Europe Roundup: Euro dips as investors cheer U.S. data, European shares dip, Gold range bound, Oil rises as Libyan oilfields shut down-January 20th,2020

Market Roundup
 
• Oil, dollar gain on growth optimism

• German Dec PPI (YoY)  -0.2%,-0.2% forecast, -0.7% previous

• German Dec PPI (MoM)  0.1%, 0.2% forecast, 0.0%  previous

• Greek Nov Current Account (YoY)  -1.392B , -0.673B previous    

Looking Ahead - Economic Data (GMT) 
   
• 18:00 Brazil CAGED Net Payroll Jobs 99.23K previous

• 18:00 Brazil Federal Tax Revenue 125.16B previous

Looking Ahead - Events, Other Releases (GMT)

• 18:30 ECB President Lagarde Speaks
     
Fx Beat

EUR/USD: The euro declined against the U.S. dollar on Monday, as dollar was boosted by last week's run of data. Figures on Friday showed U.S. homebuilding surged to a 13-year high in December. Retail sales also rose and a gauge of manufacturing activity rebounded to its highest in eight months. Trading volumes were thin as Lunar New Year approaches in Asia and with U.S markets closed for Martin Luther King day on Monday. The euro was down 0.03 percent at $1.1086. An index that tracks the dollar versus a basket of six major currencies was up 0.05 at 97.68 on Monday. Immediate resistance can be seen at 1.1117 (5 DMA), an upside break can trigger rise towards 1.1128 (11 DMA).On the downside, immediate support is seen at 1.1065 (Dec 24th low), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: Sterling declined against dollar on Monday, after   comments by UK finance minister Sajid Javid stoked fears about weak ties between the UK and the European Union. In an interview with the Financial Times on Saturday, Javid said Britain would not commit to sticking to EU rules in post-Brexit trade talks. The pound was down 0.3% against the U.S. dollar to $1.2977 in early London trade. It was down by a similar amount against the euro at 85.48 pence. Immediate resistance can be seen at 1.3024(5 DMA), an upside break can trigger rise towards 1.3060 (11 DMA).On the downside, immediate support is seen at 1.2951 (Jan 14th Low), a break below could take the pair towards 1.2910 (Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Monday, as the U.S.-China trade deal, strong corporate earnings and encouraging U.S. economic data lifted dollar across the board. U.S. retail sales increased for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week, indicating the labor market remained strong. At (GMT 12:35), Greenback gained 0.17% versus the Swiss franc to 0.9690. Immediate resistance can be seen at 0.9695 (11 DMA), an upside break can trigger rise towards 0.9762 (Jan 9th high).On the downside, immediate support is seen at 0.9665 (5 DMA), a break below could take the pair towards 0.9613 (Lower BB).

USD/JPY: The dollar strengthened against the Japanese yen on Monday, as stronger dollar and easing of trade tensions between the United States and China weighed on Japanese yen. Trading was light with U.S. markets closed for the Martin Luther King Jr. holiday. Still, the week was expected to bring plenty of direction given central bank meetings, earnings, closely-watched business activity data and the annual meeting of the World Economic Forum in Davos. Strong resistance can be seen at 110.30 (Jan 17th High), an upside break can trigger rise towards 111.00 (Psychological level).On the downside, immediate support is seen at 110.05 (5 DMA), a break below could take the pair towards 109.53 (11 DMA). 

Equities Recap

European shares dipped slightly on Monday after striking a record closing high in the previous session, as investors paused before launching into a week packed with economic data and the European Central Bank’s first policy meeting of the year. 
   
At (GMT 12:51),UK's benchmark FTSE 100 was last trading lower at 0.21percent, Germany's Dax was up by 0.09 percent, France’s CAC was last down by 0.22 percent.

Commodities Recap

Gold traded in a tight range on Monday as strong U.S. economic data fuelled investors’ appetite for riskier assets and dented the metal’s safe-haven appeal.    

Spot gold ticked up 0.1% to $1,558.47 per ounce by 0134 GMT, after a near 0.4% drop last week. U.S. gold futures were down 0.1% to $1,558.10.

Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle.

Brent crude  was up 41 cents, or 0.6%, at $65.26 by 1116 GMT, having earlier touched $66 a barrel, the highest since Jan. 9.

The West Texas Intermediate   contract was up 27 cents, or 0.5%, at $58.81 a barrel, after rising to $59.73, the highest since Jan. 10.

Treasuries Recap

European government bond yields traded neutral Monday ahead of key economic events this week such as the World Economic Forum in Davos and European Central Bank meeting.

Euro zone bond yields were slightly higher on the day, with Germany’s 10-year yield up 1 bps at -0.249% , below the two-week high of -0.16% achieved at the beginning of the month.