Posted at 22 January 2025 / Categories Market Roundups
Market Roundup
•Canada Core CPI (MoM) (Dec) -0.3%, -0.1% previous
•Canada Core CPI (YoY) (Dec) 1.8%, 1.6% previous
•Canada CPI (YoY) (Dec) 1.8%, 1.8% forecast, 1.9% previous
•Canada CPI (MoM) (Dec) -0.4%, -0.7% forecast, 0.0% previous
•Canada Median CPI (YoY) (Dec) 2.4%, 2.5% forecast, 2.6% previous
•Canada Trimmed CPI (YoY) (Dec) 2.5%, 2.5% forecast, 2.6% previous
• GlobalDairyTrade Price Index 1.4% forecast, -1.4% previous
• US 3-Month Bill Auction 4.215%, 4.225% previous
• US 6-Month Bill Auction 4.165%, 4.180% previous
• US 52-Week Bill Auction 4.025%, 4.070% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro recovered some ground against the dollar on Tuesday as the greenback retreated amid uncertainties over Trump’s proposed tariff measures. Markets globally reacted to Trump’s presidency, with him considering 25% duties on imports from Canada and Mexico starting Feb. 1. He also aimed to address the U.S. trade deficit with the EU, either through tariffs or increased energy exports. The European Union expressed readiness to negotiate with Trump, stressing the importance of avoiding a trade conflict that could harm both sides and the global economy. The euro ended the session down at $1.0404, after jumping 0.20% a day earlier. Immediate resistance can be seen at 1.0450(50%fib), an upside break can trigger rise towards 1.0498(61.8%fib).On the downside, immediate support is seen at 1.0372(38.2%fib), a break below could take the pair towards 1.0280(23.6%fib).
GBP/USD: The pound strengthened on Tuesday as the dollar reversed course on uncertainty about the trajectory of the Trump administration's U.S. tariff .President Trump did not immediately impose tariffs on Monday as previously promised, but said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1 over illegal immigrants and fentanyl crossing into the U.S.On the data front, British pay growth remained strong in the three months to November, with private-sector pay rising to 6.0% from 5.5%. However, signs of a softening jobs market were also evident, influencing the Bank of England's rate outlook.Immediate resistance can be seen at 1.2369(Daily high), an upside break can trigger rise towards 1.2440(50%fib).On the downside, immediate support is seen at 1.2317 (38.2%fib), a break below could take the pair towards 1.2163(23.6%fib).
USD/CAD: The Canadian dollar recouped much of its earlier decline against the greenback on Tuesday as investors assessed the chances of U.S. President Donald Trump carrying out a threat to impose a hefty tax on imports from Canada next month.Trump did not immediately impose tariffs on Monday as previously promised but said he was thinking about imposing 25% duties on imports from Canada and Mexico on Feb. 1 over concerns about fentanyl crossing into the U.S. and illegal migration.On the data front,Canadian inflation slowed to an annual rate of 1.8% in December, helped by a sales tax break, supporting bets that the Bank of Canada will cut its benchmark interest rate by a further 25 basis points on Jan. 29. .Immediate resistance can be seen at 1.4478(Higher BB), an upside break can trigger rise towards 1.4500(Psychological level).On the downside, immediate support is seen at 1.4303(38.2%fib), a break below could take the pair towards 1.4157 (50%fib).
USD/JPY: The U.S. dollar dipped on Tuesday as investors assessed Donald Trump's first actions as U.S. president and were encouraged that he did not start his second term with blanket tariff increases.Trump did not lay out concrete plans on the universal tariffs and additional surcharges on close trade partners as previously promised, but said he was thinking about imposing duties on Canadian and Mexican goods as early as Feb. 1.While investors remain cautious about tariffs and the potential for a global trade war pushing inflation higher . Against the Japanese yen , the dollar edged down 0.03% to 155.574. Immediate resistance can be seen at 156.16(38.2%fib) an upside break can trigger rise towards 157.62(23.6%fib). On the downside, immediate support is seen at 154.99(50%fib) a break below could take the pair towards 154.00 (Psychological level).
Equities Recap
European shares rose on Tuesday, driven by gains in healthcare and luxury sectors, though the rally was limited by ongoing uncertainties over U.S. President Trump's proposed tariff measures following his inauguration.
UK's benchmark FTSE 100 closed up at 0.33 percent, Germany's Dax closed up by 0.25 percent, France’s CAC closed up by 0.48 percent.
Wall Street's main indexes rose on Tuesday, with the S&P 500 and the Dow closing at their highest levels in more than a month as investors assessed Donald Trump's first actions as U.S. president and were encouraged that he did not start his second term with blanket tariff increases.
Dow Jones closed up by 1.24 percent, S&P 500 closed up by 0.88 percent, Nasdaq settled up by 0.64 .
Commodities Recap
Gold prices surged to a two-month high on Tuesday, bolstered by a weaker dollar and increased demand for the safe-haven asset amid uncertainty over U.S. President Trump's potential tariffs.
Spot gold climbed 1.3% to $2,742.48 per ounce by 02:36 p.m. ET (1936 GMT), reaching its highest level since Nov. 6 and nearing the all-time high of $2,790.15 set in October.U.S. gold futures settled 0.4% higher at $2,759.20.
Oil prices dropped on Tuesday following U.S. President Donald Trump's declaration of a national energy emergency on his first day in office, fueling concerns about increased U.S. production in an already oversupplied market.