Posted at 16 February 2022 / Categories Market Roundups
Market Roundup
• UK CPI Jan (YoY) 5.5%,5.4% forecast,5.4% previous
•UK Jan Core RPI (YoY) 8.0%,7.7% previous
•UK Jan CPI (MoM) -0.1%,-0.2% forecast,0.5% previous
•UK Jan Core CPI MoM (MoM) -0.4%,-0.4% forecast,0.5% previous
•UK Jan CPI, n.s.a 114.90, 115.10 previous
•UK Jan PPI Input (MoM) 0.9%,0.9% forecast, -0.2% previous
•EU Dec Industrial Production (MoM) 1.2%,0.3%,2.3% previous
•EU Dec Industrial Production (YoY) 1.6%,-0.5% forecast,-1.5% previous
Looking Ahead Economic Data (GMT)
•13:30 Canada Trimmed CPI (YoY) 3.7% previous
•13:30 Canada Median CPI (YoY) 3.0% previous
•13:30 Canada Common CPI (YoY) 2.0% previous
•13:30 Canada Dec Manufacturing Sales (MoM) 0.6%,2.6% previous
•13:30 US Jan Export Price Index (MoM) 1.3%,-1.8% forecast
•13:30 US Jan Import Price Index (MoM) 1.3%,-0.2% previous
•13:30 Canada 00.0%, forecast 0% previous
•13:30 US Jan Core Retail Sales (MoM) 0.8%,-2.3% previous
•Canada Jan Core CPI (YoY) 3.5%,4.0% forecast
•14:15 US Jan Industrial Production (YoY) 3.67% forecast
•14:15 US Jan Capacity UtilizatiRate 76.8%,76.5% AM
•14:15 US Industrial Production (MoM ) 0.4% forecast,-0.1% previous
•15:00 US Wholesale Trade Sales (MoM)0.2 % previous
•15:00 US Retail Inventories Ex Auto 3.6% previous
•15:30 US Crude Oil Inventories-1.572M, -4.756M previous
Looking Ahead Economic Data (GMT)
•18:30 Canada BoC Gov Council Member Lane Speaks
•19:30 US FOMC Meeting Minutes
Fxbeat
EUR/USD: Euro held steady on Wednesday on signs of easing Russia-Ukraine tensions, offsetting pressure from expectations of an aggressive interest rate hike by the U.S. central bank. On Tuesday, Russia said it was returning some troops to base after exercises, boosting sentiment in financial markets. Currencies in the region rallied on Wednesday on the signs of easing tensions, although on Wednesday Britain joined the United States in saying it had yet to be convinced a Russian troop withdrawal from Ukraine borders was real. The euro edged higher, up 0.2% on the day at $1.13800.Immediate resistance can be seen at 1.1395(5DMA), an upside break can trigger rise towards 1.1412 (23.6%fib).On the downside, immediate support is seen at 1.1344(38.2%fib), a break below could take the pair towards 1.1295 (50%fib).
GBP/USD: Sterling edged up versus the dollar on Wednesday after data showed inflation in Britain at a nearly 30-year high, reinforcing expectations the Bank of England will further hike interest rates. The annual rate of consumer price inflation rose to 5.5% in January, the highest since March 1992, and above expectations from economists for it to hold at December's 5.4%. Soaring inflation across many global economies has sparked a debate about how fast central banks should rein in stimulus deployed earlier in the COVID-19 pandemic to prop up businesses and consumers. The BoE has already raised interest rates twice since December lifting rates to 0.5% from 0.1% and financial markets expect a further rate rise to 0.75% or 1% on March 17 after the BoE's next meeting. Immediate resistance can be seen at 1.3573(38.2%fib), an upside break can trigger rise towards 1.3631(Higher BB).On the downside, immediate support is seen at 1.3498(50%fib), a break below could take the pair towards 1.3415(61.8%fib).
USD/CHF: The dollar edged higher against the Swiss franc as on Wednesday as investors became less worried about the risk of Russia invading Ukraine and waited for the release of minutes from the U.S. Federal Reserve's January meeting. The minutes from the Fed's January meeting will be released later in the session. Russia said it would withdraw some troops from Ukraine's border. This risk-on tone continued through on Wednesday, even though U.S. President Joe Biden warned that more than 150,000 Russian troops were still in a threatening position. The minutes from the Fed's January meeting will be released later in the US session. Immediate resistance can be seen at 0.9260 (Daily high), an upside break can trigger rise towards 0.9284 (23.6% fib).On the downside, immediate support is seen at 0.9231 (38.2% fib), a break below could take the pair towards 0.9188 (50%fib).
USD/JPY: The dollar strengthened against yen on Wednesday as fears of a Russian invasion of Ukraine waned. Markets are looking for any sign that one of the deepest crises in East-West relations for decades is starting to ebb and have seized on Moscow's announcement of a partial pullback, even while U.S. President Joe Biden warned there was no proof. With geo-political tensions easing, focus may grow on inflation readings amid speculation the U.S. Federal Reserve and its peers may go faster and bigger with interest rate rises. The dollar was last trading 0.09 percent higher versus the Japanese yen at 115.68 .Strong resistance can be seen at 116.06(23.6%fib), an upside break can trigger rise towards 116.30(Higher BB).On the downside, immediate support is seen at 115.44(38.2%fib), a break below could take the pair towards 115.34(5DMA).
Equities Recap
European stocks made cautious gains on Wednesday on hopes of a de-escalation of tensions between Russia and Ukraine, although accelerating inflation kept a lid on Britain's blue-chip index.
At (GMT 12:17 ),UK's benchmark FTSE 100 was last trading down at 0.30 percent, Germany's Dax was up by 0.01 percent, France’s CAC finished was up by 0.02 percent.
Commodities Recap
Gold prices edged up on Wednesday, after slipping in the previous session, as bullion's appeal as a hedge against inflation remained intact ahead of the release of the U.S. Federal Reserve minutes due later in the day.
Spot gold rose 0.1% to $1,854.97 per ounce by 1030 GMT. U.S. gold futures were nearly steady at $1,858.30.
Oil prices recouped losses on Wednesday as investors weighed conflicting statements on the possible withdrawal of some Russian troops from around Ukraine amid tight global supplies and recovering fuel demand.
Brent crude was up $1.37, or 1.5%, at $94.65 a barrel around 1200 GMT, having slid 3.3% overnight after Russia announced a partial pullback of its troops near Ukraine.
U.S. West Texas Intermediate (WTI) crude was up $1.27, or 1.4%, at $93.34 after the contract ended Tuesday's session with a 3.6% decline.