Date: January29, 2019
Daily World Economic and Financial News
(CNBC): January29, 2019--- The yen strengthened versus its peers on Tuesday, as investors took refuge in safe-haven assets after the U.S. Justice Department charged China’s Huawei Technologies Co Ltd with fraud, ratcheting up U.S.-Sino trade tensions.
(CNBC January29, 2019Against the Aussie dollar, the yen was up 0.2 percent at 78.18. The euro also lost 0.1 percent of its value versus the Japanese currency to 124.80 as investors took shelter in the safe-haven currency. The Aussie dollar was down 0.1 percent at $0.7155, but well off its intra-day low after the Reserve Bank of Australia (RBA) board member Ian Harper said that the next move in Australian rates would be up.
(CNBC): January29, 2019--- The dollar index, a gauge of its value versus six major peers, was flat at 95.72 and holding close to a two-week low at 0314 GMT.
(CNBC): January29, 2019--- Gold prices hit a more than seven-month high on Tuesday as investors shun riskier assets on worries over escalation in Sino-U.S. trade tensions after the U.S. Justice Department charged China’s Huawei Technologies Co Ltd with fraud. Spot gold rose to its highest since June 14, 2018 at $1,304.53 in morning trade and was firm at $1,303.62 per ounce by 0319 GMT. U.S. gold futures were also steady at $1,302.70 per ounce. Oil prices crept up on Tuesday after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a step set to severely curb the OPEC member’s crude exports to the United States. Despite the move, which comes as the U.S government looks to pile pressure on sitting President Nicolas Maduro to step down, traders said ample global oil supply and an economic slowdown especially in China were keeping crude prices in check. U.S. West Texas Intermediate (WTI) crude futures were at $52.12 per barrel at 0351 GMT, up 13 cents, or 0.3 percent, from their last settlement. International Brent crude oil futures were at $60.05 per barrel, up 12 cents, or 0.2 percent.
(REUTERS): January29, 2019--- European shares slid on Monday as optimism about the end of a U.S. government shutdown faded and growth worries reared their head again. The pan-European STOXX 600 lost 0.97 percent, its biggest fall since Jan. 3, as a profit warning from Caterpillar cemented investors’ pessimistic mood after data showed the second consecutive drop in Chinese industrial profits in December.
(REUTERS): January29, 2019--- Turkey’s lira weakened by nearly half a percent on Tuesday, a day before the central bank’s inflation report and amid concerns that inflation will rise in the first quarter on the back of food prices. The lira stood at 5.3490 to the U.S. dollar at 0710 GMT from Monday’s close of 5.3231. Earlier it had reached 5.3540, its weakest in about a week.
1. Technical Overview
The EUR/USD pair trades around 1.1430 ahead of the Asian opening, offering a bullish stance in its 4 hours chart, as it not only advanced above the 50% retracement of its January decline between 1.1569 and 1.1288 at 1.1428 but also above all of its moving averages in the mentioned chart, as technical indicators maintain firm upward slopes near overbought territory. The pair has a strong static resistance at 1.1460, while the 61.8% retracement of the mentioned decline comes at 1.1462, reinforcing the relevance of the resistance. Gains beyond it could trip stops and see the pair extending its gains up to the mentioned monthly high. The downside will remain limited as long as the price holds above 1.1380.
Support levels: 1.1380 1.1340 1.1300
Resistance levels: 1.1460 1.1490 1.1520
2. Fundamental Overview
The dismal mood was triggered by a report indicating that Chinese industrial earnings shrank for a second consecutive month in December, adding to the ruling fears of an economic slowdown in the world's second-largest economy. Worldwide indexes fell, following below expected earnings reports from big names, which also blame their poor results on Chinese downturn. The EUR/USD pair rose to 1.1443, little affected by ECB's head, Draghi, testimony before the European Parliament, as he repeated the usual caveats about economic developments in the Union. The macroeconomic calendar offered nothing of interest, with minor data both shores of the Atlantic passing unnoticed. This Tuesday, there's nothing for the EU to take care of, while, despite the US government re-opened, there's neither relevant data scheduled in the US, only the CB Consumer confidence index for January, previously at 128.1.
International & Financial Terms
- Tumble: a sudden or headlong fall.
- Capitulating: cease to resist an opponent or an unwelcome demand; surrender.
- Aversion: a strong dislike or disinclination.
- Steadies: make or become steady.
- Durable goods: goods not for immediate consumption and able to be kept for a period of time.
Compiler: A Bank Dealing Room Section
Management of International Deputy The Expert In Charge Of Dealing Room