News

Europe Roundup: Sterling recovers ground against dollar, European stocks edges lower, Gold gains, Oil hits 11-month high towards $57 as Saudi cut supports-January 12th,2021

Market Roundup

•Finnish Nov Current Account -0.10B, 0.50B previous

•Italian Nov Retail Sales (MoM) -6.9%, 0.6% previous

•Italian Nov Retail Sales (YoY) -8.1%, 2.9% previous

•US Dec NFIB Small Business Optimism 95.9, 101.4 previous

•Brazil Dec CPI (MoM) 1.35%, 1.21% forecast, 0.89% previous

• Brazil CPI (YoY) 4.52%, 4.38% forecast, 4.31% previous

Looking Ahead – Economic Data (GMT )

•13:55 US Redbook (YoY) 5.5% previous

• 13:55 US Redbook (MoM) 0.5% previous

•15:00 US IBD/TIPP Economic Optimism 49.0 previous

•15:00 US Nov JOLTs Job Openings 6.652M previous

•15:22 Brazilian Dec IPCA Inflation Index SA (MoM) 0.84% previous

•16:00 Russia Jan CPI (MoM) 0.6% forecast, 0.7% previous

•16:00 Russia Dec CPI (YoY) 4.7% forecast, 4.4% previous

Looking Ahead – Economic events and other releases (GMT)

•16:00 US FOMC Member Bostic Speaks

•16:00 US FOMC Member Brainard Speaks

•17:00 US FOMC Member Mester Speaks

•18:00 US FOMC Member George Speaks

Fxbeat

EUR/USD: The euro edged higher on Tuesday as investors focused on the prospect of larger U.S. stimulus under incoming president Joe Biden. Biden will take office on Jan. 20 with his Democratic party in control of both Houses. In the previous session, investors booked profits following a rally last week after a Democrat sweep in the U.S. Senate elections. Immediate resistance can be seen at 1.2227 (Jan 11th High), an upside break can trigger rise towards 1.2272 (23.6%fib).On the downside, immediate support is seen at 1.2113 (38.2 % fib), a break below could take the pair towards 1.2043(23.6% fib).

GBP/USD: Sterling gained against the dollar on Tuesday as the greenback took a breather from its recent rally, allowing the British currency to gain some respite after four consecutive sessions of losses. On Tuesday, the pound recovered some of those losses as riskier currencies rallied alongside a rebound in stock markets. It traded 0.3% higher to the dollar at $1.3549 and 0.2% higher to the euro at 89.76 pence. Immediate resistance can be seen at 1.3620 (23.6% fib), an upside break can trigger rise towards 1.3700 (Psychological level).On the downside, immediate support is seen at 1.3506 (38.2%fib), a break below could take the pair towards 1.3425 (50%fib).

USD/CHF: The dollar was little changed against the Swiss franc on Tuesday as political turmoil in Washington and rising coronavirus cases kept investors cautious. Political uncertainty tempered the mood somewhat as Democrats introduced a resolution to impeach U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol last week. Immediate resistance can be seen at 0.8911(38.2 % fib), an upside break can trigger rise towards 0.8942 (23.6%fib).On the downside, immediate support is seen at 0.8885 (505fib), a break below could take the pair towards 0.8855 (61.8% fib ).

USD/JPY: The dollar edged lower against the Japanese yen on Tuesday as investors worried that attempts to impeach President Donald Trump could delay the Joe Biden administration’s first moves on stimulus. Democrats will give Trump one last chance on Tuesday to leave office days before his term expires or face an unprecedented second impeachment over his supporters’ storming of the U.S. Capitol on Jan. 6. The greenback slipped 0.1% to 104.175 yen, after rising to a one-month high of 104.40 on Monday. Strong resistance can be seen at 104.42 (38.2% fib), an upside break can trigger rise towards 104.72 (100DMA).On the downside, immediate support is seen at 104.10 (50%fib), a break below could take the pair towards 103.71 (61.8% fib).

Equities Recap

European stocks steadied on Tuesday after declining in the last session, as investors looked to the upcoming earnings season and focused on the prospect of larger U.S. stimulus under incoming president Joe Biden.

At (GMT 12:30 ),UK’s benchmark FTSE 100 was last trading down at 0.63% percent, Germany’s Dax was down by 0.08 percent, France’s CAC was down by -0.11% percent.

Commodities Recap

Gold rose on Tuesday, rebounding from a near six-week low touched in the previous session, as stocks slipped on political turmoil in Washington and the slow pace of COVID-19 vaccinations across the world.

Spot gold rose 0.8% at $1,860.10 per ounce by 0724 GMT. On Monday, prices touched their lowest since Dec. 2. U.S. gold futures gained 0.5% to $1,860.

Oil hit an 11-month high towards $57 a barrel on Tuesday as tighter supply and expectations of a drop in U.S. inventories offset concerns over climbing coronavirus cases globally.

Brent crude was 75 cents, or 1.4%, higher at $56.41 a barrel by 1022 GMT and earlier hit $56.75, the highest since last February. U.S. West Texas Intermediate (WTI) gained 86 cents, or 1.7%, to $53.11.


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