The U.S. dollar traded higher against the most major currencies despite the weaker-than-expected NAHB housing market index. The NAHB housing market index declined to 57 in January from 58 in December. December's figure was revised up from 57. Analysts had expected the index to remain at 58.

U.S. markets were closed for Martin Luther King holiday on Monday.

The euro traded lower against the U.S. dollar after the better-than-expected ZEW economic sentiment index from the Eurozone. Germany's ZEW economic sentiment index increased to 48.4 in January from 34.9 in December, exceeding expectations for a rise to 40.1.

Eurozone's ZEW economic sentiment index rose to 45.2 in January from 31.8 in December, beating expectations for a gain to 37.6.

The British pound traded higher against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar dropped against the U.S. dollar after the weaker-than-expected Canadian economic data. Canada's manufacturing shipments plunged 1.4% in November, missing expectations for a 0.5% decrease, after a 1.1% drop in October. October's figure was revised down from a 0.6% decline.

The New Zealand dollar declined against the U.S. dollar. In the overnight trading session, the kiwi fell against the greenback despite the solid NZIER business confidence index from New Zealand. The index rose to 23 in the fourth quarter from 19 in the third quarter.

Chinese economic data weighed on the kiwi. Chinese gross domestic product (GDP) rose by 7.3% in the fourth quarter, beating forecasts of a 7.2% gain, after a 7.3% increase in the third quarter.

China's industrial production climbed 7.9% in December, exceeding expectations for a 7.4% increase, after a 7.2% gain in November.

The Australian dollar traded lower against the U.S. dollar in the absence of any major economic reports from Australia. In the overnight trading session, the Aussie decreased against the greenback as Chinese economic data weighed on the Aussie.

The Japanese yen traded mixed against the U.S. dollar in the absence of any major economic reports from Japan.

The National Association of Home Builders (NAHB) released its housing market index for the U.S. on Tuesday. The NAHB housing market index declined to 57 in January from 58 in December. December's figure was revised up from 57. Analysts had expected the index to remain at 58.

A level above 50.0 is considered positive, below indicates a negative outlook.

The NAHB Chairman Kevin Kelly said that "steady economic growth, rising consumer confidence and a growing labor market will help the housing market continue to move forward in 2015".

Statistics Canada released manufacturing shipments on Tuesday. Canadian manufacturing shipments plunged 1.4% in November, missing expectations for a 0.5% decrease, after a 1.1% drop in October.

October's figure was revised down from a 0.6% decline.

The decline was driven by weaker motor vehicle and chemical sales. Motor vehicle sales dropped 5.9% in November, while chemical sales declined 3.6%.

The International Monetary Fund cut its outlook for Canada's growth late Monday. It expect that Canada's economy will expand 2.3% this year, down from 2.4%.

The International Monetary Fund (IMF) cut its forecasts for global growth. It expects the world economy to expand 3.5% in 2015, down from an earlier projected 3.8% rise, and 3.7% in 2016, down from an earlier projected 4.0% gain.

The IMF expects that an economic slowdown in most major economies will outweigh the boost from lower oil prices.

The IMF estimates that Eurozone's economy will expand 1.2% this year and 1.4% in 2016.

EUR/USD: $1.1700(E335mn)

USD/JPY: Y114.00($800mn), Y117.00($600mn), Y118.50($390mn)

GBP/USD: $1.5340(stg195mn)

USD/CHF: Chf0.9160-70($800mn)

AUD/USD: $0.7980(A$450mn), $0.8250(A$325mn)

NZD/USD: $0.7780(NZ$200mn), $0.7900(NZ$221mn)

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

02:00 China Retail Sales y/y December +11.7% +11.7% +11.9%

02:00 China Industrial Production y/y December +7.2% +7.4% +7.9%

02:00 China Fixed Asset Investment December +15.8% +15.7% +15.7%

02:00 China GDP y/y Quarter IV +7.3% +7.2% +7.3%

07:00 Germany Producer Price Index (MoM) December 0.0% -0.3% -0.7%

07:00 Germany Producer Price Index (YoY) December -0.9% -1.4% -1.7%

10:00 Eurozone ZEW Economic Sentiment January 31.8 37.6 45.2

10:00 Germany ZEW Survey - Economic Sentiment January 34.9 40.1 48.4

The U.S. dollar traded mixed against the most major currencies ahead of the NAHB housing market index. The NAHB housing market index is expected to climb to 58 in January from 57 in December.

U.S. markets were closed for Martin Luther King holiday on Monday.

The euro traded mixed against the U.S. dollar after the better-than-expected ZEW economic sentiment index from the Eurozone. Germany's ZEW economic sentiment index increased to 48.4 in January from 34.9 in December, exceeding expectations for a rise to 40.1.

