Market Roundup
•ECB monetary policy decision due at 1245 GMT
• Spanish Trade Balance-0.59B, -0.65B previous
• Italian Nov Industrial Sales (YoY) -4.60%, -1.70% previous
•Italian Nov Industrial Sales (MoM) -2.00%, 2.20% previous
•Italian Nov Industrial New Orders (MoM) -1.3%,3.0% previous
•Belgium Jan Consumer Confidence -10 , -8 previous
•EU Jan Deposit Facility Rate -0.50% forecast,-0.50% previous
Looking Ahead - Economic Data (GMT)
•13:00 Russia Central Bank reserves (USD) 597.4B previous
• 13:30 Canada Dec New Housing Price Index (MoM) 0.6% previous
•13:30 Canada ADP Nonfarm Employment Change 40.8K previous
•13:30 US Continuing Jobless Claims 5400K forecast, 5,271K previous
•13:30 US Initial Jobless Claims 910K forecast, 965K previous
•13:30 US Jobless Claims 4-Week Av g 834.25K previous
•13:30 US Dec Building Permits 1.604M forecast, 1.635M previous
•13:30 US Dec Building Permits (MoM) 5.9% previous
•13:30 US Dec Housing Starts 1.560M forecast, 1.547M previous
•13:30 US Jan Philadelphia Fed Manufacturing Index 12.0 forecast, 9.1 previous
•13:30 US Jan Philly Fed Business Conditions 43.1 previous
•13:30 US Jan Philly Fed Employment 5.6 previous
•13:30 US Jan Philly Fed CAPEX Index 23.80 previous
•13:30 US Jan Philly Fed Prices Paid 24.90 previous
•13:30 US Dec Housing Starts (MoM ) 1.2% previous
•16:30 US 4-Week Bill Auction 0.075% previous
•16:30 US 8-Week Bill Auction 0.080% previous
Looking Ahead - Economic events and other releases (GMT)
•13:30 ECB Press Conference
Fxbeat
EUR/USD: The euro ticked higher before a meeting of the European Central Bank on Thursday, with the dollar declining versus major peers as plans for a massive U.S. stimulus package fuelled market optimism and sapped demand for safe-haven currencies. The euro gained 0.2%, reversing a similar decline from the previous session, to trade at $1.2134 about four hours before the ECB’s policy announcement at 1245 GMT.The dollar index slipped 0.2% to 90.240, declining for a third day after touching a nearly one-month high of 90.956 on Monday. Immediate resistance can be seen at 1.2143 (38.2%fib), an upside break can trigger rise towards 1.2191 (21DMA).On the downside, immediate support is seen at 1.2097 (5DMA), a break below could take the pair towards 1.2056 (50% fib).
GBP/USD: Sterling strengthened against dollar on Thursday as hopes that Britain's brisk pace of COVID-19 vaccinations would lead to a relatively quicker rebound in economic growth boosted pound. With a Brexit deal in the bag, Britain's lead in vaccinations, along with lowered expectations of negative interest rates from the Bank of England, has boosted the pound against the dollar. By 12:40 GMT, sterling was up 0.6% against the dollar, having hit a fresh 2-1/2 year high of $1.3745. Immediate resistance can be seen at 1.3741(Higher BB), an upside break can trigger rise towards 1.3813 (23.6%fib).On the downside, immediate support is seen at 1.2626 (5DMA), a break below could take the pair towards 1.3522(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday as optimism that new U.S. administration’s massive stimulus package will bolster growth sapped demand for greenback. Biden was sworn in as the 46th president of the United States on Wednesday, vowing to end the “uncivil war” in a deeply divided country reeling from a battered economy and a raging coronavirus pandemic that has killed more than 400,000 Americans. Immediate resistance can be seen at 0.8884(38.2%fib), an upside break can trigger rise towards 0.8914 (23.6% fib).On the downside, immediate support is seen at 0.8862 (50% fib), a break below could take the pair towards 0.8836 (61.8%fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as investors hoped for more economic stimulus from newly inaugurated U.S. President Joe Biden to offset damage wreaked by the COVID-19 pandemic. Republicans in the U.S. Congress have indicated they are willing to work with the new president on his administration’s top priority, a $1.9 trillion U.S. fiscal stimulus plan, but some are opposed to the plan’s price tag. Democrats took control of the U.S. Senate on Wednesday, but will still need Republican support to pass the program. Strong resistance can be seen at 103.61 (50%fib), an upside break can trigger rise towards 103.89 (38.2% fib).On the downside, immediate support is seen at 103.33 (61.8%fib), a break below could take the pair towards 103.00(Psychological level).
Equities Recap
European stocks rose on Thursday on hopes of a large U.S. stimulus plan under new President Joe Biden, while investors looked to the European Central Bank for clues on the eurozone’s economic health.
At (GMT 12:50 ),UK's benchmark FTSE 100 was last trading up at 0.08 percent, Germany's Dax was up by 0.28 percent, France’s CAC finished was down by 0.36 percent.
Commodities Recap
Gold rose on Thursday to its highest in nearly two weeks as the U.S. dollar eased on hopes of further stimulus under President Joe Biden's administration, although some profit booking checked the metal's gains.
Spot gold was up 0.1% at $1,873.36 per ounce by 0653 GMT, after hitting its highest since Jan. 8 at $1,874.50 earlier in the session. Bullion had gained 1.7% on Wednesday.
Oil slipped on Thursday after industry data showed a surprise increase in U.S. crude inventories that revived pandemic-related demand concerns, but United States stimulus hopes limited the price downturn.
Brent crude futures fell 47 cents, or 0.8%, to $55.61 a barrel by 1030 GMT.U.S. West Texas Intermediate (WTI) crude futures fell 43 cents, or 0.8%, to $52.88 a barrel.
