Posted at 04 February 2025 / Categories Market Roundups
Market Roundup
• US All Car Sales (Jan) 2.77M, 3.04M previous
•US All Truck Sales (Jan) 12.83M, 13.83M previous
•US Redbook (YoY) 5.7%, 4.9% previous
• GlobalDairyTrade Price Index 3.7% ,1.4% previous
• US Durables Excluding Defense (MoM) (Dec) -2.4%, -2.4% forecast, -2.4% previous
• US Durables Excluding Transport (MoM) (Dec) 0.3% ,0.3% previous
• US Factory Orders (MoM) (Dec) -0.9% ,-0.7% forecast, -0.8% previous
• US Factory orders ex transportation (MoM) (Dec) 0.3% ,0.2% previous
• US JOLTS Job Openings (Dec) 7.600M, 8.010M forecast, 8.156M previous
• US IBD/TIPP Economic Optimism (Feb) 52.0, 53.0 forecast, 51.9 previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Average Cash Earnings (YoY) 3.6% forecast, 3.0% previous
•23:30 Japan Overall wage income of employees (Dec) 3.9% previous
•23:30 Japan Overtime Pay (YoY) (Dec) 1.60% previous
•00:00 New Zealand ANZ Commodity Price Index (MoM) 0.2% previous
•00:30 Australia MI Inflation Gauge (MoM) (Jan) 0.6% previous
•00:30 Japan au Jibun Bank Services PMI (Jan) 52.7 forecast,50.9 previous
Looking Ahead Events And Other Releases(GMT)
• 16:00 US FOMC Member Bostic Speaks
Currency Summaries
EUR/USD: The euro rose on Tuesday as President Donald Trump's tariff threats were interpreted more as a negotiating tactic rather than an end goal. The new Trump administration imposed additional 10% tariffs on imports from China effective from early Tuesday and currency analysts said they expected high sensitivity to tariff developments and volatility to persist. The euro rose slightly, with Washington warning that the European Union may be next in line for trade levies, which are widely expected to push up U.S. inflation, supporting the dollar by keeping U.S. interest rates higher for longer. Immediate resistance can be seen at 1.0385(50%fib), an upside break can trigger rise towards 1.0456(61.8%fib).On the downside, immediate support is seen at 1.0328(38.2%fib), a break below could take the pair towards 1.9232 (23.6%fib).
GBP/USD: Sterling rose sharply on Tuesday as investors expect U.S. tariffs to hurt the Eurozone economy more than in the UK. The U.S. and China set financial markets on edge with tit-for-tat tariffs that raised the spectre of a broader, damaging trade conflict.Overnight, Trump agreed to a 30-day pause on the 25% tariffs on Mexican and Canadian imports. On the economic front, the Bank of England is expected to cut interest rates by 25 basis points on Thursday. Markets will also receive Britain’s PMI figures for January on the same day. Interest rate futures pointed to about 81 basis points of reductions to the BoE's Bank Rate by December this year, compared with 75 bps on Friday which represented a full pricing of three quarter-point rate cuts. Immediate resistance can be seen at 1.2532(50%fib), an upside break can trigger rise towards 1.2649(61.8%fib).On the downside, immediate support is seen at 1.2405(38.2%fib), a break below could take the pair towards 1.2258(23.6%fib).
USD/CAD: The Canadian dollar rose to a near two-week high against the U.S. dollar on Tuesday, building on gains from the previous day after Canada avoided the immediate imposition of U.S. trade tariffs. U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause. The reprieve for Canada came after the market's close on Monday. Meanwhile, the price of oil dropped 0.9% to $72.52 a barrel, partly due to ongoing tensions between the U.S. and China. The loonie was trading 0.6% higher at 1.4345 to the U.S. dollar, after earlier touching its strongest level since Jan. 22 at 1.4306.Immediate resistance can be seen at 1.3446 (50%fib), an upside break can trigger rise towards 1.4598 (38.2%fib).On the downside, immediate support is seen at 1.4310(61.8%fib), a break below could take the pair towards 1.4221(Lower BB).
USD/JPY: The U.S. dollar dipped on Tuesday as Japanese currency strengthened on perceived haven flows and Bank of Japan rate hike expectations. In retaliation, China announced tariffs on some U.S. imports, heightening concerns of a trade war between the two economies. China's new tariffs on targeted U.S. exports will begin on Feb. 10, giving both Washington and Beijing some time to negotiate a deal that Chinese policymakers hope to reach with Trump. The U.S. dollar index , a measure of the value of the greenback relative to a weighted basket of six major foreign currencies, was down 0.56% at 107.97. Immediate resistance can be seen at 155.34 (50%fib) an upside break can trigger rise towards 157.73(38.2%fib). On the downside, immediate support is seen at 153.90(61.8%fib) a break below could take the pair towards 152.93 (Lower BB).
Equities Recap
European shares inched higher on Tuesday as investors focused on quarterly earnings from companies like UBS, BNP Paribas, and Ferrari, while remaining cautious about potential U.S. tariffs.
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended up by 0.36 percent, France’s CAC finished the day up by 0.67 percent.
U.S. stocks surged on Tuesday, while gold hit new highs as global trade concerns kept investors uncertain.
Dow Jones closed up by 0.30% percent, S&P 500 closed up by 0.72% percent, Nasdaq settled up by 1.35% percent.
Commodities Recap
Gold prices hit an all-time high on Tuesday as investors flocked to the safe-haven asset after China retaliated with tariffs on the U.S. in response to President Trump's actions.
Spot gold rose 1.1% to $2,844.56 per ounce by 01:40 p.m. ET (1840 GMT), after reaching a record high of $2,845.14 earlier in the session.