9 Jan: US$ stages minor recovery, with Euro, in particular, looking heavy. Secondary EU data in focus for Tuesday.

By | January 9, 2018

 

The US$ has staged a minor recovery on Monday, with the Euro unparticular trading on a softer note. This has come about despite a stronger than expected Sentix, which saw investor confidence rise to 32.9 in January, up from 31.1 and beat expectations of 31.3,. The current situation index also hit the highest level in nearly a decade at 48.  The fall in the Euro has been partly put down to the weaker than expected German Retail Sales although there was no singular catalyst for the move, but some analysts are pointing towards the upcoming Italian election (Mar 4) and the political uncertainties that this will entail. The other currency pairs have remained pretty much within their recent ranges on Monday, as has been the case with commodities, leaving expectations largely unchanged.  The US stock markets have made another round of new all-time highs although the ranges have been generally fairly tight and both the DJI and the S+P are pretty much unchanged on the day.

There is a bit of data ahead on Tuesday which may provide some volatility although much of it is secondary. Asia will kick off with the Australian ANZ Job Ads and Building Permits, while Japan will be back from their long weekend and will get the December Consumer Confidence Index. Europe will then follow up with the German Industrial Production, Trade Balance, EU Unemployment and the ECB Non-Monetary Policy Meeting Minutes while the US will be relatively thin, with just the NFIB Business Optimism Index and a speech from the Fed’s Kashkari. WTI traders will be looking out for the API Weekly Crude Oil Stock Inventory later in the day.

CURRENCIES
EURUSD: 1.1966
Res  1.1990  1.2020  1.2050
Sup  1.1955  1.1920  1.1885
USDJPY: 113.06
Res  113.35  113.50  113.65
Sup  112.85  112.65  112.50
GBPUSD: 1.3565
Res  1.3585  1.3615  1.3635
Sup  1.3545  1.3520  1.3495
USDCHF: 0.9773
Res  0.9785  0.9795  0.9805
Sup  0.9760  0.9750  0.9735
AUDUSD: 0.7841
Res  0.7850  0.7865  0.7875
Sup  0.7825  0.7805  0.7790
NZDUSD: 0.7177
Res  0.7185  0.7215  0.7245
Sup  0.7150  0.7125  0.7105
INDICES / COMMODITIES
S&P: 2746
Res  2750  2755  2765
Sup  2735  2725  2715
DJI: 25252
Res  25290  25350  25400
Sup  25215  25180  25120
ASX SPI: 6089
Res  6105  6120  6150
Sup  6080  6070  6060
XAUUSD: 1320
Res  1325  1330  1335
Sup  1315  1310  1305
XAGUSD: 17.12
Res  17.25  17.40  17.50
Sup  17.10  17.00  16.90
WTI: 61.84
Res  62.20  62.55  63.00
Sup  61.30  61.00  60.65