Posted at 12 February 2025 / Categories Market Roundups
Market Roundup
• Canada Building Permits (MoM) (Dec) 11.0% ,1.6%forecast, -5.9% previous
• US Redbook (YoY) 5.3%,5.7% previous
Looking Ahead Economic Data (GMT)
•02:00 Australia Home Loans (MoM) 0.1% previous
•02:00 Australia Invest Housing Finance (MoM) -1.0% previous
•06:00 Japan Machine Tool Orders (YoY) (Jan) 11.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro recovered ground on Tuesday as as investors assessed the latest U.S. tariff salvo and Federal Reserve Chair Jerome Powell signaled a patient path for rate cuts.President Donald Trump on Monday raised tariffs on steel and aluminum imports to 25% from the previous 10%, eliminated country exceptions, as well as product-specific exclusions, and promised to announce global reciprocal tariffs within days. Mexico, Canada and the European Union on Tuesday condemned the move, with the EU saying the 27-nation bloc would take firm and proportionate countermeasures. The dollar index , which measures the greenback against a basket of currencies, fell 0.41% to 107.92, with the euro up 0.53% at $1.0361. Immediate resistance can be seen at 1.0328(50%fib), an upside break can trigger rise towards 1.0375(61.8%fib).On the downside, immediate support is seen at 1.0279(38.2%fib), a break below could take the pair towards 1.222(23.6%fib).
GBP/USD: Sterling strengthened on Tuesday as investors shrugged off increased U.S. tariff noise and awaited fresh catalyst for further direction. US consumer price data for January due on Wednesday is this week's main U.S. economic release and is expected to show inflation remained sticky during the month. Traders are keeping an eye on Wednesday's U.S. inflation data for fresh clues on the interest rate outlook in the world's largest economy. British gross domestic product (GDP) figures due on Thursday, which could affect expectations for the BoE's rate path. The pair was trading up 0.06% at 1.2438. 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)
USD/CAD: The Canadian dollar held steady nears a two-week high against the U.S. dollar on Wednesday, boosted by Canada's trade surplus and a reprieve from U.S. tariffs. Canada recorded its first trade surplus in 10 months in December, as exports grew faster than imports, driven by U.S. businesses stocking up before potential tariffs. The price of oil, a key Canadian export, dropped 2.3% to $71.03 per barrel after a significant increase in U.S. crude and gasoline stockpiles pointed to weaker demand. The loonie was flat at 1.4320 per U.S. dollar after reaching its highest intraday level since January 20 at 1.4266. Immediate resistance can be seen at 1.4428(50% fib), an upside break can trigger rise towards 1.4512(Feb 4th high).On the downside, immediate support is seen at 1.4273(38.2% fib), a break below could take the pair towards 1.4218 (Lower BB).
USD/CAD: The Canadian dollar strengthened against the U.S. dollar on Tuesday as oil prices rose and investors grew doubtful about the U.S. following through on proposed tariffs. President Trump signed proclamations on Monday imposing tariffs on steel and aluminum imports, many from Canada, but the measures won’t take effect until March 12. Last Tuesday, Trump paused his tariff threat on Mexico and Canada, agreeing to a 30-day break in exchange for border and crime enforcement concessions. Oil, a key Canadian export, rose for the third consecutive day due to concerns over disruptions to Russian and Iranian oil supplies. The loonie was trading 0.2% higher at 1.4285 to the U.S. dollar , after moving in a range of 1.4280 to 1.4345. Immediate resistance can be seen at 1.4345(Fe 11th high), an upside break can trigger rise towards 1.4418(50% fib).On the downside, immediate support is seen at 1.4265(61.8% fib), a break below could take the pair towards 1.4226 (Lower BB).
USD/JPY: The U.S. dollar strengthened on Tuesday as investors evaluated the latest U.S. tariff increase and Federal Reserve Chair Jerome Powell signaled a cautious approach to rate cuts. On Monday, President Trump raised tariffs on steel and aluminum imports to 25% from the previous 10%, removed country exceptions and product-specific exclusions, and promised to announce global reciprocal tariffs within days.Markets have been slowly scaling back expectations for rate cuts from the U.S. central bank this year, largely expecting the Fed to hold rates steady at its March and May meetings. For the June Fed meeting, markets are pricing in a 51% chance for a cut of at least 25 basis points in June, down from 63.6% a week ago, according to CME's FedWatch Tool . The dollar strengthened 0.31% to 152.46 against the Japanese yen. Immediate resistance can be seen at 153.23 (38.2%fib) an upside break can trigger rise towards 154.69(23.6%fib). On the downside, immediate support is seen at 152.62(50%fib) a break below could take the pair towards 151.00 (Psychological level).
Equities Recap
European shares closed at a record high on Tuesday after a volatile session, as investors weighed the EU's response to U.S. President Trump’s tariff hike on steel and aluminum imports, which led to a drop in basic resources stocks.
UK's benchmark FTSE 100 closed up by 0.11 percent, Germany's Dax ended up by 0.58 percent, France’s CAC finished the day up by 0.28 percent.
Wall Street’s main indexes closed mixed on Tuesday, with gains in Coca-Cola and Apple offsetting losses in Tesla, as investors analyzed Federal Reserve Chair Jerome Powell’s latest comments.
Dow Jones closed up by 0.28% percent, S&P 500 closed up by 0.04% percent, Nasdaq settled down by 0.36% percent.
Commodities Recap
Gold prices slipped on Tuesday as investors booked profits following a record high, yet remained bullish amid fears of a global trade war spurred by U.S. President Donald Trump's new tariffs.
Spot gold fell 0.1% to $2,904.87 per ounce, as of 01:41 p.m. ET (1841 GMT), after hitting a peak of $2,942.70 earlier in the session.U.S. gold futures settled 0.1% lower at $2,932.60.
Oil prices rose to a two-week high on Tuesday, driven by concerns over Russian and Iranian oil supply disruptions due to sanctions and escalating Middle East tensions, which outweighed fears that trade tariffs could increase inflation and slow global economic growth.
Brent futures rose $1.13, or 1.5%, to settle at $77.00 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.00, or 1.4%, to settle at $73.32.