News

America’s Roundup: Dollar index on track for biggest weekly gain since November, Wall Street drops, Gold falls 1%, Oil drops over 2% on China lockdowns, U.S. stimulus concerns-January 16th,2021

Market Roundup

• Russia Nov Trade Balance 7.08B, 6.44B previous

•US Dec Core PPI (MoM) 0.1%, 0.2% forecast, 0.1% previous

•US Dec Core Retail Sales (MoM) -1.4%,-0.1% forecast, -0.9% previous

•US Dec PPI (MoM 0.3%,0.4% forecast ,0.1% previous

•US Dec Retail Sales (MoM) -0.7%,-0.2% forecast , -1.1% previous

•US Jan NY Empire State Manufacturing Index 3.50,6.00 forecast , 4.90 previous

•US Dec PPI (YoY) 0.8%,0.8% forecast , 0.8% previous

•US Dec Core PPI (YoY) 1.2%, 1.3% forecast , 1.4% previous

•US Dec Retail Sales Ex Gas/Autos (MoM) -2.1% -0.8% previous

•US Dec Retail Control (MoM) -1.9%,0.1% forecast , -0.5% previous

• US Dec Retail Sales (YoY) 2.90%,4.10% previous

•US Dec Capacity Utilization Rate 74.5%, 73.6% forecast , 73.3% previous

•US Dec Industrial Production (MoM) 1.6%,0.5% forecast , 0.4% previous

•US Dec Manufacturing Production (MoM) 0.9%, 0.5% forecast , 0.8% previous

•US Dec Industrial Production (YoY) -3.60%,-5.50% previous

•US Nov Business Inventories (MoM) 0.5%, 0.5% forecast , 0.7% previous

•US Jan Michigan 5-Year Inflation Expectations2.70%, 2.50% previous

•US Nov Retail Inventories Ex Auto 0.2%,0.3% previous

•US Jan Michigan Consumer Sentiment 79.2, 80.0 forecast , 80.7 previous

•US Jan Michigan Inflation Expectations 3.0%, 2.5% previous

•US Jan Michigan Consumer Expectations 73.8, 74.6 previous

•US Jan Michigan Current Conditions 87.7, 90.0 previous

•U.S. Baker Hughes Oil Rig Count 287, 267 previous

Looking Ahead – Economic data(GMT)

•No economic data

Looking Ahead – Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro declined against dollar on Friday as prospect of stricter lockdowns in France and Germany and a resurgence of COVID-19 cases in China. Investor concerns over the prospects for a global economic recovery were raised after France strengthened its border controls and brought forward its night curfew by two hours to 6 p.m. for at least two weeks to try to slow the spread of coronavirus infections, while Germany Chancellor Angela Merkel called for “very fast action” to counter the spread of variants of the coronavirus. Immediate resistance can be seen at 1.2165 (5DMA ), an upside break can trigger rise towards 1.2220 (38.2%fib).On the downside, immediate support is seen at 1.2121 (50%fib), a break below could take the pair towards 1.2025 (61.8%fib).

GBP/USD: Sterling fell on Friday, taking a hit from a deteriorating global risk backdrop, though data showing Britain’s November lockdown was less damaging for the economy than expected kept a floor under the currency. Earlier, the pound touched an almost two-month high against the euro, after data showed Britain’s economy shrank 2.6% in November, a smaller decline than most analysts expected. Immediate resistance can be seen at 1.3687 (23.6%fib), an upside break can trigger rise towards 1.3759 (Higher BB).On the downside, immediate support is seen at 1.3610 (38.2%fib), a break below could take the pair towards 1.3548 (50%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back this week’s gains, as rising COVID-19 cases in China crimped risk appetite, while domestic data showed home sales surging to a record in December. Canadian home sales rose 7.2% in December from November, setting a new record amid a surge in demand in the Toronto and Vancouver areas, the Canadian Real Estate Association said The Canadian dollar was trading 0.7% lower at 1.2722 to the greenback, or 78.60 U.S. cents, having pulled back from a near three-year high on Wednesday at 1.2621. For the week, the loonie was on track to weaken 0.3%.Immediate resistance can be seen at 1.2766 (21DMA), an upside break can trigger rise towards 1.2776 (61.8%fib).On the downside, immediate support is seen at 1.2728(5 DMA), a break below could take the pair towards 1.2679 (38.2%fib).

USD/JPY: The dollar declined against the Japanese yen on Friday as rising COVID-19 cases in China reinforced investor concerns over the prospects for a global economic recovery. China has put millions of people in lockdown in response to new outbreaks of COVID-19 in the north and northeast, with Hebei province reporting the first new coronavirus death on the mainland since May last year.The dollar dipped 0.09% to 103.70 yen. Strong resistance can be seen at 103.87 (38.2%fib), an upside break can trigger rise towards 104.18 (23.6%fib).On the downside, immediate support is seen at 104.60 (50%fib), a break below could take the pair towards 103.33 (61.8%fib).

Equities Recap

European stocks snapped four weeks of gains on Friday, as the prospect of tighter lockdowns, slow vaccine shipments to the continent and resurgent coronavirus cases in China dampened hopes of a speedy economic recovery.

UK’s benchmark FTSE 100 closed down by 0.97 percent, Germany’s Dax ended down by 1.44 percent, France’s CAC finished the day down by 1.22 percent.

Wall Street’s main indexes dropped on Friday, weighed down by losses in major U.S. lenders after their earnings reports, while incoming President Joe Biden’s $1.9 trillion stimulus plan also sparked fears of an increase in corporate taxes.

Dow Jones closed down by 0.51% percent, S&P 500 closed down by 0.71% percent, Nasdaq settled down by 0.85% percent.

Treasuries Recap

U.S. Treasury yields fell on Friday after retail sales data came in below economists’ expectations and following President-elect Joe Biden’s proposed $1.9 trillion stimulus program.

Benchmark 10-year yields US10YT-RR fell to 1.094%, from 1.138% on Thursday before Biden’s announcement.

Commodities Recap

Gold prices fell more than 1% on Friday and the metal was heading for a second straight weekly drop as the dollar continued its upturn, overshadowing bullion’s appeal as an inflation hedge after the U.S. president-elect proposed a new $1.9 trillion stimulus package.

Spot gold was down 1% at $1,827.90 per ounce by 1:49 p.m. EST (1849 GMT), having earlier declined as much as 1.3%, while U.S. gold futures settled down 1.2% at $1,829.90.

Oil prices fell more than 2% on Friday, with both contracts posting a loss on the week as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by strong import data from the world’s biggest crude importer.

Brent fell $1.32, or 2.3%, to settle at $55.10 a barrel. U.S. West Texas Intermediate crude settled down $1.21, or 2.3%, at $52.36 a barrel.


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