U.S. Review: Lite On Economic Data, Heavy on Treasury Supply

Existing home sales fell 3.2 percent in January following a 2.8 percent decline in December. Tight supply continues to play a role in holding back sales.
The Conference Board’s Leading Economic Index rose 1.0 percent in January following a 0.6 percent rise in December. The measure continued to support the case for continued robust GDP growth.
The big story in Treasury markets this week was a sizable pickup in gross Treasury issuance. With larger budget deficits on the horizon, Treasury yields continue to move higher.

Wells Fargo Research Team Wells Fargo

Global Review

Weighing Their Next Moves, Central Banks Eye the Data

In South America this week, data from the Brazilian central bank showed the economy strengthening in December. Taking a three-month moving average, the economic activity index is growing at its fastest year-ago pace in nearly four years.
Weekly earnings growth in the United Kingdom picked up slightly to end 2017, but employment growth was slower-thanexpected and the unemployment rate ticked higher.
Inflation data for Japan and Canada showed a gradual firming in price growth in January. December retail sales in Canada were a dud, however, with much of the weakness concentrated in housing-related sectors.

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Wells Fargo Research Team

Wells Fargo

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold flirts with daily lows near $5,000

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.