Eurozone's ZEW economic sentiment index rose to 45.2 in January from 31.8 in December, beating expectations for a gain to 37.6.

The British pound rose against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded lower against the U.S. dollar ahead of the Canadian economic data. Canada's manufacturing shipments are expected to decrease 0.5% in November, after a 0.6% drop in October.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair increased to $1.5177

USD/JPY: the currency pair climbed to $118.78

The most important news that are expected (GMT0):

13:30 Canada Manufacturing Shipments (MoM) November -0.6% -0.5%

15:00 U.S. FOMC Member Jerome Powell Speaks

15:00 U.S. NAHB Housing Market Index January 57 58

21:45 New Zealand CPI, q/q Quarter IV +0.3% 0.0%

21:45 New Zealand CPI, q/q Quarter IV +1.0% +0.9%

23:30 Australia Westpac Consumer Confidence January -5.7%

EUR/USD

Offers $1.1710, $1.1700, $1.1675, $1.1650

Bids $1.1500/490, $1.1450, $1.1400

GBP/USD

Offers $1.5230/35, $1.5200/10, $1.5150

Bids $1.5030, $1.5000

AUD/USD

Offers $0.8390/00, $0.8350, $0.8300, $0.8250

Bids $0.8160, $0.8150, $0.8110/00

EUR/JPY

Offers Y137.90/00, Y137.50, Y137.30

Bids Y136.00, Y135.50, Y135.00, Y134.50

USD/JPY

Offers Y119.95, Y119.00, Y118.85

Bids Y116.90, Y116.50, Y116.20/00, Y115.85

EUR/GBP

Offers stg0.7800, stg0.7745, stg0.7700

Bids stg0.7630, stg0.7600

The ZEW Center for European Economic Research released its economic sentiment index for Germany and the Eurozone on Tuesday. Germany's ZEW economic sentiment index increased to 48.4 in January from 34.9 in December, exceeding expectations for a rise to 40.1. That was the highest reading since February 2014.

The increase was driven by falling oil prices and a depreciating euro.

The ZEW President Clemens Fuest said that "news of the upcoming parliamentary elections in Greece and the Swiss National Bank's decision to abandon the euro cap on the franc's value have led to strong stock market fluctuations". Fuest added that these news "seems not to have impressed ZEW's financial market experts".

Eurozone's ZEW economic sentiment index rose to 45.2 in January from 31.8 in December, beating expectations for a gain to 37.6.

Bloomberg

HSBC Cuts GDP Outlook for 13 Oil Exporters as Price Plunges

The plunge in oil prices prompted HSBC Holdings Plc (HSBA) to cut this year's economic outlook for 13 crude exporters across central, eastern Europe and the Middle East, while singling out Turkey as the biggest winner from the slump.

Source: http://www.bloomberg.com/news/2015-01-19/hsbc-cuts-gdp-outlook-for-13-oil-exporters-from-russia-to-u-a-e.html

Reuters

Europe shares follow Asia higher on China growth relief

(Reuters) - Shares in Europe and Asia rose on Tuesday and the dollar strengthened after China said its economy had not slowed as much as many in markets had feared.

However, the International Monetary Fund cut its forecast for global growth in 2015 by three-tenths of a percent to 3.5 percent and called on governments and central banks to pursue accommodative monetary policies and reforms.

Source: http://www.reuters.com/article/2015/01/20/us-markets-global-idUSKBN0KR10W20150120

The New York Times

On to Plan B as Oil Work Stalls in Texas

MIDLAND, Tex. - With oil prices plummeting by more than 50 percent since June, the gleeful mood of recent years has turned glum here in West Texas as the frenzy of shale oil drilling has come to a screeching halt.

Every day, oil companies are decommissioning rigs and announcing layoffs. Small companies that lease equipment have fallen behind in their payments.

Source: http://www.nytimes.com/2015/01/20/business/energy-environment/in-texas-hunkering-down-for-the-oil-bust.html?_r=0

EUR/USD: $1.1650(E211mn), $1.1700(E517mn), $1.1715(E639mn)

GBP/USD: $1.5300(stg231mn)

EUR/GBP: Stg0.7635(E200mn)

AUD/USD: $0.8000(A$625mn), $0.8110(A$236mn), $0.8260(A$305mn), $0.8400(A$1.68mn)

NZD/USD: $0.7850(NZ$301mn), $0.7900(NZ$372mn)

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

02:00 China Retail Sales y/y December +11.7% +11.7% +11.9%

02:00 China Industrial Production y/y December +7.2% +7.4% +7.9%

02:00 China Fixed Asset Investment December +15.8% +15.7% +15.7%

02:00 China GDP y/y Quarter IV +7.3% +7.2% +7.3%

07:00 Germany Producer Price Index (MoM) December 0.0% -0.3% -0.7%

07:00 Germany Producer Price Index (YoY) December -0.9% -1.4% -1.7%

The U.S. dollar traded higher against the most major currencies. U.S. markets were closed for a public holiday yesterday.

