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America's Roundup: Dollar up on bleak EU outlook, Wall Street hits four-week highs, Oil gains with Wall Street, but rising U.S. fuel stocks weigh-January 17th,2019

Market Roundup

• UK PM May wins confidence vote; now to search for brexit consensus.

• Businesses cry out for Brexit clarity, warn of no-deal chaos.

• As shutdown lingers, Pelosi asks Trump to delay State of Union address.

• ECB must avoid "financial distress" in banks' clean up - top EU lawmaker.

• US Dec Import Prices MM, -1.0%, -1.3% forecast, -1.6% previous, -1.9% revised.

• US Dec Export Prices MM, -0.6%, -0.6% forecast, -0.9% previous, -0.8% revised.

• U.S. labor market tightens, wages grow moderately -Fed Beige Book.

• US Jan NAHB Housing Market Index, 58, 56 forecast, 56 previous .

• US w/e 11 Jan Mortgage Market Index, 411.8, 362.7 previous.

• US w/e 11 Jan MBA Purchase Index, 278.5, 255.2 previous.

• US w/e 11 Jan MBA 30-Yr Mortgage Rate, 4.74%, 4.74% previous.

• US w/e 11 Jan MBA Mortgage Applications, 13.5%, 23.5% previous.

Looking Ahead - Economic Data (GMT)

• 00:30 Australia Nov Housing Finance, -1.5% forecast, 2.2% previous

Looking Ahead - Events, Other Releases (GMT)

• 16 Jan 23:30 Minneapolis Fed's Neel Kashkari speaks in New york

• 17 Jan 00:00 BOJ's Haruhiko Kuroda, Masayoshi Amamiya, and Finance Minister Taro Aso, will speak as Japan chairs the Group of 20 in Tokyo 

• 17 Jan 15:00 BoE's Mark Carney, Deputy Governor Sam Woods and other officials from the bank speak in London

• 17 Jan 15:45 Fed's Vice Chair for Supervision Randal Quarles participates in a discussion in New York

Currency Summaries

EUR/USD: The euro slipped lower against the U.S. dollar on Wednesday, as worries about the outlook of the euro zone economy weighed on the single currency.The euro had already been hit earlier this week, as data showed Germany barely escaped a recession in the second half of 2018 and European Central Bank chief Mario Draghi warned the euro zone economy was weaker than expected. The euro was down 0.13 percent against the dollar, last at $1.1394, after being compressed earlier in the session to a 12-day trough of $1.138. Immediate resistance can be seen at 1.1419 (50% retracement level), an upside break can trigger rise towards 1.1468 (61.8% retracement level).On the downside, immediate support is seen at 1.1379 (50 DMA), a break below could take the pair towards 1.1310 (23.6% retracement level).

GBP/USD: Sterling strengthened against the dollar on Wednesday, after British Prime Minister Theresa May's government won a confidence vote in parliament. Prime Minister Theresa May won a confidence vote in the British parliament on Wednesday before proposing immediate talks with other party leaders in an attempt to break the deadlock on a Brexit divorce agreement. Lawmakers voted 325 to 306 that they had confidence in May's government, just 24 hours after handing her Brexit deal a crushing defeat that left Britain's exit from the European Union in disarray. Sterling was last trading at $1.2873, up 0.12 percent on the day. Immediate resistance can be seen at 1.2922 (Higher Bollinger Band), an upside break can trigger rise towards 1.2943 (38.2% retracement level).On the downside, immediate support is seen at 1.2854 (5 DMA), a break below could take the pair towards 1.2764 (11 DMA).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, extending this week's sideways pattern as stocks took British political upheaval in stride and oil prices reduced some of the previous day's gains. The Canadian dollar was trading nearly unchanged at 1.3243 to the greenback . The currency, which on Monday touched its weakest level in nearly one week at 1.3297, traded in a range of 1.3240 to 1.3293.Immediate resistance can be seen at 1.3313 (50% retracement level), an upside break can trigger rise towards 1.3395 (61.8% retracement level).On the downside, immediate support is seen at 1.3233 (38.2% retracement level), a break below could take the pair towards 1.3179 (January 9th low).

