Posted at 11 February 2022 / Categories Market Roundups
Market Roundup
•German Jan CPI (MoM) 0.4%,0.4% forecast,0.4% previous
•German Jan CPI (YoY) 4.9%,4.9% forecast, 4.9% previous
•UK GDP (QoQ) (Q4) 1.0%,1.1% forecast, 1.1% previous
•UK GDP (YoY) (Q4) 6.5%,6.4%forecast, 6.8% previous
•UK Monthly GDP 3M/3M Change1.0%,1.1% previous
•UK Dec Industrial Production (MoM) 0.3%,0.1% forecast, 1.0% previous
•UK Dec Business Investment (QoQ) (Q4) 0.9%,2.6% forecast, -0.4% previous
•UK Dec Manufacturing Production (MoM) 0.2%, forecast 0.1%, 1.1% previous
•UK Dec Trade Balance -12.53B, -12.50B forecast, -11.34B previous
•UK Dec Trade Balance Non-EU -7.88B, -5.67B previous
Looking Ahead - Economic Data (GMT)
•US Feb Michigan Consumer Expectations 64.1 previous
•US Feb Michigan Current Conditions 73.0 forecast, 72.0 previous
•US Feb Michigan Consumer Sentiment 67.5 forecast,67.2 previous
•US Feb Michigan Inflation Expectations 4.9% previous
•US Feb Michigan 5-Year Inflation Expectations 3.10% previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 US Fed Monetary Policy Report
Fxbeat
EUR/USD: The euro dipped on Friday as dollar strengthened after red-hot U.S. inflation data that prompted investors to expect tighter monetary policy from the Federal Reserve.U.S. consumer prices showed the biggest annual increase in 40 years, data released late on Thursday showed. The news fuelled speculation that the Fed will increase rates by 50 basis points in March. The euro was down 0.4% versus the dollar at $1.1383 after touching a three-month high in the previous day. Immediate resistance can be seen at 1.1431(38.2% fib), an upside break can trigger rise towards 1.1492 (23.6%fib).On the downside, immediate support is seen at 1.1378 (50 % fib), a break below could take the pair towards 1.1326 (61.8% fib).
GBP/USD: Sterling edged higher against stronger dollar on Friday after data showed Britain's economy had a smaller hit from the Omicron variant. Britain's economy shrank by less than feared in December when the wave of Omicron COVID-19 cases prompted many people to work from home and avoid Christmas socialising, but analysts warned that surging inflation would slow the recovery in 2022.Gross domestic product in December fell by 0.2% from November and was 6.0% higher than a year earlier, the Office for National Statistics said. Economists polled had forecast a 0.6% monthly and for output to be 6.3% higher than a year earlier. Immediate resistance can be seen at 1.3593 (38.2%fib), an upside break can trigger rise towards 1.3662 (20th Jan high ).On the downside, immediate support is seen at 1.3509 (50%fib), a break below could take the pair towards 1.3439(61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday after data showing red-hot U.S. inflation raised bets for an even more hawkish Federal Reserve. The dollar's index against a basket of currencies strengthened following the U.S. inflation reading, which fuelled expectations of heftier interest rate hikes from the Federal Reserve next month. Adding to hawkish sentiment, St. Louis Federal Reserve President James Bullard said he has become dramatically more hawkish and now wants a full percentage point of interest rate hikes over the next three U.S. central bank policy meetings. Immediate resistance can be seen at 0.9279 (23.6%fib), an upside break can trigger rise towards 0.9317 (Higher BB).On the downside, immediate support is seen at 0.9249 (5DMA), a break below could take the pair towards 0.9224 (38.2% fib ).
USD/JPY: The dollar strengthened against the Japanese yen on Friday after U.S. inflation surged to a 40-year peak and comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes. Data showed on Thursday that U.S. consumer prices rose 7.5% year-on-year in January, slightly higher than economists' forecasts. After that, St. Louis Fed President James Bullard told Bloomberg he'd like to see 100 basis points of hikes by July. The dollar rose against a basket of peers to its highest of 96.058 since Feb. 3 and was last up 0.1% at 95.917 at 0915 GMT. Strong resistance can be seen at 116.16 (23.6% fib), an upside break can trigger rise towards 116.35 (Feb 10th high).On the downside, immediate support is seen at 115.38 (38.2%fib)a break below could take the pair towards 115.00(Psychological level).
Equities Recap
European stock indexes fell on Friday and the U.S. 10-year yield held close to 2% after red-hot U.S. inflation data that prompted investors to expect tighter monetary policy from the Federal Reserve .
At (GMT 11:21 ),UK's benchmark FTSE 100 was last trading down at 0.74 percent, Germany's Dax was down by 0.80 percent, France’s CAC was up by 1.19 percent.
Commodities Recap
Gold prices were flat on Friday, slipping off a two-week peak hit in the previous session, as bets grew for more aggressive interest rate hikes from the Federal Reserve after a sharp jump in U.S. consumer prices.
Spot gold was little changed at $1,826.40 per ounce by 0916 GMT, but is poised for a weekly gain of about 1%. U.S. gold futures fell 0.5% to $1,827.70.
Oil prices eased on Friday as hot U.S. inflation fanned worries about aggressive interest rate hikes and investors await the outcome of U.S.-Iran talks that could lead to increased global crude supply.
Brent crude futures fell 58 cents, or 0.6%, to $90.83 a barrel at 0730 GMT, while U.S. West Texas Intermediate crude declined 45 cents, or 0.5%, to $89.43 a barrel.