News

Europe Roundup: Sterling gains on BoE rate hike bets, European shares rise,Gold jumps over 1%,Oil falls, caught between Iran talks and Ukraine crisis-February 17th,2022

Posted at 17 February 2022 / Categories Market Roundups


Market Roundup

•French Jan Car Registration (YoY) -18.6%,-15.1% previous

•Italian Jan Car Registration (YoY)  -19.7%,-27.5% previous

•Italian Jan Car Registration (MoM) 24.4%, -17.0% previous

•German Jan Car Registration (YoY)  8.5%,-26.9% previous

Looking Ahead Economic Data (GMT)

•13:30 US Jan Housing Starts      1.700M forecast, 1.702M previous

•13:30 US Jan Continuing Jobless Claims 1,605K, 1,621K previous

•13:30 US Jan Jobless Claims 4-Week Avg 253.25K previous

•13:30 US Jan  Initial Jobless Claims 219K, 223K previous

•13:30 US Jan  Housing Starts (MoM)  1.4% previous

•13:30 US Feb Philly Fed CAPEX Index  26.20 previous

•13:30 US Feb Philly Fed Prices Paid  72.50 previous

•13:30 US Feb  Philly Fed Employment  26.1 previous

•13:30 US Feb  Philadelphia Fed Manufacturing Index  20.0 forecast, 23.2 previous

•13:30 US Jan  Building Permits (MoM)  9.8% previous

•13:30 US Jan  Building Permits  1.760M forecast, 1.885M previous

•13:30 Canada Dec Foreign Securities Purchases by Canadians  17.52B previous

•13:30 Canada Dec Foreign Securities Purchases  30.15B previous

Looking Ahead - Events, Other Releases (GMT)

•16:00 US FOMC Member Bullard Speaks

Fxbeat

EUR/USD: Euro edged lower against dollar  on Thursday as investors took fright after Russian-backed separatists accused Ukraine government forces7 of opening fire. The Russian-backed separatists in eastern Ukraine accused government forces of opening fire on their territory four times in the past 24 hours and said they were trying to establish if anyone had been hurt or killed. The incidents come as Russia has massed more than 100,000 troops close to Ukraine's borders, raising fears of an invasion. The euro edged lower, down 0.07% on the day at $1.1364.Immediate resistance can be seen at 1.1395(11DMA), an upside break can trigger rise towards 1.1412 (23.6%fib).On the downside, immediate support is seen at 1.1348(38.2%fib), a break below could take the pair towards 1.1298 (50%fib).

GBP/USD: Sterling strengthened against  the dollar on Thursday, as expectations of a rate hike by the Bank of England (BoE) continued to support the pound, while market was jittery about the threat of Russia invading Ukraine. Data showing on Wednesday that inflation in Britain rose to nearly 30-year high reinforced expectations that the BoE will further hike interest rates. 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.Immediate resistance can be seen at 1.3616(38.2%fib), an upside break can trigger rise towards 1.3673(Higher BB).On the downside, immediate support is seen at 1.3549(11DMA), a break below could take the pair towards 1.3533(50%fib).

USD/CHF: The dollar declined against the Swiss franc on Thursday as demand for safe have assets increased after Russian-backed separatists in eastern Ukraine accusing government forces of attacking their territory. Ukraine denied its troops had opened fire. Such incidents have happened many times in recent years, but the latest episode comes as Russia has massed troops on the border and the West has warned the country could invade Ukraine. Immediate resistance can be seen at 0.9233(50%fib), an upside break can trigger rise towards 0.9256 (61.8% fib).On the downside, immediate support is seen at 0.9209 (38.2% fib), a break below could take the pair towards 0.9172 (23.6%fib).

USD/JPY: The dollar declined against yen on Thursday after a Russian news report of mortar fire in eastern Ukraine jangled market nerves and boosted the appeal of safe haven bets. Greenback declined against yen after the news broke, investors remained wary that Russia will invade the Ukraine again despite rising optimism at the start of this week that a diplomatic solution would be found to prevent conflict.The dollar was last trading 0.36 percent lower versus the Japanese yen at 115.03 .Strong resistance can be seen at 115.20(50%fib), an upside break can trigger rise towards 115.48(61.8%fib).On the downside, immediate support is seen at 114.93(38.2%fib), a break below could take the pair towards 114.69(23.6%fib).

Equities Recap

European shares rose on Thursday as a slew of strong earnings from companies such as Airbus, Kering and Commerzbank lifted risk appetite, helping offset investor concerns over fresh tensions surrounding Ukraine.

At (GMT 12:17 ),UK's benchmark FTSE 100 was last trading down at 0.50 percent, Germany's Dax was up  by 0.12 percent, France’s CAC finished was up by 0.32 percent.

Commodities Recap

Gold jumped more than 1% on Thursday, as Russian news reports of a mortar fire in eastern Ukraine led investors towards safe-haven assets, while dovish signals from U.S. Federal Reserve's minutes of meeting also underpinned bullion.

Spot gold climbed 1.2% to $1,890.95 per ounce as of 0942 GMT, after hitting its highest since June 11 of $1,892.91 earlier. U.S. gold futures also gained 1.2% to $1,893.60.

Oil prices fell on Thursday as talks to resurrect a nuclear deal with Iran entered their final stages, but losses were capped by heightened tensions between top energy exporter Russia and the West over Ukraine.

Brent crude traded down $1.26, or 1.3%, at $93.55 a barrel by 0914 GMT. U.S. West Texas Intermediate (WTI) crude was down $1.34, or 1.4%, at $92.32.


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