Posted at 09 February 2022 / Categories Market Roundups
Market Roundup
•German Jan Services PMI 23.9B, 18.9B previous
•German Dec Imports (MoM) 4.7%,-1.5% forecast, 3.3% previous
•German Dec Trade Balance 6.8B, 10.4B forecast, 10.9B previous
•German Dec Exports (MoM) 0.9%,-0.2% forecast, 1.7% previous
•Italian Dec Industrial Production (MoM) -1.0%,-0.7% forecast,1.9% previous
Looking Ahead Economic Data
•15:00 US Dec Wholesale Trade Sales (MoM) 1.2%forecast,1.3% previous
•15:00 US Wholesale Inventories (MoM) 2.1% previous
•15:00 US Crude Oil Inventories 0.369M forecast,-1.046M previous
•15:30 US Cushing Crude Oil Inventories -1.173M previous
Looking Ahead - Events, Other Releases (GMT)
•15:30 US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro strengthened on Wednesday following the European Central Bank's hawkish turn last week.With euro zone inflation stuck at record highs, markets last week seized on ECB President Christine Lagarde not repeating that a 2022 rate rise was very unlikely, sending bond yields and rate hike bets surging. Comments from ECB officials including Lagarde on Monday and Tuesday suggesting a big tightening of monetary policy is not needed and market reaction since the bank's policy meeting last week has been too strong appeared to provide some relief for markets. Immediate resistance can be seen at 1.1443(23.6% fib), an upside break can trigger rise towards 1.1482 (23.6%fib).On the downside, immediate support is seen at 1.1408 (50 % fib), a break below could take the pair towards 1.1378 (61.8% fib).
GBP/USD: Sterling strengthened against the dollar on Wednesday investors await a speech by a senior Bank of England official later in the day. Bank of England Chief Economist Huw Pill, who will give a speech at the annual conference of Britain’s Society of Professional Economists, “was one of the majority five Monetary Policy Committee (MPC) members voting for just a 25bp hike last week. Money markets are still pricing in a 25 bps rate increase in March and 125 bps by December 2022, but some analysts have warned about the risks of excessive expectations. The pound rose 0.2% versus a slightly weakening dollar to $1.3576. Immediate resistance can be seen at 1.3593 (38.2%fib), an upside break can trigger rise towards 1.3631 (3rdFeb high ).On the downside, immediate support is seen at 1.3557 (5DMA), a break below could take the pair towards 1.3513(50%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Wednesday a day before the release of U.S. consumer price data that may offer new clues on the pace of Federal Reserve monetary tightening The U.S. inflation data is likely to support expectations of Fed being hawkish. The dollar index, which gauges the greenback against six major peers, was little changed, down 0.1% at 95.504, after bouncing off a 2-1/2-week low of 95.136 reached Friday. It touched the highest since July 2020 at 97.441 at the end of last month.Immediate resistance can be seen at 0.9255 (23.6 % fib), an upside break can trigger rise towards 0.9276 (23.6%fib).On the downside, immediate support is seen at 0.9223 (38.2%fib), a break below could take the pair towards 0.9182 (50% fib ).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors awaited US inflation data. Economists polled predicted U.S. data will show on Thursday that consumer prices climbed 7.3% year-over-year in January. Investors are expected to scour U.S. inflation data out later this week for any clues on the pace of Fed's policy tightening. The benchmark 10-year U.S. Treasury yields slipped from the November 2019 high reached in the last session, while the dollar was steady, but off lows hit on Friday. Strong resistance can be seen at 115.67 (23.6% fib), an upside break can trigger rise towards 115.97 (Higher BB).On the downside, immediate support is seen at 115.24 (5DMA), a break below could take the pair towards 115.02(38.2% fib).
Equities Recap
European stocks rose on Wednesday, buoyed by a slew of strong fourth-quarter trading updates and gains in global markets, although worries over a hawkish pivot by major central banks kept gains in check.
At (GMT 11:15 ),UK's benchmark FTSE 100 was last trading up at 0.69 percent, Germany's Dax was up by 1.34 percent, France’s CAC was up by 1.42 percent.
Commodities Recap
Gold prices were little changed on Wednesday as a pullback in U.S. Treasury yields ahead of a widely expected robust inflation data out of the United States kept bullion investors on the edge.
Spot gold was up 0.1% at $1,827.20 per ounce as of 0957 GMT, trading in a narrow $5 range. U.S. gold futures were steady at $1,828.40.
Oil prices slipped for a third session on Wednesday on profit taking due to concerns of a possible rise in supplies from Iran despite industry data showing a surprised drop in U.S. oil inventories.
Brent crude futures edged down 8 cents, or 0.1%, to $90.70 a barrel by 0825 GMT, while U.S. West Texas Intermediate crude was at $89.18 a barrel, down 18 cents, or 0.2%.