The U.S. dollar traded lower against the most major currencies after the mixed U.S. economic data. New home sales climbed 11.6% to a seasonally adjusted annual rate of 481,000 units in December from 431,000 units in November. November's figure was revised down from 438,000 units. Analysts had expected new home sales to reach 450,000 units.

The Conference Board released its consumer confidence index for the U.S. rose to 102.9 in January from 93.1 in December, exceeding expectations for a rise to 94.4. December's figure was revised up from 92.6. That was the highest level since August 2007.

The U.S. durable goods orders dropped 3.4% in December, missing expectations for a 0.5% increase, after a 2.1% decline in November. November's figure was revised down from a 0.9% decrease.

The decline was driven by falling orders for computers, metals and electrical equipment. Orders for computers plunged 10.4%, orders for primary metals fell 1.5%, orders for communications equipment declined 1.6% and orders for transportation gear decreased 9.2%.

The U.S. durable goods orders excluding transportation fell 0.8% in December, missing expectations for a 0.5% gain, after a 1.3% decrease in November.

The S&P/Case-Shiller home price index increased 4.3% in November, missing expectations for a 4.5% rise, after a 4.5% gain in October. That was the slowest pace since October 2012.

The euro rose against the U.S. dollar in the absence of any major market reports from the Eurozone.

Investors remained cautious amid concerns over Greece's future policy. Syriza party won the country's parliament elections on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

The British pound increased against the U.S. dollar despite the weaker-than-expected economic data from the U.K. The U.K. gross domestic product (GDP) climbed 0.5% in the fourth quarter, missing expectations for a 0.6% gain, after a 0.7% rise in the third quarter.

On a yearly basis, the U.K. GDP increased 2.7% in the fourth quarter, missing forecasts of a 2.8 rise, after a 2.6% gain in the third quarter.

The number of mortgage approvals decreased to 35,700 in December from 36,700 in November, the lowest reading since April 2013.

The Swiss franc traded mixed against the U.S. dollar. The Swiss franc fell in the morning trading session on speculation that the Swiss National Bank (SNB) was intervening in the market. The Swiss National Bank (SNB) Vice President Jean-Pierre Danthine said in an interview with the Tages-Anzeiger newspaper published on Tuesday that the central bank is prepared to intervene in markets.

The Swiss National Bank's (SNB) monetary policy data for the week ending 23 January 2015 released on Monday showed that the amount of cash commercial banks hold with the SNB rose last week. Data indicates that the central bank may have intervened after discontinuing the 1.20 per euro exchange rate floor on January 15th.

The SNB declined to comment.

The New Zealand dollar traded higher against the U.S. dollar in the absence of any major economic reports from New Zealand. In the overnight trading session, the kiwi traded lower against the greenback as Greek parliament election results still weighed on the kiwi.

The Australian dollar traded slightly higher against the U.S. dollar. In the overnight trading session, the Aussie traded higher against the greenback. The National Australia Bank's business confidence index climbed to 2 in December from 1 in November, missing expectations for a rise to 4.

The Japanese yen traded higher against the U.S. dollar in the absence of any major economic reports from Japan. In the overnight trading session, the yen rose against the greenback.

The U.S. Commerce Department released new home sales data on Tuesday. New home sales climbed 11.6% to a seasonally adjusted annual rate of 481,000 units in December from 431,000 units in November.

November's figure was revised down from 438,000 units.

Analysts had expected new home sales to reach 450,000 units.

Overall for 2014, 435,000 units has been sold compared with 429,000 in 2013.

The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index rose to 102.9 in January from 93.1 in December, exceeding expectations for a rise to 94.4. December's figure was revised up from 92.6.

That was the highest level since August 2007.

The director of economic indicators at The Conference Board Lynn Franco said that consumer confidence was driven by positive current business and labour market conditions.

The S&P/Case-Shiller home price index increased 4.3% in November, missing expectations for a 4.5% rise, after a 4.5% gain in October. That was the slowest pace since October 2012.

Chairman of the index committee at S&P Dow Jones Indices David Blitzer said that "prospects for a home run in 2015 aren't good".

The S&P/Case-Shiller home price index measures single-family home prices in 20 U.S. cities.

The U.S. Commerce Department released durable goods orders data on Tuesday. The U.S. durable goods orders dropped 3.4% in December, missing expectations for a 0.5% increase, after a 2.1% decline in November. November's figure was revised down from a 0.9% decrease.

The decline was driven by falling orders for computers, metals and electrical equipment. Orders for computers plunged 10.4%, orders for primary metals fell 1.5%, orders for communications equipment declined 1.6% and orders for transportation gear decreased 9.2%.

