Dollar recedes from four-month highs as risk appetite improves, S&P 500, NASDAQ notches record high, Gold slips, Oil rises from 13-month low - February 12th, 2020.
• Russia Dec Trade Balance 15.47B, 12.27B previous
• US Redbook (MoM) -0.7%,0.2% previous
• US Redbook (YoY) 4.8%,5.7% previous
• US Dec JOLTs Job Openings 6.423M, 7.000M forecast, 6.787M previous
Looking Ahead - Economic Data (GMT)
• 23:30 Australia Feb Westpac Consumer Sentiment 1.4% forecast, -1.8% previous
• 23:30 Japan M2 Money Stock (YoY) 2.7% previous
• 23:30 Japan Jan M3 Money Supply 1,831.3T previous
Looking Ahead - Economic events and other releases (GMT)
• 01:00 New Zealand RBNZ Interest Rate Decision 1.00%forecast, 1.00% previous
• 01:00 New Zealand RBNZ Rate Statement
• 02:00 New Zealand RBNZ Press Conference
EUR/USD: The euro recovered slightly against the U.S. dollar on Tuesday, as risk appetite improved after a weeklong rally helped by a safe-haven bid fueled by fears over China’s coronavirus outbreak. Concerns about the economic impact of the coronavirus have added a safety bid for the greenback in recent sessions, while economic data has boosted the view that the U.S. economic outlook is stronger than the euro zone. The euro fell as low as $1.0892 on Tuesday, the lowest since Oct. 1, before bouncing back to $1.0915. Immediate resistance can be seen at 1.0949 (5 DMA), an upside break can trigger rise towards 1.1015 (11 DMA).On the downside, immediate support is seen at 1.0900 (Psychological level), a break below could take the pair towards 1.0876 (Oct 1st low).
GBP/USD: The pound recovered some ground against dollar on Tuesday after British economic growth showed no change in the fourth quarter despite market expectations that it would be slower.The currency had on Monday touched its lowest levels for this year amid uncertainty over Britain’s future trade relationship with the European Union. Sterling was last trading up 0.3% at $1.2949 after reaching as high as $1.2968. That left it still close to the 2-1/2-month low of $1.2873 it fell to on Monday. Immediate resistance can be seen at 1.2950 (5 DMA), an upside break can trigger rise towards 1.3001 (11 DMA).On the downside, immediate support is seen at 1.2862 (Daily low), a break below could take the pair towards 1.2800 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as hopes rose that the coronavirus epidemic may be close to peaking, boosting the price of oil, one of Canada's major exports.U.S. crude oil futures were up 1.7% at $50.41 a barrel as the number of new coronavirus cases slowed in China, easing some concerns about lengthy destruction of oil demand. At (1438 GMT),the Canadian dollar was trading 0.2% higher at 1.3296 to the greenback. The currency, which on Monday hit its weakest intraday level in four months at 1.3330, traded in a range of 1.3289 to 1.3320..Immediate resistance can be seen at 1.3337 (Higher BB), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3281(9 DMA), a break below could take the pair towards 1.3225 (200 DMA).
USD/JPY: The U.S. dollar edged lower against the yen on Friday, as demand for safe haven increased after doubts grew about how quickly China’s factories could get back to work given that the coronavirus continues to spread and deaths mount. The total number of deaths in China has topped 1,000, well past the toll from Severe Acute Respiratory Syndrome, which killed nearly 800 worldwide .At (GMT 22:18),the dollar was 0.01 percent lower versus the Japanese yen at 109.79. Strong resistance can be seen at 110.02 (7th Feb high), an upside break can trigger rise towards 110.58 (Higher BB).On the downside, immediate support is seen at 109.38 (9 DMA), a break below could take the pair towards 109.00 (Psychological level).
- German shares hit a record high on Tuesday, leading European stocks to a record too amid hopes the coronavirus outbreak may plateau soon and that the impact on the global economy might not be significant as feared.
- UK's benchmark FTSE 100 closed down by 0.27 percent, Germany's Dax ended down by 0.15 percent, France’s CAC finished the day down by 0.23 percent.
- The S&P 500 and the Nasdaq indexes hit record highs on Tuesday as a top Chinese health adviser sparked expectations that the coronavirus outbreak may be peaking, while T-Mobile shares jumped after a federal judge approved its purchase of Sprint.
- Dow Jones closed down by 0.00 percent, S&P 500 ended up by 0.17 percent, Nasdaq finished the day up by 0.11 percent.
- U.S. Treasury yields rose on Tuesday after Federal Reserve Chair Jay Powell said the U.S. economy is resilient and maintained that current interest rate policy remains appropriate.
- The 10-year yield was last up 3.8 basis points to 1.585% - it last recorded a positive day on Feb. 5. The two-year yield was up 3.8 basis points to 1.415% and the 30-year bond yield was up 2.7 basis points to 2.048%.Commodities Recap
- Gold edged lower on Tuesday as European stocks surged to record highs and the dollar hit a four-month peak, after a fall in the number of new confirmed cases of coronavirus limited the appetite for lower risk assets and drove buying elsewhere.
- Spot gold was down 0.1% at $1,569.80 per ounce by 1301 GMT, having touched its highest since Feb. 4 at $1,576.76 on Monday. U.S. gold futures shed 0.4% to $1,573.40.
- Oil rose to more than $54 a barrel on Tuesday, recovering from a 13-month low as the number of new coronavirus cases slowed in China, easing some concern over the potential for lengthy destruction of oil demand.
- Brent crude was up $1.27 at $54.44 a barrel by 1433 GMT, having dropped on Monday to its lowest since January last year at $53.11. U.S. West Texas Intermediate crude was up $1.09 at $50.66.