Posted at 20 February 2025 / Categories Market Roundups
Market Roundup
• US Initial Jobless Claims 219K, 215K forecast, 214K previous
• US Jobless Claims 4-Week Avg. 215.25K, 216.25K previous
• US Philadelphia Fed Manufacturing Index (Feb) 18.1, 19.4 forecast, 44.3 previous
• US Philly Fed Business Conditions (Feb) 27.8, 46.3 previous
• US Philly Fed CAPEX Index (Feb) 14.00, 39.00 previous
• US Philly Fed Employment (Feb) 5.3, 11.9 previous
• US Philly Fed New Orders (Feb) 21.9, 42.9 previous
• US Philly Fed Prices Paid (Feb) 40.50, 31.90 previous
•Canada IPPI (YoY) (Jan) 5.8%, 4.1% previous
•Canada IPPI (MoM) (Jan) 1.6%, 0.8% forecast, 0.4% previous
•Canada New Housing Price Index (MoM) (Jan) -0.1%, 0.1% forecast, -0.1% previous
•Canada RMPI (YoY) (Jan) 11.8%, 9.1% previous
•Canada RMPI (MoM) (Jan) 3.7%, 2.4% forecast, 1.3% previous
•US 4-Week Bill Auction 4.245%, 4.250% previous
•US 8-Week Bill Auction 4.235%, 4.240% previous
•US Crude Oil Inventories 4.633M, 3.200M forecast, 4.070M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan CPI, n.s.a (MoM) (Jan) 0.6% previous
•23:30 Japan National Core CPI (YoY) (Jan) 3.1% forecast, 3.0% previous
•23:30 Japan National CPI (YoY) (Jan) 3.6% previous
•00:01 UK GfK Consumer Confidence (Feb) -22 forecast, -22 previous
•00:30 Japan au Jibun Bank Manufacturing PMI (Feb) 49.0 forecast, 48.7 previous
•00:30 Japan au Jibun Bank Services PMI (Feb) 53.0 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar due to short-covering ahead of Friday's European PMI data and Germany's elections over the weekend. Germany will hold a snap national election on February 23 after Chancellor Olaf Scholz's three-way coalition collapsed. U.S. data showing initial jobless claims, which were in line with expectations, and a report indicating factory output growth slowed in the mid-Atlantic region in February had minimal impact on the currency market. The reports have not changed expectations that the Federal Reserve will remain on hold for several months. The euro rose 0.7% against the dollar to $1.0499 , rising after three straight days of losses, Immediate resistance can be seen at 1.0517(23.6%fib), an upside break can trigger rise towards 1.0566(Higher BB).On the downside, immediate support is seen at 1.0427(38.2%fib), a break below could take the pair towards 1.0351(50%fib).
GBP/USD: The pound rose on Thursday as traders awaited UK data on consumer spending and business activity, following a strong inflation report that complicated the Bank of England's policy outlook. Wednesday's inflation data showed a faster-than-expected rise in consumer prices, which may reduce the likelihood of two rate cuts this year. Market participants are closely monitoring Friday’s retail sales and business activity data for insights into economic strength, alongside Tuesday's jobs report showing accelerating wage growth and last week's unexpected 0.1% GDP growth in Q4.Immediate resistance can be seen at 1.2645(38.2%fib), an upside break can trigger rise towards 1.2867(Higher BB).On the downside, immediate support is seen at 1.2569(50%fib), a break below could take the pair towards 1.2487(61.8%fib)
USD/CAD: The Canadian dollar weakened against the U.S. dollar renewed tariff threat from U.S. President Donald Trump kept investors on edge. Trump late on Wednesday fired a fresh salvo of tariff threats saying that he would impose duties on imports of lumber and forest products over the next month or sooner, a day after announcing tariffs on cars, computer chips and pharmaceuticals. Markets are also monitoring geopolitical developments after Trump and Ukrainian President Volodymyr Zelenskiy traded barbs on Wednesday, with the U.S. president calling the latter a dictator .The loonie was trading 0.2% lower at C$1.4205 to the greenback , after trading in a range of 1.4197 to 1.4244.Immediate resistance can be seen at 1.4240 (50%fib), an upside break can trigger rise towards 1.4474(38.2%fib).On the downside, immediate support is seen at 1.4169(61.8%fib), a break below could take the pair towards 1.4044 (Lower BB).
USD/JPY: The U.S. dollar dropped to a 11- month low against the yen on Thursday as U.S.- Japan yield differentials and Bank of Japan rate hike expectations continue to support yen. BOJ Governor Kazuo Ueda said on Thursday that he met with Japanese Prime Minister Shigeru Ishiba to discuss the economy and financial markets, but did not touch on the recent rise in long-term interest rates. Investors have been betting more on the BOJ tightening policy sooner, supported by recent domestic data. Focus now turns to Japan CPI and PMI data on Friday. Immediate resistance can be seen at 152.40(38.2%fib) an upside break can trigger rise towards 153.43(50%fib). On the downside, immediate support is seen at 149.28(23.6%fib) a break below could take the pair towards 148.67(Lower BB).
Equities Recap
European stocks closed Thursday's session at a one-week low, as investors took inventory of a mixed bag of corporate updates, while they were also on edge ahead of a German election that is likely to change the country's political landscape.
UK's benchmark FTSE 100 closed up by 0.57percent, Germany's Dax ended down by 0.53 percent, France’s CAC finished the day down by 0.12 percent.
U.S. stocks declined on Thursday as concerns over tariffs and a gloomy forecast from Walmart weakened investor sentiment.
Dow Jones closed up by 1.01 percent, S&P 500 closed down by 0.43 percent, Nasdaq settled down by 0.47 percent.
Commodities Recap
Gold prices surged to a record high on Thursday, driven by concerns over a global trade war triggered by U.S. President Donald Trump's tariff threats, which sparked increased safe-haven demand for the precious metal.
Spot gold rose 0.1% to $2,936.38 an ounce as of 02:36 p.m. ET (1936 GMT). It hit $2,954.69 earlier in the session its tenth record high so far this year.
U.S. gold futures settled 0.7% higher at $2,956.10. Bullion has gained about 12% so far this year.
Oil prices rose on Thursday, extending a three-day gain, as U.S. data revealed gasoline and distillate drawdowns, and concerns over potential supply disruptions in Russia further supported prices.
Brent futures settled up 44 cents, or 0.58%, at $76.48 a barrel. U.S. West Texas Intermediate crude futures (WTI) for March delivery rose 32 cents, or 0.44%, to $72.57.