Dollar firms as Sino-U.S. trade deal day draws near, Wall street rises, Gold slips as risk-on sentiment weighs, Oil falls 1% - January 14th, 2020
• Dollar nudges higher ahead of Wednesday’s trade deal signing
• US Dec CB Employment Trends Index 109.70, 110.50 previous
• US Dec Federal Budget Balance -13.3B, -196.5B forecast, -209.0B previous
Looking Ahead - Economic Data (GMT)
• 21:45 New Zealand Nov Building Consents (MoM) 2.1%,-1.1% previous
• 23:50 Japan Dec Bank Lending (YoY) 2.1% -1.1% previous
• 23:50 Japan Nov Current Account n.s.a. 1.423T, 1.817T previous
• 03:0 China Exports (YoY) 3.2%,-1.1 previous
• 03:0 China Embowered (YoY) 0.3% previous
• 09:00 China M2 Money Stock (YoY) 8.3% forecast, 8.2% previous
• 09:00 China New Loans 1,194.0B. 1,390.0B previous
Looking Ahead - Economic Data (GMT)
• 08 30: European Union ECB’s Mersch Speaks
EUR/USD: The euro edged higher against the U.S. dollar on Monday, as euro gained ahead of the expected signing of a Phase 1 China-U.S. trade deal. Tensions between the U.S. and Iran after the U.S. killing of a top Iranian general put investors on guard against risk last week . But with no further escalation in conflict and focus shifting towards this week’s trade deal. The euro was up 0.02 percent at $1.1135. An index that tracks the dollar versus a basket of six major currencies was up 0.03 at 97.35 on Monday. Immediate resistance can be seen at 1.1136 (Daily High), an upside break can trigger rise towards 1.1150 (9 DMA).On the downside, immediate support is seen at 1.1091 (50 DMA), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling declined against dollar on Monday, after data showed Britain’s economy grew at its weakest annual pace in more than seven years in November. The data covers a politically turbulent period in Britain and does not capture some private-sector surveys that suggested a recovery in sentiment after Prime Minister Boris Johnson’s election win on Dec. 12. The pound fell to $1.2988, down 0.01 percent on the day. Immediate resistance can be seen at 1.3059 (5 DMA), an upside break can trigger rise towards 1.3098 (11 DMA).On the downside, immediate support is seen at 1.2961 (50 DMA), a break below could take the pair towards 1.2900 (Psychological level).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, as oil prices steadied after a sharp decline last week and investors awaited a key business survey from the Bank of Canada. The Bank of Canada will release the winter issue of the Business Outlook Survey at 10:30 a.m. (1530 GMT), which could help guide interest rate expectations. U.S. crude oil futures were down 0.1% at $58.97 a barrel, trading in a narrow range as investors shifted their focus away from easing Mideast tensions to this week's scheduled signing of an initial U.S.-China trade deal. At (22:55 GMT), the Canadian dollar, was trading nearly unchanged at 1.3055 to the greenback. Immediate resistance can be seen at 1.3106 (Jan 9th High), an upside break can trigger rise towards 1.3169 (50 DMA).On the downside, immediate support is seen at 1.3021 (11 DMA), a break below could take the pair towards 1.3000 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Monday, as dollar was lifted by optimism over the planned signing this week of a U.S.-China trade deal. The U.S.-China Phase 1 agreement, due to be signed at the White House on Wednesday, marks the first step toward ending a damaging 18-month trade dispute between the world’s two largest economies. The dollar was last up 0.3% at 109.87 yen . Strong resistance can be seen at 109.92 (Daily high), an upside break can trigger rise towards 110.08 (Higher BB).On the downside, immediate support is seen at 109.30 (5 DMA), a break below could take the pair towards 108.93 (11 DMA).
- European shares fell on Monday as carmakers took a hit from a Chinese sales forecast while the London market outperformed after weak economic data raised expectations of a Bank of England rate cut.
- UK's benchmark FTSE 100 closed up by 0.39 percent, Germany's Dax ended down by 0.24 percent, France’s CAC finished the day down by 0.02 percent.
- U.S. stock indexes hit fresh record highs on Monday on optimism about the imminent signing of a preliminary U.S.-China trade deal as well as the start of the fourth-quarter corporate earnings season.
- Dow Jones closed up by 0.29 percent, S&P 500 ended up by 0.70 percent, Nasdaq finished up by 1.04 percent.
- U.S. Treasury yields climbed on Monday as investors shifted their focus from Middle East tensions to the expected signing of a trade deal between the United States and China.
- The benchmark 10-year yield was up 1.5 basis points in afternoon trading at 1.8423% as investors turned to riskier assets as U.S. corporations start to report fourth-quarter earnings this week.
- Gold prices fell on Monday as risk-on sentiment, bolstered by the upcoming signing of a preliminary U.S.-China deal and signs of de-escalation in the Middle East, dampened demand for safe-haven bullion.
- Spot gold fell 0.6% to $1,552.02 per ounce by 11:31 a.m. EST (1631 GMT), having fallen 1% to $1,546.27 earlier in the session.U.S. gold futures fell 0.5% to $1,552.60.
- Oil prices fell about 1% on Monday as Middle East tensions eased and investors turned their focus to lackluster seasonal demand following a bearish U.S. report last week showing a large gasoline stockbuild.
- Brent crude was down 64 cents at $64.34 per barrel at 9:59 a.m. CST (1559 GMT), while West Texas Intermediate (WTI) crude was down 73 cents at $58.31 a barrel.