Market Roundup
•US Philadelphia Fed Manufacturing Index (Jan): 12.6, -1.6 forecast, -8.8 previous
•Canada Wholesale Sales (MoM) (Nov): -1.8%, 0.1% forecast, 0.4% previous
•US NY Empire State Manufacturing Index (Jan): 7.7, 0.8 forecast, -3.7 previous
•US Philly Fed Employment (Jan): 9.7, 13.0 previous
•US Continuing Jobless Claims: 1,884K, 1,890K forecast, 1,903K previous
•US Export Price Index (MoM) (Nov): 0.5%, 0.2% forecast, 0.0% previous
•US Import Price Index (MoM) (Nov): 0.4%, -0.1% forecast, 0.0% previous
•Canada Manufacturing Sales (MoM) (Nov): -1.2%, -1.1% forecast, -1.0% previous
•US Philly Fed Business Conditions (Jan): 25.5, 38.1 previous
•US Philly Fed New Orders (Jan): 14.4, 5.7 previous
•US Philly Fed Prices Paid (Jan): 46.9, 49.3 previous
•US Philly Fed CAPEX Index (Jan): 30.3, 29.1 previous
•US Jobless Claims 4-Week Avg.: 205.0K, 211.5K previous
•US Export Price Index (YoY) (Nov): 3.3%, 3.8% previous
•US Import Price Index (YoY) (Nov): 0.1%, 0.3% previous
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Economic Data (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro slipped lower lower on Thursday after data showed that the number of Americans filing new applications for unemployment benefits unexpectedly fell last week.Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 198,000 for the week ended January 10, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.24% to 99.31, and reached 99.49, the highest since December 2.The euro fell 0.25% to $1.1613, and got to $1.1592, also the lowest since December 2. Immediate resistance can be seen at 1.1650(50%fib), an upside break can trigger rise towards 1.1705(SMA20).On the downside, immediate support is seen at 1.1579(38.2%fib), a break below could take the pair towards 1.1563(Lower BB).
GBP/USD: Sterling edged lower against dollar on Thursday as stronger greenback offset upbeat UK GDP data.Dollar climbed after data showed that the number of Americans filing new applications for unemployment benefits unexpectedly fell last week.Separate data showed, Britain’s economy expanded more than expected in November, supported by a return to full production at Jaguar Land Rover following a cyberattack that disrupted the carmaker and its suppliers.Gross domestic product rose 0.3% month-on-month the fastest pace since June after contracting 0.1% in October, official data showed on Thursday. The pound was down 0.05% at $1.3443. Immediate resistance can be seen at 1.3445(38.2%fib), an upside break can trigger rise towards 1.3488(Jan 12th high).On the downside, immediate support is seen at 1.3362(50%fib), a break below could take the pair towards 1.3324(Lower BB).
USD/CAD: The Canadian dollar weakened slightly against its U.S. counterpart on Thursday as oil prices tumbled and investors weighed downbeat domestic economic data.The price of oil , one of Canada's major exports, fell 4.9% to $58.97 a barrel as concerns eased over U.S. military action against Iran and potential oil supply disruptions. Canadian home sales fell 2.7% in December from November, while they were down 4.5% year-over-year without seasonal adjustment. Separate data for November showed wholesale trade and factory sales down 1.8% and 1.2% respectively. The loonie was trading 0.1% lower at 1.3895 per U.S. dollar, after moving in a range of 1.3878 to 1.3919. On Friday, the currency touched a five-week low at 1.3920. 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 Japanese yen weakened on concerns that Japanese Prime Minister Sanae Takaichi will have more leeway to introduce more fiscally expansionist policie.Takaichi’s plan to dissolve the lower house and call a snap election has fueled speculation, triggering a recent selloff in the yen and Japanese government bonds.Early election fears have raised fiscal concerns over Japan’s heavy debt, pushing the yen toward intervention levels and complicating the Bank of Japan’s rate outlook.Earlier this week, Finance Minister Satsuki Katayama said she and U.S. Treasury Secretary Scott Bessent discussed concerns over the yen’s “one-sided depreciation” during a bilateral meeting.The yen has fallen nearly 5% against the dollar since Sanae Takaichi became prime minister in October, as investors worry about her spending plans. Immediate resistance can be seen at 159.23(23.6%fib) an upside break can trigger rise towards 159.68Higher BB) .On the downside, immediate support is seen at 157.54(38.2%fib) a break below could take the pair towards 157.10(SMA20).
Equities Recap
European shares hit a record high on Thursday, led by tech and financials amid upbeat earnings and signs of strength in Germany’s economy.
UK's benchmark FTSE 100 closed up by 0.54 percent, Germany's Dax ended up by 0.26 percent, France’s CAC finished the day down by 0.21 percent.
U.S. stocks climbed Thursday after two-day losses, led by Morgan Stanley and Goldman Sachs on strong earnings, while TSMC’s stellar results lifted U.S. chipmaker shares.
Dow Jones closed down by 0.60 % percent, S&P 500 closed down by 0.26 % percent, Nasdaq settled up by 0.25% percent
Commodities Recap
Gold prices declined on Thursday as weaker-than-expected U.S. weekly jobless claims data boosted the dollar, while U.S. President Donald Trump's moderated tone on Iran further weighed on safe-haven demand for the metal.
Spot gold was down 0.1%at $4,614.97 per ounce, as of 11:10 a.m. ET (1610 GMT). Bullion hit a record $4,642.72 on Wednesday. U.S. gold futures for February delivery fell 0.3%to $4,619.80.
Oil prices fell about 4% on Thursday, ending a five-day rally, after Trump indicated easing of Iran protests, easing fears of military action and supply disruptions.
Brent futures settled down $2.76 or 4.15%, at $63.76 a barrel. U.S. West Texas Intermediate crude fell $2.83, or 4.56%, to $59.19.
