Daily News & Forecast, Wednesday, January 04, 2017

2017-01-04 03:03:35
 

 HIGH IMPACT NEWS RELEASES:

Far East: JP- PMI

Europe: CH- CPI, EZ- flash PMI’s, flash HICP, GB- Construction PMI’s, CH, PMIs

North America: US- Mortgages, Fed Policy Minutes, API Crude

USD

  • U.S. stocks on Tuesday started the first trading day of 2017 on a positive note but closed off of intraday highs as oil prices turned sharply lower, puncturing some of the initial exuberance that underpinned an early rally in the Dow Jones Industrial Average.
  • The S&P 500 SPX, +0.85% also finished off its best levels, adding 19 points, or 0.9%, to end at 2,257.83. The index had been up as much as 25 points in early morning action.
  • The U.S. dollar on Tuesday traded firmly higher against its main rivals, extending gains from the last three months of 2016 after stronger-than-expected manufacturing data added to the buck’s uptrend.

EUR

  • European stock markets charged higher again on Tuesday, closing at a fresh one-year high after upbeat Chinese and U.S. manufacturing data fueled optimism over economic growth in the world’s two largest economies.
  • The Stoxx Europe 600 index SXXP, +0.70% climbed 0.7% to 365.71, ending at the highest level since Dec. 31, 2015.
  • The euro EURUSD, +0.1730% fell to its lowest level in nearly 14 years, but regained footing in late trade. The shared currency was changing hands at $1.0407 late Tuesday in New York, compared with $1.0467 late Monday in New York.

GBP

  • U.K. stocks kicked off 2017 with a rally on Tuesday, extending recent gains and pushing into fresh record territory after upbeat manufacturing data from the U.K. and China.
  • The FTSE 100 index UKX, +0.49% rose 0.5% to close at 7,177.89 on its first trading day of 2017. It was closed for trade on Monday in observance of the New Year’s Day holiday.
  • The pound jumped after the U.K. manufacturing purchasing managers index for December soared to a 30-month high. Sterling GBPEUR, -0.1105% bought €1.1757, up from €1.1739, its strongest level against the euro since Dec. 22, according to FactSet.The pound GBPUSD, +0.0572% changed hands at $1.2235 late Tuesday in New York, compared with $1.2287 on Monday..

JPY

  • Asian markets closed broadly higher on Tuesday despite concerns about capital flight from China, and as the Indonesian government ended all partnerships with J.P. Morgan Chase & Co.
  • Japan’s Nikkei Stock Average NIK, -0.16% was closed for holiday.
  • The yen USDJPY, -0.13% also slid, with the dollar fetching ¥117.71 late Tuesday in New York, up from ¥117.41 on Monday.

XAU

  • Gold and silver prices ended the first full U.S. day session of the new year with decent gains Tuesday. Bargain hunting in the cash markets and short covering in the futures markets were featured. A sharp rise in the U.S. dollar index overnight did limit buying interest in the gold and silver markets early on, but when the dollar index backed well off its daily high the gold and silver buyers stepped in. February Comex gold was last up $9.10 an ounce at $1,160.70. March Comex silver was last up $0.371 at $16.36 an ounce.

Major instruments:

EURUSD: The most likely scenario for the pair is going down to the nearest target of  1.0333.

1

EURJPY: The most likely scenario for the pair is going up to the nearest target of  123.14.

2

GBPUSD: The most likely scenario for the pair is going down to the nearest target of  1.2187.

3

GBPJPY: The most likely scenario for the pair is going up to the nearest target of  145.15.

4

USDJPY: The most likely scenario for the pair is going up to the nearest target of 118.49.

5

XAUUSD: The most likely scenario for the pair is going up to the nearest target of 1,160.2.

6

News

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