Posted at 10 February 2025 / Categories Market Roundups
Market Roundup
• Japan Adjusted Current Account (Dec) 2.73T, 2.73T forecast , 3.03T previous
•Japan Bank Lending (YoY) (Jan) 3.0%,3.1% forecast, 3.0% previous
•Japan Current Account n.s.a. (Dec) 1.077T,1.362T forecast, 3.353T previous
•Australia Building Approvals (MoM) (Dec) 0.7% , 0.7% forecast, -3.4% previous
•Australia Private House Approvals (Dec) -3.0%,-3.0% forecast, -1.7% previous
Looking Ahead Economic Data(GMT)
• 09:30 EU Sentix Investor Confidence (Feb) -16.4 forecast, -17.7 previous
•10:00 Greek Industrial Production (YoY) (Dec) 4.9% previous
•11:00 Portuguese Trade Balance (Dec) -7.43B previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro dipped on Monday after President Trump’s new tariff plans raised concerns of a global trade war. Trump announced 25% tariffs on all steel and aluminium imports, adding to existing duties in a major escalation of his trade policy. This came shortly after German Chancellor Scholz stated the EU would respond within an hour if tariffs were imposed on European goods, highlighting the potential for an escalating trade conflict. The euro was 0.1% lower at $1.0313, staying near the more than two-year low of $1.0125 it touched last week. Immediate resistance can be seen at 1.0277(38.2%fib), an upside break can trigger rise towards 1.0328(50%fib).On the downside, immediate support is seen at 1.0219(23.6%fib), a break below could take the pair towards 1.093(Lower BB).
GBP/USD: Sterling initially dipped but regained ground on Monday as Trump warned of imminent tariffs on steel and aluminium, which could limit rate cuts. Trump announced on Sunday that he would impose new 25% tariffs on steel and aluminium imports into the U.S., along with reciprocal tariffs this week to match the rates levied by other countries. There is significant uncertainty around Trump's tariff actions, as he has previously delayed tariffs on Mexico and Canada and made conciliatory remarks about China. Immediate resistance can be seen at 1.2442(50%fib), an upside break can trigger rise towards 1.2553(61.8%fib).On the downside, immediate support is seen at 1.2316(38.2%fib), a break below could take the pair towards 1.2168(23.6%fib)
AUD/USD: Australian dollar pared some early losses on Monday as investors reacted to Trump’s tariff comments on steel and aluminum. The announcement heightened concerns over trade tensions, which negatively impacted risk sentiment and strengthened the U.S. dollar. Australia is not a major exporter of steel and aluminium to the U.S., but its top trading partner China will be subject to these new tariffs. Beijing's retaliatory tariffs on some U.S. goods came into effect on Monday with no signs of Trump speaking to Chinese President Xi Jinping.At GMT 07:19, The Australian dollar was last trading up 0.03% to $0.6274 .Immediate resistance can be seen at 0.6321(Higher BB), an upside break can trigger rise towards 0.6381(50%fib).On the downside, immediate support is seen at 0.6249(38.2%fib), a break below could take the pair towards 0.6183(Lower BB).
USD/JPY: The U.S. dollar strengthened on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium, an inflationary move that could limit the scope for rate cuts. Tariffs could also put upward pressure on U.S. inflation and further limit room for the Federal Reserve to ease policy. Markets had already scaled back expected rate cuts this year to just 36 basis points, from around 42 basis points, following an upbeat payrolls report on Friday.Fed Chair Jerome Powell is due to appear before the House of Representatives on Tuesday and Wednesday and the impact of tariffs on policy is sure to be a hot-button issue. The dollar bounced 0.3% on the yen to 151.85 , regaining some of the ground recently lost .Immediate resistance can be seen at 152.19 (Daily high) an upside break can trigger rise towards 153.69(38.2%fib). On the downside, immediate support is seen at 150.87(38.2%fib) a break below could take the pair towards 150.00 (Psychological level).
Equities Recap
Asian shares were mixed on Monday after U.S. President Trump warned of imminent tariffs on steel and aluminium, a move that could raise inflation and limit potential rate cuts.
Japan’s Nikkei was down 0.12% , South Korea's KOSPI was up by 0.03%,Hang Seng was up by 1.88%
Commodities Recap
Gold rose on Monday and hovered near record-high levels touched in the previous session, as investors sought refuge in the safe-haven asset after U.S. President Donald Trump's fresh tariff plans sparked fears of a global trade war.
Spot gold was up 0.8% at $2,882.50 per ounce, as of 0610 GMT, after hitting a record high of $2,886.62 on Friday.
U.S. gold futures rose 0.7% to $2,908.
Oil prices edged higher on Monday as investors weighed U.S. President Trump's latest tariff threat on steel and aluminium imports, which could impact global economic growth and energy demand.
Brent crude futures rose 51 cents, or 0.7%, to $75.17 a barrel by 0444 GMT, while U.S. West Texas Intermediate crude climbed 45 cents, or 0.6%, to $71.45 a barrel.