Partner Center Find a Broker

A couple of positive economic releases weren’t enough to prop up the Greenback, which chalked up yet another losing day to its peers.

A bit of risk-taking returned, allowing Wall Street to close in positive territory, but gold and the lower-yielding yen still managed to catch some gains.

  • Canadian ADP employment change up 10.7K in Jan vs. previous 13.5K drop
  • U.S. headline PPI up 0.4% as expected, core PPI up 0.4% vs. 0.2% consensus
  • Empire State manufacturing index slid from 17.7 to 13.1 vs. 17.7 estimate
  • Philly Fed index improved from 22.2 to 25.8 vs. 21.5 forecast
  • U.S. industrial production fell 0.1% vs. projected 0.2% uptick
  • U.S. capacity utilization rate down from 77.7% to 77.5%
  • Chinese markets closed for the Lunar New Year holiday

Major Events/Reports

Mixed U.S. data

Uncle Sam’s reports came out mixed, and market watchers barely reacted to positive PPI data since the CPI was already released the day before.

Still, it’s worth noting that headline PPI rebounded by 0.4% in January from the earlier 0.1% dip while the core reading posted a stronger than expected 0.4% increase, twice as much as the estimated 0.2% uptick. Prices of final demand services rose 0.3% while final demand goods rose 0.7%.

The manufacturing indices printed mixed results, with the Empire State figure tumbling from 17.7 to 13.1 instead of holding steady and the Philly Fed index posting a surprise jump from 22.2 to 25.8 instead of falling to the 21.5 estimate.

Factory output data was also a disappointment. Industrial production fell 0.1% instead of rising by 0.2% in January, marking back-to-back monthly declines.

Capacity utilization slid from 77.7% to 77.5% instead of rising to 78.0% to suggest that manufacturing, mining, and utility companies are using a smaller part of their resources for production. This hints at weaker inflationary pressures down the line as they are farther from reaching full capacity.

Stocks hold on to gains

It was another good day in the equities market as indices managed to chalk up more gains.

  • Dow 30 index is up 306.88 points to 25,200.37 (+1.23%)
  • S&P 500 index is up 32.57 points to 2,731.20 (+1.21%)
  • Nasdaq is up 112.81 points to 7,256.43 (+1.58%)

However, precious metals were also in the green, signaling that a bit of safe-haven demand is still present. Crude oil also stayed supported.

  • Gold is up $2.00 to $1,353.00 per troy ounce (+0.87%)
  • WTI crude oil ticked 90 cents higher to $61.49 per barrel (+0.49%)
  • Brent crude oil is up to $64.45 per barrel (+0.23%)

Major Market Mover(s):

USD

The Greenback failed to bring sexy back as it resumed the slide to the rest of its peers, with analysts attributing the selloff to a number of factors, including risk appetite, deficit concerns, and tightening expectations.

EUR/USD edged up from 1.2461 to a high of 1.2509, GBP/USD continued its rampage to the 1.4100 handle, USD/JPY slid to new lows at 106.03, and USD/CHF is down to .9222

JPY

The yen was the main beneficiary of anti-dollar flows once more, taking the opportunity to catch some of the risk-off moves as well.

CAD/JPY slid lower to 87.74, AUD/JPY is down to a low of 83.87,

Watch Out For:

  • Chinese markets closed for the Lunar New Year holiday