Posted at 14 February 2019 / Categories Market Roundups
Market Roundup
Economic Data Ahead
Key Events Ahead
FX Beat
DXY: The dollar index rallied to an over 8-week peak after Bloomberg reported that U.S. President Donald Trump was considering pushing back by 60 days a March 1 deadline for resolving trade disputes with China. The greenback against a basket of currencies trades 0.1 percent down at 97.13, having touched a high of 97.29 earlier, its highest since December 17. FxWirePro's Hourly Dollar Strength Index stood at -6.91 (Neutral) by 1000 GMT.
EUR/USD: The euro bounced back from a 3-month low after data showed employment in the eurozone rose 0.3 percent quarter-on-quarter in the last three months of 2018 and was 1.2 percent higher than in the same period a year earlier. Moreover, a separate report showed EZ gross domestic product rose 0.2 percent quarter-on-quarter for a 1.2 percent year-on-year increase, in line with preliminary estimates supported the bid tone around the major. The European currency traded 0.1 percent up at 1.1271, having touched a low of 1.1248, its lowest since Nov. 13. FxWirePro's Hourly Euro Strength Index stood at 23.11 (Neutral) by 1000 GMT. Immediate resistance is located at 1.1304 (5-DMA), a break above targets 1.1368 (Feb.7 High).. On the downside, support is seen at 1.1216 (Nov. 13 Low), a break below could drag it till 1.1180.
USD/JPY: The dollar advanced to a 1-1/2 month peak after Chinese export and import data for January came in better-than-expectations, providing some relief that a sign of some recovery in the global economy more generally this year. Investors now await signs of concrete progress in trade talks between Washington and Beijing. The major was trading 0.05 percent up at 111.04, having hit a high of 111.12 earlier, its highest since December 27. FxWirePro's Hourly Yen Strength Index stood at -83.01 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. retail sales, producer price index, unemployment claim benefits and business inventories. Immediate resistance is located at 111.40 (Dec. 26 Low), a break above targets 111.82 (Aug. 29 Low). On the downside, support is seen at 110.27 (5-DMA), a break below could take it lower at 109.60 (Feb. 7 Low).
GBP/USD: Sterling plunged to a fresh 1-month low as investors cautiously awaited a parliamentary debate on Brexit that could provide some clarity over the forthcoming vote on Prime Minister Theresa May's deal with Brussels. The major traded 0.05 percent down at 1.2842, having hit a low of 1.2813 earlier it’s lowest since January 15. FxWirePro's Hourly Sterling Strength Index stood at -54.64 (Bullish) 1000 GMT. Immediate resistance is located at 1.2957 (10-DMA), a break above could take it near 1.3080 (January 23 High). On the downside, support is seen at 1.2800, a break below targets 1.2766 (Nov 22 Low). Against the euro, the pound was trading 0.2 percent down at 87.80 pence, having hit a low of 88.21 last week, it’s lowest since Jan. 22.
USD/CHF: The Swiss franc consolidated near a 3-month low hit earlier in the week, as improved Chinese trade data and hopes of progress in U.S.-China trade talks boosted risk sentiment The major trades flat at 1.0088, having touched a high of 1.0099 on Monday; it’s highest since November 14. FxWirePro's Hourly Swiss Franc Strength Index stood at -78.71 (Slightly Bearish) by 1000 GMT. On the higher side, near-term resistance is around 1.0111 (November 12 High) and any break above will take the pair to next level till 1.0150. The near-term support is around 0.9961 (January 22 Low), and any close below that level will drag it till 0.9889 (December 7 Low).
Equities Recap
European shares rose to a 3-month peak, boosted by strong corporate results and optimism about U.S.-China trade talks.
The pan-European STOXX 600 index rallied 0.4 percent at 366.23 points, while the FTSEurofirst 300 index surged 0.3 percent to 1,439.65 points.
Britain's FTSE 100 trades 0.1 percent up at 7,201.46 points, while mid-cap FTSE 250 eased 0.2 to 18,944.92 points.
Germany's DAX rose 0.1 percent at 11,186.67 points; France's CAC 40 trades 0.5 percent higher at 5,099.56 points
Commodities Recap
Crude oil prices surged by more than 1 percent, boosted by hopes that the U.S.-China tariff dispute could end soon and as China's trade figures including crude imports beat forecasts. International benchmark Brent crude was trading 1.1 percent up at $64.32 per barrel by 1033 GMT, having hit a high of $64.79 earlier, its highest since November 20. U.S. West Texas Intermediate was trading 0.7 percent higher at $54.28 a barrel, after rising as high as $54.58 on Wednesday, its highest since the February 5.
Gold prices steadied as investors awaited developments in trade talks between Washington and Beijing. Spot gold was trading flat at $1,305.68 per ounce by 1036 GMT, having touched a high of $1,318.02 on Wednesday, its highest level since February 4. U.S. gold futures were down 0.2 percent at $1,311.80.
Treasuries Recap
The Euro zone government bond yields were mostly steady with the benchmark German 10-year bonds yields trading close to their lowest levels in over two years. The German 10-year Bund yield was trading at 0.12 percent, while most other 10-year bond yields in the bloc were flat to marginally lower.
The Japanese government bond prices edged higher, with the five-year JGB yield easing 1 basis point to minus 0.165 percent and the 10-year yield dipping half a basis point to minus 0.015 percent.
The Australian government bond futures were slightly firmer, with the three-year bond contract up half a tick at 98.325. The 10-year contract rose 1.5 ticks to 97.865.
The New Zealand government bonds fell, sending yields about 4 basis points higher across the curve.