Posted at 23 January 2025 / Categories Market Roundups
Market Roundup
• French Business Survey (Jan) 95, 96 forecast, 96 previous
• UK 4-Year Treasury Gilt Auction 4.384%, 4.499% previous
•Belgium Consumer Confidence (Jan) -11,-9 previous
• UK CBI Industrial Trends Orders (Jan) -34,-35 forecast, 40 previous
Looking Ahead Economic Data(GMT)
• 13:30 US Jobless Claims 4-Week Avg. 212.75K previous
• 13:30 Canada Core Retail Sales (MoM) (Nov) 0.1% forecast, 0.1% previous
• 13:30 Canada Retail Sales (MoM) (Nov) 0.2% forecast, 0.6% previous
• 15:00 EU Consumer Confidence (Jan) -14.0 forecast, -14.5 previous
•15:30 US Natural Gas Storage -270B forecast, -258B previous
•16:00 US KC Fed Composite Index (Jan) -4 previous
•16:00 US KC Fed Manufacturing Index (Jan) -5 previous
Looking Ahead Eents And Other Releases (GMT)
• 16:00 U.S. President Trump Speaks
Currency Summaries
EUR/USD: The euro traded in a narrow range against the U.S. dollar on Thursday, as the market lacked direction with no clear announcements on tariffs from U.S. President Donald Trump. In the coming week, several central bank policy decisions could drive currency movements, with the Bank of Japan expected to raise interest rates after its two-day meeting concludes on Friday. Rate decisions from the U.S. Federal Reserve and the European Central Bank are also scheduled for next Wednesday and Thursday, respectively. Trump is set to give his first major speech to global business and political leaders since returning to power, speaking remotely at the World Economic Forum in Davos, Switzerland, at 11 a.m. ET (1600 GMT) . Immediate resistance can be seen at 1.0440(50%fib), an upside break can trigger rise towards 1.0500(Psychological level).On the downside, immediate support is seen at 1.0374(38.2%fib), a break below could take the pair towards 1.0307(23.6%fib).
GBP/USD: The British pound slipped slightly on Thursday as currency markets continued to focus on U.S. President Donald Trump’s early threats of tariffs following his return to the White House. Sterling was down 0.14% at $1.2311 but is still up about 1.1% for the week, reflecting investor relief that Trump has shifted focus away from tariffs to other policy areas since his inauguration on Monday.The pound had fallen at the start of the year, even as UK bonds saw declines and yields rose, prompting concerns among analysts about a breakdown in the relationship between the currency and the bond market. Factors like stubborn inflation, slow growth, and weak business confidence after Finance Minister Rachel Reeves's tax-and-spend budget in October have contributed to this volatility, alongside a broader sell-off in U.S. government bonds. Immediate resistance can be seen at 1.2353(38.2%fib), an upside break can trigger rise towards 1.2485(50%fib).On the downside, immediate support is seen at 1.2158(23.6%fib), a break below could take the pair towards 1.2105(Lower BB)
AUD/USD: The Australian dollar remained relatively unchanged against the U.S. dollar on Thursday as investors awaited further clarification from U.S. President Donald Trump on his tariff plans. This week, Trump announced 25% tariffs on Canada and Mexico, 10% on China starting February 1, and suggested possible future tariffs on European imports, though without providing specifics. Australia's Q4 consumer price report is due next week, with analysts hoping that slowing core inflation will prompt the Reserve Bank of Australia to cut interest rates in February. 18.At GMT 13:00, The Australian dollar was last trading down 0.03% to $0.6270 . Immediate resistance can be seen at 0.6288(50%fib), an upside break can trigger rise towards 0.6297 (Higher BB).On the downside, immediate support is seen at 0.6223(23.6%fib), a break below could take the pair towards 0.6171 (Jan 16th low).
USD/JPY: The U.S. dollar edged lower on Thursday as investors attention turned to the Bank of Japan’s (BOJ) rate decision. Markets are increasingly expecting the BOJ to raise its short-term policy rate by 0.25% to 0.5%, a level last seen during the Global Financial Crisis. However, the BOJ is likely to approach any tightening cautiously, signaling gradual 'normalization' of policy. On the data front, Japanese exports rose 2.8% YoY in December, marking a third consecutive monthly increase, while imports grew 1.8%, below the expected 2.6% rise. Immediate resistance can be seen at 156.25 (38.2%fib) an upside break can trigger rise towards 157.00(Psychological level). On the downside, immediate support is seen at 154.92(50%fib) a break below could take the pair towards 154.75 (Lower BB).
Equities Recap
European shares gained on Thursday on optimism over the rise in artificial intelligence (AI) spending in the U.S., while worries over earnings moderation and U.S. tariffs capped gains.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading up at 0.19 percent, Germany's Dax was up by 0.28 percent, France’s CAC finished was up by 0.43 percent.
Commodities Recap
Gold prices fell on Thursday after hitting a three-month high, with investors awaiting more clarity on U.S. President Donald Trump's policies.
Spot gold was down 0.4% at $2,744.49 per ounce by 1246 GMT, having hit its highest since Oct. 31 on Wednesday. U.S. gold futures shed 0.7% to $2,751.20.
Oil prices were steady on Thursday, holding onto the previous session's losses amid uncertainty over how U.S. President Donald Trump's proposed tariffs and energy policies might impact global economic growth and energy demand.
Brent crude futures dipped 2 cents to $78.98 a barrel by 0941 GMT. U.S. West Texas Intermediate crude (WTI) lost 4 cents to $75.40.