Market Roundup
• US ADP Employment Change Weekly: 7.75K, 8.00K previous
•Canada Wholesale Sales (MoM) (Dec): 2.1%, -1.8% previous
• US Redbook (YoY): 7.1%, 5.5% previous
• US S&P/CS HPI Composite - 20 n.s.a. (MoM) (Nov): 0.0%, -0.3% previous
• US House Price Index (YoY) (Nov): 1.9%, 1.8% previous
• US S&P/CS HPI Composite - 20 s.a. (MoM) (Nov): 0.5%, 0.4% previous
• US House Price Index (Nov): 439.3, 436.8 previous
• US Richmond Services Index (Jan): -3, -6 previous
• US Richmond Manufacturing Shipments (Jan): -5, -11 previous
• US Dallas Fed Services Revenues (Jan): 7.8, 0.0 previous
Looking Ahead Economic Data (GMT)
• 00:30 Australia CPI (YoY) (Q4): 3.0% previous
• 00:30 Australia CPI (QoQ) (Q4): 1.3% previous
• 00:30 Australia Trimmed Mean CPI (QoQ) (Q4): 0.8% forecast, 1.0% previous
• 00:30 Australia Trimmed Mean CPI (YoY) (Q4): 3.0% previous
• 00:30 Australia Weighted Mean CPI (QoQ) (Dec): 0.3% previous
• 00:30 Australia Weighted Mean CPI (YoY) (Dec): 3.4% forecast, 3.4% previous
• 00:30 Australia CPI Index Number (Q4): 100.10 previous
• 00:30 Australia Weighted Mean CPI (YoY) (Dec): 3.50% forecast, 3.40% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD : The euro rose higher on Tuesday as dollar weakened on uncertainty caused by President Donald Trump’s latest tariff moves on South Korea.Traders were still recovering from last week's bout of U.S.-EU trade uncertainty sparked by a dispute over Greenland, while also weighing the long-term implications of U.S. tariffs being used as a bargaining chip in an unrelated matter. The Federal Reserve is scheduled to deliver its latest policy decision on Wednesday where no move in interest rates is expected. The meeting will, however, be overshadowed by the Trump administration's criminal investigation of chair Jerome Powell, whose term ends in May. The Fed is expected to leave borrowing costs unchanged, but concerns about its independence are likely to be centre stage. Immediate resistance can be seen at 1.1934(23.6%fib), an upside break can trigger rise towards 1.2000(Psychological level).On the downside, immediate support is seen at 1.1827 (38.2%fib), a break below could take the pair towards 1.1767(50%fib).
GBP/USD: The pound rose higher on Tuesday as the dollar weakened ahead of the start of the two-day Federal Reserve policy meeting.The dollar has been under intense pressure this month from a range of factors including Washington's desire for a weaker currency and uncertainty over U.S. President Donald Trump's policymaking.The Trump administration's criminal investigation of Powell and an evolving attempt to fire Fed Governor Lisa Cook will also be in focus during the Fed's two-day policy meeting which starts on Tuesday.Figures from the British Retail Consortium on Tuesday showed that prices at major British retailers rose at the fastest pace in almost two years in January. Immediate resistance can be seen at 1.3755(23.6%fib), an upside break can trigger rise towards 1.3583(Higher BB).On the downside, immediate support is seen at 1.3667(Daily low), a break below could take the pair towards 1.3616(38.2%fib).
USD/CAD: The Canadian dollar rose against its U.S. counterpart on Tuesday as higher oil price and stronger greenback weighed on Canadian dollar. The dollar has been under intense pressure this month from a range of factors including Washington's desire for a weaker currency and uncertainty over U.S. President Donald Trump's policymaking. Oil prices rose by more than $1 a barrel on Tuesday as producers reeled from a winter storm that hobbled crude production and drove U.S. Gulf Coast crude exports to zero over the weekend. The U.S. Federal Reserve will commence its two-day meeting, with a decision scheduled on Wednesday that could set the tone for global markets this week.Meanwhile, the Bank of Canada is set for its interest-rate decision on Wednesday. Economists polled by Reuters expect the central bank to keep policy rate unchanged at 2.25%. Immediate resistance can be seen at 1.3950 (50%fib), an upside break can trigger rise towards 1.3965 (Higher BB).On the downside, immediate support is seen at 1.3872(61.8%fib), a break below could take the pair towards 1.3799(SMA 20).
USD/JPY: The U.S. dollar slipped lower on Tuesday as traders remained on alert to the prospect of a coordinated currency intervention by authorities in the U.S. and Japan. The yen has dominated currency market attention, surging as much as 3% in two sessions following speculation over coordinated rate checks by the U.S. and Japan typically seen as a warning sign ahead of intervention. In an analysis released on Tuesday, the BOJ said the weak yen is having a growing impact on Japan’s inflation not only by raising import costs but also through second-round effects such as the pass-through of labour costs. Data on Tuesday showed a key indicator of Japan’s services sector prices rose 2.6% year-on-year in December, underscoring how labour shortages are driving firms to pass on rising costs.The increase in the services producer price index, which tracks the price companies charge each other for services, followed a 2.7% gain in November, Bank of Japan data showed. Immediate resistance can be seen at 154.69(38.2%fib) an upside break can trigger rise towards 155.84(50%fib) .On the downside, immediate support is seen at 153.23(50%fib) a break below could take the pair towards 152.80 (Lower BB).
Equities Recap
European equities closed higher on Tuesday, buoyed by a wave of positive corporate developments that helped ease investor worries over recent trade tensions.
UK's benchmark FTSE 100 closed up by 0.58percent, Germany's Dax ended down by 0.15 percent, France’s CAC finished the day up by 0.27 percent.
The S&P 500 edged to a marginal record closing high on Tuesday, marking its fifth consecutive session of gains, as investor optimism ahead of upcoming megacap earnings was tempered by a mixed reaction to the latest corporate results and a sharp selloff in health insurer stocks.
Dow Jones closed down by 0.83 % percent, S&P 500 closed upby 0.41 % percent, Nasdaq settled up by 0.91% percent
Commodities Recap
Gold prices jumped more than 3% to scale an all-time high on Tuesday as persistent economic and geopolitical uncertainty drove investors to the safe-haven metal.
Spot gold hit a peak of $5,181.84 per ounce as of 03:57 p.m. EST (2057 GMT). Prices breached the key $5,000 mark for the first time on Monday.
U.S. gold futures for February delivery settled little changed at $5,082.60 per ounce.
Oil prices settled about 3% higher on Tuesday as producers grappled with the impact of a severe winter storm, which disrupted crude output and forced U.S. Gulf Coast crude exports to drop to zero over the weekend.
Brent crude futures settled up $1.98 or 3.02%, at $67.57 a barrel. U.S. West Texas Intermediate crude settled up $1.76 or 2.9%, at $62.39 a barrel.
