Posted at 28 January 2025 / Categories Market Roundups
Market Roundup
•Australia NAB Business Confidence (Dec) -2,-3 previous
•Australia NAB Business Survey (Dec) 6,2 previous
•Japan BoJ Core CPI (YoY) 1.9%,1.7%forecast,1.7% previous
Looking Ahead Economic Data(GMT)
•08:00 Spanish Unemployment Rate (Q4) 11.10%, 11.21% previous
•10:00 Spanish Consumer Confidence (Dec) 80.6 previous
•10:30 German 2-Year Schatz Auction 2.180% previous
•11:00 Irish GDP (QoQ) (Q4) 3.5% previous
•11:00 Irish GDP (YoY) (Q4) 2.9% previous
•11:00 Irish Retail Sales (MoM) (Dec) 0.5% previous
•11:00 Irish Retail Sales (YoY) (Dec) -1.0% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro slipped lower against the dollar on Tuesday as Donald Trump escalated his tariff threats, announcing plans to impose tariffs on imported computer chips, pharmaceuticals, and steel to boost domestic production.The Federal Reserve's two-day meeting begins on Tuesday where it is expected to keep interest rates steady. Investors will look for any hints on whether a rate cut could happen soon if inflation eases closer to the U.S. central bank’s 2% annual target.For the Fed, the focus will be on Trump's early moves on broader policy that are likely to shape the economy this year. The European Central Bank will also meet this week, and is expected to cut interest rates. The euro fetched $1.0435, down 0.54%. Immediate resistance can be seen at 1.0529(50%fib), an upside break can trigger rise towards 1.0644(61.8%fib).On the downside, immediate support is seen at 1.0398(38.2%fib), a break below could take the pair towards 1.0369(Jan 23rd low).
GBP/USD: Sterling dipped against the dollar on Tuesday as developments related to trade tariffs dampened risk appetite. Trump said he planned to impose tariffs on imported computer chips, pharmaceuticals and steel in an effort to get the producers to make them in the United States.Trump has flagged possible 25% duties on imports from Canada and Mexico on Feb. 1, and has threatened to hit the EU and China with tariffs as well.The dollar index , which measures the U.S. currency against six rivals, rose 0.08% to 107.89, after dropping to its lowest level since mid-December at 107.68 the previous day. Sterling last traded at $1.2440, down 0.43% on the day. Immediate resistance can be seen at 1.2516(50%fib), an upside break can trigger rise towards 1.2648(61.8%fib).On the downside, immediate support is seen at 1.2358(38.2%fib), a break below could take the pair towards 1.2163(23.6%fib)
AUD/USD: The Australian dipped on Tuesday as dollar strengthened after President Donald Trump threatened to slap tariffs on a range of goods including copper and steel.In a speech to Republican lawmakers on Monday, Trump announced plans to impose tariffs on aluminum, copper, and steel metals essential for producing U.S. military hardware to encourage domestic production.Focus shifts to Australia's December and Q4 CPI releases on Wednesday, which is key for shaping expectations around the Reserve Bank of Australia’s rate decisions. At GMT 06:26, the pair was trading down 0.60% at 0.6254. Immediate resistance can be seen at 0.6333(50%fib), an upside break can trigger rise towards 0.6507 (61.8%fib).On the downside, immediate support is seen at 0.6272(38.2%fib), a break below could take the pair towards 0.6180 (23.6%fib).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Tuesday as greenback firmed on new U.S. tariff threats. Trump said he planned to impose tariffs on imported computer chips, pharmaceuticals and steel in an effort to get the producers to make them in the United States.That verbal salvo came a day after the U.S. and Colombia pulled back from the brink of a trade war when the White House said the South American nation had agreed to accept military aircraft carrying deported migrants. Markets in tech-heavy South Korea and Taiwan are closed for the next few days for Lunar New Year. Mainland China is closed until Feb. 4. Immediate resistance can be seen at 156.42 (38.2%fib) an upside break can trigger rise towards 157.00(Psychological level). On the downside, immediate support is seen at 153.78(50%fib) a break below could take the pair towards 151.51 (61.8%fib).
Equities Recap
Asian shares were mixed on Tuesday as the rise of a Chinese AI startup raised concerns about U.S. dominance and spending in one of the market's fastest-growing sectors.
Japan’s Nikkei was down 1.43% , and South Korea's KOSPI was up by 0.85%, Hang Seng was up by 0.34%.
Commodities Recap
Oil prices edged higher but remained near a two-week low on Tuesday, as weak economic data from China and milder weather forecasts dampened the demand outlook.
Brent crude oil futures rose by 42 cents, or 0.54%, to $77.5 per barrel by 0430 GMT. U.S. West Texas Intermediate crude futures were up 34 cents, or 0.46%, to $73.51.
Gold held steady on Tuesday as investors focused on the U.S. Federal Reserve's policy meeting to see if President Donald Trump's policies have an impact on the central bank's views.
Spot gold was nearly steady at $2,740.11 per ounce, as of 0436 GMT. Bullion prices fell more than 1% on Monday as a low-cost Chinese artificial intelligence model triggered a sell-off in the broader market.