News

America’s Roundup: Dollar gains ahead of U.S.-China trade deal, Wall Street dips ,Gold slips, Oil edges up after five days of losses ahead of U.S.-China trade pact-January 15th,2020

Market Roundup 

• US Dec Core CPI (MoM)  0.1%, 0.2% forecast, 0.2% previous  
 
• US Dec Core CPI (YoY) 2.3%,2.3% forecast, 2.3% previous

• US Dec Core CPI Index 265.92, 265.62    previous

• US Dec CPI (YoY)  2.3% , 2.3% forecast, 2.1% previous 
   
• US Dec CPI (MoM) 0.2%,0.3% forecast, 0.3% previous    

• US Dec CPI Index, n.s.a.  256.97, 257.17 forecast, 257.21 previous
    
• US Dec Real Earnings (MoM)  -0.1%,0.1% previous

• US Redbook (MoM) -0.2%,-2.6%previous

• US Redbook (YoY) 5.0% , 7.2% previous

• US IBD/TIPP Economic Optimism 57.4, 57.3 forecast, 57.0 previous

• US Dec Cleveland CPI (MoM) 0.2%,0.2% previous

• US Dec Federal Budget Balance  -15.0B, -209.0B previous

Looking Ahead – Economic Data (GMT)  
 
• 21:45 New Zealand Dec FPI (MoM)  -0.7% previous    

• 23:50 Japan M2 Money Stock (YoY) 2.7%, 2.8% previous

• 06:00 Japan Machine Tool Orders (YoY) -37.9% previous  
         
Looking Ahead – Economic Data (GMT)  
 
• 00:30 Japan BoJ Governor Kuroda Speaks  

• 16:00 US FOMC Member Harker Speaks   
   
• 16:00 US FOMC Member Kaplan Speaks  
    
Currencies Summaries

EUR/USD: The euro edged lower against the U.S. dollar on Tuesday, as rise in consumer prices and the expected signing of a trade deal between the United States and China increased demand for dollar. Consumer prices rose slightly less than expected in December and monthly underlying inflation pressures retreated, which could allow the Federal Reserve to keep interest rates unchanged at least through this year. The euro was down 0.1 percent at $1.1121.Immediate resistance can be seen at 1.1136 (Jan 13th High), an upside break can trigger rise towards 1.1150 (9 DMA).On the downside, immediate support is seen at 1.1091 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).

GBP/USD: The British pound recouped some losses after dropping to its lowest in weeks on Tuesday amid concerns about the state of the economy and talk of a possible cut in interest rates this month. The pound fell versus the dollar before recovering some ground as investors scaled back expectations for further monetary easing at the next Bank of England policy meeting on Jan. 30. Money markets are now pricing in a 43% chance for a 25 basis point cut in rates at the end of this month from the current level of 0.75%. Immediate resistance can be seen at 1.3059 (5 DMA), an upside break can trigger rise towards 1.3098 (11 DMA).On the downside, immediate support is seen at 1.2961 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as the greenback broadly climbed, but the loonie stuck within its recent trading range ahead of the expected signing this week of a trade deal between the United States and China. A Chinese delegation arrived in Washington ahead of Wednesday's scheduled signing of a Phase 1 trade agreement, seen as likely calming a dispute that has upended the world economy. At (22:21 GMT), the Canadian dollar    was trading 0.1% lower at 1.3071 to dollar. Immediate resistance can be seen at 1.3071 (21 DMA), an upside break can trigger rise towards 1.3169 (50 DMA).On the downside, immediate support is seen at 1.3051 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar edged lower against the Japanese yen on Tuesday, as investors took a breather following a record rally on trade optimism on trade deal between the United States and China. The United States and China, the world's two biggest economies, are just a day away from signing a Phase 1 trade agreement The yen weakened as much as 110.2, the most yen per dollar since May 23, before gaining back to 110.0. It last stood at 109.97 yen. Strong resistance can be seen at 110.17 (Jan 14th high), an upside break can trigger rise towards 110.61 (Higher BB).On the downside, immediate support is seen at 109.78 (5 DMA), a break below could take the pair towards 109.05  (50 DMA). 

Equities Recap

European shares were little changed on Tuesday as investors locked in some gains after a recent record-setting rally ahead of the signing of an initial U.S.-China trade truce.

UK's benchmark FTSE 100 closed up by 0.06 percent, Germany's Dax ended up by 0.04 percent, France’s CAC finished the day up by 0.08 percent.

The S&P 500 eased from record levels on Tuesday, as technology stocks handed back gains made on hopes of a preliminary U.S.-China trade deal and Wells Fargo slid in a mixed start to big banks’ quarterly earnings.

Dow Jones closed up by 0.11 percent, S&P 500 ended down  by 0.15 percent, Nasdaq finished down by 0.24 percent.

Treasuries Recap

U.S. Treasury yields were little changed on Tuesday as investors took stock of a moderate rise in consumer prices and the expected signing of a trade deal between the United States and China.

The benchmark 10-year yield was down less than a basis point in morning trading at 1.8406%.

Commodities Recap

Gold fell on Tuesday ahead of the much awaited signing of an interim U.S.-China trade deal that dampened the appeal of bullion, while palladium notched a record high on sustained supply deficit.

Spot gold dipped 0.3% to $1,542.83 an ounce by 10:52 a.m. EST (1552 GMT) after touching their lowest since Jan. 3 at $1,535.63. U.S. gold futures dropped 0.5% to $1,543.50.     

Oil prices edged higher on Tuesday after five days of declines as the United States and China prepared to sign a preliminary trade deal and as Middle East tensions eased.

Brent futures gained 29 cents, or 0.5%, to settle at $64.49 a barrel, while U.S. West Texas Intermediate (WTI) crude  ended 15 cents, or 0.3%, higher at $58.23.        
 


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