Market Roundup
•Canada Dec Building Permits (MoM) -14.0%, 1.8% forecast,-3.9% previous
•US Redbook (YoY) 6.1%,5.0% previous
•Canada Jan Ivey PMI 56.5, 55.0 forecast,56.3 previous
•Canada Jan Ivey PMI n.s.a 54.4,43.7 previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Dec Coincident Indicator (MoM) -1.3% previous
•05:00 Japan Leading Index 109.4 forecast, 107.6 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher on Tuesday but gains were limited as as investors shrugged off data that showed German industrial orders unexpectedly jumped in December. German industrial orders unexpectedly jumped in December, posting their highest month-on-month increase in more than three years, driven by "an exceptionally" high number of aircraft orders, the federal statistics office said on Tuesday.Orders rose by 8.9% on the previous month on a seasonally and calendar adjusted basis, the largest increase since June 2020. A poll of analysts had expected industrial orders to remain flat. The euro was up 0.02% at $1.0756. Immediate resistance can be seen at 1.0803( 38.2%fib), an upside break can trigger rise towards 1.0861 ( 50%fib).On the downside, immediate support is seen at 1.0722(23.6%fib), a break below could take the pair towards 1.0710(Lower BB).
GBP/USD: the British pound made a modest recovery against the U.S. dollar on Tuesday following a significant decline the previous day as investors closely analysed the monetary policies of both the British and U.S. central banks. Investors dialed down their expectations for an imminent rate cut on Friday by the Bank of England (BoE), leading to an increase in gilt yields after strong U.S. payroll data and remarks regarding the policy outlook from BoE Chief Economist Huw Pill, who indicated that the first rate cut is still some way off. Sterling was up 0.05% at $1.2604, after hitting $1.25175 the day before, its lowest since Dec. 13. Immediate resistance can be seen at 1.2590(38.2%fib), an upside break can trigger rise towards 1.2632(Feb 5th high).On the downside, immediate support is seen at 1.2510(50%fib), a break below could take the pair towards 1.2438(61.8%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil prices rose and the Bank of Canada signaled little urgency to cut interest rates, with the currency rebounding from a near two-month low. Bank of Canada Governor Tiff Macklem said more time was needed for monetary policy to ease price pressures, adding that the biggest driver of inflation - shelter costs - could not be tamed by borrowing costs. He made the remarks in the first speech he has given since the bank held rates on Jan 24. Canadian jobs data, due on Friday, could provide further clues on the strength of the domestic economy. The loonie was trading 0.4% higher at 1.3490 to the greenback , after earlier touching its weakest intraday level since Dec. 13 at 1.3544. Immediate resistance can be seen at 1.3542(Daily high), an upside break can trigger rise towards 1.35711 (23.6%fib).On the downside, immediate support is seen at 1.3488 (38.2%fib), a break below could take the pair towards 1.3415 (50%fib).
USD/JPY: The dollar dipped against the yen on Tuesday as investors cautiously reassessed Federal Reserve rate-cut bets. Global markets have been focused on the timing of the first Federal Reserve rate cut, after a strong slate of economic data along with resistance from central bankers led investors to scale back their rate-cut bets.Markets are currently pricing in an 80% chance of the Fed standing pat on rates in March, compared with a 33% chance at the start of the year, the CME FedWatch tool showed. Data on Friday showed U.S. job growth accelerated in January and wages increased by the most in nearly two years, signs of persistent strength in the labour market that encourage the Fed to start easing later rather than sooner. Strong resistance can be seen at 148.77(23.6%fib),an upside break can trigger rise towards 149.42(Higher BB).On the downside, immediate support is seen 147.14 (38.2%fib)a break below could take the pair towards 145.85(50%fib).
Equities Recap
European stocks advanced on Tuesday as bumper earnings from BP and higher crude prices propelled energy giants higher, while investors took comfort from fresh stimulus for China's battered financial markets.
UK's benchmark FTSE 100 closed up by 0.90 percent, Germany's Dax ended up by 0.76percent, France’s CAC finished the day up by 0.65 percent.
The S&P 500 closed slightly higher on Tuesday, as investors scrutinized a mixed bag of earnings at big U.S. companies and digested comments from Federal Reserve policy makers for clues about its first planned interest-rate cut.
Dow Jones closed up by 0.37% percent, S&P 500 closed up by 0.23% percent, Nasdaq settled up by 0.07% percent.
Commodities Recap
Gold firmed on Tuesday after a pullback in the U.S. dollar and Treasury yields, while traders positioned for remarks from several Federal Reserve officials this week to gauge the likely pace of interest rate cuts this year.
Spot gold rose 0.6% to $2,035.89 per ounce, as of 01:45 p.m. ET (1845 GMT), after hitting its lowest since Jan. 25 in the previous session.U.S. gold futures settled 0.4% higher at $2051.4.
Brent and U.S. crude futures initially climbed over $1 a barrel on Tuesday after the U.S. Energy Department said crude oil production would grow less than forecast but then gave up some of the gains on talk of a possible lengthy cease-fire in the Gaza War.
Brent crude futures settled at $78.59 a barrel, up 60 cents, or 0.77%, while U.S. West Texas Intermediate crude futures rose 53 cents, or 0.73%, to settle at $73.51.
