Market Roundup
•Canada Core CPI (MoM) (Dec): -0.4%, -0.1% previous.
•Canada Core CPI (YoY) (Dec): 2.8%, 2.9% previous.
•Canada CPI (MoM) (Dec): -0.2%, -0.4% forecast, 0.1% previous.
•Canada Common CPI (YoY) (Dec): 2.8%, 2.8% forecast, 2.8% previous.
•Canada CPI (YoY) (Dec): 2.4%, 2.2% forecast, 2.2% previous.
•Canada Trimmed CPI (YoY) (Dec): 2.7%, 2.7% forecast, 2.9% previous.
•Canada Median CPI (YoY) (Dec): 2.5%, 2.7% forecast, 2.8% previous.
•Canada New Motor Vehicle Sales (MoM): 150.8K, 165.6K previous.
•French 12-Month BTF Auction: 2.085%, 2.098% previous.
• French 3-Month BTF Auction: 2.019%, 2.026% previous.
Looking Ahead Economic Data (GMT)
•00:00 AustraliaMI Leading Index (MoM) (Dec) -0.0% previous.
•02:00 New Zealand RBNZ Offshore Holdings (Dec) 58.00% previous.
Looking Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro firmed on Monday as dollar weakened after U.S. President Donald Trump threatened to slap extra tariffs on eight European nations until the U.S. was allowed to buy Greenland. Trump said he would impose additional 10% import levies from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 if no deal was reached.Major European Union states condemned the tariff threats over Greenland as blackmail, and France proposed responding with a range of previously untested economic countermeasures.The EU's options include a package of its own tariffs on 93 billion euros ($108 billion) of U.S. imports that was suspended for six months in early August, and measures under an Anti-Coercion Instrument that could hit U.S. services trade or investments. Immediate resistance can be seen at 1.1649(Jan 15th high), an upside break can trigger rise towards 1.1689(50%fib).On the downside, immediate support is seen at 1.1559(Lower BB), a break below could take the pair towards 1.1496(23.6%fib).
GBP/USD: Sterling rose on Monday as the dollar slipped following President Trump’s latest tariff threats against Europe over Greenland. Trump said over the weekend he would impose an additional 10% import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain until the U.S. is allowed to buy Greenland.European leaders rushed to avert a trade war, stepping up efforts to dissuade Trump from imposing tariffs while preparing retaliatory measures if the duties proceed. UK Prime Minister Keir Starmer urged calm talks on Greenland on Monday as European allies moved to avert new tariffs while preparing retaliatory measures.Focus now shifts to a heavy data week, including wages, jobs, inflation, public finances and retail sales.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 a near one-week high against its U.S. counterpart on Monday as the greenback posted broad-based declines and domestic data showed inflation accelerating in December. Consumer prices in Canada rose 2.4% year-over-year last month, largely due to the base effect of the previous year's sales tax break, but closely watched core measures of inflation cooled for the third consecutive month. Analysts polled by Reuters had forecast inflation would hold at November's 2.2% rate. The price of oil , one of Canada's major exports, was up 0.2% at $59.57 a barrel as civil unrest in Iran subsided. The loonie was trading 0.4% higher at 1.3865 per U.S. dollar , after touching its strongest intraday level since last Tuesday at 1.3860. Immediate resistance can be seen at 1.3953 (38.2%fib), an upside break can trigger rise towards 1.4000 (Psychological level).On the downside, immediate support is seen at 1.3866(38.2%fib), a break below could take the pair towards 1.3807(Lower BB).
USD/JPY: The U.S. dollar dipped against ye on Monday as escalating geopolitical tensions after U.S. President Donald Trump threatened fresh levies on Europe sent the dollar lower .President Trump announced fresh tariffs on eight European countries, imposing an initial 10% levy with plans to raise it to 25% from June 1, reigniting concerns over transatlantic trade relations.The European Union confirmed that previously suspended retaliatory tariffs will be reinstated from February 6, signaling a firmer trade response stance, although EU diplomats indicated there are currently no plans to introduce countermeasures specifically tied to the Greenland issue. Data on Japanese machinery orders in November showed an 11% month-on-month decline, more than double what economists had forecast in a Reuters poll.The Bank of Japan meets on Friday and, while no rate hike is expected this time, policymakers could flag a tightening as soon 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 stocks posted their biggest one-day fall in two months on Monday after President Trump threatened fresh tariffs on eight European countries linked to the Greenland issue.
UK's benchmark FTSE 100 closed down by 0.39percent, Germany's Dax ended down by 1.34 percent, France’s CAC finished the day down by 1.78 percent.
Wall Street ended lower on Monday after U.S. President Donald Trump threatened additional tariffs on goods imported from European nations that oppose his planned takeover of Greenland.
Dow Jones closed down by 017 % percent, S&P 500 closed down by 0.06 % percent, Nasdaq settled down by 0.06% percent
Commodities Recap
Gold hit record highs on Monday, driven by a flight to safety after U.S. President Donald Trump warned of extra tariffs on some European countries in a dispute over Greenland.
Spot gold jumped 1.7% to $4,672.49 an ounce by 12:05 p.m. ET (1705 GMT), after scaling a record peak of $4,689.39.
U.S. gold futures for February delivery advanced 1.8% to $4,677.70 an ounce
Oil prices held steady on Monday as easing unrest in Iran lowered the risk of a U.S. attack disrupting supplies, while investors shifted focus to the Greenland standoff.
Brent crude was up one cent, or 0.02%, at $64.14 a barrel by 1946 GMT. West Texas Intermediate for February was flat on the previous day's settlement at $59.44 a barrel..
