US futures decline after Apple slashes guidance
Global markets were mixed during the Asian session after a disappointing report from Apple. In a letter to investors, Apple CEO Tim Cook lowered the guidance for the first quarter. In particular, he blamed China for the weakness. In recent months, Apple has continued to experience major challenges. In December, courts in China and Germany banned the sales of iPhones in the two countries respectively. In addition, the company continues to face intense competition from Chinese counterparts like Huawei and OPPO. In Asia, the China A50 index gained by 10 basis points while the Shanghai composite index rose by 5 basis points. On the other hand, US futures declined sharply with the Dow shedding more than 300 points.
The Swiss Franc rose slightly against the USD. This happened ahead of key economic data from Switzerland. The country will release the retail sales and the PMI numbers. The retail sales are expected to show an increase of 0.9%, which will be higher than the previous 0.8%. The PMI for December is expected to show a slight decline to 57 from the previous 57.1. That said; there is a possibility that the Swiss National Bank (SNB) will continue maintaining a dovish stance in the upcoming meetings.
Today, traders will focus on employment numbers from the United States. The non-farm payrolls from ADP are expected to show that the economy created 179K. This will be flat from the previous month. The initial jobless claims are expected to increase by 220K while the continuing job losses are expected to increase by 1,701K. Another important number will be the ISM manufacturing PMI that is expected to show a reduction to 57.7 from the November number of 59. The new home sales are expected to remain unchanged.
The EUR/USD pair rose during the Asian session after falling sharply yesterday. It managed to move from a low of 1.1300 to a high of 1.1370. On the hourly chart, the pair is below the 25-day and 50-day EMA. The RSI has moved from the oversold level of 20 to the current 45. The Force Index too has moved up and crossed the neutral line. Today, the pair will likely be slightly volatile as traders wait for important data from the US.
After rising sharply yesterday, the USD/CHF pair declined in overnight trading as the franc strengthened. The pair moved from a high of 0.9920 to a low of 0.9860. The current price is along the short and medium-term moving averages on the hourly chart. The RSI has also fallen from the overbought territory of 70 to the current 48 while the Parabolic SAR points to more declines. The pair today will react to key data from Switzerland and the United States.
The USD/CAD pair moved up in the Asian session as the pair continued the upward momentum started in January last year. Since then, the pair has gained from 1.2245 to the current 1.3636. On the daily chart, the pair’s price is above the 50-day and 100-day exponential moving averages. The Relative Strength Index has remained above the overbought level of 70. The same is true with the money flow index. There is a likelihood that the upward trend will continue for a while before the pair starts retreating.