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America's Roundup: Dollar weak as trade, growth worries cloud outlook, Wall Street ends session with small gains, Gold steadies, Oil slips as EU seeks to trade with Iran, U.S. gasoline prices fall-January 24th,2019

Market Roundp

• Momentum gathers behind British lawmakers' bid to stop no-deal Brexit.

• Democrats push technology as alternative to Trump wall in shutdown impasse.

• China says it can achieve sustainable economic growth .

• Bank of Canada head: economy in good shape, low oil to take toll.

• Merkel calls for global cooperation to reach 'win-win outcomes'.

• US 18 Jan w/e MBA Mortgage Applications, -2.7%, 13.5% previous.

• US 18 Jan w/e Mortgage Market Index, 400.6, 411.8 previous.

• US 18 Jan w/e MBA Purchase Index, 272.5, 278.5 previous.

• US Nov Monthly Home Price Y/Y, 5.8%, 5.7% previous.

• CA Nov Retail Sales M/M, -0.9%, -0.6% forecast, 0.3% previous, 0.2% revised.

Looking Ahead - Economic Data (GMT)

• 23 Jan 22:00 Australia Jan Manufacturing PMI, 53.7 previous

• 23 Jan 22:00 Australia Jan Services PMI, 52.2 previous

• 23 Jan 22:00 Australia Jan Composite PMI, 52.4 previous

Looking Ahead - Events, Auctions, Other Releases (GMT)

• 02:30 BOJ Governor Haruhiko Kuroda speaks to reporters at the end of the central bank policy meeting in Tokyo

• 09:30 BoE Deputy Governor of Monetary Policy Ben Broadbent gives speech at London Business School 

• 14:15 BoE's Sam Woods, David Rule and Sandra Boss will participate in Treasury Select Committee hearing on the work of the Prudential Regulation Authority in London

• 14:30 Argentina Economy Minister Nicolas Dujovne to hold a press conference in Davos, Switzerland

Currency Summaries

EUR/USD: The euro strengthened against dollar on Wednesday, as fresh doubts over progress in U.S.-China trade talks and global growth concerns weighed on greenback. Investors also kept a close eye on China on hopes more economic stimulus measures would ease worries over slow progress in trade talks between Washington and Beijing. The U.S. dollar failed to maintain small gains from earlier in the session as uncertainties kept investors on the sidelines. The euro was up 0.19 percent at $1.1380.An index that tracks the dollar versus a basket of six major currencies was down 0.19 at 96.12. Immediate resistance can be seen at 1.1402 (9 DMA), an upside break can trigger rise towards 1.1454 (100DMA).On the downside, immediate support is seen at 1.1336 (Jan 21st low), a break below could take the pair towards 1.1300 (Psychological level).

GBP/USD: The pound strengthened against greenback on Wednesday, after Britain's opposition Labour Party said, it would back an attempt by lawmakers to prevent a disorderly no-deal Brexit. If lawmakers back an amendment by lawmaker Yvette Cooper in a vote scheduled next Tuesday that could force Theresa May to ask the EU to delay Britain's exit from the bloc on March 29.Sterling strengthened 0.86 percent against the dollar to $1.3066. It also rose for a third consecutive day versus the euro gaining 0.8 percent to 87.33 pence, it highest since Nov. 14. Immediate resistance can be seen at 1.3083 (200DMA), an upside break can trigger rise towards 1.3100(Psychological level).On the downside, immediate support is seen at 1.2960 (38.2% retracement level), a break below could take the pair towards 1.2914 (9 DMA).

USD/CAD: The Canadian dollar weakened   against the greenback on Wednesday, as Canadian dollar was weighed down by weaker-than-expected domestic retail sales. Canadian retail sales fell by 0.9 percent in November from October to C$50.39 billion ($37.85 billion), in large part due to lower gasoline prices, as well as lower sales at motor vehicle and parts dealers .At (2110 GMT), the Canadian dollar was last trading 0.6 percent lower at 1.3345 to the greenback. The currency's strongest level of the session was 1.3305, while it touched its weakest since Jan. 7 at 1.3359. Immediate resistance can be seen at 1.3386 (21 DMA), an upside break can trigger rise towards 1.3395 (38.2% retracement level).On the downside, immediate support is seen at 1.3308 (5 DMA), a break below could take the pair towards 1.3288 (9 DMA).

USD/JPY: The dollar weakened against the Japanese yen on Wednesday, as uncertainties over trade and the global economy added to investors unease. The greenback was up 0.22 percent against the yen after the Bank of Japan on Wednesday kept its stimulus program in place. The dollar index, which tracks the greenback versus the euro, yen, sterling and three other currencies, was down 0.19 percent at 96.12. The index has risen nearly 1 percent over the last two weeks. Strong resistance can be seen at 109.91 (38.2% retracement level), an upside break can trigger rise towards 110.47 (23.6% retracement level).On the downside, immediate support is seen at 109.16 (9 DMA), a break below could take the pair towards 108.69 (Jan 17th low).
 
Equities Recap

European shares were sluggish on Wednesday as a batch of poor corporate updates added to worries about a global growth slowdown and China-U.S. trade negotiations.

UK's benchmark FTSE 100 closed down by 0.82 percent, the pan-European FTSEurofirst 300 ended the day down by 0.06 percent, Germany's Dax ended down by 0.31 percent, France’s CAC finished the day down by 0.01 percent.

Wall Street ended slightly higher on Wednesday after a spate of upbeat earnings reports, but lingering concerns about trade tensions and the longest federal government shutdown in U.S. history limited the advance.

Dow Jones closed up by 0.07percent, S&P 500 ended up by 0.70percent, Nasdaq finished the day up by 0.23 percent.

Treasuries Recap

U.S. Treasury yields rose on Wednesday as Wall Street stock prices stabilized a day after posting heavy losses, reducing safe-haven demand for bonds even as investors remained worried about slowing economic growth and trade tensions.

The yield on benchmark 10-year Treasury notes   was 2.753 percent, up 2.1 basis points from late on Tuesday. It reached a three-week peak at 2.799 percent last Friday.

Commodities Recap

Gold prices steadied on Wednesday, clawing back from losses made earlier in the session, as a recovery in stock markets fizzled out on concerns over geopolitical and economic uncertainty, triggering investors to seek safety in the metal.

Spot gold was little changed to $1,282.79 an ounce by (2110GMT), having fallen to $1,278 an ounce earlier in the session.U.S. gold futures settled unchanged at $1,284.

Oil prices slipped on Wednesday as the European Union seeks to circumvent U.S. trade sanctions against Iran, and on weaker U.S. gasoline prices.

Brent futures fell 36 cents, or 0.6 percent, to settle at $61.14 a barrel, while the most active U.S. West Texas Intermediate (WTI) crude contract for March fell 39 cents, or 0.7 percent, to settle at $52.62.
 

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