Orders for motor vehicles rose 2.7%.

The U.S. durable goods orders excluding transportation fell 0.8% in December, missing expectations for a 0.5% gain, after a 1.3% decrease in November.

The U.S. durable goods orders excluding defence decreased 0.6% in December.

EUR/USD: $1.1300(E635mn), $1.1400(E849mn)

USD/JPY: Y117.75($200mn), Y118.00($200mn), Y118.40($450mn), Y119.00($240mn)

GBP/USD: $1.5175 (stg200mn),

AUD/USD: $0.8025 (A$398mn)

NZD/USD: $0.7650 (NZ$598mn)

Figures on durable goods orders and new-home sales will be delayed as the opening of the U.S. Commerce Department will be delayed by a blizzard.

The U.S. Commerce Department has said it will publish figures on its website.

Economic calendar (GMT0):

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

00:30 Australia National Australia Bank's Business Confidence December 1 4 2

02:00 China Leading Index December 0.9% 1.1%

09:30 United Kingdom BBA Mortgage Approvals December 36.7 35.7

09:30 United Kingdom GDP, q/q (Preliminary) Quarter IV +0.7% +0.6% +0.5%

09:30 United Kingdom GDP, y/y (Preliminary) Quarter IV +2.6% +2.8% +2.7%

10:00 Eurozone ECOFIN Meetings

The U.S. dollar traded mixed against the most major currencies ahead of the U.S. economic data. The U.S. durable goods orders are expected to increase 0.5% in December, after a 0.9% drop in November.

The U.S. durable goods orders excluding transportation are expected to rise 0.5% in December, after a 0.7% fall in November.

The U.S. consumer confidence is expected to climbs to 94.4 in January from 92.6 from December.

New home sales in the U.S. are expected to rise to 450,000 units in December from 438,000 units in November.

The euro traded higher against the U.S. dollar in the absence of any major market reports from the Eurozone.

Investors remained cautious amid concerns over Greece's future policy. Syriza party won the country's parliament elections on Sunday. The party has pledged to renegotiate the terms of the country's €240 billion euro financial bailout and to reverse many of the austerity measures.

The British pound increased against the U.S. dollar despite the weaker-than-expected economic data from the U.K. The U.K. gross domestic product (GDP) climbed 0.5% in the fourth quarter, missing expectations for a 0.6% gain, after a 0.7% rise in the third quarter.

On a yearly basis, the U.K. GDP increased 2.7% in the fourth quarter, missing forecasts of a 2.8 rise, after a 2.6% gain in the third quarter.

The number of mortgage approvals decreased to 35,700 in December from 36,700 in November, the lowest reading since April 2013.

The Swiss franc traded higher against the U.S. dollar, recovering its losses. The Swiss franc fell on speculation that the Swiss National Bank (SNB) was intervening in the market. The Swiss National Bank (SNB) Vice President Jean-Pierre Danthine said in an interview with the Tages-Anzeiger newspaper published on Tuesday that the central bank is prepared to intervene in markets.

The Swiss National Bank's (SNB) monetary policy data for the week ending 23 January 2015 released on Monday showed that the amount of cash commercial banks hold with the SNB rose last week. Data indicates that the central bank may have intervened after discontinuing the 1.20 per euro exchange rate floor on January 15th.

The SNB declined to comment.

EUR/USD: the currency pair rose to $1.1345

GBP/USD: the currency pair increased to $1.5133

USD/JPY: the currency pair fell to $117.68

The most important news that are expected (GMT0):

13:30 U.S. Durable Goods Orders December -0.9% Revised From -0.7% +0.5%

13:30 U.S. Durable Goods Orders ex Transportation December -0.7% Revised From -0.4% +0.5%

14:00 U.S. S&P/Case-Shiller Home Price Indices, y/y November +4.5% +4.5%

14:00 U.S. Consumer confidence January 92.6 94.4

15:00 U.S. New Home Sales December 438 450

EUR/USD

Offers $1.1500, $1.1450/60, $1.1400, $1.1380, $1.1350

Bids $1.1220, $1.1200

GBP/USD

Offers $1.5195-200, $1.5150/60, $1.5120

Bids $1.4950

AUD/USD

Offers $0.8100, $0.8000

Bids $0.7850, $0.7815, $0.7800, $0.7750

EUR/JPY

Offers Y135.00, Y134.45/50, Y134.00

Bids Y133.10/00, Y132.50, Y132.10/00, Y131.50, Y131.20/00, Y130.50

USD/JPY

Offers Y119.00, Y118.35/40

Bids Y117.55/50, Y117.10/00, Y116.95/85

EUR/GBP

Offers stg0.7595/600

Bids stg0.7400

The Swiss National Bank (SNB) Vice President Jean-Pierre Danthine said in an interview with the Tages-Anzeiger newspaper published on Tuesday that the central bank is prepared to intervene in markets.