The New Zealand dollar declined against the U.S. dollar despite the solid NZIER business confidence index from New Zealand. The index rose to 23 in the fourth quarter from 19 in the third quarter.

Chinese economic data weighed on the kiwi. Chinese gross domestic product (GDP) rose by 7.3% in the fourth quarter, beating forecasts of a 7.2% gain, after a 7.3% increase in the third quarter.

China's industrial production climbed 7.9% in December, exceeding expectations for a 7.4% increase, after a 7.2% gain in November.

The Australian dollar traded lower against the U.S. dollar in the absence of any major economic reports from Australia. Chinese economic data weighed on the Aussie.

The Japanese yen traded lower against the U.S. dollar in the absence of any major economic reports from Japan.

EUR/USD: the currency pair fell to $1.1567

GBP/USD: the currency pair decreased to $1.5056

USD/JPY: the currency pair rose to Y118.53

The most important news that are expected (GMT0):

10:00 Eurozone ZEW Economic Sentiment January 31.8 37.6

10:00 Germany ZEW Survey - Economic Sentiment January 34.9 40.1

13:30 Canada Manufacturing Shipments (MoM) November -0.6% -0.5%

15:00 U.S. FOMC Member Jerome Powell Speaks

15:00 U.S. NAHB Housing Market Index January 57 58

21:45 New Zealand CPI, q/q Quarter IV +0.3% 0.0%

21:45 New Zealand CPI, q/q Quarter IV +1.0% +0.9%

23:30 Australia Westpac Consumer Confidence January -5.7%

EUR / USD

Resistance levels (open interest**, contracts)

$1.1874 (3016)

$1.1783 (820)

$1.1697 (119)

Price at time of writing this review: $ 1.1571

Support levels (open interest**, contracts):

$1.1480 (6973)

$1.1432 (5816)

$1.1375 (4076)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 56208 contracts, with the maximum number of contracts with strike price $1,2100 (5544);

- Overall open interest on the PUT options with the expiration date February, 6 is 66095 contracts, with the maximum number of contracts with strike price $1,1700 (6973);

- The ratio of PUT/CALL was 1.18 versus 1.17 from the previous trading day according to data from January, 16

GBP/USD

Resistance levels (open interest**, contracts)

$1.5308 (410)

$1.5212 (999)

$1.5117 (138)

Price at time of writing this review: $1.5073

Support levels (open interest**, contracts):

$1.4992 (912)

$1.4894 (1418)

$1.4796 (1232)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 15406 contracts, with the maximum number of contracts with strike price $1,5800 (1108);

- Overall open interest on the PUT options with the expiration date February, 6 is 16390 contracts, with the maximum number of contracts with strike price $1,5100 (1632);

- The ratio of PUT/CALL was 1.06 versus 1.12 from the previous trading day according to data from January, 16

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1603 +0,30%

GBP/USD $1,5111 -0,30%

USD/CHF Chf0,8795 +2,64%

USD/JPY Y117,55 -0,04%

EUR/JPY Y136,43 +0,29%

GBP/JPY Y177,62 -0,35%

AUD/USD $0,8210 -0,30%

NZD/USD $0,7780 -0,06%

USD/CAD C$1,1939 -0,22%

(time / country / index / period / previous value / forecast)

02:00 China Retail Sales y/y December +11.7% +11.7%

02:00 China Industrial Production y/y December +7.2% +7.4%

02:00 China Fixed Asset Investment December +15.8% +15.7%

02:00 China GDP y/y Quarter IV +7.3% +7.2%

07:00 Germany Producer Price Index (MoM) December 0.0% -0.3%

07:00 Germany Producer Price Index (YoY) December -0.9% -1.4%

10:00 Eurozone ZEW Economic Sentiment January 31.8 37.6

10:00 Germany ZEW Survey - Economic Sentiment January 34.9 40.1

13:30 Canada Manufacturing Shipments (MoM) November -0.6% -0.5%

14:00 U.S. NAHB Housing Market Index January 57 58

15:00 U.S. FOMC Member Jerome Powell Speaks

21:45 New Zealand CPI, q/q Quarter IV +0.3% 0.0%

21:45 New Zealand CPI, q/q Quarter IV +1.0% +0.9%

23:30 Australia Westpac Consumer Confidence January -5.7%