Posted at 24 February 2022 / Categories Market Roundups
Market Roundup
• Canada Corporate Profits (QoQ) 3.8%,2.8% previous
• Redbook (YoY) 14.5% , 15.4% previous
•US 5-Year Note Auction 1.880%,1.533% previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Wednesday as dollar gained after Ukraine declared a state of emergency and the West unveiled more sanctions against Russia over its move into eastern Ukraine. In the latest ominous signals of a possible military conflict, Ukraine declared a state of emergency and told its citizens in Russia to flee, while Moscow began evacuating its Kyiv embassy. The European Union blacklisted Russian lawmakers, freezing their assets and banning travel, while Germany froze a major gas pipeline project from Russia, and London and Washington targeted Russian debt. The euro fell as much as 0.26% to $1.12750 , the lowest level since Feb. 3. Immediate resistance can be seen at 1.1322(38.2%fib), an upside break can trigger rise towards 1.1355 (14DMA).On the downside, immediate support is seen at 1.1280(50%fib), a break below could take the pair towards 1.1233 (61.8%fib).
GBP/USD: Sterling edged down versus the dollar and euro on Wednesday after Bank of England Governor Andrew Bailey told parliament there were clear inflation risks but markets should not get carried away over the likely scale of interest rate hikes. Speaking about the BoE’s decision earlier this month to raise interest rates, Bailey said he saw a clear risk of inflation sticking at high levels, adding that second-round effects are a concern, which could require more hikes. Sterling edged 0.2% lower to $1.3553 versus the dollar at 1650 GMT, after touching a six-day low the previous day. Immediate resistance can be seen at 1.3562(38.2%fib), an upside break can trigger rise towards 1.3611(23.6%fib).On the downside, immediate support is seen at 1.3526(50%fib), a break below could take the pair towards 1.3486(61.8%fib).
USD/CAD : The Canadian dollar strengthened against its U.S. counterpart on Wednesday but gave up much of its advance as rising Russia-Ukraine tensions weighed on investor sentiment. Sanctions were not yet expected to disrupt oil supplies, helping to cap the price of oil, one of Canada’s major exports, after it notched a seven-year high on Tuesday. U.S. crude prices settled 0.2% lower at $92.10 a barrel. The Bank of Canada is expected to hike next Wednesday for the first time since October 2018. The loonie was up 0.2% at 1.2745 to the greenback, after earlier touching its strongest level since last Friday at 1.2683 .Immediate resistance can be seen at 1.2771 (23.6%fib), an upside break can trigger rise towards 1.2780 (Higher BB).On the downside, immediate support is seen at 1.2743(5DMA), a break below could take the pair towards 1.2708 (38.2%fib).
USD/JPY: The dollar edged higher against yen on Wednesday as U.S. dollar gained some ground as Ukraine declared a state of emergency amid intensifying fears of a full-scale Russian invasion.Trading in many asset classes has been volatile since Russian President Vladimir Putin's dispatch of troops earlier this week into parts of Ukraine. This triggered sanctions from Western countries and threats of more if Moscow advances further. The dollar was last trading 0.04 percent higher versus the Japanese yen at 114.02 .Strong resistance can be seen at 115.22(38.2%fib), an upside break can trigger rise towards 115.62(23.6%fib).On the downside, immediate support is seen at 114.90(50%fib), a break below could take the pair towards 114.49(23.6%fib).
Equities Recap
Despite seeing a positive spell earlier in the day, European stocks closed weak on Wednesday with investors making cautious moves amid worries over geopolitical tensions.
UK's benchmark FTSE 100 closed up by 0.05 percent, Germany's Dax ended up by 0.42 percent, France’s CAC finished the day up by 0.10 percent.
Wall Street's major indexes ended sharply lower on Wednesday, extending their recent rout as Ukraine declared a state of emergency and the U.S. State Department said a Russian invasion of Ukraine remains potentially imminent.
Dow Jones closed down by 1.38 % percent, S&P 500 closed up by 1.84 % percent, Nasdaq settled up by 2.57% percent.
Treasuries Recap
Treasury yields rose on Wednesday as Western countries unveiled more sanctions against Russia over its move into eastern Ukraine, but bond investors remained mainly concerned about inflation and a potential Federal Reserve policy mistake.
The yield on benchmark 10-year U.S. Treasury notes rose 2.6 basis points to 1.974%.
Commodities Recap
Gold prices gained on Wednesday as investors sought refuge in safe havens after Ukraine declared an emergency and the West imposed more sanctions on Russia for sending troops into eastern Ukraine.
Spot gold gained 0.4% to $1,906.58 per ounce by 01:43 p.m. EST (1843 GMT), having hit a near nine-month high of $1,913.89 on Tuesday.U.S. gold futures settled 0.2% higher at $1,910.40.
Oil prices steadied on Wednesday, holding below 2014 highs, as U.S. officials indicated escalation between Russia and Ukraine was unlikely to result in sanctions on energy supplies from Russia, one of the world's top oil producers.
Brent crude remained unchanged, settling at $96.84 a barrel, after hitting $99.50, its highest since September 2014 on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures ended up 19 cents to $92.10 a barrel. On Tuesday, WTI hit $96.