Market Roundup
• Swiss SECO Consumer Climate -31,-33 forecast,-34 previous
•EUSentix Investor Confidence (Jan)-1.8,-5.1 forecast,-6.2 previous
•German 12-Month Bubill Auction 2.004%,2.029% previous
• German 6-Month Bubill Auction 1.986%,-0.623% previous
Looking Ahead Economic Data (GMT)
• 14:00 French 12-Month BTF Auction 2.116% previous
• 14:00 French 3-Month BTF Auction 2.043% previous
• 14:00 French 6-Month BTF Auction 2.060% previous
•15:00 US CB Employment Trends Index (Dec)105.80 previous
•16:30 US 3-Month Bill Auction 3.540% previous
•16:30 US 6-Month Bill Auction 3.475% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro rallied against the dollar after the Trump administration threatened Federal Reserve Chair Jerome Powell with a criminal indictment, a move that could endanger the greenback's safe-haven status. Powell said the Department of Justice had served the Fed with grand jury subpoenas, threatening a criminal indictment related to his testimony before the Senate Banking Committee last June. Geopolitical tensions also simmered, with unrest in Iran, developments in Venezuela and Trump's threat to acquire Greenland. The single currency rose 0.41% to 1.1684 in its biggest daily rise since December 10. Immediate resistance can be seen at 1.1688(50%fib), an upside break can trigger rise towards 1.1730(SMA20).On the downside, immediate support is seen at 1.1623(Lower BB), a break below could take the pair towards 1.1601(61.8%fib).
GBP/USD: Sterling strengthened on Monday as the U.S. dollar weakened amid renewed turmoil surrounding Federal Reserve Chair Jerome Powell, who said the Trump administration had threatened him with a criminal indictment over congressional testimony he delivered last summer. The move has escalated a long-running feud between the White House and the central bank, reviving concerns about the Federal Reserve’s independence and sparking speculation that any future Fed chair could be more politically compliant. Immediate resistance can be seen at 1.3469(38.2%fib), an upside break can trigger rise towards 1.3559(Higher BB).On the downside, immediate support is seen at 1.3355(50%fib), a break below could take the pair towards 1.3342(Lower BB).
AUD/USD: The Australian dollar climbed on Monday as fresh concerns over the Federal Reserve’s independence pressured the U.S. dollar, after Powell said the Trump administration had threatened him with criminal charges and subpoenas. On the data front, Australian household spending rose for a second straight month in November, lifting the ABS Monthly Household Spending Indicator by 1.0% to A$79.4 billion, following a revised 1.4% gain in October. Meanwhile, ANZ Job Advertisements fell 0.5% in December after a revised 1.5% drop in November. Immediate resistance can be seen at 0.6712(Daily high), an upside break can trigger rise towards 0.6754(23.6%fib).On the downside, immediate support is seen at 0.6678(SMA20), a break below could take the pair towards 0.6654(38.2%fib)
USD/JPY: The U.S. dollar slipped against the yen on Monday as renewed political tensions in Japan weighed on the currency, after a coalition ally of Prime Minister Sanae Takaichi suggested a snap election on February 8 or 15. The vote would mark Takaichi’s first test with voters, giving Japan’s first female leader a chance to capitalise on strong approval ratings since October. Takaichi also said she had instructed ministers to ensure timely execution of the current fiscal year’s supplementary budget and secure approval for next year’s budget. Attention now turns to key economic data due this week, including the current account, machine tool orders, producer inflation and business sentiment surveys. Immediate resistance can be seen at 158.00(Psychological level) an upside break can trigger rise towards 158.12(Higher BB) .On the downside, immediate support is seen at 156.42(SMA20) a break below could take the pair towards 156.01 (38.2%fib).
Equities Recap
European stocks slipped from record highs on Monday as banks came under pressure after President Donald Trump called for a cap on credit card interest rates, while tensions with Fed Chair Jerome Powell unsettled markets.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading up at 0.11 percent, Germany's Dax was up by 0.51 percent, France’s CAC was last up by 0.01 percent.
Commodities Recap
Gold surged to a record high on Monday, while the dollar and Wall Street futures fell, as a criminal investigation into Fed Chair Jerome Powell fueled concerns over the central bank’s independence.
Crude prices edged lower on Monday as Iran’s claim of restored control after major protests reduced fears of supply disruptions, with investors also weighing a potential resumption of Venezuelan oil exports.
Brent crude futures lost 15 cents, or 0.2%, to $63.19 a barrel by 1248 GMT while U.S. West Texas Intermediate crude was at $58.93 a barrel, down 19 cents, or 0.3%.
