Posted at 20 January 2025 / Categories Market Roundups
Market Roundup
•German PPI (YoY) (Dec) 0.8%, 1.1% forecast, 0.1% previous
•Swiss PPI (YoY) (Dec) -0.9%, -1.5% previous
•Swiss PPI (MoM) (Dec) 0.0%, 0.2% forecast, -0.6% previous
•Spanish Trade Balance (Nov) -5.13B, -3.93B previous
• Greek Current Account (YoY) (Nov) -3.152B, -0.383B previous
• EU Construction Output (MoM) (Nov) 1.16%, 0.78% previous
Looking Ahead Economic Data(GMT)
• 14:00 French 12-Month BTF Auction 2.489% previous
• 14:00 French 3-Month BTF Auction 2.691% previous
• 14:00 French 6-Month BTF Auction 2.593% previous
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against the dollar on Monday as traders awaited U.S. President-elect Donald Trump's inauguration in the hope of some clarity on his policy agenda. Trump, who will be inaugurated later on Monday, is widely expected to make a flurry of policy announcements in the first hours of his second term.He has stoked expectations he will issue a slew of executive orders right away and, in a reminder of his unpredictability . Investors have lately been on the edge as they believe Trump's protectionist policies, including trade tariffs on key trading partners, can prove to be inflationary for the U.S. as well as Europe. Immediate resistance can be seen at 1.0381(38.2%fib), an upside break can trigger rise towards 1.0468(61.8%fib).On the downside, immediate support is seen at 1.0276(23.6%fib), a break below could take the pair towards 1.0234(Jan 14th low).
GBP/USD: The pound rose against the dollar on Monday 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 1.2289(38.2%fib), an upside break can trigger rise towards 1.2397(50%fib).On the downside, immediate support is seen at 1.2157(23.6%fib), a break below could take the pair towards 1.2103(Lower BB)
AUD/USD: The Australian dollar rose on Monday as the U.S. dollar retreated ahead of Trump's inauguration. His speech could offer a glimpse into the tone of 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 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 0.22% to $0.6205 . 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 dipped against yen on Monday as investors awaited interest rate decision from Bank of Japan 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
European shares edged up to a near three-month high on Monday, supported by banks and travel stocks, as investors braced for Donald Trump to be sworn in as U.S. president.
At (GMT 13:48 ),UK's benchmark FTSE 100 was last trading up at 0.16 percent, Germany's Dax was up by 0.41 percent, France’s CAC finished was up by 0.38 percent.
Commodities Recap
Gold prices edged higher on Monday, supported by a weaker U.S. dollar, as markets awaited Donald Trump's return to the White House and his inauguration speech for clues on the potential impact of his policies on the economy and rate-cut outlook.
Spot gold added 0.2% to $2,707.33 per ounce as of 1203 GMT.U.S. gold futures was flat at $2,747.80,
Oil prices were steady on Monday as traders awaited U.S. President-elect Donald Trump's inauguration in the hope of some clarity on his policy agenda, including plans to end the Russia-Ukraine war.
Brent crude futures were up 6 cents, or 0.07% at $80.85 by 1330 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 31 cents, or 0.4%, to $78.19.