Market Roundup
•Russia Dec Trade Balance 10.56B, 7.08B previous
•Russia Central Bank reserves (USD) 586.1B,589.5B previous
• US Jobless Claims 4-Week Avg 793K,848.25K previous
• US Continuing Jobless Claims 4,545K, 4,490K forecast, 4,592K previous
• US Initial Jobless Claims 823.00K, 757K forecast, 779K previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Foreign Bonds Buying 729.6B previous
•23:30 Japan Foreign Investments in Japanese Stocks -187.5B previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Thursday as dollar was weighed down by slightly weaker-than-expected U.S. jobless claims data that followed tepid inflation numbers and a dovish message from the Federal Reserve the previous session. Thursday’s data showed initial claims for state unemployment benefits totalled a seasonally adjusted 793,000 for the week ended Feb. 6, compared to 812,000 a week before. Economists polled by Reuters had forecast 757,000 applications for the period. The dollar index was down 0.1% at 90.354 . So far the dollar is on track for its largest weekly loss since around mid-December.. Immediate resistance can be seen at 1.2164(61.8%), an upside break can trigger rise towards 1.2196 (Ichimoku cloud base).On the downside, immediate support is seen at 1.2109 (50%fib), a break below could take the pair towards 1.2083 (55EMA).
GBP/USD: Sterling traded in recent ranges on Thursday, above the $1.38 mark hit earlier this week in relatively quiet currency markets owing to a Chinese holiday and a sparse data calendar. Optimism over the speed of Britain’s COVID-19 vaccination programme compared to other countries in Europe and expectations of a weaker dollar this year have boosted the pound to nearly 3-year highs against the dollar. A rally above $1.38 this week has made sterling the best-performing G10 currency of 2021, up 1.1% against the dollar and nearly 2% against the euro. Immediate resistance can be seen at 1.3850 (23.6%fib), an upside break can trigger rise towards 1.3900(Psychological level).On the downside, immediate support is seen at 1.3749 (5 DMA), a break below could take the pair towards 1.3695 (38.2%fib).
USD/CAD : The Canadian dollar steadied against its U.S. counterpart on Thursday, pulling back from its strongest level in nearly three weeks as a winning streak for oil ended and the greenback broadly steadied. The price of oil, one of Canada's major exports, fell for the first time this month after both OPEC and the International Energy Agency said renewed lockdowns and the emergence of new coronavirus variants reduced the prospect of a swift demand recovery.U.S. crude prices settled 0.8% lower at $58.24 a barrelThe loonie was trading nearly unchanged at 1.2698 to the greenback , after having touched its strongest intraday level since Jan. 22 at 1.2660. The U.S .Immediate resistance can be seen at 1.2742 (21 DMA), an upside break can trigger rise towards 1.2782 (38.2%fib).On the downside, immediate support is seen at 1.2635 (23.6%fib), a break below could take the pair towards 1.2594 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as investors digested benign reading on U.S. inflation and a dovish Federal Reserve outlook. Currency market moves were small because of the Lunar New Year holidays in Japan and China, but the dollar fell close to two-week lows against a basket of currencies. Elsewhere, U.S. President Joe Biden and his Chinese counterpart Xi Jinping spoke for the first time since the U.S. election. Biden said a free and open Indo-Pacific was a priority and raised concerns about China’s actions in Hong Kong, Xinjiang and Taiwan. Strong resistance can be seen at 104.88 (38.2%fib), an upside break can trigger rise towards 105.45(23.6%fib ).On the downside, immediate support is seen at 104.43 (50%fib), a break below could take the pair towards 103.08 (61.8%fib).
Equities Recap
European shares rose on Thursday, as investors kept close watch on a barrage of earnings reports from companies and on progress in stimulus measures in the United States for clues on the pace of business recovery.
UK's benchmark FTSE 100 closed up by 0.25 percent, Germany's Dax ended up by 0.14percent, France’s CAC finished the day up by 0.17 percent.
The Nasdaq and S&P 500 eked out modest gains on Thursday with investors betting on more fiscal stimulus, but U.S. President Joe Biden said China was poised to “eat our lunch,” a warning that tempered enthusiasm for a market near record highs.
Dow Jones closed up by 0.35% percent, S&P 500 closed up by 0.34% percent, Nasdaq settled up by 0.49 % percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday after the Treasury Department saw soft demand for a sale of new 30-year bonds, but they held below highs reached earlier this week after inflation data on Wednesday disappointed.
Benchmark 10-year yields rose to 1.160%. Earlier, they traded at 1.132%, and are holding below a 11-month high of 1.200% reached on Monday.
Commodities Recap
Oil prices slid, ending a streak of strong gains after both OPEC and the International Energy Agency said renewed lockdowns and the emergence of new coronavirus variants reduced the prospect of a swift demand recovery.
Brent futures fell 33 cents to settle at $61.14 a barrel, while U.S. crude fell 44 cents to $58.24.
Gold fell 1% on Thursday, as the dollar halted its slide, while platinum also eased in choppy trading after rallying to an over six-year high with analysts expecting further upside driven by higher demand from the automobile sector.
Spot gold fell 0.9% to $1,826.00 per ounce by 1:47 p.m. EST (1847 GMT). U.S. gold futures settled down 0.9% at $1,826.80.
