News

America’s Roundup: Dollar index hits four-week high, Gold inches up, Oil slips on coronavirus fears-January 19th,2021

Market Roundup

• Canada Dec Housing Starts 228.3K, 227.0K forecast, 246.0K previous

• Canada Nov Foreign Securities Purchases 11.78B, 6.92B previous

• Canada Nov Foreign Securities Purchases by Canadians 7.58B, 7.96B previous

• French 12-Month BTF Auction -0.614%, -0.632% previous

• French 3-Month BTF Auction -0.625%, -0.623% previous

• French 6-Month BTF Auction -0.625%,-0.627% previous

Looking Ahead – Economic Data (GMT)

• 02:30 US TIC Net Long-Term Transactions including 11.40B previous

• 02:30 US Overall Net Capital Flow Nov -10.40B previous

• 02:30 US Nov TIC Net Long-Term Transactions 51.9B previous

• 05:00 Australia Jan Westpac Consumer Sentiment 4.1% previous

• 07:00 China PBoC Loan Prime Rate 3.85% previous

Looking Ahead – Economic events and other releases (GMT)

• No data ahead

Currency Summaries

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 $1.2051. 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/CAD: The Canadian dollar dipped against the greenback on Monday, with investors dialing back hopes of improved U.S.-Canada relations after a report President-elect Joe Biden would cancel a permit for the Keystone XL pipeline as one of his first acts in office. Biden is planning to cancel the permit for the $9 billion project, perhaps as soon as his first day, according to a source familiar with his thinking. Immediate resistance can be seen at 1.2753 (50%fib), an upside break can trigger rise towards 1.2798 (61.8%fib).On the downside, immediate support is seen at 1.2731 (38.2% fib), a break below could take the pair towards 1.2691 (23.6%fib).

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 rose on Monday as a jump in carmaker Stellantis and luxury stocks helped reverse early market losses due to worries about an economic recovery and losses in French grocer Carrefour.

UK’s benchmark FTSE 100 closed up by 0.44% percent, Germany’s Dax ended down by 0.22% percent, France’s CAC finished the day up by 0.10%percent.

Commodities Recap

Oil prices fell slightly on Monday as a stronger dollar, fears over soaring COVID-19 cases around the world and the slow pace of vaccination against the coronavirus outweighed a better-than-expected quarterly rebound for China’s economy.

Brent crude was down 23 cents, or 0.4%, at $54.87 per barrel at 1720 GMT, and West Texas Intermediate U.S. crude fell 19 cents, or 0.4%, to $52.17.

Gold inched away from a 1-1/2-month low touched earlier on Monday as expectations of additional fiscal stimulus in the United States buoyed bullion’s appeal as an inflation hedge.

Spot gold was up 0.5% at $1,835.96 per ounce by 12:29 p.m. EST (1729 GMT) after falling to $1,809.90, its lowest since Dec. 2. U.S. gold futures rose 0.4% to $1,836.50.


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