AR bln ARS

January 31 00:00 UTC 638440638440m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

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Bln AR bln ARS

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