USD/JPY: The U.S. dollar strengthened against the yen on Wednesday, as the greenback gained on uncertainty over the European economy and Brexit, while apprehensions about a global economic slowdown limited sharp gains. The greenback   had climbed to a more than one week high overnight on the back of economic weakness in Europe and uncertainty over Brexit, after British lawmakers voted against Prime Minister Theresa May's proposed deal with the EU. The dollar was 0.31 higher versus the Japanese yen at 109.03. Strong resistance can be seen at 109.51 (23.6% retracement level), an upside break can trigger rise towards 109.80 (21 DMA).On the downside, immediate support is seen at 108.46 (50% retracement level), a break below could take the pair towards 108.00 (Psychological level). 

Equities Recap

European shares closed the day in positive territory on Wednesday as British Prime Minister Theresa May's resounding defeat in a parliamentary vote on her Brexit deal gave a boost to continental banks.

The UK's benchmark FTSE 100 closed down by 0.5 percent, FTSEurofirst 300 ended the day up by 0.30 percent, Germany's Dax ended up by 0.3 percent, and France’s CAC finished the up by 0.4 percent.

Wall Street's major indexes hit one-month highs on Wednesday as upbeat earnings from Bank of America Corp and Goldman Sachs Group Inc boosted investor sentiment.

Dow Jones closed up by 0.57 percent, S&P 500 ended up 0.21 percent, Nasdaq finished the day up by 0.13 percent.

Treasuries Recap

U.S. Treasury yields rose on Wednesday as stronger-than-forecast results from two major banks lifted Wall Street to one-month highs, reducing safe-haven demand for U.S. government debt.

Two-year yields, which are more sensitive to changes to traders' view on Fed policies, were 1.6 basis points higher at 2.545 percent. Nearly two weeks ago, they touched 2.372 percent, which was the lowest level since May 30.

The S&P 500 index and other major U.S. stock indexes rose on Wednesday as Goldman Sachs and Bank of America Corp. reported some better-than-expected results.

Commodities Recap

Gold was steady on Wednesday as support for the metal stemming from uncertainty over Brexit and a partial U.S. government shutdown was countered by a firmer U.S. dollar.

Spot gold rose 0.4 percent to $1,294.31 per ounce at 11:14 am EST (1614 GMT). U.S. gold futures rose 0.5 percent to $1,294.30 per ounce.

Oil prices edged higher on Wednesday, buoyed by a U.S. equity market rally and a supply cut agreement by OPEC+, but gains were limited by data showing growing U.S. refined product inventories and record crude production.

Brent crude futures rose 68 cents to settle at $61.32 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 20 cents to settle at $52.31 a barrel.

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February 15 21:00 UTC Released

UST Flows,Incl.Swaps

Actual

-66.6 Bln USD

Forecast

Previous

25.3 Bln USD

February 15 21:00 UTC Released

USOverall Net Capital Flows

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-33.1 Bln USD

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31 Bln USD

January 31 00:00 UTC 548746548746m

ARAnnual Primary Balance*

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2016 bln ARS

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January 31 00:00 UTC 548746548746m

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2016 bln ARS

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Bln AR bln ARS

January 22 19:00 UTC 560566560566m

ARTrade Balance

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Previous

-1541 %

January 31 00:00 UTC 548746548746m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

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Bln AR bln ARS

January 22 19:00 UTC 560566560566m

ARTrade Balance

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Previous

-1541 %

January 31 00:00 UTC 548746548746m

ARAnnual Primary Balance*

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Forecast

2016 bln ARS

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Bln AR bln ARS

January 31 00:00 UTC 548746548746m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 548746548746m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

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