Market Roundup
• EU Dec Industrial Production (YoY) -0.8%,-0.3% forecast, -0.6% previous
• EU Dec Industrial Production (MoM) -1.6%,-1.0% forecast, 2.5% previous
• EU Dec Trade Balance 29.2B, 25.3B forecast, 25.8B previous
•Greek Jan CPI (YoY) -2.0%,-2.3% forecast, -2.3% previous
Looking Ahead - Economic Data (GMT)
•13:30 Canada Dec Manufacturing Sales (MoM) 0.6%forecast, -0.6% previous
•14:00 French 12-Month BTF Auction -0.642% previous
•14:00 French 3-Month BTF Auction -0.643% previous
•14:00 French 6-Month BTF Auction-0.635% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fx Beat
EUR/USD: The euro edged higher against dollar on Monday as brighter world growth prospects and optimism over the coronavirus vaccine rollout supported euro. Trading volumes were thin on Monday with markets in China, Hong Kong and the United States shut for local holidays. Market participants awaited minutes of the U.S. Federal Reserve’s Federal Open Market Committee meeting at the end of January, due on Wednesday . The euro edged 0.2% higher to $1.21410, extending last week’s 0.6% advance. Immediate resistance can be seen at 1.2137(50%), an upside break can trigger rise towards 1.2209 (61.8%fib).On the downside, immediate support is seen at 1.2065 (38.2%fib), a break below could take the pair towards 1.2000 (Psychological level).
GBP/USD: The British pound climbed above $1.39 on Monday as hopes for the end of a third national lockdown boosted sterling. COVID-19 vaccination programme in the United Kingdom raised hopes that its economy will be able to recover more swiftly than its European peers.British Prime Minister Boris Johnson will judge this week how fast England can exit its COVID-19 lockdown after vaccinating 15 million of its most vulnerable people. Sterling was up 0.3% at $1.3905 at 12:20 GMT, not far from its highest level since late April 2018 of $1.3915 touched in early London trading. Immediate resistance can be seen at 1.3909(23.6%fib), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3843 (Daily low), a break below could take the pair towards 1.3895 (38.2%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Monday as optimism about the rollout of COVID-19 vaccines and new fiscal aid from Washington improved market sentiment. As more people are vaccinated across key markets such as the United States, and with U.S. President Joe Biden looking to pump an extra $1.9 trillion in stimulus into the economy, the so-called reflation trade has gathered steam in recent days. At (GMT 12:29), greenback dipped 0.06% versus the Swiss franc to 0.8897. Immediate resistance can be seen at 0.8934 (38.2%fib), an upside break can trigger rise towards 0.8972 (23.6%fib).On the downside, immediate support is seen at 0.8898 (50%fib), a break below could take the pair towards 0.8867(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package strengthened dollar. Many financial markets in Asia remained closed on Monday for Lunar New Year, while U.S. stock markets will be shut for Presidents Day. Later in the week, all eyes will be on the release of minutes from the U.S. Federal Reserve's January meeting, where policymakers decided to leave rates unchanged, for hints to the likely direction of monetary policy. Strong resistance can be seen at 105.42 (23.6%fib), an upside break can trigger rise towards 106.00(Psychological level ).On the downside, immediate support is seen at 104.87 (38.2%fib), a break below could take the pair towards 104.40 (50%fib).
Equities Recap
European shares scaled one-year highs on Monday and mining stocks tracked a jump in copper prices as bets of more U.S. stimulus fuelled optimism around a faster global economic recovery this year.
At (GMT 12:38),UK's benchmark FTSE 100 was last trading higher at 1.89 percent, Germany's Dax was up by 0.35 percent, France’s CAC was last up by 1.39 percent.
Commodities Recap
Spot gold eased 0.4% to $1,816.40 per ounce, pressured by a jump in U.S. Treasury yields, which topped a near 11-month peak on Friday. Higher yields increase non-yielding bullion’s opportunity cost.U.S. gold futures fell 0.3% to $1,818.10.
Oil prices soared on Monday to their highest in about 13 months as vaccine rollouts promised to revive demand and producers kept supply reined in.
Brent crude was up 92 cents, or 1.5%, at $63.35 a barrel at 1215 GMT, after climbing to a session high of $63.76, the highest since Jan. 22, 2020.
U.S. West Texas Intermediate (WTI) crude futures gained $1.20, or 2%, to $60.67 a barrel. It touched $60.95 - its highest since Jan. 8 last year, earlier in the session.
