News

America’s Roundup: Dollar dips vs yen as investors reach for safe havens on virus scare. Wall Street dips, Gold eases, Oil falls heads for weekly loss as China virus fears swell-January 25th,2020

Market Roundup

• Russia Dec PPI (YoY)  -4.3%,-6.3% previous

• Russia Dec PPI (MoM) -0.4%,-0.8% previous

• Canada Nov Core Retail Sales (MoM)  0.2%,0.4% forecast, -0.4% previous

• Canada Nov Retail Sales (MoM)  0.9%,0.4% forecast -1.1% previous  
 
• Belgium Jan NBB Business Climate -2.0    , -3.0 forecast, -3.4 previous  
 
• US Jan Markit Composite PMI 53.1, 52.5 forecast, 52.5 previous

• US Jan Services PMI   53.2, 52.9 forecast, 52.8    previous

• Brazil    Federal Tax Revenue147.50B, 125.16B previous
                              
Looking Ahead – Economic Data (GMT) 
   
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Looking Ahead – Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Friday, as   lukewarm European PMI data that added weighed in single currency.Euro zone business activity remained lackluster with the IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, holding at 50.9 in January but missing the median prediction in a   poll for 51.2. The euro was 0.23% lower against the greenback at $1.1027.Immediate resistance can be seen at 1.1069 (5 DMA), an upside break can trigger rise towards 1.1100 (11 DMA).On the downside, immediate support is seen at 1.1000 (Psychological level), a break below could take the pair towards 1.0976 (Nov 26th low).

GBP/USD: Sterling declined against dollar on Friday, as some investors still expected an interest rate cut next week even though business surveys pointed to a post-election bounce in the British economy.Analysts said the pound had weakened because traders were taking profits on recent gains in the currency, and because money markets still priced in a 50% chance of a rate cut when the Bank of England meets next Thursday. Sterling jumped to as high as $1.3180 immediately after the surveys were released before falling back. It was last down 0.4% at $1.3068.It also erased its initial gains versus the euro, and traded flat on the day at 84.255 pence.Immediate resistance can be seen at 1.3168 (Daily high), an upside break can trigger rise towards 1.3200 (Psychological level).On the downside, immediate support is seen at 1.3053 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level)

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, lingering close to the one-month low hit in the previous session, as the coronavirus outbreak weighed on oil prices and amid broad-based strength for the U.S. currency. The price of oil, one of Canada's major exports, fell more than 2% on Friday and headed for a steep weekly decline over concerns that the coronavirus will spread farther in China, the world's second-largest oil consumer, curbing travel and oil demand. At (22:28 GMT), the Canadian dollar was trading down about 0.12% at 1.3141 to the greenback.Immediate resistance can be seen at 1.3158 (50 DMA), an upside break can trigger rise towards 1.3176 (100 DMA).On the downside, immediate support is seen at 1.3102 (5 DMA), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar dipped against the Japanese yen on Thursday, as investors fretted over concerns that a spreading virus from China would curb travel and hurt economic demand. The U.S. Centers for Disease Control and Prevention (CDC) on Friday confirmed a second U.S. case of the new coronavirus from China in a Chicago woman, and said as many as 63 potential cases were being investigated as the sometimes-deadly illness continues to spread around the globe. Yen, which tends to draw investors during times of geopolitical or financial stress given Japan’s status as the world’s largest creditor, the dollar was 0.22% lower at 109.24 yen.Strong resistance can be seen at 109.79 (5 DMA), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.15 (50 DMA), a break below could take the pair towards 109.00(Psychological level). 

Equities Recap

European shares on Friday were set to post their first daily gain this week on signs of a recovery ahead for growth, with easing worries over the coronavirus outbreak in China also emboldening investors.  
 
The UK's benchmark FTSE 100 closed up by 1.04 percent, Germany's Dax ended up by 1.41 percent, and France’s CAC finished the day up by 1.04 percent.

Wall Street lost ground on Friday as mounting worries over the scope of the coronavirus outbreak overshadowed positive corporate earnings.

 Dow Jones closed down by 0.58 percent, S&P 500 ended down  0.90 percent, Nasdaq finished the day down  by 0.94 percent.

Treasuries Recap

U.S. Treasury prices advanced on Friday, pushing yields lower for a fourth straight session,as news of the latest coronavirus spreading outside China continued to undermine risk appetite and spur demand for safe-haven assets.

U.S. 30-year yields declined to a nearly three-month low,while those on benchmark 10-year notes dropped to more than two-month troughs. U.S. two-year notes also slid, dropping to a two-week low.

Commodities Recap

Gold edged down on Friday as the dollar rose and appetite for riskier assets improved after the World Health Organisation tempered fears of a global coronavirus outbreak.    

Spot gold was 0.1% lower at $1,561.18 per ounce by 1039 GMT but holding above the key $1,550 support level and en route to a post small weekly gain of about 0.3%, as bets on easy monetary policy globally and lingering uncertainties on the world stage buoyed appetite for the safe haven.U.S. gold futures slipped 0.3% to $1,560.80 per ounce.      

Crude prices sank more than 2% on Friday and Brent logged its biggest weekly decline in more than a year as concerns that a coronavirus will spread farther in China, the world’s second-largest oil consumer, curbing travel and oil demand.

Brent crude settled at $60.69 a barrel, down $1.35, or 2.2%. The global benchmark fell 6.4% this week, its biggest weekly loss since Dec. 21, 2018.

U.S. crude futures  ended at $54.19 a barrel, shedding $1.4, or 2.5% on Friday and clocking a 7.4% weekly decline, their largest since July 19.


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