Posted at 17 January 2024 / Categories Market Roundups
Market Roundup
•Canada Dec Housing Starts 249.3K, 243.0K forecast,212.6K previous
•Canada Dec Trimmed CPI (YoY) -0.5%,3.5% forecast ,3.5% previous
•Canada Dec CPI (MoM) -0.3%,-0.3% forecast , 0.1% previous
•US Jan NY Empire State Manufacturing Index -43.70,-5.00 forecast ,-14.50 previous
•Canada Dec Median CPI (YoY) 3.6%,3.4% forecast ,3.4% previous
•Canada Dec CPI (YoY) 3.4%,3.4% forecast , 3.1% previous
•Canada Dec Core CPI (YoY) 2.6%,2.8% previous
•Canada Dec Core CPI (MoM) -0.5%,0.1% previous
Looking Ahead Economic Data(GMT)
•02:00 China Dec Industrial Production YTD (YoY) 4.3% previous
•02:00 China Dec Retail Sales (YoY) 8.0% forecast, 10.1% previous
•02:00 China Dec Industrial Production (YoY) 6.6% forecast,6.6% previous
•02:00 China Dec Chinese Retail Sales YTD (YoY) 7.20% previous
•02:00 China Dec Unemployment Rate 5.0% forecast,5.0% previous
•02:00 China Chinese GDP YTD (YoY) (Q4) 5.2% previous
•02:00 China GDP (YoY) (Q4) 5.3% forecast, 4.9% previous
•02:00 China GDP (QoQ) (Q4) 1.0% forecast,1.3% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Tuesday as comments from European Central Bank policymaker Joachim Nagel on Monday attempted to curb expectations of early rate cuts.Several policymakers from the ECB on Tuesday maintained a cloud of uncertainty over the timing of the moves, although interest rates are still likely to come down this year. An ECB survey on Tuesday showed consumer expectations of euro zone inflation three years ahead fell in a November poll to 2.2% from 2.5%. The euro was down 0.72% at $1.0869 and poised for its steepest one-day percentage drop in two weeks. Immediate resistance can be seen at 1.0934(50%fib), an upside break can trigger rise towards 1.0955(61.8%fib).On the downside, immediate support is seen at 1.0868(38.2%fib), a break below could take the pair towards 1.0853(Lower BB).
GBP/USD: The British pound declined against the dollar on Tuesday after data indicated a deceleration in the growth of British wages during the three months ending in November, reinforces the notion that the Bank of England may implement substantial interest rate cuts later this year. In the period from September to November, the yearly growth in earnings, excluding bonuses, registered at 6.6%, indicating a moderation from the 7.2% increase observed in the preceding three months through October. When bonuses are factored in, pay growth decelerated to 6.5%, down from 7.2% in the three months ending in October, falling short of economists' projections for a 6.8% figure. Sterling was last down 0.37% at $1.2679, having traded around 0.3% lower at $1.2683. Immediate resistance can be seen at 1.2745(38.2%fib), an upside break can trigger rise towards 1.2816(Higher BB).On the downside, immediate support is seen at 1.2623 (38.2%fib), a break below could take the pair towards 1.2600(Lower BB).
USD/CAD : The Canadian dollar weakened against its U.S. counterpart on Tuesday, but the decline was less than for all the other G10 currencies as domestic inflation data reduced expectations for an early interest rate cut by the Bank of Canada. Canada's annual inflation rate rose to 3.4% in December from 3.1% in November and core measures were hotter than expected, a sign of sticky inflation ahead of an interest rate decision on Jan. 24.The BoC is widely expected to leave its benchmark rate on hold at a 22-year high of 5% next week. Money markets see a roughly one-in-three chance that the central bank will begin cutting rates in March, down from nearly 50% before the data. The loonie was trading 0.5% lower at 1.3495 to the U.S. dollar, or 74.10 U.S., after touching its weakest intraday level since Dec. 14 at 1.3501. Immediate resistance can be seen at 1.3515 (38.2%fib), an upside break can trigger rise towards 1.3556 (Higher BB).On the downside, immediate support is seen at 1.3453 (50%fib), a break below could take the pair towards 1.3394(61.8%fib).
USD/JPY: The dollar strengthened against the yen on Tuesday after figures showed Japan's wholesale price index stayed flat in December from a year ago, with the rate of change slowing for the 12th straight month. The data indicate that rises in consumer inflation will moderate in coming months, and take pressure off the Bank of Japan (BOJ) to phase out its massive monetary stimulus soon.The reading for the corporate goods price index (CGPI), which measures the prices companies charge each other for their goods and services, compared with a median market forecast for a 0.3% fall and followed a 0.3% increase in November. The dollar was 1.04% higher against the Japanese yen , at 147.26, after hitting 147.31, matching its highest level since Dec. 7. Strong resistance can be seen at 147.61(23.6%fib),an upside break can trigger rise towards 148.16( Higher BB).On the downside, immediate support is seen 146.09(38.2% fib)a break below could take the pair towards 144.94(50%fib).
Equities Recap
European shares declined on Tuesday as investors tempered their expectations for early interest rate cuts, influenced by recent comments from European Central Bank officials. While, Hugo Boss witnessed a slump after falling short of fourth-quarter operating profit estimates.
UK's benchmark FTSE 100 closed up by 0.48percent, Germany's Dax ended down by 0.30 percent, France’s CAC finished the day down by 0.18 percent.
U.S. stocks closed lower on Tuesday as mixed earnings reports from Morgan Stanley and Goldman Sachs exerted pressure on the banking sector. Additionally, sell-offs in Boeing and Apple contributed to the negative performance of the S&P 500.
Dow Jones closed down by 0.62% percent, S&P 500 closed down by 0.37% percent, Nasdaq settled down by 0.19% percent.
Commodities Recap
Gold prices fell more than 1% on Tuesday, weighed down by a stronger currency and higher US Treasury rates following Federal Reserve Governor Christopher Waller's hawkish statements on interest rate cuts this year, although safe-haven purchasing capped bullion's losses.
Spot gold was down 1.3% at $2,027.26 per ounce as of 2:36 p.m. ET (1936 GMT), after gaining in the previous three sessions.U.S. gold futures settled more than 1% lower at $2030.2.
Oil prices were little changed on Tuesday, pushed by the dollar's surge to its highest level in a month but supported by concerns about the impact of growing Middle Eastern tensions on oil supply.
Global benchmark Brent crude futures rose 14 cents, or 0.2%, to settle at $78.29 a barrel. At the session high, Brent futures were up by a dollar a barrel.
U.S. West Texas Intermediate crude futures (WTI) ended at $72.40 a barrel, down 28 cents, or 0.4%, from Friday's settlement. U.S. markets were closed for a public holiday on Monday.