News

Europe Roundup: Euro creeps back above $1.21, European stocks inches higher, Gold gains,Oil prices rise as investors look to higher demand seen in second half-January 19th,2021

Market Roundup

•Investors await U.S. President-elect Joe Biden’s oath ceremony

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

•German Dec HICP (MoM) 0.6%, 0.6% forecast, -1.0% previous

•German Dec CPI (MoM) 0.5%, 0.5% forecast, -0.8% previous

•German Dec CPI (YoY) -0.3%, -0.3% forecast, -0.3% previous

•French Dec Car Registration (MoM) 47.8%, -26.3% previous

•German Dec Car Registration (MoM) 7.3%, 5.8% previous

•German Dec Car Registration (YoY) 9.9%,-3.0% previous

•EU Nov Current Account n.s.a. 26.8B, 34.1B previous

•EU Nov Current Account 24.6B, 26.6B previous

•Italian Nov Trade Balance 6.766B, 7.565B previous

•Italian Nov Trade Balance EU 0.09B, 0.40B previous

• German Jan ZEW Economic Sentiment 61.8, 60.0 forecast, 55.0 previous

• German Jan ZEW Current Conditions -66.4, -68.5 forecast, -66.5 previous

•EU Jan ZEW Economic Sentiment 58.3, 54.4 previous

Looking Ahead – Economic Data (GMT)

•13:30 Canada Nov Manufacturing Sales (MoM) -0.1% forecast,0.3% previous

• 13:30 Canada Nov Wholesale Sales (MoM) 1.0% forecast, 1.0% previous

• 14:30 New Zealand GlobalDairyTrade Price Index 3.9% previous

• 16:30 US 3-Month Bill Auction 0.090% previous

• 16:30 US 6-Month Bill Auction 0.090% previous

Looking Ahead – Economic events and other releases (GMT)

• No data ahead

Currency Summaries

EUR/USD: The euros strengthened on Tuesday as dollar dipped ahead of upcoming speech by U.S. Treasury Secretary nominee Janet Yellen that could determine the tone of policy in the world’s largest economy. The speech by Yellen, President-elect Joe Biden’s nominee to run the Treasury Department, will likely give an indication about the direction of the dollar. The common currency was last up 0.43% at 1.126.Immediate resistance can be seen at 1.2137 (38.2%fib), an upside break can trigger rise towards 1.2229 (23.6%fib).On the downside, immediate support is seen at 1.2053 (50%fib), a break below could take the pair towards 1.1980 (61.8% fib).

GBP/USD: The pound edged higher against dollar on Tuesday ahead of U.S. Treasury Secretary nominee Janet Yellen’s testimony before Congress. Investors are preparing for Yellen, who served as head of the U.S. Federal Reserve from 2014-2018, to talk up the need for major fiscal stimulus and commit to a market-determined exchange rate when she testifies later in the day. Immediate resistance can be seen at 1.3617 (38.2%fib), an upside break can trigger rise towards 1.3688 (23.6%fib).On the downside, immediate support is seen at 1.3551(50%fib), a break below could take the pair towards 1.3495 (61.8 % fib).

USD/CHF: The dollar declined against the Swiss franc on Tuesday as investors prepared for U.S. Treasury Secretary nominee Janet Yellen to talk up the need for major fiscal stimulus and commit to a market-determined exchange rate when she testifies later in the day. The fall in the greenback came after a 2% rise in the dollar so far in 2021, a gain which caught off guard many investors who had betted on a further dollar decline following its weakness in 2020.Immediate resistance can be seen at 0.8887 (38.2%fib), an upside break can trigger rise towards 0.8910 (23.6% fib).On the downside, immediate support is seen at 0.8866 (50% fib), a break below could take the pair towards 0.8846 (61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as traders kept a close eye on the policies of the incoming Joe Biden government. Caution set in before U.S. Treasury Secretary nominee Janet Yellen testifies later in the day. Yellen will tell the Senate Finance Committee that the government must “act big” with its next coronavirus relief package .Strong resistance can be seen at 104.07 (Daily high), an upside break can trigger rise towards 104.19 (23.6%fib).On the downside, immediate support is seen at 103.87 (38.2%fib), a break below could take the pair towards 106.61 (50%fib).

Equities Recap

European stocks inched higher on Tuesday, as possible extension of German lockdowns drew investors into defensive sectors such as healthcare and telecoms.

At (GMT 12:40 ),UK’s benchmark FTSE 100 was last trading up at 0.13 percent, Germany’s Dax was up by 0.23 percent, France’s CAC was last up by 0.06 percent.

Commodities Recap

Gold edged higher on Tuesday from the last session’s 1-1/2 month low as the dollar eased off highs ahead of U.S. Treasury Secretary nominee Janet Yellen’s speech later in the day, when she is expected to raise the case for more fiscal spending.

Spot gold rose 0.3% to $1,842.46 per ounce by 1024 GMT, recovering from its lowest since Dec. 2 at $1,809.90 hit on Monday. U.S. gold futures gained 0.7% to $1,842.70.

Oil prices climbed on Tuesday as optimism that government stimulus will eventually lift global economic growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally are cooling fuel consumption.

Brent crude futures for March rose 72 cents to $55.47 a barrel by 1152 GMT after slipping 35 cents in the previous session.


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