30 Jan: US$ pares losses as bond yields head higher. Traders looking to Trump/FOMC for guidance

By | January 30, 2018

 

Rising US bond yields have seen the US$ regain a little of its recent lost ground on Monday, with Sterling in particular posting losses due to re-emerging political uncertainties in the UK, with PM Theresa May under pressure from her own party. Stocks are a little lower as traders look to Wednesday’s State of the Union speech from Donald Trump and to Janet Yellen’s final FOMC Meeting, where a hawkish tone is likely. The metals are a little lower on the back of the stronger dollar, while WTI is also under pressure from concerns that rising output will dampen OPEC and Russian efforts to rid the market of excess supplies. Also weighing on the price were signs of rising US output as the number of oil rigs rose the highest since September, with the US now producing near 10 million barrels per day.

Tuesday will kick off with the Dec NZ Trade Balance (exp -$1.25mio) and the Australian January New Home Sales and the NAB Business Conditions/Confidence, while Europe will focus on the Preliminary German CPI (exp -0.6%mm, 1.7%yy; HICP exp 1.6%yy), the EU Q4 GDP (exp 0.6%qq, 2.6% yy) and the Economic Sentiment Indicator, Industrial Confidence, Services Sentiment and Business Climate, all for January.  From the US, there will only be the Case Shiller House Price Index to watch although BOE Governor, Mark Carney will be speaking and WTI traders will be looking to the API Weekly Crude Oil Stock Inventory for guidance.

CURRENCIES
EURUSD: 1.2381
Res  1.2430  1.2460  1.2495
Sup  1.2360  1.2335  1.2305
USDJPY: 108.95
Res  109.20  109.50  109.75
Sup  108.50  108.25  108.00
GBPUSD: 1.4073
Res  1.4095  1.4125  1.4155
Sup  1.4050  1.4025  1.4000
USDCHF: 0.9376
Res  0.9385  0.9405  0.9430
Sup  0.9350  0.9325  0.9290
AUDUSD: 0.8095
Res  0.8120  0.8135  0.8160
Sup  0.8085  0.8070  0.8055
NZDUSD: 0.7319
Res  0.7340  0.7375  0.7400
Sup  0.7290  0.7260  0.7235
INDICES / COMMODITIES
S&P: 2855
Res  2865  2875  2880
Sup  2850  2840  2830
DJI: 26428
Res  26500  26585  26685
Sup  26390  26310  26240
ASX SPI: 5986
Res  6005  6020  6035
Sup  5980  5970  5960
XAUUSD: 1341
Res  1345  1350  1355
Sup  1335  1330  1325
XAGUSD: 17.17
Res  17.30  17.40  17.55
Sup  17.05  16.90  16.75
WTI: 65.42
Res  65.95  66.45  66.65
Sup  64.95  64.45  64.00