Posted at 14 February 2022 / Categories Market Roundups
Market Roundup
• French 3-Month BTF Auction- -0.705%,0.654% previous
•French 6-Month BTF Auction -0.677%,-0.627% previous
•French 12-Month BTF Auction -0.557%,-0.470% previous
•US 3-Month Bill Auction 0.440%,0.290% previous
•US 6-Month Bill Auction 0.770% , 0.580% previous
Looking Ahead - Events, Other Releases (GMT)
•05:20 Japan GDP (QoQ) (Q4) 1.4% forecast,-0.9% previous
•05:20 Japan GDP (YoY) (Q4) 5.8%,-3.6% previous
Looking Ahead - Events, Other Releases (GMT)
•06:00 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as investors fretted over escalating tensions surrounding Ukraine and amid caution over monetary tightening and inflationary risks in the United States. The move into safe-haven assets has overshadowed expectations for monetary policy tightening from the European Central Bank. ECB President Christine Lagarde also recently reiterated that any policy action would be gradual. The euro was down 0.4% at $1.1301, its lowest level since Feb. 3. Immediate resistance can be seen at 1.1349 (38.2%fib), an upside break can trigger rise towards 1.1361(5DMA).On the downside, immediate support is seen at 1.1300(50%fib), a break below could take the pair towards 1.1248 (61.8%fib).
GBP/USD: Sterling was little changed against a stronger dollar on Monday as the possibility of war in Ukraine, along with the prospect of a Federal Reserve rate hike, gave investors reason to turn more risk-averse. Riskier currencies such as the Australian dollar struggled while the U.S. dollar, which is seen as a safe-haven, strengthened. Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday. Immediate resistance can be seen at 1.3575(38.2%fib), an upside break can trigger rise towards 1.3646(Higher BB).On the downside, immediate support is seen at 1.3496(50%fib), a break below could take the pair towards 1.3413(61.8%fib).
USD/CAD: The Canadian dollar edged lower against the greenback on Monday, as investors weighed warnings that Russia could invade Ukraine at any time and a major trade route between Canada and the United States reopened. Safe haven U.S. dollar gained ground against a basket of major currencies as the United States said Russia might create a surprise pretext for an attack on Ukraine. U.S. crude prices fell 0.6% to $92.55 a barrel, while the Canadian dollar was trading 0.1% lower at 1.2752 to the greenback, or 78.42 U.S. cents. It touched its weakest intraday level since Feb. 4 at 1.2783. Immediate resistance can be seen at 1.2759(38.2%fib), an upside break can trigger rise towards 1.2815 (Higher BB).On the downside, immediate support is seen at 1.2715 (5 DMA), a break below could take the pair towards 1.2699 (38.2%fib).
USD/JPY: The dollar gained against yen on Monday on growing worries about Russia-Ukraine tensions and as St. Louis Federal Reserve President James Bullard reiterated calls for faster U.S. Federal Reserve interest rate hikes. Investor fled to the safe-haven dollar amid the escalating geopolitical problem, but the dollar index quickly came off those highs. The dollar index was last up 0.4% at 96.3090 after reaching 96.4410, its highest since Feb. 1.Strong resistance can be seen at 115.60(5DMA), an upside break can trigger rise towards 116.00(Psychological level).On the downside, immediate support is seen at 115.44(50%fib), a break below could take the pair towards 114.96(61.8%fib).
Equities Recap
European shares ended at their lowest level in 20 days on Monday, with travel and banking leading the slump as investors fretted over geopolitical risks following warnings that Russia could invade Ukraine at any time.
UK's benchmark FTSE 100 closed down by 1.63 percent, Germany's Dax ended down by 2.02 percent, France’s CAC finished the day down by 2.27 percent.
The S&P 500 index closed modestly lower on Monday, largely recovering from a sharp sell-off, as U.S. plans to close its Kyiv embassy in Ukraine sent simmering geopolitical tensions to a boil.
Dow Jones ended down by 0.49 percent, S&P 500 ended lower by 0.38 percent, Nasdaq ended down by 0.00 percent.
Treasuries Recap
Benchmark U.S. 10-year Treasury yields rose on Monday in choppy trading as hawkish comments from a Federal Reserve official were met by indications from the White House over the weekend that a Russian invasion of Ukraine could happen at any time.
The yield on 10-year Treasury notes was up 4 basis points to 1.991%.
Commodities Recap
Gold rallied to a three-month peak on Monday as fears around the Russia-Ukraine conflict boosted bullion's safe-haven appeal and sparked fears of supply disruption in the palladium market.
Spot gold was 0.4% higher at $1,866.90 per ounce by 01:44 p.m. ET (1844 GMT), after hitting its highest level since Nov. 16 earlier in the session. U.S. gold futures settled up 1.5% at $1,869.40.
Oil prices surged over 2% on Monday to their highest in more than seven years as Ukraine's president declared a "day of unity" for Feb. 16, a date that some Western media have cited as a possible start of a Russian invasion.
Brent crude rose $2.04, or 2.2%, to settle at $96.48 a barrel, after touching its highest since September 2014 at $96.78.
U.S. West Texas Intermediate (WTI) crude rose $2.36, or 2.5%, to settle at $95.46 a barrel, after hitting $95.82, the loftiest since September 2014.