Here is the buzz for Tuesday, January 30:
Markets remain on their toes early Tuesday amidst headlines on the Chinese property crisis and escalating geopolitical tensions. Investors will closely watch the fourth-quarter Gross Domestic Product (GDP) growth figures from Germany and the Eurozone. Additionally, the US Consumer Confidence Index data for January and the JOLTS Job Openings report for December will be released by the Conference Board and the Bureau of Labor Statistics, respectively.
The US Dollar Index made strides toward 104.00 on Monday but fizzled out during the late American session. The gain of technology stocks led Nasdaq Composite to gain over 1%, making it tough for the US Dollar (USD) to maintain its strength. The benchmark 10-year US Treasury bond yield fell below 4.1%, further burdening the USD.
Early Tuesday, major equity indexes in Asia dropped heavily following Monday’s news of Hong Kong’s High Court mandating the liquidation of Evergrande Group. At present, Hong Kong’s Hang Seng Index was down 2% and the Shanghai Composite was losing over 0.5%.
Meanwhile, CNN reported that US President Joe Biden is expected to respond more forcefully than ever to Sunday’s deadly attack on a US military. Although it is anticipated that Biden will authorize a military action, experts are increasingly concerned about a deepening conflict in the region. In the European session on Tuesday, US stock index futures trade marginally lower.
US Dollar price this week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Euro.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
EUR/USD dipped below 1.0800 for the first time in over a month on Monday but mounted a technical correction. Early Tuesday, the pair remains steady above 1.0800. The German economy is forecast to shrink at an annual rate of 0.2% in the fourth quarter and the Eurozone economy is expected to stagnate in the same period.