U.S. Markets Update On February 15th, 2020

U.S. Markets Update On February 15th, 2020

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Dollar dips on virus concerns and consumer data, Wall street dips, Gold eases, Oil prices rise more than 1%, on course for weekly gain - February 15th, 2020.

Market Roundup  

• US Jan Core Retail Sales (MoM) 0.3%, 0.3% forecast, 0.6% previous
• US Jan Export Price Index (MoM) 0.7%    , -0.1% forecast, -0.2% previous
• US Export Price Index (YoY) 0.5%,-0.7% previous
• US Jan Import Price Index (MoM)  0.0%,-0.2% forecast , 0.2% previous
• US Jan Retail Control (MoM)  0.0%,0.3% forecast, 0.2% previous
• US Jan Retail Sales (MoM ) 0.3%,0.3%    forecast, 0.2% previous
• US Jan Capacity Utilization Rate 76.8%,76.8% forecast, 77.1% previous
• US Jan Industrial Production (MoM)  -0.3%,-0.2% forecast, -0.4% previous
• US Jan Manufacturing Production (MoM)  -0.1%,-0.1% forecast, 0.1% previous
• US Dec Business Inventories (MoM)  0.1%,0.1% forecast, -0.2% previous
• US Feb Michigan 5-Year Inflation Expectations 2.30%,2.50% previous
• US Feb Michigan Consumer Expectations 92.6, 90.3 forecast, 90.5 previous
• US Feb Michigan Current Conditions 113.8, 115.0 forecast, 114.4 previous

Looking Ahead - Events, Other Releases (GMT) 

• No data ahead

Looking Ahead - Events, Other Releases (GMT)    

• No significant events

Currency Summaries

EUR/USD: The euro edged higher against the greenback on Friday, as greenback dipped after U.S. stocks declined from record highs, though concerns about growth in the eurozone are expected to keep weighing on the single currency. Anxiety about the impact of the coronavirus on the European economy this week helped send the euro to its lowest levels against the dollar in 2-1/2 years. The euro   fell to $1.0826, the lowest since May 2017, before rebounding to $1.0856. It has fallen from $1.1095 on Feb. 3.Immediate resistance can be seen at 1.0879 (5 DMA), an upside break can trigger rise towards 1.0952 (9 DMA).On the downside, immediate support is seen at 1.0820 (Lower BB), a break below could take the pair towards 1.0800(Psychological level).

GBP/USD: Sterling strengthened against dollar on Friday as traders stuck with the view that the new British finance minister would unveil a more expansionary budget next month.With growth weak in Britain, many economists and investors want to see the UK expand fiscal spending to help weather the impact of Britain’s departure from the European Union at the end of last month. The pound rose marginally on Friday to $1.3048, retaining most of its gains from Thursday’s move. Immediate resistance can be seen at 1.3062 (50 DMA), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside, immediate support is seen at 1.2989 (11 DMA), a break below could take the pair towards 1.2911(100 DMA).

USD/CAD: The Canadian dollar rose on Friday against its U.S. counterpart, adding to this week's gains as the price of oil, one of Canada's major exports, rose on hopes the coronavirus outbreak would not cause long-lasting economic damage. U.S. crude oil futures were up 1.6% at $51.94 at $52.25 barrel, with oil on track for its first weekly gain since early January. At (1932 GMT), the Canadian dollar   was trading 0.2% higher at 1.3244 to the greenback. The currency touched its strongest intraday level since Feb. 3 at 1.3236.For the week, the loonie was on track to rise 0.5%. Immediate resistance can be seen at 1.3270 (11 DMA), an upside break can trigger rise towards 1.3000 (Psychological level).On the downside, immediate support is seen at 1.3235 (Daily low), a break below could take the pair towards 1.3206 (21 DMA).

USD/JPY: The dollar declined against the Japanese yen on Friday, as fresh doubts about the scale of the coronavirus outbreak supported demand for safe-haven currencies.  Officials in Hubei rattled financial markets on Thursday by announcing a sharp increase in new infections and deaths from the coronavirus, reflecting the adoption of a new method to diagnose the illness. Uncertainty about the real extent of the epidemic is likely to discourage investors from taking on excessive risk until there is sufficient evidence that its spread has slowed. 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 109.53 (11 DMA), a break below could take the pair towards 109.00 (Psychological level).

Equities Recap

  • European share ticked higher on Friday, even as investors debated whether China’s coronavirus outbreak would cause long-lasting damage to the global economy.
  • UK's benchmark FTSE 100 closed down 0.58 percent , Germany's Dax ended down by 0.01 percent, France’s CAC finished the day down by 0.39 percent.
  • U.S. stock index futures rose on Friday, lifted by a handful of positive earnings reports, while investors kept a close watch on retail sales data and assessed the economic fallout of the coronavirus outbreak.
  • At (GMT 20:20), Dow Jones was last trading down by 0.25 percent, S&P 500 was last trading down by 0.02  percent, Nasdaq was last trading up by 0.03 percent.

Treasuries Recap

  • U.S. Treasury yields declined on Friday as investors bought safe-haven government debt ahead of a long holiday weekend after soft retail sales data and on continuing caution about the coronavirus epidemic in China.
  • The benchmark 10-year yield was down 3 basis points in morning trading at 1.5866%.

Commodities Recap

  • Gold dropped off a more than one-week high on Friday as hopes for global measures to counter the coronavirus outbreak increased appetite for equities, though the metal remained on track for a weekly gain.
  • Spot gold was down 0.1% at $1,575.31 an ounce at 0846 GMT, having touched its highest since Feb. 4 at $1,577.89.U.S. gold futures were flat at $1,579.
  • Oil prices rose on Friday and were on track for their first weekly gain since early January as investors bet the economic impact of the coronavirus would be short-lived and hoped for further Chinese central bank stimulus to tackle any slowdown.
  • Brent crude was up 78 cents or 1.4% at $57.12 a barrel by 1158 GMT. It has risen 4.8% since last Friday, its first weekly increase in six weeks.U.S. West Texas Intermediate (WTI) was 70 cents or 1.4% higher at $52.12 a barrel, up 3.6% for the week.

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