Posted at 12 February 2022 / Categories Market Roundups
Market Roundup
•US Feb Michigan Consumer Expectations 57.4,64.1 previous
•US Feb Michigan Current Conditions 68.5,73.0 forecast, 72.0 previous
•US Feb Michigan Consumer Sentiment 61.7,67.5 forecast,67.2 previous
•US Feb Michigan Inflation Expectations 5.0%, 4.9% previous
•US Feb Michigan 5-Year Inflation Expectations 3.10%,3.10% previous
•U.S. Baker Hughes Oil Rig Count 516, 497 previous
•U.S. Baker Hughes Total Rig Count 635,613 previous
Looking Ahead Economic Data
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped on Friday as worries over escalating Ukraine-Russia tensions and the prospect of a tightened interest rate hike timeline from the U.S. Federal Reserve weighed on euro. Losses deepened for euro after Washington said Russia had massed enough troops near Ukraine to launch a major invasion, and urged U.S. citizens to leave the country within 48 hours after Moscow stiffened its response to Western diplomacy. The dollar index , a measure of the greenback against six major currencies, rose 0.258%.Immediate resistance can be seen at 1.1379(38.2% fib), an upside break can trigger rise towards 1.1439(23.6%fib).On the downside, immediate support is seen at 1.1327 (50 % fib), a break below could take the pair towards 1.1277 (61.8% fib).
GBP/USD: Sterling strengthened 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 (Higher BB ).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/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back some of this week's gains, as the potential for an imminent Russian attack on Ukraine triggered a selloff in risk-sensitive assets . Wall Street tumbled and safe-havens such as U.S. Treasuries and the U.S. dollar rallied after Washington said Russia has massed enough troops near Ukraine to launch a major invasion. The Canadian dollar was trading 0.2% lower at 1.2742 to the greenback, or 78.78 U.S. cents, after trading in a range of 1.2670 to 1.2754. For the week, the loonie was up 0.2%.Immediate resistance can be seen at 1.2759 (23.%fib), an upside break can trigger rise towards 1.2813 (Higher BB).On the downside, immediate support is seen at 1.2698 (38.2%fib), a break below could take the pair towards 1.2648(50%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as demand for safe haven yen increased after the United States said Russia has massed enough troops near Ukraine to launch a major invasion.A Russian attack could begin any day and would likely start with an air assault, White House national security adviser Jake Sullivan told a media briefing. Washington urged all U.S. citizens to leave the country within 48 hours. Other countries -- including Britain, Japan, Latvia, Norway and the Netherlands -- told their citizens to leave Ukraine immediately. The Japanese yen strengthened 0.63% versus the greenback at 115.29 per dollar. Strong resistance can be seen at 115.52 (38.2% fib), an upside break can trigger rise towards 116.18 (23.6%fib).On the downside, immediate support is seen at 115.06 (50%fib)a break below could take the pair towards 114.75(61.8%fib).
Equities Recap
European stocks closed on a weak note on Friday amid concerns the Federal Reserve will be more aggressive in hiking interest rates to combat inflation.
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended up by 0.42 percent, France’s CAC finished the day down by 1.27 percent.
Wall Street stocks ended sharply lower on Friday for the second straight session, as investors fretted about deepening tensions between Russia and Ukraine.
Dow Jones closed down by 1.43%percent, S&P 500 closed down by 1.90% percent, Nasdaq settled down by 2.78% percent.
Treasuries Recap
U.S. Treasury yields fell on Friday, with the benchmark 10-year yield dipping back below 2% as concerns over a possible invasion of Ukraine by Russia dented risk appetite.
The yield on 10-year Treasury notes was down 8 basis points to 1.949% on Friday.
Commodities Recap
Gold prices jumped on Friday to a near two-month peak as concerns over surging inflation and escalating tensions between Russia and Ukraine lifted demand for the safe-haven metal.
Spot gold rose 1.6% to $1,855.17 per ounce by 02:27 p.m. ET (1927 GMT), its highest level since Nov. 19, and was poised for a weekly gain of 2.5%.U.S. gold futures settled up 0.3% at $1,842.1.
Oil prices ended 3% higher on Friday at fresh seven-year highs as escalating fears of an invasion of Ukraine by Russia, a top energy producer, added to concerns over tight global crude supplies.
Brent crude futures settled $3.03, or 3.3%, higher at $94.44 a barrel, while U.S. West Texas Intermediate crude rose $3.22, or 3.6%, to $93.10 a barrel.