Danthine noted that some time is needed "to find a new exchange rate balance".

The volume of SNB interventions could reach about CHF100 billion in January, the SNB vice president pointed out.

The Swiss National Bank's (SNB) monetary policy data for the week ending 23 January 2015 released on Monday showed that the amount of cash commercial banks hold with the SNB rose last week. Data indicates that the central bank may have intervened after discontinuing the 1.20 per euro exchange rate floor on January 15th.

The SNB declined to comment.

EUR/USD: $1.1300(E635mn), $1.1400(E849mn)

USD/JPY: Y117.75($200mn), Y118.00($200mn), Y118.40($450mn), Y119.00($240mn)

GBP/USD: $1.5175 (stg200mn),

AUD/USD: $0.8025 (A$398mn)

NZD/USD: $0.7650 (NZ$598mn)

The preliminary Gross domestic product expanded less-than-expected in the fourth quarter according to the Office for National statistics as construction and production shrank. Consumer demand increased. GDP grew by seasonally adjusted +0.5%, the lowest in a year, in the last quarter of 2014, not meeting forecasts of an increase by +0.6% and less than the previous reading of +0.7%, dampening the economic outlook.

Year on year GDP grew +2.7% in the fourth quarter, 0.1% below economist's estimates. An increase of +0.1% compared to the previous quarter.

BLOOMBERG

EU Hunts Formula to Keep Greece in Euro After Tsipras Win

European finance ministers started work on reviving Greece's troubled rescue program as new Prime Minister Alexis Tsipras took office promising to end austerity.

Finance chiefs from the 19-nation euro area signaled their willingness to do a deal with Tsipras -- so long as the new Greek prime minister drops his demand for a debt writedown. At a meeting in Brussels on Monday, ministers agreed quickly to work with the new government to help keep Greece in the euro, Dutch Finance Minister Jeroen Dijsselbloem said.

"We stand ready to support them in that ambition," said Dijsselbloem, who led the meeting.

Source: http://www.bloomberg.com/news/2015-01-26/tsipras-forges-anti-austerity-coalition-in-eu-challenge.html

REUTERS

Oil gives up early gains on firm dollar, shrugs off OPEC comments

(Reuters) - Oil gave up early gains with Brent futures slipping below $48 on Tuesday as a stronger dollar weighed, offsetting comments from producer group OPEC that prices may have found a floor.

The Secretary-General of the Organization of the Petroleum Exporting Countries, Abdullah al-Badri, said oil prices may have bottomed out and warned of a risk of a future jump to $200 a barrel if investment in new supplies was too low.

"Crude oil markets continue to consolidate near term," ANZ analysts said, adding that Brent traded in the range of $48-$50 last week and showed little direction.

Source: http://www.reuters.com/article/2015/01/27/us-markets-oil-idUSKBN0L003R20150127

BLOOMBERG

Yuan Gains as Steepest Two-Day Drop Since 2008 Seen Excessive

China's yuan rose by the most in four weeks as the central bank strengthened the reference rate after the currency's biggest two-day slide since 2008.

The People's Bank of China raised the daily fixing 0.03 percent to 6.1364 a dollar after weakening it by 0.22 percent over the previous two days. The onshore yuan fell to near the lower limits of its trading band on Monday and the greenback's 14-day relative-strength index touched 69.8, near the 70 level that indicates to some traders the U.S. currency will weaken. Industrial profits fell 8 percent in December, the most in data going back to late 2011, an official report showed Tuesday.

"Yuan moves today look like a technical rebound after significant declines in past sessions," said Banny Lam, co-head of research at Agricultural Bank of China International Securities Co. in Hong Kong. "With a backdrop of weakening fundamentals in China and broad-based dollar strength, it's hard to see much room for yuan appreciation for now."

Source: http://www.bloomberg.com/news/2015-01-27/yuan-gains-as-steepest-two-day-drop-since-2008-seen-excessive.html

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

00:30 Australia National Australia Bank's Business Confidence December 1 4 2

02:00 China Leading Index December 0.9% 1.1%

The U.S. dollar traded weaker to flat against most major currencies. The euro dropped to a low at USD1.1097 yesterday on concerns the Greek elections results could lead to instability in Europe but recovered during the session and remained stronger. Markets await the FED's interest rate decision tomorrow and a set of U.S. data later in the day starting at 13:30 GMT.

