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America’s Roundup:Dollar steady as investors assess health threat, Wall ends higher, Gold dips, Oil slides 2%-January 23rd,2020

Market Roundup

• Sterling rises sharply against the dollar

• Oil tumbles as Libya supply jitters dissipate

• US Dec Chicago Fed National Activity -0.35, 0.41 previous    

• Canada Common CPI (YoY) 2.0%, 1.9% previous

• Canada Dec Core CPI (MoM)  -0.4%,-0.2% previous

• Canada Dec Core CPI (YoY)  1.7%,1.9% forecast, 1.9% previous

• Canada Dec CPI (YoY) 2.2%,2.2% forecast, 2.2% previous

• Canada Dec CPI (MoM) 0.0%, 0.1% forecast, -0.1% previous

• Canada Dec New Housing Price Index (MoM) 0.2%,0.0% forecast, -0.1%  previous    
• Canada Nov Wholesale Sales (MoM)
 -1.2%,-0.3% forecast, -1.2% previous

• US Dec Existing Home Sales (MoM)  3.6%,1.3% forecast, -1.7% previous

• US Dec Existing Home Sales 5.54M, 5.43M forecast, 5.35M previous

• Canada BoC Interest Rate Decision 1.75%, 1.75% forecast 1.75% previous

Looking Ahead - Events, Other Releases (GMT)

• 21:45 New Zealand Nov External Migration & Visitors -3.20%,0.10% previous

• 21:45 New Zealand Nov Permanent/Long-Term Migration 4,120 previous

• 21:45 Japan Dec Exports (YoY) -4.2%, -7.9% previous

• 23:50 Japan Foreign Bonds Buying 2,322.4B previous

• 23:50 Japan Foreign Investments in Japanese Stocks -16.4B previous

• 23:50 Japan Dec Trade Balance -150.0B forecast, -85.2B previous

• 00:00 Australia MI Inflation Expectations 3.8%,4.0%previous    

• 00:30 Australia Dec Employment Change 15.0K, 39.9K previous    

• 00:30 Australia Dec Full Employment Change 4.2K previous

• 00:30 Australia Unemployment Rate 5.2%    , 5.2% previous  
Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Wednesday, as investors awaited more clues  from ECB on monetary policy. The ECB’s first meeting of the year is most likely to launch a rethink of an inflation goal the bank has failed to meet since 2013.The scope and scale of the review will be a key focus for markets given the far-reaching implications for monetary policy.A slightly brighter tone to data means the ECB’s assessment of the economic outlook will also be watched closely by investors on Thursday. Immediate resistance can be seen at 1.1095 (50 DMA), an upside break can trigger rise towards 1.1120 (Jan 21st high).On the downside, immediate support is seen at 1.1066 (100 DMA), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Britain’s pound rose against the dollar on Wednesday as investors debated whether or not the Bank of England would cut interest rates when it meets next week.Financial markets saw less chance on Wednesday that the BoE would trim the current 0.75% rate at its meeting on Jan. 30, after the Confederation of British Industry reported a pick-up in manufacturers’ sentiment. Money-market pricing suggests investors see around a 50% chance of a quarter-point rate cut, down from 70% on Monday. Immediate resistance can be seen at 1.3154(Daily High), an upside break can trigger rise towards 1.3205(Higher BB).On the downside, immediate support is seen at 1.3030 (50 DMA), a break below could take the pair towards 1.2953 (20th Jan low).

USD/CAD: The Canadian dollar weakened to a near four-week low against the greenback on Wednesday after dovish comments by the Bank of Canada in a policy announcement prompted investors to raise bets on interest rate cuts in the coming months. The central bank maintained its key overnight interest rate at 1.75% as expected but opened the door to a possible cut should a recent slowdown in Canadian economic growth drag on. At (22:00 GMT), the Canadian dollar was trading 0.49% lower at 1.3135 to the greenback. Immediate resistance can be seen at 1.3156 (50 DMA), an upside break can trigger rise towards 1.3180 (100 DMA).On the downside, immediate support is seen at 1.3068 (5 DMA), a break below could take the pair towards 1.3035 (Daily low).

USD/JPY: The dollar dipped against the Japanese yen on Wednesday, as worries about whether the spread of a flu-like coronavirus would hurt the global economy increased demand for safe-haven yen. Deaths from China’s new flu-like virus rose to 17, with more than 540 cases confirmed, leading the city at the centre of the outbreak to close transport networks and urge citizens to stay home to limit the spread of the contagion. Investors’ demand for safe haven yen   tend to increase during times of geopolitical or financial stress. Strong resistance can be seen at 110.08 (DMA 5), an upside break can trigger rise towards 110.41 (Higher BB).On the downside, immediate support is seen at 109.75 (22nd Jan low), a break below could take the pair towards 109.31 (50 DMA).
Equities Recap

European shares reversed course and edged lower on Wednesday as U.S. President Donald Trump threatened to impose high tariffs on imports of cars from the European Union, pushing automobile stocks to a three-month low.

UK's benchmark FTSE 100 closed down by 0.51 percent, Germany's Dax ended down by 0.30 percent, France’s CAC finished the day down by 0.58 percent.

The S&P 500 and the Nasdaq hit fresh all-time highs at the open on Wednesday, as investors took heart from China’s efforts to contain a virus outbreak and a strong forecast from IBM.

Dow Jones closed up by 0.03 percent, S&P 500 ended up by 0.03 percent, Nasdaq finished up by 0.14 percent.

Treasuries Recap

U.S. Treasury yields were narrowly mixed on Wednesday, with market participants cautious overall, as bond investors digested the economic implications of a fatal new coronavirus from China.

U.S. two-year, 10-year and 30-year yields hit fresh two-week lows after the BoC headlines.

Commodities Recap

Oil prices fell more than 2% on Wednesday as a market surplus forecast by the International Energy Agency (IEA) and demand worries amid the outbreak of a virus in China outweighed concern over disruptions to Libya’s crude output.

Brent crude ended the session down $1.38, or 2.1%, at $63.21 while West Texas Intermediate  fell $1.64, or 2.8%, to settle at $56.74.

Gold eased slightly on Wednesday as risk sentiment recovered and the dollar held firm, but expectations of dovish monetary policy from global central banks capped bullion’s losses and kept prices above the $1,550 an ounce level.

Spot gold was down 0.2% at $1,555.16 an ounce by 10:46 a.m. EST (1546 GMT). U.S. gold futures fell 0.2% to $1,555.20.

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