Posted at 20 January 2025 / Categories Market Roundups
Market Roundup
• French 12-Month BTF Auction 2.408% , 2.489% previous
•French 3-Month BTF Auction 2.633%,2.691% previous
• French 6-Month BTF Auction 2.532% ,2.593% previous
Looking Ahead Economic Data(GMT)
• 02:00 New Zealand RBNZ Offshore Holdings (Dec) 58.60% previous
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro rose sharply against the dollar after U.S. President Donald Trump stopped short of imposing new tariffs and reports suggested any new taxes would be imposed in a "measured" way, a major relief for trade-exposed currencies.Trump used his inauguration speech to announce emergencies on immigration and energy and a more expansionist foreign policy, including a pledge to take back the Panama Canal. The reaction in markets was swift, with the dollar index falling 1.2% on Monday in the sharpest daily loss since late 2023. Immediate resistance can be seen at 1.0433(50%fib), an upside break can trigger rise towards 1.0468(Higher BB).On the downside, immediate support is seen at 1.0363(38.2%fib), a break below could take the pair towards 1.0269(23.6%fib).
GBP/USD: The pound rose against the dollar on Monday assessed the potential economic impact of U.S. President Donald Trump's second-term policies following his inauguration. There was limited initial reaction in U.S. rate markets, in part due to the Martin Luther King Jr. Day holiday and which had feared a combination of tariffs, immigration restrictions and tax cuts might risk rekindling inflation. Investors will focus on November's wage numbers, due on Tuesday, and any evidence of a more sustained acceleration. Meanwhile, they expect further moderation from the Friday Purchasing Managers’ Index data for January on Friday and the GfK consumer confidence indicators. Immediate resistance can be seen at 1.2410(50%fib), an upside break can trigger rise towards 1.2500(Psychological level).On the downside, immediate support is seen at 1.2280(38.2%fib), a break below could take the pair towards 1.2127(23.6%fib)
USD/CAD: The Canadian dollar rose to a near 5-week high against the U.S. dollar on Monday, as the threat of U.S. trade tariffs became less imminent and a Bank of Canada survey indicated that firms are starting to expect improved economic activity. The U.S. president-elect had threatened an immediate 25% tax on imports from Canada and Mexico.Canadian firms see improved demand and sales in the coming year but are concerned about the potential damage from promised U.S. policies, the Bank of Canada said in its Business Outlook Survey. The Canadian dollar hit a near 5-week high against the U.S. dollar on Monday, as the risk of U.S. trade tariffs eased and a Bank of Canada survey showed improving business expectations. The loonie was trading 1.1% higher at 1.4325 per U.S. dollar. Immediate resistance can be seen at 1.4355 (38.2%fib), an upside break can trigger rise towards 1.4575(23.6%fib).On the downside, immediate support is seen at 1.4255(50%fib), a break below could take the pair towards 1.4160(61.8%fib).
USD/JPY: The U.S. dollar dipped on Monday as yen gained on growing expectations the Bank of Japan would raise rates at its policy meeting this Friday. The BOJ is set to raise rates, barring any market disruptions from Trump’s inauguration, pushing short-term borrowing costs to levels not seen since the 2008 financial crisis. A rate hike would signal the BOJ's commitment to gradually increasing rates from 0.25% toward 1%, a level analysts believe will balance Japan’s economy. At the two-day meeting ending Friday, the BOJ is expected to raise its short-term policy rate to 0.5%. Immediate resistance can be seen at 156.24 (38.2%fib) an upside break can trigger rise towards 157.09(Nov 15th high). On the downside, immediate support is seen at 155.07(50%fib) a break below could take the pair towards 153.87` (61.8%fib).
Equities Recap
European stocks closed flat on Monday, having earlier hit a three-month high on expectation Donald Trump would refrain from increasing tariffs on U.S. trading partners.
UK's benchmark FTSE 100 closed up at 0.1 percent, Germany's Dax closed up by 0.42percent, France’s CAC closed up by 0.31 percent.
Commodities Recap
Gold prices edged higher on Monday, bolstered by a weaker U.S. dollar, as markets assessed the potential economic impact of U.S. President Donald Trump's second-term policies following his inauguration.
Spot gold added 0.3% to $2,709.09 per ounce as of 1:49 p.m. ET (1849 GMT) U.S. gold futures fell 0.7% at $2,730.20
Oil prices settled lower on Monday after U.S. President Donald Trump was sworn in for a second term and announced plans to declare a national energy emergency, vowing to fill strategic reserves and export American energy globally.
Brent crude futures closed down by 64 cents, or 0.8%, at $80.15 in early settlement due to the U.S. Martin Luther King Jr. Day holiday.
U.S. West Texas Intermediate crude futures were down by $1.30, or 1.7%, at $76.58.