The Australian dollar recouped losses after touching the weakest level since June 2009 yesterday against the greenback but is trading almost flat during the Asian session. National Australia Bank's Business Confidence for December rose from 1 to 2, missing forecasts of an increase to 4. China's Leading Index for December rose from 0.9% to 1.1%. China is Australia's most important trade partner. Next week the Royal Bank of Australia will meet to decide on whether to cut interest rates or not. Currently they are at a record low of 2.5% but weakening commodity prices may lead to a further cut in the middle of the year.

New Zealand's dollar halted its fall after trading at the weakest since 2012 yesterday. In the Asian session the currency traded almost flat currently quoted at USD0.7425.

The Japanese yen traded higher against the greenback on Tuesday gaining some ground after yesterday's losses in the absence of any major economic data.

EUR/USD: the euro traded almost flat against the greenback

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

09:30 United Kingdom GDP, q/q (Preliminary) Quarter IV +0.7% +0.6%

09:30 United Kingdom GDP, y/y (Preliminary) Quarter IV +2.6% +2.8%

10:00 Eurozone ECOFIN Meetings

13:30 U.S. Durable Goods Orders December -0.9% Revised From -0.7% +0.5%

13:30 U.S. Durable Goods Orders ex Transportation December -0.7% Revised From -0.4% +0.5%

14:00 U.S. S&P/Case-Shiller Home Price Indices, y/y November +4.5% +4.5%

14:00 U.S. Consumer confidence January 92.6 94.4

14:45 U.S. Services PMI (Preliminary) January 53.3

15:00 U.S. Richmond Fed Manufacturing Index January 7

15:00 U.S. New Home Sales December 438 450

21:30 U.S. API Crude Oil Inventories January +5.7

23:30 Australia Leading Index December -0.1%

EUR / USD

Resistance levels (open interest**, contracts)

$1.1502 (2223)

$1.1436 (777)

$1.1362 (764)

Price at time of writing this review: $1.1227

Support levels (open interest**, contracts):

$1.1110 (3411)

$1.1044 (2328)

$1.1007 (2132)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 76759 contracts, with the maximum number of contracts with strike price $1,2100 (6507);

- Overall open interest on the PUT options with the expiration date February, 6 is 73233 contracts, with the maximum number of contracts with strike price $1,1700 (6718);

- The ratio of PUT/CALL was 0.95 versus 0.97 from the previous trading day according to data from January, 26

GBP/USD

Resistance levels (open interest**, contracts)

$1.5302 (451)

$1.5205 (947)

$1.5109 (456)

Price at time of writing this review: $1.5091

Support levels (open interest**, contracts):

$1.4993 (1003)

$1.4896 (1670)

$1.4798 (1165)

Comments:

- Overall open interest on the CALL options with the expiration date February, 6 is 16441 contracts, with the maximum number of contracts with strike price $1,5150 (1137);

- Overall open interest on the PUT options with the expiration date February, 6 is 16938 contracts, with the maximum number of contracts with strike price $1,4900 (1670);

- The ratio of PUT/CALL was 1.03 versus 1.04 from the previous trading day according to data from January, 26

* - 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 $1,1238 +0,28%

GBP/USD $1,5079 +0,54%

USD/CHF Chf0,9028 +2,51%

USD/JPY Y118,44 +0,53%

EUR/JPY Y133,10 +0,80%

GBP/JPY Y178,58 +1,06%

AUD/USD $0,7922 +0,05%

NZD/USD $0,7424 -0,42%

USD/CAD C$1,2472 +0,40%

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

00:30 Australia National Australia Bank's Business Confidence December 1 4

02:00 China Leading Index December 0.9%

09:30 United Kingdom GDP, q/q (Preliminary) Quarter IV +0.7% +0.6%

09:30 United Kingdom GDP, y/y (Preliminary) Quarter IV +2.6% +2.8%

10:00 Eurozone ECOFIN Meetings

13:30 U.S. Durable Goods Orders December -0.9% Revised From -0.7% +0.5%

13:30 U.S. Durable Goods Orders ex Transportation December -0.7% Revised From -0.4% +0.5%

14:00 U.S. S&P/Case-Shiller Home Price Indices, y/y November +4.5% +4.5%

14:00 U.S. Consumer confidence January 92.6 94.4

14:45 U.S. Services PMI (Preliminary) January 53.3

15:00 U.S. Richmond Fed Manufacturing Index January 7

15:00 U.S. New Home Sales December 438 450

21:30 U.S. API Crude Oil Inventories January +5.7

23:30 Australia Leading Index December -0.1%