Posted at 02 January 2019 / Categories Market Roundups
Market Roundup
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Looking Ahead - Economic Data (GMT)
• No major economic indicators scheduled
Looking Ahead - Events, Other Releases (GMT)
• No major economic events scheduled
Currency Summaries
EUR/USD: The euro slipped lower against the U.S. dollar on Wednesday, as disappointing Eurozone manufacturing activity and stronger greenback across the board weighed on single currency.The euro was down 0.18 percent at $1.1346. The dollar index, which measures the greenback against a basket of six other currencies, advanced 0.7 percent. Immediate resistance can be seen at 1.1380 (55 DMA), an upside break can trigger rise towards 1.1496 (Daily high).On the downside, immediate support is seen at 1.1324 (38.2% retracement level), a break below could take the pair towards 1.1280 (23.6% retracement level).
GBP/USD: Britain's pound declined sharply against the dollar on Wednesday, as stronger dollar and Brexit concerns weighed British currency. After a weaker start, the rebounding dollar sent currencies across developed and emerging markets reeling, with volatile sterling a particularly large faller. The pound fell more than 1.2 percent to as low as $1.2596, its weakest since Dec. 17.The British currency had rallied more than a percent in intraday trading on Monday. Immediate resistance can be seen at 1.2657 (9 DMA), an upside break can trigger rise towards 1.2785 (Higher Bollinger Band).On the downside, immediate support is seen at 1.2581 (Daily low), a break below could take the pair towards 1.2515 (Lower Bollinger Bands).
USD/CAD: The Canadian dollar strengthened against its broadly stronger U.S. counterpart on Wednesday, as higher oil prices offset domestic data showing a slowdown in manufacturing growth.The Canadian dollar was trading 0.4 percent higher at 1.3586 to the greenback. The currency, which touched on Friday its weakest since May 2017 at 1.3665, traded in a range of 1.3570 to 1.3662. Immediate resistance can be seen at 1.3400 (Psychological Level), an upside break can trigger rise towards 1.3424 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3568 (10 DMA), a break below could take the pair towards 1.3452 (21 DMA).
USD/JPY:The Japanese yen strengthened against dollar on Wednesday, as investors grew cautious on the first trading day of 2019 about weakening global growth and volatile stock markets. The dollar fell 0.8 percent against the yen to 108.94, its lowest since June 1. The dollar index, which measures the greenback against a basket of six other currencies, advanced 0.7 percent. Strong resistance can be seen at 110.27 (5 DMA), an upside break can trigger rise towards 110.87 (10 DMA).On the downside, immediate support is seen at 108.73(23.6% retracement level), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European shares lost further ground in their first trading day of 2019 on Wednesday as fears about global growth, trade wars and political instability rolled over into the new year while investors sought safety in stocks considered less risky.
UK's benchmark FTSE 100 closed flat, the pan-European FTSEurofirst 300 ended the day down by 0.20 percent, Germany's Dax ended up by 0.2 percent, France’s CAC finished the day down by 1 percent.
Wall Street edged nominally higher on Wednesday after stumbling out of the starting gate on the first trading day of the new year as bargain-hunting was offset by fears of a global economic slowdown.
Dow Jones closed up by 0.07 percent, S&P 500 ended up by 0.12 percent, Nasdaq finished the day up by 0.44 percent.
Treasuries Recap
The Treasury yield curve flattened on Wednesday afternoon as shorter-dated yields rose on higher oil prices, while at the long end, the benchmark 10-year U.S. government bond was driven to an 11-month low by concerns about a global growth slowdown.
The 10-year Treasury yield was down 3 basis points, last at 2.66 percent, approaching the key level of 2.64 percent, a retracement of 50 percent from the 2018 high yield of 3.25 percent. Other safe-haven investments also benefited in price from the flight to quality.
Commodities Recap
Gold prices inched down from their highest level in over six months on Wednesday after a rebound in equity markets and a stronger dollar dented the precious metal's appeal.
Spot gold was down 0.1 percent at $1,284.81 an ounce at (2150 GMT), having earlier touched its highest since June 15 at $1,288.66.U.S. gold futures settled up 0.2 percent at $1,284.10 per ounce.
Oil prices rose about 2 percent in choppy trading on Wednesday, supported by a slight recovery on Wall Street, even as concerns remained about weakening global economic growth which could hurt demand for oil.
Brent crude futures gained $1.11, or 2.1 percent, to settle at $54.91 a barrel, after trading between $52.51 and $56.56.
U.S. West Texas Intermediate (WTI) crude ended $1.13, or 2.5 percent, higher at $46.54 a barrel, after hitting a session low at $44.35 and high at $47.78.