News

Europe Roundup: Euro dips as coronavirus fears outweigh recovery hopes ,European stocks slip, Gold edges higher,Oil mixed as Chinese data offsets coronavirus fears-January 18th,2021

Market Roundup

• Italian Dec HICP (MoM) 0.2%,0.2% forecast,0.0% previous

• Italian Dec CPI (MoM) 0.2%, 0.3% forecast, -0.1% previous

•Italian Dec CPI (YoY) -0.2%, -0.1% forecast, -0.2% previous

• Italian Dec HICP (YoY) -0.3%, -0.3% forecast, -0.3% previous

Looking Ahead – Economic Data (GMT)

• 13:15 Canada Dec Housing Starts 227.0K forecast, 246.0K previous

• 13:30 Canada Nov Foreign Securities Purchases 6.92B previous

• 13:30 Canada Nov Foreign Securities Purchases by Canadians 7.96B previous

• 14:00 French 12-Month BTF Auction -0.632% previous

• 14:00 French 3-Month BTF Auction -0.623% previous

• 14:00 French 6-Month BTF Auction -0.627% previous

Looking Ahead – Economic events and other releases (GMT)

• 13:30 UK BoE Gov Bailey Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Monday as soaring COVID-19 cases offset investor hopes of a quick economic recovery, even after data showing that the Chinese economy rebounded faster-than-expected in the fourth quarter of 2020. The pick-up in China was a marked contrast to the United States and Europe, where the spread of coronavirus has hit consumer spending, underlined by dismal U.S. retail sales reported on Friday. The euro dipped to a six-week low of $1.2066. Immediate resistance can be seen at 1.2137 (38.2%fib), an upside break can trigger rise towards 1.2159 (25EMA).On the downside, immediate support is seen at 1.2044 (50%fib), a break below could take the pair towards 1.1961 (61.8% fib).

GBP/USD: The pound declined against on Monday as rising COVID-19 cases hurt global risk appetite. Global markets started the week “risk-off”, as escalating COVID-19 infections took precedence over optimism about vaccinations. The pound was among the risk-sensitive currencies to fall, while the safe-haven dollar edged up slightly. The pound has fallen overall against the dollar so far this year but, after a no-deal Brexit was avoided via a last-minute deal at the end of 2020, analysts generally expect the pound to strengthen throughout 2021. Immediate resistance can be seen at 1.3549 (50%fib), an upside break can trigger rise towards 1.3613 (38.2%fib).On the downside, immediate support is seen at 1.3519 (21 EMA), a break below could take the pair towards 1.3494 (61.8 % fib).

USD/CHF: The dollar strengthened against the Swiss franc on Monday as the dollar clung to gains on global markets. The dollar was supported by weak U.S. economic data and rising coronavirus cases that made investors cautious about the pace of global economic recovery from the pandemic. The dollar index drifted higher to a one-month high and last traded at 90.94, its highest level since Dec. 21.Immediate resistance can be seen at 0.8913 (38.2%fib), an upside break can trigger rise towards 0.8933 (23.6% fib).On the downside, immediate support is seen at 0.8895 (50% fib), a break below could take the pair towards 0.8887 (5DMA).

USD/JPY: The dollar was little changed against the Japanese yen on Monday as softening U.S. economic data and rising coronavirus cases turned investors cautious. U.S. retail sales fell for a third straight month in December, data showed on Friday, as renewed measures to slow the spread of COVID-19 triggered job losses. The worldwide coronavirus death toll surpassed 2 million on Friday and the World Health Organization has warned the worst could be ahead. Later in the week, U.S. President-elect Joe Biden is due to be inaugurated in a heavily-guarded Washington against the risk of more mob violence. Strong resistance can be seen at 103.87 (38.2% fib), an upside break can trigger rise towards 103.98 (55DMA).On the downside, immediate support is seen at 103.60 (50%fib), a break below could take the pair towards 106.00 (Psychological level).

Equities Recap

European stocks inched lower on Monday as French retailer Carrefour tumbled after ending 16.2 billion euro ($19.57 billion) merger talks with Alimentation Couche-Tard, with worries about a slow economic recovery keeping investors on edge.

At (GMT 12:50 ),UK’s benchmark FTSE 100 was last trading down at 0.22 percent, Germany’s Dax was up by 0.15 percent, France’s CAC was last down by 0.22 percent.

Commodities Recap

Gold prices edged higher on Monday on the prospect of extended U.S. fiscal stimulus and accommodative monetary policies, although bullion held close to the 1-1/2 month low hit earlier as the dollar extended gains.

Spot gold was up 0.3% to $1,831.49 per ounce by 1236 GMT, after falling to $1,809.90, its lowest since Dec. 2. U.S. gold futures were flat at $1,829.80.

Oil prices were mixed on Monday as a better-than-expected quarterly rebound for China’s economy countered fears over soaring COVID-19 cases around the world and tight restrictions that could dent economic growth and fuel consumption.

Brent crude was down 5 cents, or 0.1%, at $55.05 per barrel by 1131 GMT while West Texas Intermediate U.S. crude was up 4 cents, or 0.1%, at $52.40.


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