Market Roundup
•Canada RMPI (YoY) (Dec) 6.4%, 7.2% previous
•Canada IPPI (YoY) (Dec) 4.9%, 5.9% previous
•Canada IPPI (MoM) (Dec) -0.6%, 0.3% forecast, 1.1% previous
•US Redbook (YoY) 5.5%, 5.7% previous
•Looking Ahead Economic Data (GMT)
•23:50 Japan Trade Balance (Dec) 357.0B forecast, 316.7B previous
•23:50 Japan Exports (YoY) (Dec) 6.1% forecast, 6.1% previous
•23:50 Japan Adjusted Trade Balance (Dec) -0.06T forecast, 0.06T previous
•23:50 Japan Imports (YoY) (Dec) 3.6% forecast, 1.3% previous
•23:50 Japan Foreign Investments in Japanese Stocks (Dec) 1,141.4B previous
•23:50 Japan Foreign Bonds Buying (Dec) 101.1B previous
Looking Ahead Events And Other Releases (GMT)
•No Data Ahead
Currency Forecast
EUR/USD : The euro dipped against dollar on Wednesday as greenback recovered some ground after U.S. President Trump withdrew a threat to impose tariffs on a number of nations, saying he had reached an agreement on a framework of a future deal on Greenland with NATO.Trump's threats to levy tariffs on a number of nations for their stance on Greenland spooked markets and triggered a broad selloff in U.S. assets, but his comments in Davos on Wednesday that he had he ruled out military action in the northern island offered investors some relief. The euro was down 0.36% at $1.17 , having risen more than 1% in the last two sessions. It hit $1.168 on Tuesday, its highest level since Dec 30. Immediate resistance can be seen at 1.1727(38.2%fib), an upside break can trigger rise towards 1.1805(Higher BB).On the downside, immediate support is seen at 1.1682(SMA 20), a break below could take the pair towards 1.1579(Lower BB).
GBP/USD: Sterling eased slightly on Wednesday as traders assessed the latest UK inflation figures and its implications for monetary policy.British inflation rose by more than expected in December, pushed higher by air fares and tobacco prices, but the fastest rate of price growth among the world's big, rich economies is still likely to slow sharply in the coming months.Investors held steady on their bets on the Bank of England cutting interest rates later this year with services price inflation, which is closely watched by the central bank, edging up in line with analysts' forecasts. Headline inflation headed up for the first time since July, climbing to 3.4% from 3.2% in November, the Office for National Statistics said, above a median forecast of a rise in consumer price inflation to 3.3% in a poll of economists.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 pared gains on Wednesday as investors monitored developments at the World Economic Forum in Davos and awaited talks to renew a continental trade pact.The United States-Mexico-Canada Agreement, which has shielded much of Canada's exports from U.S. tariffs, is set for review by a July 1 deadline.Oil prices, a key Canadian export, climbed 0.6% to $60.73 a barrel as investors weighed a temporary shutdown at two major fields in Kazakhstan.On the data front, Producer prices in Canada fell 0.6% in December from November as energy prices declined. The annual growth rate slowed to 4.9% from 5.9%.Investors expect the Bank of Canada to leave its benchmark interest rate on hold next week at a three-year low of 2.25%. Immediate resistance can be seen at 1.3864 (50%fib), an upside break can trigger rise towards 1.3977(Jan 16th high).On the downside, immediate support is seen at 1.3808(SMA 20), a break below could take the pair towards 1.3744(38.2%fib).
USD/JPY: The U.S. dollar edged higher against the yen on Wednesday as dollar recovered after President Donald Trump toned down his rhetoric in his threats to acquire Greenland while speaking in Davos.Trump called for immediate negotiations toward a deal to acquire Greenland, but added that he would not use force in his campaign for the northern island. That was a softer tone from the U.S. president, who had said there was "no going back" on his goal to control the island, and had refused to rule out taking it by force. He had also threatened tariffs on Europe, rekindling fears of a global trade war. The dollar index , which tracks the U.S. currency's performance against six others, rebounded from earlier losses and was up 0.25%.The yen J was down 0.16% at 158.37 per dollar . 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 finished mixed on Wednesday after U.S. President Donald Trump eased his tone regarding the potential acquisition of Greenland, giving some relief to investors who had been unsettled by his recent aggressive stance.
UK's benchmark FTSE 100 closed up by 0.11 percent, Germany's Dax ended down by 0.58 percent, France’s CAC finished the day up by 0.08 percent.
Wall Street ended the day in the green Wednesday, with the S&P 500 posting its largest one-day percentage jump in two months, supported by news of progress on a Greenland agreement and the absence of new U.S. tariffs on European partners.
Dow Jones closed up by 1.21 % percent, S&P 500 closed down by 1.16 % percent, Nasdaq settled up by 1.18% percent
Commodities Recap
Gold prices trimmed gains on Wednesday, retreating from a record peak, after U.S. President Donald Trump backed down from some of his sternest threats over Greenland.
Spot gold was up 0.3% at $4,778.51 per ounce by 3:10 p.m. ET (2010 GMT), after scaling an all-time high of $4,887.82 earlier in the session.
U.S. gold futures for February delivery settled 1.5% higher at $4,837.50 per ounce.
Crude rose 0.5% on Wednesday on hopes of tighter global supply, following a short-term shutdown at two large Kazakhstan oil fields and low Venezuelan export volumes signaling delayed production recovery.
Brent futures settled up 32 cents, or 0.5%, to $65.24 a barrel, while the U.S. West Texas Intermediate crude contract rose 26 cents, or 0.4%, to $60.62 a barrel.
