Posted at 19 February 2022 / Categories Market Roundups
Market Roundup
•Canada Jan New Housing Price Index (MoM) 0.9%,0.2% previous
•Canada Dec Retail Sales (MoM) -1.8%, -2.1% forecast,0.7%previous
•Canada Dec Core Retail Sales (MoM) -2.5%, -2.0%forecast, 1.1% previous
•US Jan Existing Home Sales 6.50M,6.10M forecast,6.18M previous
•US Jan Existing Home Sales (MoM) 6.7%, -1.0% forecast,-4.6% previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro edged lower against dollar on Friday as investors remained cautious around Ukraine tensions going into the weekend. News that U.S. Secretary of State Anthony Blinken had accepted an invitation to meet with Russian Foreign Minister Sergei Lavrov late next week initially prompted optimism but, caution overtook in later trading as Ukranian government forces and pro-Russian rebels reported increased shelling in eastern Ukraine for a second straight day. Friday's moves added to sharp falls over the previous two sessions as investors clamoured for safe-haven assets driven by fears that a Russian invasion of Ukraine may be imminent. The euro edged down 0.08% at $1.1348.Immediate resistance can be seen at 1.1348(50%fib), an upside break can trigger rise towards 1.1380(61.8%fib).On the downside, immediate support is seen at 1.1300(Psychological level), a break below could take the pair towards 1.1269 (23.6%fib).
GBP/USD: Sterling edged higher versus the dollar on Friday as sterling was helped by better-than-expected UK retail sales numbers. The flat start comes despite positive UK retail sales data published Friday, showing a stronger than expected bounce.Sales volumes in the UK in January rose 1.9% from the previous month, surpassing forecasts of 1.2%, as consumers began to return to more normal buying behaviours post-pandemic, reversing some of the 4% drop seen in December 2021.Sterling rose 0.1% versus the dollar, to $1.3596.Immediate resistance can be seen at 1.3621(38.2%fib), an upside break can trigger rise towards 1.3675(Higher BB).On the downside, immediate support is seen at 1.3566(5DMA), a break below could take the pair towards 1.3533(50%fib).
USD/CAD : The Canadian dollar was little changed against its U.S. counterpart on Friday as investors weighed diplomatic efforts to avoid a Russian invasion of Ukraine and preliminary domestic data showing that retail sales climbed in January.Canadian retail sales rose 2.4% in January from December, a flash estimate from Statistics Canada showed, following on a 1.8% decline in December as consumers stayed home amid concerns over the Omicron coronavirus variant. The price of oil, one of Canada’s major exports, extended losses and was headed for a weekly fall as the prospect of increased Iranian oil exports eclipsed fears of potential supply disruption resulting from the Russia-Ukraine crisis. .Immediate resistance can be seen at 1.2757 (23.6%fib), an upside break can trigger rise towards 1.2797 (Higher BB).On the downside, immediate support is seen at 1.2716 (5DMA), a break below could take the pair towards 1.2701 (38.2%fib).
USD/JPY: The dollar retreated against the yen on Friday as a series of developments in the Ukraine-Russia crisis put investors on edge. On Friday, Russian-backed separatists in eastern Ukraine said they planned to evacuate their breakaway region's residents to Russia, while U.S. Secretary of State Antony Blinken said the events transpiring in the border area over the past two days are part of a Russian scenario to create false provocations. In late New York trading, the dollar was up 0.05% at 115.025 yen . For the week, the dollar was down 0.4% against the Japanese currency in its biggest weekly percentage decline in about a month. Strong resistance can be seen at 115.15(50%fib), an upside break can trigger rise towards 115.43(61.8%fib).On the downside, immediate support is seen at 114.78(38.2%fib), a break below could take the pair towards 114.42(23.6%fib).
Equities Recap
European markets closed weak on Friday, extending recent losses, as an escalation in Russia-Ukraine tensions hurt sentiment..
UK's benchmark FTSE 100 closed down by 0.32 percent, Germany's Dax ended down by 1.47 percent, France’s CAC finished the day down by 0.25percent.
Wall Street ended lower on Friday after escalating tensions in Ukraine and U.S. warnings of a potential Russian invasion prompted investors to dump risky assets in the run-up to a long weekend..
Dow Jones closed down by 0.68% percent, S&P 500 closed down by 0.72% percent, Nasdaq settled down by 1.23% percent.
Treasuries Recap
U.S. Treasury rose as Ukraine developments dented risk appetite. The yield on 10-year Treasury notes fell 5.2 basis points to 1.922%,
Commodities Recap
Gold retreated slightly from the key $1,900-per-ounce level on Friday as hopes for U.S.-Russia talks brought some calm to wider markets, but lingering concerns over Ukraine kept bullion on track for a third straight weekly gain.
Spot gold was down 0.1% at $1,896.04 per ounce by 01:59 p.m. ET (1859 GMT), after earlier touching its highest since June 2021 at $1,902.22. It has gained 1.9% so far this week.
Oil prices ended the week mixed on Friday as investors weighed a potential supply disruption resulting from the Russia-Ukraine crisis against the prospect of increased Iranian oil exports.
Brent crude futures settled 57 cents, or 0.6%, higher at $93.54 a barrel, while U.S. West Texas Intermediate (WTI) crude ended down 69 cents, or 0.5%, at $91.07 a barrel.