Posted at 01 March 2022 / Categories Market Roundups
Market Roundup
•Canada Current Account (Q4) -0.8B,4.8B forecast,1.4B previous
•Canada Jan RMPI (MoM) 6.5%, -2.9% previous
•US Jan Retail Inventories Ex Auto 1.7%, 3.3% previous
•US Jan Goods Trade Balance -107.63B,-99.60B,-100.47B previous
•US Wholesale Inventories (MoM) 0.8%,1.3%,2.1% previous
•French 12-Month BTF Auction -0.605%,-0.586% previous
•French 3-Month BTF Auction -0.745%-0.685% previous
•French 6-Month BTF Auction-0.702%, -0.678% previous
•US Feb Chicago PMI 56.3 ,63.0 forecast, 65.2 previous
•US Feb Dallas Fed Mfg Business Index 14.0, 2.0 previous
Looking Ahead Economic Data (GMT)
•00:30 Australia Current Account (Q4)14.3B forecast,23.9B previous
•00:30 Japan Feb Manufacturing PMI 52.9 forecast,55.4 previous
•00:30 Japan Feb Services PMI 42.7 forecast,47.6 previous
•00:30 Australia Home Loans (MoM) 2.0% forecast ,5.3% previous
•00:30 China Feb Chinese Composite PMI 51.0 previous
•00:30 China Feb Manufacturing PMI 49.9 forecast,50.1 previous
•00:30 China Feb Non-Manufacturing PMI 51.1 previous
•00:30 China Feb Caixin Manufacturing PMI 49.5 forecast,49.1 previous
Looking Ahead - Events, Other Releases (GMT)
•Australia March RBA Interest Rate Decision 0.10% forecast, 0.10% previous
Currency Summaries
EUR/USD: The euro gained on Monday amid rising geopolitical tensions following the Russian invasion of Ukraine. The West continues to ramp up sanctions against Russia in response to the invasion, leading to worries about the impact on the global economy. Financial markets slid and oil prices soared as Western allies ramped up efforts to punish Russia with new sanctions. In response, Russia's central bank on Monday moved to shield the economy as its invasion of Ukraine continued, bolstering other measures including an assurance it would resume buying gold in the domestic market. The euro was last trading at 1.1209.Immediate resistance can be seen at 1.1221(50%fib), an upside break can trigger rise towards 1.1266(61.8%fib).On the downside, immediate support is seen at 1.1169(38.2%fib), a break below could take the pair towards 1.1112 (23.6%fib).
GBP/USD: Sterling rebounded sharply against the dollar on Monday after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine. Western allies moved over the weekend to block the access of certain Russian banks to the SWIFT international payments system and announced plans to implement restrictions on the Russian central bank’s international reserves. The impact of the Russian invasion of Ukraine on the Bank of England’s future path for interest rates continues to be a theme in the near-term. Immediate resistance can be seen at 1.3412(Daily high), an upside break can trigger rise towards 1.3493(50%fib).On the downside, immediate support is seen at 1.3384(38.2%fib), a break below could take the pair towards 1.3309(23.6%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday, clawing back its earlier decline, as safe-haven flows dominated global currency markets after the West imposed tougher sanctions against Russia. Investors awaited a Bank of Canada interest rate decision on Wednesday. The central bank is expected to hike its benchmark rate for the first time since October 2018, lifting it to 0.5% from 0.25%. U.S. crude prices settled 4.5% higher at $95.72 a barrel. Oil is one of Canada's major exports. The loonie was up 0.2% at 1.2675 to the greenback, after trading in a range of 1.2661 to 1.2809.Immediate resistance can be seen at 1.2639 (23.6%fib), an upside break can trigger rise towards 1.2671 (9DMA).On the downside, immediate support is seen at 1.2571 (Daily low), a break below could take the pair towards 1.2500 (Psychological level).
USD/JPY: The dollar initially gained against yen on Monday but gave up ground as investors snapped up safer assets following Russia’s invasion of Ukraine. The United States and its allies on Saturday moved to block certain Russian banks' access to the SWIFT international payment system, which traders and analysts said could disrupt Russian exports of all commodities from oil and metals to grains. The dollar was last trading 0.09 percent higher versus the Japanese yen at 115.06 .Strong resistance can be seen at 115.30(38.2%fib), an upside break can trigger rise towards 115.74(23.6%fib).On the downside, immediate support is seen at 115.11(50%fib), a break below could take the pair towards 114.81(61.8%fib).
Equities Recap
Despite a fairly strong recovery during the final hour of the day's session, European stocks closed on a weak note on Monday amid rising geopolitical tensions following the Russian invasion of Ukraine.
UK's benchmark FTSE 100 closed down by 0.42 percent, Germany's Dax ended down by 0.73 percent, France’s CAC finished the day down by 1.39 percent.
Wall Street's main indexes headed lower on Monday, with bank stocks leading the drop, after the West hit Russia with unprecedented sanctions following its invasion of Ukraine.
Dow Jones closed down by 0.49% percent, S&P 500 closed down by 0.25% percent, Nasdaq settled up by 0.41% percent.
Commodities Recap
Gold firmed on Monday after the West slapping more sanctions on Russia over its invasion of Ukraine put safe-haven gold on pace to post its biggest monthly percentage gain in nine.
Spot gold rose 0.6% to $1,898.25 per ounce, after gaining as much as 2.2% earlier in the session. U.S. gold futures.
Oil prices jumped on Monday as Western allies imposed more sanctions on Russia and blocked some Russian banks from a global payments system, which could cause severe disruption to its oil exports.
Brent crude settled up $3.06, or 3.1%, at $100.99 a barrel after touching a high of $105.07 in early trade.
U.S. West Texas Intermediate (WTI) crude settled up $4.13, or 4.5%, at $95.72 after hitting $99.10 in early trade.