Market Roundup
• US ADP Employment Change Weekly 8.00K, 11.25K previous
• US 3-Month Bill Auction 3.590%, 3.570% previous
• US 6-Month Bill Auction 3.520%, 3.490% previous
• US 52-Week Bill Auction 3.380% previous
• US API Weekly Crude Oil Stock 5.270M previous
Looking Ahead Economic Data (GMT)
• 02:00New Zealand RBNZ Offshore Holdings (Dec) 58.00% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro firmed against dollar on Tuesday as threats from the White House to Europe over the future of Greenland triggered a broad selloff across U.S. stocks and government bonds, and drove the euro higher. On Monday, U.S. President Donald Trump's renewed tariff threats against European allies triggered a repeat of the so-called "Sell America" trade that emerged after last year's "Liberation Day" tariff announcement in April, with stocks, Treasury bonds and the dollar all declining.Investors were dumping dollar assets on "fears of prolonged uncertainty, strained alliances, a loss of confidence in U.S. leadership, potential retaliation and an acceleration of de-dollarisation trends.The euro rose 0.6% to $1.1719. Immediate resistance can be seen at 1.1732(38.2%fib), an upside break can trigger rise towards 1.1806(23.6%fib).On the downside, immediate support is seen at 1.1701(SMA 20), a break below could take the pair towards 1.1666(50%fib).
GBP/USD: Sterling rose on Tuesday as dollar weakened after threats from the White House to Europe over the future of Greenland triggered a broad selloff in greenback. On the data front,Britain's jobs market weakened in the run-up to November's budget announcement by finance minister Rachel Reeves and wage growth slowed, data showed on Tuesday, potentially easing the Bank of England's worries about persistent inflation pressures.A measure of payrolls data from the tax office showed a drop of 43,000 in December from November, the biggest monthly fall since November 2020 although there have been bigger preliminary estimates of falls in that period which were subsequently revised up, an Office for National Statistics official said.A fall of 38,000 first reported for November was revised to show a decline of 33,000 people in payrolled employment. Immediate resistance can be seen at 1.3460(38.2%fib), an upside break can trigger rise towards 1.3496(Jan 12th high).On the downside, immediate support is seen at 1.3370(50%fib), a break below could take the pair towards 1.3331(Lower BB).
USD/CAD: The Canadian dollar strengthened to nearly a two-week high against its U.S. counterpart on Tuesday as investors' negative reaction to the threat of a fresh U.S. trade clash with Europe weighed on the greenback. Canadian Prime Minister Mark Carney said his country strongly opposed any tariffs being imposed by the U.S. to further President Donald Trump's aim of acquiring Greenland. Carney is trying to foster a new global trading order by working more closely with China and inking smaller trade deals, but faces constraints from Canada's still overwhelming economic dependency on the U.S. market.Canada sends the majority of its exports to the U.S., including oil. U.S. crude oil futures settled 1.8% higher at $60.34 a barrel on the temporary suspension of output at Kazakhstan's oil fields and expectations of firmer global economic growth that could drive fuel demand. 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 1.3818(Daily low), a break below could take the pair towards 1.3802(SMA 20).
USD/JPY: The U.S. dollar dipped against the yen on Tuesday as renewed trade-war fears weighed on risk sentiment and triggered selling of U.S. assets. Trump’s tariff threats sparked a strong backlash in Europe and raised doubts over the outlook for trade agreements with the region. Attention now shifts to Davos, where Trump is due to meet global business leaders on Wednesday, with his presence set to dominate the annual gathering in Switzerland. Meanwhile, investors are watching next month’s election, as Prime Minister Sanae Takaichi seeks support for higher spending, tax cuts, and a new security strategy to accelerate defence expansion. The Bank of Japan meets on Friday and, while a rate hike is unlikely, policymakers may hint at tightening as early as April. Immediate resistance can be seen at 159.21(23.6%fib) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.00(Psychological level) a break below could take the pair towards 157.11 (SMA 20).
Equities Recap
European shares hit their lowest level in nearly two weeks on Tuesday as growing concern over President Donald Trump’s Greenland-related tariff threats weighed on market sentiment.
UK's benchmark FTSE 100 closed down by 0.67 percent, Germany's Dax ended up by 1.03 percent, France’s CAC finished the day down by 0.61 percent.
All three major Wall Street indexes closed Tuesday with their largest single-day losses in three months, amid a broad selloff driven by concerns that President Donald Trump’s new tariff threats against Europe could reignite market volatility.
Dow Jones closed down by 1.76 % percent, S&P 500 closed down by 2.06 % percent, Nasdaq settled down by 2.39% percent
Commodities Recap
Gold surged to a fresh record on Tuesday, breaking above the $4,700-per-ounce mark as rising geopolitical tensions fueled safe-haven demand, while silver topped $95 for the first time.
Spot gold gained about 2% to $4,757.33 per ounce by 01:52 p.m. ET (18:52 GMT), after reaching a record high of $4,765.93 earlier in the day. U.S. gold futures for February delivery settled 3.7% higher to $4,765.80/oz.
Oil prices climbed on Tuesday as temporary production suspensions at Kazakhstan’s oil fields and expectations of stronger global growth boosted demand outlooks.
Brent futures settled 98 cents, or 1.53%, higher at $64.92 a barrel. The U.S. West Texas Intermediate crude contract for February , which expires on Tuesday, gained 90 cents, or 1.51%, at $60.34
