Posted at 16 February 2022 / Categories Market Roundups
Market Roundup
•U.S. producer prices gained steam in Jan
•Canada Jan Housing Starts 230.8K,245.0K forecast, 236.1K previous
•US Jan Core PPI (MoM) 0.8%,0.5% forecast,0.5% previous
•US Jan Core PPI (YoY) 8.3%,7.9% forecast, 8.3% previous
•US Feb NY Empire State Manufacturing Index 3.10,12.15 forecast,-0.70 previous
•US Jan PPI (MoM) 1.0%,0.5% forecast ,0.3% previous
•US Redbook (YoY) 15.4%,13.3% previous
•New Zealand GlobalDairyTrade Price Index 4.2%,4.1% previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro rose on Tuesday as investors absorbed the latest news on the Russia-Ukraine standoff. Some troops in Russia's military districts adjacent to Ukraine are returning to bases after completing drills, Russia's defence ministry was quoted as saying, a move that could de-escalate frictions between Moscow and the West. Investors also assessed data showing U.S. producer prices increased by the most in eight months in January. The data follows last week's report showing a strong rise in consumer prices in January, with the annual inflation rate posting its largest increase in 40 years. The U.S. dollar index was last down 0.3%, while the euro was up 0.5% against the dollar at $1.1358. Immediate resistance can be seen at 1.1373(38.2%fib), an upside break can trigger rise towards 1.1442(23.6%fib).On the downside, immediate support is seen at 1.1313(50%fib), a break below could take the pair towards 1.1254 (61.8%fib).
GBP/USD: Sterling firmed against a broadly softer dollar on Tuesday after reports that Russia was returning some troops near Ukraine to their bases dented demand for safe-haven assets.Data showed the total number of people in work in Britain shrank in the last three months of 2021 while workers’ earnings fell when adjusted for inflation. The numbers had little immediate impact on the pound, with traders focused on developments in Ukraine.Britain’s currency was last trading at $1.35625, a quarter of a percent firmer on the day and above a one-week low hit on Monday at $1.34950 as fears about a Russian invasion of Ukraine boosted the dollar. Immediate resistance can be seen at 1.3573(38.2%fib), an upside break can trigger rise towards 1.3668(23.6%fib).On the downside, immediate support is seen at 1.3503(50%fib), a break below could take the pair towards 1.3423(61.8%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday as investors weighed tentative signs of easing tension in Ukraine and looked ahead to key Canadian inflation data. Domestic data showed that home prices jumped 4.9% in January from December to notch a fresh record, as demand continued to rise even as new listings plunged amid cold and snowy weather. Canada’s inflation report for January, due on Wednesday, could offer clues on the outlook for Bank of Canada interest rate hikes. Money markets expect the central bank to tighten next month for the first time since October 2018.The loonie was trading nearly unchanged at 1.2720 to the greenback, after fluctuating in a range of 1.2702 to 1.2774. Immediate resistance can be seen at 1.2762 (23.6%fib), an upside break can trigger rise towards 1.2806 (Higher BB).On the downside, immediate support is seen at 1.2703 (38.2%fib), a break below could take the pair towards 1.2655 (50%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as currency pair firmed on reports that Russia was returning some troops near Ukraine to their bases. Focus on developments in the Ukraine standoff, where some troops in Russia’s military districts adjacent to Ukraine were returning to base after completing drills, Russia’s defence ministry was quoted as saying on Tuesday.The move, seen as potentially de-escalating frictions between Moscow and the West, encouraged a move out of safe-haven assets.The dollar was last trading 0.14 percent higher versus the Japanese yen at 115.72 .Strong resistance can be seen at 115.70(Daily high), an upside break can trigger rise towards 116.12(23.6%fib).On the downside, immediate support is seen at 115.46(50%fib), a break below could take the pair towards 115.00(Psychological level).
Equities Recap
European stocks ended on a bright note on Tuesday as investors indulged in some strong buying in several sectors amid easing geopolitical worries following news Russia is pulling back some troops from the Ukrainian border.
UK's benchmark FTSE 100 closed up by 1.03 percent, Germany's Dax ended up by 1.98 percent, France’s CAC finished the day up by 1.86 percent.
Wall Street ended sharply higher on Tuesday, as signs of de-escalating tensions along the Russia-Ukraine border sparked a risk-on session.
Dow Jones closed up by 1.22% percent, S&P 500 closed down by 1.58% percent, Nasdaq settled up by 2.53% percent.
Treasuries Recap
Benchmark U.S. 10-year Treasury yields rose on Tuesday after Russia said it was moving troops away from the Ukrainian border, boosting risk-taking in financial markets.
The yield on 10-year Treasury notes was up 4.9 basis points to 2.0451%.
Commodities Recap
Gold slipped from a multi-month high on Tuesday as news that some Russian troops near Ukraine were returning to their bases dented demand for safe-haven assets.
Spot gold was down 0.8% at $1,855.06 per ounce by 01:57 p.m. ET (1857 GMT), after hitting its highest since June 11 at $1,879.48.U.S. gold futures settled down 0.7% at $1,856.20.
Oil tumbled over 3% on Tuesday, retreating from a seven-year high after Russia said some of its military units were returning to their bases following exercises near Ukraine, a move that appeared to de-escalate tension between Moscow and the West.
Brent crude fell $3.20, or 3.3%, to settle at $93.28 a barrel. U.S. West Texas Intermediate (WTI) crude fell $3.39, or 3.6%, to end at $92.07 a barrel.