Posted at 18 February 2022 / Categories Market Roundups
Market Roundup
•US Jan Housing Starts 1.638M, 1.700M forecast, 1.702M previous
•US Jan Continuing Jobless Claims 1,593K, 1,605K, 1,621K previous
•US Jan Jobless Claims 4-Week Avg 243.25K, 253.25K previous
•US Jan Initial Jobless Claims 248K, 219K, 223K previous
•US Jan Housing Starts (MoM) -4.1% ,1.4% previous
•US Feb Philly Fed CAPEX Index 21.50, 26.20 previous
•US Feb Philly Fed Prices Paid 69.30 ,72.50 previous
•US Feb Philly Fed Employment 32.3 ,26.1 previous
•US Feb Philadelphia Fed Manufacturing Index 16.0, 20.0 forecast, 23.2 previous
•US Jan Building Permits (MoM) 0.7% ,9.8% previous
•US Jan Building Permits 1.899M ,1.760M forecast, 1.885M previous
•Canada Dec Foreign Securities Purchases by Canadians 21.29B , 17.52B previous
•Canada Dec Foreign Securities Purchases 37.56B , 30.15B previous
Looking Ahead Economic Data (GMT)
•00:45 Japan Jan CPI, n.s.a (MoM) 0.2% previous
•00:45 Japan Jan National Core CPI (YoY) 0.3% forecast, 0.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency summaries
EUR/USD: The euro was little changed against dollar on Thursday after Russian-backed separatists and Ukrainian government forces accused each other of firing shells. 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 was little on the day at $1.1359.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 1.3651(Higher BB).On the downside, immediate support is seen at 1.3574(5DMA), a break below could take the pair towards 1.3539(50%fib).
USD/CAD: The Canadian dollar was little changed against its safe-haven U.S. counterpart on Thursday despite Wall Street tumbling on geopolitical worries, with investors sticking to bets that the Bank of Canada would hike interest rates multiple times in 2022. Money markets expect the BoC to hike on March 2 for the first time since October 2018 and six times in total this year. The price of oil, one of Canada's major exports, settled 2% lower at $91.76 a barrel as talks to resurrect a nuclear deal with Iran entered their final stages which could unlock more crude supplies. The loonie was nearly unchanged at 1.2686 to the greenback, after trading in a range of 1.2676 to 1.2734.Immediate resistance can be seen at 1.2761 (23.6%ib), an upside break can trigger rise towards 1.2772 (Higher BB).On the downside, immediate support is seen at 1.2702 (38.2%fib), a break below could take the pair towards 1.2654 (50%fib).
USD/JPY: The dollar declined against yen on Thursday as worries about escalating Russia-Ukraine tensions that could have economic repercussions worldwide increased demand for safe haven yen. U.S. President Joe Biden said on Thursday there was now every indication Russia was planning to invade Ukraine in the next few days and preparing a pretext to justify it, after Ukrainian forces and pro-Moscow rebels traded fire in eastern Ukraine. The Japanese yen, a currency investors usually buy when they are nervous, hit its strongest since Feb. 7, with the dollar down 0.4% to as weak as 114.90 yen.Strong resistance can be seen at 115.13 (50%fib), an upside break can trigger rise towards 115.42(61.8%fib).On the downside, immediate support is seen at 114.81(38.2%fib), a break below could take the pair towards 114.43(23.6%fib).
Equities Recap
European stocks ended lower on Thursday as geopolitical tensions hurt sentiment, prompting investors to lighten commitments. Markets also reacted to the latest batch of earnings updates and economic data from the region.
UK's benchmark FTSE 100 closed down by 0.87 percent, Germany's Dax ended down by 0.67 percent, France’s CAC finished the day down by 0.26 percent.
Wall Street ends lower as investors shifted to defensive sectors and safe havens such as bonds and gold as geopolitical tensions between Washington and Russia over Ukraine flared.
Dow Jones closed down by 1.78 % percent, S&P 500 closed down by 2.12% percent, Nasdaq settled down by 2.88% percent.
Commodities Recap
Gold prices jumped to an eight-month high and safe-haven debt rose on Thursday after U.S. President Joe Biden said there was every indication Russia planned to attack Ukraine, while Moscow accused Washington of ignoring its security demands.
Gold prices rose above $1,900 for the first time since June. U.S. gold futures settled 1.6% higher at $1,902 an ounce.
Oil prices fell about 2% on Thursday as talks to resurrect a nuclear deal with Iran entered their final stages and could unlock more crude supplies, but losses were limited by tension between top energy exporter Russia and the West over Ukraine.
Brent futures fell $1.84, or 1.9%, to settle at $92.97 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.90, or 2.0%, to settle at $91.76.