Posted at 23 February 2022 / Categories Market Roundups
Market Roundup
•US Dec House Price Index (MoM) 1.2%,1.1% previous
•US Dec S&P/CS HPI Composite - 20 s.a. (MoM) 1.5%, 1.1% forecast, 1.2% previous
•US Dec House Price Index 367.2,362.4 previous
•US Dec S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.6%,18.0% forecast,18.3% previous
•US Feb Services PMI 56.7, 53.0 forecast, 51.2 previous
•US Feb Markit Composite PMI 56.0,51.1 previous
•US Feb Manufacturing PMI 57.5, 56.0 forecast,55.5 previous
•US Feb CB Consumer Confidence 110.5, 110.0 forecast,113.8 previous
•US Feb Richmond Manufacturing Shipments -11, 14 previous
Looking Ahead Economic Data (GMT)
•No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
• 02:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro rose against dollar on Tuesday as investors focus shifted to monetary policy tightening expectations which overshadowed concerns about an escalating crisis over Ukraine.Euro zone money markets showed investors scaled back their expectations for European Central Bank moves in 2022 but still forecasting several rate hikes. They priced in an around a 95% chance of a 10 basis point (bps) rate hike in July and one of 40 bps by year-end. On the data front, German business morale improved in February, despite the Ukraine crisis, as businesses hope for an end to the coronavirus crisis, also boosting euro.The dollar index fell 0.1%, with the euro up 0.2% to $1.1333..Immediate resistance can be seen at 1.1348(5 DMA), an upside break can trigger rise towards 1.1362 (61.8%fib).On the downside, immediate support is seen at 1.1326(50%fib), a break below could take the pair towards 1.1290 (38.2%fib).
GBP/USD: Sterling fell to a six-day low against the dollar on Tuesday with investors cautious on the British currency amid the Russia-West stand-off over Ukraine. Also weighing on the pound, Bank of England (BoE) Deputy Governor Dave Ramsden on Tuesday signalled more monetary tightening, but said he now sees a modest" rate hike over the coming months. The BoE raised interest rates to 0.5% this month from 0.25%, with Ramsden part of a minority who then voted for a bigger increase to 0.75%. The pound weakened 0.3% against the dollar to $1.3563, after touching its lowest level against the greenback since Feb. 16 .Immediate resistance can be seen at 1.3621(38.2%fib), an upside break can trigger rise towards 1.3658(Higher BB).On the downside, immediate support is seen at 1.3538(50%fib), a break below could take the pair towards 1.3457(38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday as investors weighed the economic impact of Russia-Ukraine tensions, and the price of oil, one of Canada's major exports, gave back some of its earlier gains. Oil touched its highest since 2014 at $96 a barrel after Moscow ordered troops into two breakaway regions in eastern Ukraine but settled well below that level at $92.35 a barrel, up 1.4% on the day. The loonie was nearly unchanged at 1.2750 to the U.S. dollar, after trading between 1.2719 and 1.2782. Immediate resistance can be seen at 1.2768 (23.6%fib), an upside break can trigger rise towards 1.2793 (Higher BB).On the downside, immediate support is seen at 1.2744(5DMA), a break below could take the pair towards 1.2709(38.2%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine. Putin on Monday recognised two breakaway regions in eastern Ukraine as independent and ordered the Russian army to launch what Moscow called a peacekeeping operation into the area, upping the ante in a crisis that could unleash a major war. Washington and European capitals condemned the move, vowing new sanctions. The dollar was last trading 0.32 percent higher versus the Japanese yen at 115.02 .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 114.87(38.2%fib), a break below could take the pair towards 114.49(23.6%fib).
Equities Recap
European stocks closed on a mixed note on Tuesday with investors largely making cautious moves amid concerns over escalating tensions between Russia and Ukraine.
UK's benchmark FTSE 100 closed up by 0.13 percent, Germany's Dax ended down by 0.26 percent, France’s CAC finished the day down by 0.01 percent.
Wall Street's main indexes fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on edge after Russian President Vladimir Putin recognized two breakaway regions in the country and ordered troops to the area.
Dow Jones closed down by 1.42% percent, S&P 500 closed down by 1.01% percent, Nasdaq settled down by 1.23% percent.
Commodities Recap
Oil rose to nearly $100 a barrel on Tuesday, reaching its highest level since 2014 after Moscow ordered troops into two breakaway regions in eastern Ukraine.
Global benchmark Brent crude traded as high as $99.50 a barrel, its highest since September 2014, before settling at $96.84 with a $1.52, or 1.5%, gain.
Gold hit its highest in nearly nine months on Tuesday before pulling back as investors waiting for developments in the Ukraine crisis repositioned near the pivotal $1,900 an ounce mark.
Spot gold was down 0.2% at $1,902.71 per ounce by 14:06 ET (1906 GMT), having hit its highest since June 1 at $1,913.89. U.S. gold futures settled 0.4% higher at $1,907.40.