Posted at 06 February 2025 / Categories Market Roundups
Market Roundup
•US Initial Jobless Claims 219K, 214K forecast, 208K previous
•US Jobless Claims 4-Week Avg. 216.75K, 212.75K previous
•US Nonfarm Productivity (QoQ) (Q4) 1.2%, 1.5% forecast, 2.3% previous
•US Unit Labor Costs (QoQ) (Q4) 3.0%, 3.4% forecast, 0.5% previous
•US Total Vehicle Sales (Jan) 15.60M, 16.80M previous
•Canada Ivey PMI n.s.a (Jan) 46.2, 44.3 previous
•Canada Ivey PMI (Jan) 47.1, 53.0 forecast, 54.7 previous
•US Natural Gas Storage -174B, -167B forecast, -321B previous
•US 4-Week Bill Auction 4.250%, 4.250% previous
•US 8-Week Bill Auction 4.240%, 4.240% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Household Spending (MoM) (Dec) -0.5% forecast, 0.4% forecast
•23:50 Japan Household Spending (YoY) (Dec) 0.5%forecast, -0.4% previous
•23:50 Japan Foreign Reserves (USD) (Jan) 1,230.7B previous
•05:00 Japan Coincident Indicator (MoM) (Dec) -1.4% previous
•05:00 Japan Leading Index (MoM) (Dec) -1.6% previous
•05:00 Japan Leading Index (Dec) 108.2, 107.5 previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro was little changed on Thursday as markets looked ahead to the release on Friday of key U.S. monthly payrolls figures. Traders do not expect the Fed to make a move on interest rates in its next meeting in March, but a cut is widely anticipated in June, according to the CME's FedWatch.Data released on Thursday showed the number of Americans filing new applications for unemployment benefits increased moderately last week. The dollar index was up against a basket of peers at 107.69, but it still hovered near the lowest level since the start of last week. The euro edged up 0.02% to $1.0385.Immediate resistance can be seen at 1.0416(50 SMA), an upside break can trigger rise towards 1.0439(61.8%fib).On the downside, immediate support is seen at 1.0369(50%fib), a break below could take the pair towards 1.9293 (38.2%fib).
GBP/USD: The pound fell sharply after the Bank of England cut interest rates as expected, but forecast higher inflation and weaker growth, with two officials calling for an even larger rate cut.Sterling later pared some of those losses, having touched a one-month high on Wednesday. It was last down 0.54% at $1.2438. Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further a shift from December's language where he spoke only of a gradual approach. Money markets now price in around 67 basis points of further BoE easing by the end of the year. Immediate resistance can be seen at 1.2511(50%fib), an upside break can trigger rise towards 1.2574(Higher BB).On the downside, immediate support is seen at 1.2374(38.2%fib), a break below could take the pair towards 1.2253(Feb 3rd low)
USD/CAD: The Canadian dollar held steady against the U.S. dollar on Thursday, as investors awaited upcoming employment data to help shape expectations for policy divergence between the U.S. Federal Reserve and the Bank of Canada. U.S. and Canadian employment data for January is set for release on Friday. Economists expect Canada's economy to have added 25,000 jobs, a slowdown from the 91,000 in December. Meanwhile, Ivey Purchasing Managers Index (PMI) data revealed that Canadian economic activity contracted in January for the first time in five months, with slower employment growth and rising prices. The price of oil , one of Canada's major exports, was trading 0.5% lower at $70.69 a barrel, while Canadian bond yields moved higher across the curve. Immediate resistance can be seen at 1.4375(38.2% fib), an upside break can trigger rise towards 1.4533(23.6% fib).On the downside, immediate support is seen at 1.4273(61.8% fib), a break below could take the pair towards 1.4224 (Lower BB).
USD/JPY: The U.S. dollar slipped to hit eight-week low on Thursday after a Bank of Japan policy board member advocated continued interest-rate hikes. Bank of Japan board member Naoki Tamura said on Thursday that the BoJ must raise interest rates to at least 1% by the second half of the fiscal year starting in April. His hawkish remarks fueled speculation of a near-term rate hike. Conversely, a quarter-percentage-point rate cut by the Federal Reserve is fully priced in for July, with markets expecting a total of 46 basis points of reductions by the December meeting. The yen strengthened as far as 151.11 per dollar the strongest level since December 12. Immediate resistance can be seen at 153.68 (38.2%fib) an upside break can trigger rise towards 153.00(Psychological level). On the downside, immediate support is seen at 151.11(23.6%fib) a break below could take the pair towards 150.58 (Lower BB).
Equities Recap
European shares hit an all-time high on Thursday, driven by strong earnings from mining companies. Investors also considered the potential for a Ukraine peace plan amidst the positive market momentum.
UK's benchmark FTSE 100 closed up by 1.21 percent, Germany's Dax ended up by 1.47 , France’s CAC finished the day up by 1.47 percent.
The S&P 500 and Nasdaq closed higher, while the Dow finished lower on Thursday after a volatile trading session, with investors analyzing earnings reports and awaiting Amazon's results and Friday's jobs data.
Dow Jones closed down by 0.28% percent, S&P 500 closed up by 0.36% percent, Nasdaq settled up by 0.51% percent.
Commodities Recap
Gold prices fell 1% on Thursday as the U.S. dollar strengthened ahead of a key jobs report, while investors took profits after bullion hit consecutive record highs in the previous five sessions, fueled by escalating U.S.-China trade tensions.
Spot gold slipped 0.4% to $2,853.16 per ounce by 01:50 p.m. ET (1850 GMT) after hitting an all-time high of $2,882.16 on Wednesday. U.S. gold futures settled 0.6% lower at $2,876.70.
Oil prices closed lower on Thursday after U.S. President Donald Trump reiterated his pledge to boost U.S. oil production, unsettling traders following a larger-than-expected increase in crude stockpiles reported the day before.
Brent crude futures fell 32 cents, or 0.4%, to settle at $74.29 a barrel. U.S. West Texas Intermediate crude fell 42 cents, or 0.6%, to $70.61.