Market Roundup
• US Redbook (YoY) 6.7%, 7.1% previous
• US IBD/TIPP Economic Optimism (Feb) 48.8, 47.9 forecast, 47.2 previous
Looking Ahead Economic Data (GMT)
•00:30 Japan au Jibun Bank Services PMI (Jan)53.4 forecast, 53.4 previous
•00:30 Japan Manufacturing & Services PMI (Jan) 52.80 forecast, 52.80 previous
•01:45 China Caixin Services PMI (Jan) 51.9 forecast, 52.0 previous
Looking Ahead Events And Other Releases (GMT)
• No events ahead
Currency Summaries
EUR/USD : The euro edged higher on Tuesday as investors awaited the European Central Bank’s policy decision later this week. The ECB is due to announce its decision on Thursday, with markets widely expecting interest rates to remain unchanged. At its previous meeting, the central bank kept borrowing costs on hold for a fourth consecutive time, maintaining the Deposit Facility rate at 2%, the Main Refinancing Operations rate at 2.15%, and the Marginal Lending Facility rate at 2.4%. Policymakers reiterated their commitment to anchoring inflation at the 2% medium-term target and stressed that future rate moves will be decided on a meeting-by-meeting basis. Immediate resistance can be seen at 1.1942(38.2%fib), an upside break can trigger rise towards 1.2000(Higher BB).On the downside, immediate support is seen at 1.1804 (38.2%fib), a break below could take the pair towards 1.1746(50%fib).
GBP/USD: The pound edged higher on Tuesday as trades positioned ahead of the Bank of England's interest rate decision on Thursday. Market participants expect the Bank of England to hold rates at 3.75% on Thursday before cutting borrowing costs once or twice later in the year.Britain's inflation rate rose more than expected to 3.4% in December, the highest in the Group of Seven most affluent nations, although the BoE expects it will drop to its 2% target by around the middle of the year.Recent data, including stronger-than-expected GDP figures for November and a bounce in retail sales in December and business activity in January, has helped push the pound higher this year against the dollar and euro. Immediate resistance can be seen at 1.3848(38.2%fib), an upside break can trigger rise towards 1.3889(Higher BB).On the downside, immediate support is seen at 1.3651(Daily low), a break below could take the pair towards 1.3572(50%fib).
USD/CAD: The Canadian dollar firmed on Tuesday as oil prices rose and the greenback posted broad-based declines, but the loonie's move was limited ahead of jobs data due later this week.Canada's employment report for January, due on Friday, is expected to show the economy adding 7,000 jobs. Last week, the Bank of Canada left its benchmark interest rate unchanged at 2.25% and Governor Tiff Macklem said a high level of trade uncertainty made it difficult to predict when and how rates might next change.The loonie was trading 0.3% higher at 1.3642 per U.S. dollar, or 73.30 U.S. cents, after trading in a range of 1.3637 to 1.3685. Immediate resistance can be seen at 1.3934(50%fib), an upside break can trigger rise towards 1.3961 (Higher BB).On the downside, immediate support is seen at 1.3851(61.8%fib), a break below could take the pair towards 1.3802(SMA 20).
USD/JPY: The U.S. dollar edged higher on Tuesday as upbeat economic data and shifting expectations for Federal Reserve policy offset concerns over another potential government shutdown. The greenback has strengthened in recent days following Kevin Warsh’s nomination as the next Fed chair, with markets viewing him as less inclined to push for rapid rate cuts. Adding to the momentum, U.S. manufacturing activity returned to expansion, with the ISM PMI rising to 52.6 in January, its highest level since August 2022. However, the closely watched January jobs report will be delayed due to the partial federal government shutdown. Immediate resistance can be seen at 156.52(38.2%fib) an upside break can trigger rise towards 157.61(Dec 22nd high) .On the downside, immediate support is seen at 154.54(50%fib) a break below could take the pair towards 152.28 (Lower BB).
Equities Recap
Europe’s benchmark share index inched up to another record close on Tuesday, as gains in commodity-linked stocks were largely offset by a sharp selloff in software and advertising shares.
UK's benchmark FTSE 100 closed down by 0.26 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day down by 0.02 percent.
U.S. stocks dipped on Tuesday, while gold and silver bounced higher after their latest sell-off..
Dow Jones closed down by 0.34 % percent, S&P 500 closed down by 0.84 % percent, Nasdaq settled down by 1.43% percent
Commodities Recap
Gold jumped on Tuesday following steep losses over the past two sessions, with bullion heading for its biggest daily advance since November 2008 as buyers stepped in on resilient fundamentals..
Spot gold rose 5.2% to $4,906.82 per ounce by 01:31 p.m. ET (1831 GMT), recovering from Monday's low of $4,403.24 but still trading below last week's record high of $5,594.82.
Oil gained roughly 2% after reports that the U.S. intercepted an Iranian drone and armed boats closed in on a U.S.-flagged vessel in the Strait of Hormuz, fueling worries that diplomatic efforts could falter.
Brent futures rose $1.03, or 1.6%, to settle at $67.33 per barrel, while U.S. West Texas Intermediate crude rose $1.07, or 1.7%, to settle at $63.21.
U.S. gold futures for April delivery settled 6.1% higher at $4,935 per ounce.
