Posted at 08 February 2022 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction -0.654% ,-0.643% previous
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Looking Ahead - Events, Other Releases (GMT)
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Currency Summaries
EUR/USD: The euro dipped on Monday after a surge last week that followed the hawkish turn from the European Central Bank, as traders turned to the dollar, betting the jump in U.S. jobs created in January could lead to faster U.S. Federal Reserve rate hikes.The European common currency dropped 0.2% to as low as $1.1428, having hit its highest since mid-January on Friday. Those gains had been driven by a hawkish turn from the ECB, which led markets to bring forward the likely timing of euro zone rate rises and sent bond yields sharply higher. Immediate resistance can be seen at 1.1449(23.6% fib), an upside break can trigger rise towards 1.1488 (Feb 4th high).On the downside, immediate support is seen at 1.1408 (38.2 % fib), a break below could take the pair towards 1.1378 (50% fib).
GBP/USD: Sterling declined against the dollar on Monday after unexpectedly strong U.S. jobs data soothed concerns about the global economy The January payrolls report on Friday showed annual growth in average hourly earnings climbed to 5.7%, from 4.9%, while payrolls for prior months were revised up by 709,000 to radically change the trend in hiring. The U.S. dollar index edged up 0.05% to 95.491, after shedding 1.8% last week. Immediate resistance can be seen at 1.3555 (5DMA), an upside break can trigger rise towards 1.3604 (38.2%fib).On the downside, immediate support is seen at 1.3526 (50%fib), a break below could take the pair towards 1.3444(61.8%fib).
USD/CAD: The Canadian dollar rallied against the greenback on Monday, recovering from a one-week low on Friday, as investors bet that weak domestic jobs data would not derail the start of the Bank of Canada's interest rate hikes. The Canadian economy lost more jobs than expected in January as the Omicron-driven COVID-19 wave peaked, data showed on Friday, but analysts expect a quick rebound in coming months. Money markets expect the Canadian central bank to begin hiking interest rates at its next policy announcement on March 2 and to raise borrowing costs a total of six times this year. Immediate resistance can be seen at 1.2702 (38.2%fib), an upside break can trigger rise towards 1.2767(23.6%fib).On the downside, immediate support is seen at 1.2652(50%fib), a break below could take the pair towards 1.2602 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday on the back of stronger-than-expected U.S. data. The U.S. January payrolls report on Friday showed annual growth in average hourly earnings climbed to 5.7%, from 4.9%, while payrolls for prior months were revised up by 709,000 to radically change the trend in hiring. The U.S. dollar index edged higher , after shedding 1.8% last week.U.S. consumer price figures for January are due on Thursday and could show core inflation accelerating to the fastest pace since 1982 at 5.9%. Strong resistance can be seen at 115.48 (23.6% fib), an upside break can trigger rise towards 115.60 (Higher BB).On the downside, immediate support is seen at 115.00 (5DMA), a break below could take the pair towards 114.87 (38.2% fib).
Equities Recap
European shares rebounded on Monday after five straight weeks of falls, as gains in mining stocks and positive earnings reports outweighed worries of a looming policy tightening cycle and geopolitical tensions.
UK's benchmark FTSE 100 closed up by 0.46 percent, Germany's Dax ended up by 0.31 percent, France’s CAC finished the day up by 0.83percent.
Wall Street ended lower on Monday, as investors digested recent quarterly results from Facebook owner Meta Platforms and other megacaps, while Peloton jumped following reports of interest from potential buyers, including Amazon.
Dow Jones closed up by 0.01% percent, S&P 500 closed up by 0.37% percent, Nasdaq settled up by 0.58% percent.
Treasuries Recap
The benchmark U.S. 10-year Treasury yield edged lower on Monday, pausing after a jump on Friday due to a stronger than expected payrolls report for January and ahead of data later in the week on inflation pressures.
The yield on 10-year Treasury notes was down 1.1 basis points to 1.921% after reaching a high of 1.936% on Friday, it’s highest since January 2, 2020.
Commodities Recap
Gold prices climbed to a more than one-week high on Monday, supported by inflation worries and lingering geopolitical risks, as markets awaited key U.S. inflation data for cues on the Federal Reserve's interest rate hike trajectory.
Spot gold rose 0.7% to $1,820.23 per ounce by 13:53 ET (1853 GMT), after hitting its highest level since Jan. 27 at $1,820.96 earlier in the session.U.S. gold futures settled 0.8% higher at $1,821.80.
Oil prices settled lower on Monday on faint signs of progress in nuclear talks between the United States and Iran, which could lead to the removal of U.S. sanctions on Iranian oil sales.
Brent crude settled down 58 cents, or 0.6%, at $92.69. It session high of $94 was the highest since October 2014.
U.S. West Texas Intermediate crude fell 99 cents, or 1.3%, to settle at $91.32 after touching $92.73.