Posted at 20 January 2025 / Categories Market Roundups
Market Roundup
• China PBoC Loan Prime Rate (Jan) 3.60%, 3.60%forecast,3.60% previous
• China PBoC Loan Prime Rate (Jan) 3.10%,3.10% forecast, 3.10% previous
• China Exports (YoY) (Dec) 16.9%,9.0% forecast, 3.9% previous
•Japan Capacity Utilization (MoM) (Nov) -1.9% ,2.6% previous
•Japan Industrial Production (MoM) (Nov) -2.2%,-2.3% forecast, -2.3% previous
•Japan Tertiary Industry Activity Index (Nov) -0.30,0.10 forecast, 0.10 previous
Looking Ahead Economic Data(GMT)
•07:30 Swiss PPI (MoM) (Dec) 0.2% forecast, -0.6% previous
• 07:30 Swiss PPI (YoY) (Dec) -1.5% previous
•10:00 Spanish Trade Balance (Nov) -3.93B previous
•10:00 Greek Current Account (YoY) (Nov) -0.383B previous
•10:00 EU Construction Output (MoM) (Nov) 0.97% previous
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against the dollar on Monday as investors waited for an expected flurry of policy announcements in the first hours of Donald Trump's second presidency.Trump takes the oath of office at noon Eastern Time (1700 GMT), and promised a brand new day of American strengthat a rally on Sunday.He has stoked expectations he will issue a slew of executive orders right away and, in a reminder of his unpredictability The dollar index , which measures the U.S. currency against six peers, was 0.29% lower at 109.19, but hovered close to a 26-month high of 110.17 touched last week. The euro advanced 0.46% to $1.0316, but remained near a two-year low touched last week. Immediate resistance can be seen at 1.0327(50%fib), an upside break can trigger rise towards 1.0378(61.8%fib).On the downside, immediate support is seen at 1.0276(38.2%fib), a break below could take the pair towards 1.0213(23.6%fib).
GBP/USD: The pound rose on Monday as the dollar weakened as investors awaited Donald Trump's inauguration speech for clarity on his administration's policies. Trump will be sworn in as U.S. president, beginning another tumultuous four-year term marked by promises to extend executive power, deport millions of immigrants, seek retribution against political opponents, and reshape the U.S.'s global role. His inauguration marks a triumphant return for a political disruptor who overcame two impeachment trials, a felony conviction, two assassination attempts, and an indictment over his efforts to overturn the 2020 election results. Immediate resistance can be seen at 1.2253(38.2%fib), an upside break can trigger rise towards 1.2356(50%fib).On the downside, immediate support is seen at 1.2134(23.6%fib), a break below could take the pair towards 1.2073(Lower BB)
AUD/USD: The Australian dollar strengthened on Monday as the U.S. dollar retreated ahead of Trump's inauguration. His address could provide a preview of the tone he plans to adopt during his second term. The Australian data calendar is light this week, with the consumer price report due on January 29. Analysts expect the key trimmed mean to rise just 0.6% in Q4, the smallest increase since mid-2021, with the annual pace slowing to 3.2%, closer to the Reserve Bank of Australia's 2-3% target. At GMT 04:33, The Australian dollar was last trading up 0.36% to $0.6213 . Immediate resistance can be seen at 0.6230(38.2%fib), an upside break can trigger rise towards 0.6297 (50%fib).On the downside, immediate support is seen at 0.6179 (Jan 15th low), a break below could take the pair towards 0.6145 (23.6%fib).
USD/JPY: The U.S. dollar slipped on Monday as the yen gained, fueled by expectations that the Bank of Japan will raise interest rates on Friday. The Bank of Japan is set to increase rates, barring any market disruptions from U.S. President-elect Donald Trump's inauguration. This move would push short-term borrowing costs to levels not seen since the 2008 financial crisis. A rate hike would signal the BOJ's commitment to gradually raising interest rates from 0.25% toward 1%, a level analysts believe will neither cool nor overheat Japan's economy. At the two-day meeting ending Friday, the BOJ is expected to raise its short-term policy rate to 0.5%, unless Trump's inauguration speech or executive orders disrupt financial markets. Immediate resistance can be seen at 156.57 (Daily high) an upside break can trigger rise towards 157.09(38.2%fib). On the downside, immediate support is seen at 155.85(50%fib) a break below could take the pair towards 154.9` (61.8%fib).
Equities Recap
Asian shares rose on Monday as investors awaited a wave of policy announcements in the early hours of Donald Trump’s second presidency and anticipated a rate hike in Japan later in the week.
Japan’s Nikkei was up 1.16% , and South Korea's KOSPI was down by 0.14%, Hang Seng was up by 1.66%.
Commodities Recap
Gold strengthened on Monday as the dollar softened, with investors awaiting Donald Trump's inauguration speech for insights into his policies, which are expected to offer clarity on inflation and the Federal Reserve's future rate decisions.
Spot gold was up 0.3% at $2,711.29 per ounce, as of 0659 GMT, after falling 0.5% earlier in the day. U.S. gold futures added 0.1% to $2,752.40.
Oil prices dropped on Monday as expectations grew that U.S. President-elect Donald Trump might ease sanctions on Russia's energy sector in exchange for a deal to end the Ukraine war, balancing concerns over potential supply disruptions from tougher sanctions.
Brent crude futures dropped 16 cents, or 0.2%, to $80.63 a barrel by 0453 GMT after closing down 0.62% in the previous session.