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America’s Roundup: Dollar eases off four-week peak, Wall Street closes higher, Gold firms, Oil gains on stimulus optimism ahead of Biden inauguration-January 20th,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 Canadians7.58B,  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 -0.621%,-0.627% previous

Looking Ahead - Economic Data (GMT) 

•07:00 China PBoC Loan Prime Rate3.85% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euros strengthened on Tuesday as the dollar remained under pressure, with prospects for more stimulus buoying euro. The speech by Yellen, President-elect Joe Biden’s nominee to run the Treasury Department, will likely give an indication about the direction of the dollar. The common currency was last up 0.43% at 1.2138.Immediate resistance can be seen at 1.2137 (38.2%fib), an upside break can trigger rise towards 1.2229 (23.6%fib).On the downside, immediate support is seen at 1.2053 (50%fib), a break below could take the pair towards  1.1980 (61.8% fib).

GBP/USD: The pound strengthened   on Tuesday as dollar and U.S. Treasury bonds dipped on Tuesday as Janet Yellen used her Treasury secretary confirmation hearing to bolster the case for additional fiscal stimulus. Yellen, a former Federal Reserve chair, also urged lawmakers to "act big" on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden. Immediate resistance can be seen at 1.3649 (Daily high), an upside break can trigger rise towards 1.3688 (23.6%fib).On the downside, immediate support is seen at 1.3613(38.2%fib), a break below could take the pair towards 1.3553 (50% fib).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, rebounding from a one-week low the day before, as the prospect of U.S. stimulus bolstered investor sentiment. On Monday, the loonie was pressured by U.S. President-elect Joe Biden's expected move to cancel the Keystone XL pipeline, touching its weakest since Jan. 11 at 1.2799. The Canadian dollar rose 0.2% to 1.2727 per U.S. dollar, having traded in a range of 1.2719 to 1.2758.Immediate resistance can be seen at 1.2735(38.2%fib), an upside break can trigger rise towards 1.2769 (50%fib).On the downside, immediate support is seen at 1.2719 (5DMA), a break below could take the pair towards 1.2694 (23.6%fib).

                                    

USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as investors cheered comments from U.S. Treasury Secretary nominee Janet Yellen on the need for major fiscal stimulus. The greenback has been helped in January by rising U.S. Treasury yields and some investor caution about the strength of the global economic recovery from the coronavirus pandemic. The dollar gained 0.2% against the yen to 103.86 yen .Strong resistance can be seen at 103.93 (38.2%fib), an upside break can trigger rise towards 104.23 (23.6%fib).On the downside, immediate support is seen at 103.80 (50%fib), a break below could take the pair towards 103.67 (50%fib).

Equities Recap

European stocks slipped on Tuesday, dragged down by retailers, travel and banking stocks, as the possible extension of Germany’s coronavirus lockdown raised concerns about the damage to earnings and economic growth

UK's benchmark FTSE 100 closed down by 0.11 percent, Germany's Dax ended down  by 0.24 percent, France’s CAC finished the day down by 0.33 percent.

Wall Street’s main indexes rose on Tuesday as U.S. Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package before lawmakers to help the world’s largest economy ride out a pandemic-driven slump.

Dow Jones closed up  by  0.38% percent, S&P 500 closed by 0.81% percent, Nasdaq settled down by 1.53%  percent.

Treasuries Recap

U.S. Treasury yields fell slightly on Tuesday after U.S. Treasury Secretary nominee Janet Yellen said during Senate confirmation testimony that tax cuts enacted in 2017 for large corporations should be repealed.

Benchmark 10-year yields US10YT-RR traded just off their session low of 1.090%, falling from earlier slight gains.

Commodities Recap

Gold held on to gains on Tuesday as the dollar remained under pressure, with prospects for more stimulus buoying bullion's appeal as an inflation hedge.

Spot gold  was up 0.2% at $1,840.38 per ounce at 02:01 p.m. EST (1901 GMT), recovering from its lowest since Dec. 2 at $1,809.90 hit on Monday.

Oil prices climbed with U.S. stock markets on Tuesday ahead of Joe Biden’s inauguration as U.S. president on optimism that more government stimulus will eventually lift global economic growth.

Brent futures for March delivery rose $1.15, or 2.1%, to settle at $55.90 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 62 cents, or 1.2%, to settle at $52.98. Front-month February WTI futures expire on Wednesday.

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