U.S. Markets Update On February 13th, 2020

U.S. Markets Update On February 13th, 2020

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Dollar gains on optimism coronavirus will be contained,Wall street rises, Gold hits one-week low, Oil rises 3% as demand worries ease Amid fewer new coronavirus cases - February 13th, 2020.

Market Roundup

• US Crude Oil Inventories 7.459M , 2.987M forecast, 3.355M previous
• US Crude Oil Imports 0.806M, 0.051M previous
• US Gasoline Production -0.662M,    0.745M previous
• US Feb Thomson Reuters IPSOS PCSI  62.90, 63.42 previous
• Brazil Foreign Exchange Flows     3.698B, -0.384B previous
• US Jan Federal Budget Balance  -33.0B, -11.5B forecast, -13.3B previous

Looking Ahead - Economic Data (GMT)

• 23:50 Japan Jan PPI (MoM) 0.2% forecast ,0.1%  previous
• 23:50 Japan Jan PPI (YoY)  1.5%    , 0.9% previous
• 00:01 UK Jan RICS House Price Balance 3%,-2% previous

Looking Ahead - Events, Other Releases (GMT) 

• 00:15 Canada BoC Gov Poloz Speaks
• 00:15    Australia RBA Governor Lowe Speaks

Currency summaries

EUR/USD: The euro declined against the U.S. dollar on Wednesday, as risk appetite improved as the spread of the coronavirus that has spooked world markets showed signs of slowing.  China on Wednesday reported its lowest number of new coronavirus cases since late January, lending weight to a prediction from its senior medical adviser that the outbreak could be over by April and boosting riskier assets such greenback. The euro fell as low as $1.0869 on Wednesday, the lowest since Oct. 30th . Immediate resistance can be seen at 1.0928 (5 DMA), an upside break can trigger rise towards 1.0988 (11 DMA).On the downside, immediate support is seen at 1.0861 (Lower BB), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD: The pound recovered some ground against dollar on Wednesday, as absence of any major economic data or news related to trade talks with the European Union provided some respite to British pound. In late US trading, sterling was up 0.1% at $1.2957 and roughly 0.75% above Monday’s 2-1/2-month low hit amid uncertainty over Britain’s future trade relationship with the European Union. Against the euro, the pound touched its highest level in just over a week at 84.14 pence but held a very narrow range. Immediate resistance can be seen at 1.2997 (11 DMA), an upside break can trigger rise towards 1.3067(50 DMA).On the downside, immediate support is seen at 1.2945 (Daily low), a break below could take the pair towards 1.2900 (100 DMA).

USD/CAD: The Canadian dollar strengthened to a one-week high against its U.S. counterpart on Wednesday as reduced concern about the economic impact of the coronavirus outbreak boosted stocks and the price of oil . Global stock markets and oil prices climbed as China reported its lowest daily number of new coronavirus cases since late January. The news stoked investor hopes that fuel demand in the world's second-largest oil consumer may begin to recover from the epidemic.    Immediate resistance can be seen at 1.3266 (11 DMA), an upside break can trigger rise towards 1.3288 (5 DMA).On the downside, immediate support is seen at 1.3234 (Daily low), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The U.S. dollar strengthened against the yen on Wednesday, as a drop in new coronavirus cases raised hopes that the fallout of the epidemic on the world’s second biggest economy might not be as bad as previously feared.  On Wednesday, China reported its lowest number of new cases of the flu-like virus since late January, lending weight to a prediction from its senior medical adviser that the outbreak, which has now killed over 1,100 people, could be over by April..At (GMT 20:22),the dollar was 0.28 percent higher versus the Japanese yen at 110.09. Strong resistance can be seen at 110.14 (Daily high), an upside break can trigger rise towards 110.51 (Higher BB).On the downside, immediate support is seen at 108.88 (5 DMA), a break below could take the pair towards 109.44 (11 DMA).

 Equities Recap

  • European shares hit a record high for the second straight session on Wednesday, as a drop in new coronavirus cases prompted buying in China-focused stocks, even as investors remained wary of the epidemic’s economic impact.
  • UK's benchmark FTSE 100 closed up by 0.47 percent, Germany's Dax ended up by 0.89 percent, France’s CAC finished the day up  by 0.83 percent.
  • U.S. stock index futures rose on Wednesday after a drop in the number of new cases of coronavirus infections in China raised hopes that the economic fallout from the outbreak would be contained.
  • At (GMT 20:36),Dow Jones was last up by 0.86 percent, S&P 500 was up by 0.59 percent, Nasdaq was up by 0.78 percent.

Treasuries Recap

  • U.S. Treasury yields rose on Wednesday as investors showed a renewed appetite for risk following a reported drop in the number of new coronavirus cases in China.
  • The benchmark 10-year yield was up 3.8 basis points in midday trading at 1.6282%.

Commodities Recap

  • Gold prices inched down to a near one-week low on Wednesday as investors' risk appetite picked up on reports of a decline in new coronavirus cases, although concerns over its impact on the global economy persisted.
  • Spot gold   was down 0.1% to $1,566.31 per ounce at 1059 GMT, having touched its lowest since Feb. 6 at $1,561.16 earlier. U.S. gold futures  were flat at $1,569.60.
  • Oil prices rose 3% on Wednesday as China reported its lowest daily number of new coronavirus cases since late January, stoking investor hopes that fuel demand in the world’s second-largest oil consumer may begin to recover.
  • Brent crude was up $1.82, or 3.3%, at $55.83 per barrel at 10:42 a.m. EST (1542 GMT). U.S. West Texas Intermediate (WTI) rose $1.40 a barrel, or 2.8%, to $51.34 a barrel.

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