European Open Briefing

Global Markets:

  • Asian stock markets: Nikkei up 0.20 %, Shanghai Composite gained 0.30 %, Hang Seng rose 0.10 %, ASX 200 rallied 0.75 %
  • Commodities: Gold at $1183 (-0.55 %), Silver at $16.73 (-0.70 %), WTI Oil at $53.80 (+0.05 %), Brent Oil at $56.20 (-0.10 %)
  • Rates: US 10 year yield at 2.51, UK 10 year yield at 1.51, German 10 year yield at 0.48

News & Data:

  • Japan National CPI (YoY) Dec: 0.3% (est. 0.20%, prev. 0.50%)
  • Japan National CPI Ex-Fresh Food (YoY) Dec: -0.2% (est. -0.30%, prev. -0.40%)
  • Tokyo CPI (YoY) Jan: 0.1% (est. 0.00%, prev. 0.00%)
  • Tokyo CPI Ex-Fresh Food (YoY) Jan: -0.3% (est. -0.40%, prev. -0.60%)
  • Australia Export Price Index (QoQ) Q4: 12.4% (est. 12.10%, prev. 3.50%)
  • Australia Import Price Index (QoQ) Q4: 0.2% (est. 0.40%, prev. -1.00%)
  • Australia PPI (YoY) Q4: 0.7% (prev. 0.50%)
  • Australia PPI (QoQ) Q4: 0.5% (prev. 0.30%)
  • U.S. new home sales fall; weekly jobless claims rise – RTRS
  • Asia shares steady, dollar and oil extend gains on renewed optimism – RTRS

Markets Update:

The US Dollar strengthened overnight, especially against the Yen. USD/JPY opened around 114.40 in Tokyo and rallied to a high of 115.06. The market is expecting the large tax cuts and infrastructure spending that US President Trump promised, and which have driven US stock markets to fresh record highs as well. From a technical perspective, the pair faces strong resistance at 115.50-70, followed by 116.90, while support lies at 114.00.

The Pound had quite a rally this week, but ran out of momentum yesterday. Support is now seen at 1.2540, and a break would signal a retracement back to 1.24. The Euro has come under pressure as well, and a break below the 1.0620 support level would confirm the short-term top at 1.0770 and pave the way for a deeper retracement. The next notable support level would then lie at 1.05.

Gold extended losses in Asia, as the strong dollar and rising equity markets are weighing on the precious metals. Support is noted at $1176, and a break below would switch the technical outlook to bearish.

Upcoming Events:

  • 13:30 GMT – US GDP
  • 15:00 GMT – US Michigan Consumer Sentiment
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