Market Roundup
•French Car Registration (MoM) (Dec) 30.1%, -4.7% previous
•French Car Registration (YoY) (Dec) -5.8%,-0.3% previous
•German Car Registration (MoM) (Dec) -1.7%, 0.2% previous
•German Car Registration (YoY) (Dec) 9.7%, 2.5% previous
•Italian Car Registration (MoM) (Dec) -13.0%, -1.4% previous
•Italian Car Registration (YoY) (Dec) 2.3%, 0.0% previous
Looking Ahead Economic Data (GMT)
•14:00 USS&P/CS HPI Composite - 20 n.s.a. (YoY) (Nov)1.2% forecast,1.3% previous
•14:00 US S&P/CS HPI Composite - 20 n.s.a. (MoM) (Nov)-0.3% previous
•14:00 US House Price Index (YoY) (Nov) 1.7% previous
•14:00 US S&P/CS HPI Composite - 20 s.a. (MoM) (Nov) 0.3% previous
•14:00 US House Price Index (Nov)436.7 previous
•14:00 US House Price Index (MoM) (Nov)0.3%forecast , 0.4%previous
•15:00 US CB Consumer Confidence (Jan) 90.6 forecast , 89.1 previous
•15:00 US Richmond Services Index (Jan)-6 previous
•15:00 US Richmond Manufacturing Index (Jan)-5 forecast ,-7 previous
•15:00 US Richmond Manufacturing Shipments (Jan)-11 previous
•15:30 US Texas Services Sector Outlook (Jan)-3.3 previous
•15:30 US Dallas Fed Services Revenues (Jan)0.1 previous
Looking Ahead Events And Other Releases (GMT)
•17:00 EU ECB President Lagarde Speaks
17:00 EU German Buba President Nagel Speaks
EUR/USD : The euro edged higher against dollar on Tuesday as dollar weakned on uncertainty caused by President Donald Trump’s latest tariff moves on South Korea.Traders were still recovering from last week's bout of U.S.-EU trade uncertainty sparked by a dispute over Greenland, while also weighing the long-term implications of U.S. tariffs being used as a bargaining chip in an unrelated matter. The Federal Reserve is scheduled to deliver its latest policy decision on Wednesday where no move in interest rates is expected. The meeting will, however, be overshadowed by the Trump administration's criminal investigation of chair Jerome Powell, whose term ends in May. The Fed is expected to leave borrowing costs unchanged, but concerns about its independence are likely to be centre stage. Immediate resistance can be seen at 1.1934(23.6%fib), an upside break can trigger rise towards 1.2000(Psychological level).On the downside, immediate support is seen at 1.1827 (38.2%fib), a break below could take the pair towards 1.1767(50%fib).
GBP/USD: The pound edged higher against the U.S. dollar for the fourth consecutive day on Tuesday, underpinned partly by data that showed retail inflation picked up sharply in January, while UK political uncertainty simmered on.Figures from the British Retail Consortium on Tuesday showed that prices at major British retailers rose at the fastest pace in almost two years in January.The data could complicate decision-making for the Bank of England, which is broadly expected to keep interest rates unchanged when it meets next week. Markets show traders currently expect one rate cut by the middle of the year, with a strong chance of a second by December. Sterling was last 0.12% higher against the dollar at $1.3696, hovering near a four-month high. Immediate resistance can be seen at 1.3755(23.6%fib), an upside break can trigger rise towards 1.3583(Higher BB).On the downside, immediate support is seen at 1.3667(Daily low), a break below could take the pair towards 1.3616(38.2%fib).
AUD/USD: The Australian edged higher edged higher on Tuesday as dollar weakned on-going policy uncertainty linked to the Trump administration’s agenda. Markets remain cautious amid rising risks of renewed debate over potential threats to Federal Reserve independence. These factors have increased political risk premiums on U.S. assets, reducing demand for the greenback and providing underlying support to the Australian dollar. Market attention is now firmly focused on the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. While no interest rate change is expected, investors will closely analyze Chair Jerome Powell’s post-meeting statement .On the domestic front, Australia’s Q4 Consumer Price Index (CPI) data is also due on Wednesday. Immediate resistance can be seen at 0.6956(23.6%fib), an upside break can trigger rise towards 0.7000(Psychological level).On the downside, immediate support is seen at 0.6896(Daily low), a break below could take the pair towards 0.6840(50%fib)
USD/JPY: The U.S. dollar edged higher but gains were limited as traders remained on alert to the prospect of a coordinated currency intervention by authorities in the U.S. and Japan. The yen has dominated currency market attention, surging as much as 3% in two sessions following speculation over coordinated rate checks by the U.S. and Japan typically seen as a warning sign ahead of intervention. In an analysis released on Tuesday, the BOJ said the weak yen is having a growing impact on Japan’s inflation not only by raising import costs but also through second-round effects such as the pass-through of labour costs. Data on Tuesday showed a key indicator of Japan’s services sector prices rose 2.6% year-on-year in December, underscoring how labour shortages are driving firms to pass on rising costs.The increase in the services producer price index, which tracks the price companies charge each other for services, followed a 2.7% gain in November, Bank of Japan data showed. Immediate resistance can be seen at 154.69(38.2%fib) an upside break can trigger rise towards 155.84(50%fib) .On the downside, immediate support is seen at 153.23(50%fib) a break below could take the pair towards 152.80 (Lower BB).
Equities Recap
European stocks climbed on Tuesday on upbeat corporate news that eased trade tension worries, with Puma shares jumping after the company sold a stake to China’s Anta Sports.
At (GMT 13:18),UK's benchmark FTSE 100 was last trading up at 0.64 percent, Germany's Dax was down by 0.11 percent, France’s CAC was last up by 0.42 percent.
Commodities Recap
Gold rose on Tuesday, trading just below the $5,100-per-ounce level hit for the first time in the previous session, as uncertainty over U.S. President Donald Trump’s policies drove safe-haven demand.
Spot gold rose 1.2% to $5,073.52 per ounce as of 1155 GMT. It hit an all-time high of $5,110.50 on Monday.
U.S. gold futures for February delivery eased 0.2% to $5,071.20 per ounce.
Oil prices were largely unchanged on Tuesday as a severe winter storm disrupted U.S. Gulf Coast production and refinery operations, while resumed supply from Kazakhstan capped gains.
Brent crude futures were down 6 cents, or 0.1%, at $65.53 a barrel at 1146 GMT. U.S. West Texas Intermediate crude declined 1 cent, or 0%, to $60.62 a barrel.
