Posted at 26 February 2022 / Categories Market Roundups
Market Roundup
•US Jan PCE price index (MoM) 0.6%,0.4% previous
•US Jan Core PCE Price Index (MoM) 0.5%,0.5% forecast ,0.5% previous
•US Jan PCE Price index (YoY) 6.1,5.8 previous
•US Jan Personal Spending (MoM) 2.1%,1.5% forecast,-0.6% previous
•US Jan Core PCE Price Index (YoY) 5.2%,5.1% forecast,4.9% previous
•US Jan Durable Goods Orders (MoM) 1.6%,0.8% forecast, -0.7% previous
•US Jan Core Durable Goods Orders (MoM) 0.7%, 0.4% forecast,0.6% previous
•US Jan Pending Home Sales (MoM) -5.7%, 1.0% forecast,-3.8% previous
•US Feb Michigan Consumer Sentiment 62.8, 61.7 forecast,67.2 previous
•US Feb Michigan Inflation Expectations 4.9%,5.0% forecast,4.9% previous
•US Feb Michigan Consumer Expectations 59.4, 57.4 forecast,64.1 previous
•US Feb Michigan Current Conditions 68.2,68.5 forecast,72.0 previous
•Canada Dec Budget Balance3.58B, -1.44B previous
•US Jan Dallas Fed PCE 6.70%, 3.90% previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro rebounded sharply on Friday after falling sharply the previous day as investors gauged the latest round of sanctions on Russia. Investors are now looking to see what impact the war will have on the European Central Bank’s future policy decisions, analysts said. The ECB discussed the possible consequences of war in Ukraine when it met for a previously-scheduled meeting in Paris on Thursday .The dollar index fell 0.459%, with the euro up 0.59% to $1.1269. The euro fell to $1.105 on Thursday, its weakest against the greenback since June 1, 2020. Immediate resistance can be seen at 1.1226(38.2%fib), an upside break can trigger rise towards 1.1273(50%fib).On the downside, immediate support is seen at 1.1163(23.6%fib), a break below could take the pair towards 1.1108(Daily low).
GBP/USD: The British pound stabilised on Friday, recovering from a two-month low hit in the previous session after investors rushed into safe-haven currencies like the Japanese yen and the U.S. dollar following Russia’s invasion of Ukraine. Missiles pounded the Ukrainian capital on Friday as Russian forces pressed their advance and Ukrainian President Volodymyr Zelenskiy pleaded with the international community to do more, saying sanctions announced so far were not enough. The pound steadied against the dollar at $1.3409 after falling to $1.3302 on Thursday, a Dec. 22 low. Immediate resistance can be seen at 1.3418(38.2%fib), an upside break can trigger rise towards 1.3466(50%fib).On the downside, immediate support is seen at 1.3364(23.6%fib), a break below could take the pair towards 1.3271(Feb 24th low).
USD/CAD: The Canadian dollar rallied against the greenback on Friday as traders walked back some of the large moves seen the day before in reaction to Russia’s invasion of Ukraine and awaited an interest rate decision next week by the Bank of Canada. The price of oil, one of Canada's major exports, gave back some recent gains, with U.S. crude oil futures falling 1.1% to $91.76 a barrel.The loonie climbed 0.8% to 1.2720 per greenback, after trading in a range of 1.2711 to 1.2821.On Thursday, the currency touched its weakest intraday level in more than two months at 1.2877. It was up 0.3% for the week. Immediate resistance can be seen at 1.3433 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3377 (5 DMA), a break below could take the pair towards 1.3332 (9 DMA).
USD/JPY: The dollar retreated against yen on Friday as investors gauged the latest round of sanctions on Russia and U.S. inflation data was seen as unlikely to make the Federal Reserve overly aggressive at its next policy meeting. U.S. economic data showed consumer spending increased more than expected in January even as price pressures mounted, with annual inflation hitting rates last seen four decades ago, although the personal consumption expenditures price index increased 0.6% in January after rising 0.5% in December. Strong resistance can be seen at 115.55(38.2%fib), an upside break can trigger rise towards 115.92(23.6%fib).On the downside, immediate support is seen at 115.27(50%fib), a break below could take the pair towards 114.96(61.8%fib).
Equities Recap
European stocks closed on a buoyant note on Friday, rebounding strongly after the terrible setback it suffered in the previous session.
UK's benchmark FTSE 100 closed up by 1.45 percent, Germany's Dax ended up by 1.19 percent, France’s CAC finished the day up by 1.33percent.
U.S. stocks ended sharply higher on Thursday, led by a 3% gain in the Nasdaq, in a dramatic market reversal as U.S. President Joe Biden unveiled harsh new sanctions against Russia after Moscow began an all-out invasion of Ukraine.
Dow Jones closed down trading by 3.42 percent, S&P 500 was last up by 3.17 percent, Nasdaq was up by 2,93 % percent.
Treasuries Recap
U.S. Treasury yields eased from earlier highs on Friday after the Federal Reserve's preferred inflation gauge rose more than expected in January, but the market's reaction was muted as uncertainty reigned due to Russia's invasion of Ukraine.
The yield on 10-year U.S. Treasury notes dipped 0.7 basis points to 1.965%. The two-year Treasury yield, which typically moves in step with interest rate expectations, was up 2.2 basis points at 1.568%.
Commodities Recap
Gold prices reversed course to slide 1%on Friday, and palladium also slipped, as Russia's invasion of Ukraine triggered sharp swings in the precious metals market.
Spot gold slipped 0.9% to $1,887.05 per ounce by 02:02 p.m. ET (1902 GMT), swinging between gains and losses through the session. U.S. gold futures settled 2% lower at $1,887.60.
Oil prices dipped on Friday as investors welcomed talk of renewed diplomacy after Russia's invasion of Ukraine, and as coordinated Western sanctions left Russia's energy sector largely untouched.
Brent crude settled at $97.93 per barrel, down 1.16%, while U.S. West Texas Intermediate crude settled down 1.3% at $91.59.