Posted at 17 February 2022 / Categories Market Roundups
Market Roundup
• U.S. retail sales surge in January
•Canada Trimmed CPI (YoY) 4.0%,3.7% previous
•Canada Median CPI (YoY) 3.3%, 3.0% previous
•Canada Common CPI (YoY) 2.3%,2.0% previous
•Canada Dec Manufacturing Sales (MoM) 0.7%,0.6%,2.6% previous
•US Jan Export Price Index (MoM) 2.9%,1.3%,-1.8% forecast
•US Jan Import Price Index (MoM) 2.0%,1.3%,-0.2% previous
•US Jan Retail Sales (MoM) 3.8%,2.0% forecast,-1.9% previous
•US Jan Core Retail Sales (MoM) 3.3%,0.8%,-2.3% previous
•Canada Jan Core CPI (YoY) 4.3%,3.5%,4.0% forecast
•US Jan Industrial Production (YoY) 4.08% ,3.67% forecast
•US Jan Capacity Utilizatization Rate77.6% 76.8%,76.5% AM
•US Industrial Production (MoM ) 1.4% ,0.4% forecast,-0.1% previous
•US Retail Inventories Ex Auto 3.3% ,3.6% previous
•US Crude Oil Inventories 1.121M ,-1.572M, -4.756M previous
Looking Ahead Economic Data (GMT)
•00:30 Australia Jan Participation Rate 66.0% forecast,66.1% previous
•00:30 Australia Jan Unemployment Rate 4.2% forecast,4.2% previous
•00:30 Australia Jan Employment Change -15.0K forecast, 64.8K previous
•00:30 Australia Jan Full Employment Change 41.5K previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: Euro held steady on Wednesday on optimism after reports that some Russian forces had moved away from the Ukraine border, but gains were limited by news of a cyber attack. The Russian defence ministry on Tuesday published footage to demonstrate it was returning some troops to base after exercises, however, U.S. President Joe Biden later said the United States had not verified the move.Hours after Moscow's announcement, Ukraine said the online networks of its defence ministry and two banks were overwhelmed by a cyber attack. The euro was marhignally higher, up 0.06% on the day at $1.1379.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/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as oil prices rose and domestic data showed inflation further heating up in January. Canada’s annual inflation rate accelerated in January to a 30-year high of 5.1%, as food and housing costs continued to rise, while the average of the Bank of Canada's three core measures rose to 3.2%, data from Statistics Canada showed. The price of oil, one of Canada's major exports, recouped some of Tuesday's decline with U.S. crude were up 1.7% at $93.65 a barrel. The Canadian dollar was 0.2% higher at 1.2690 to the greenback , after trading in a range of 1.2665 to 1.2727. Immediate resistance can be seen at 1.2698 (38.2%fib), an upside break can trigger rise towards 1.2711(5DMA).On the downside, immediate support is seen at 1.2667(16th feb low), a break below could take the pair towards 1.2647(Daily low).
USD/JPY: The dollar declined against yen on Wednesday after minutes from the last U.S. Federal Reserve meeting suggested policymakers are not set on a particular pace of interest rate hikes. According to the January meeting minutes released on Wednesday, Fed officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that decisions would depend on a meeting-by-meeting analysis of data. The U.S. dollar was down 0.2% against the Japanese yen at 115.38. 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
The major European markets closed slightly weak on Wednesday, as worries about geopolitical tensions, and looming interest rate hikes amid rising inflation rendered the mood cautious.
UK's benchmark FTSE 100 closed down by 0.07 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the day down by 0.21 percent.
Wall Street bounced off session lows Wednesday with the S&P 500 crossing into positive territory by the closing bell after the U.S. Federal Reserve released meeting minutes.
Dow Jones closed down by 0.16% percent, S&P 500 closed up by 0.09% percent, Nasdaq settled down by 0.11% percent.
Treasuries Recap
U.S. Treasury yields fell and were in a tight range on Wednesday, with traders torn between the Russian announcement of more troop withdrawals from the Ukraine border and the West’s insistence there could be an attack with little or no warning.
The yield on 10-year Treasury notes was down 1 basis points to 2.035%.
Commodities Recap
Oil prices rose more than 1% on Wednesday as investors weighed conflicting statements on the possible withdrawal of some Russian troops from around Ukraine.
Brent crude settled up $1.52, or 1.6%, to $94.81 a barrel. U.S. West Texas Intermediate (WTI) crude ended up $1.59, or 1.7%, to $93.66, pulling back from the day's high of $95.01 a barrel.
Gold prices rose on Wednesday after the United States said Russia was still building up troops around Ukraine and as markets looked ahead to the release of minutes from the Federal Reserve's last policy meeting.
Spot gold was up 0.9% at $1,869.41 per ounce by 01:39 p.m. EST (1839 GMT). U.S. gold futures settled down 0.8% at $1,871.50.