Posted at 02 March 2022 / Categories Market Roundups
Market Roundup
• German Unemployment Rate 5.0%,5.1% forecast, 5.1% previous
•German Feb Unemployment n.s.a 2.428M, 2.462M previous
•German Feb Unemployment 2.312M, 2.345M previous
•German Feb Unemployment Change -33K,-23K forecast,-48K previous
•EU Core CPI (YoY)2.7%, 2.5% forecast,2.3% previous
•EU Core CPI (MoM)0.5%, -0.9% previous
•EU CPI (MoM) 0.9%, 0.3% previous
•EU Feb CPI (YoY) 5.8%, 5.3% forecast, 5.1% previous
Looking Ahead Economic Data
•13::15 US Feb ADP Nonfarm Employment Change 378K forecast, -301K previous
•15:00 Canada BoC Interest Rate Decision 0.50% forecast,0.25% previous
•15:30 US Crude Oil Inventories 2.748M forecast,4.515M previous
Looking Ahead - Events, Other Releases (GMT)
•14:30 US FOMC Member Bullard Speaks
•14:30 EU ECB President Lagarde Speaks
•15:00 US Fed Chair Powell Testifies
•19:00 US Beige Book
Fxbeat
EUR/USD: The euro dipped to lowest level since May 2020 on Wednesday as investors worried about the impact of an escalating conflict in Ukraine on the region’s economic prospects. Euro also dipped on reduced bets on a European Central Bank interest rate hike. Markets are now pricing in less than 20 basis points (bps) of rate hikes from the European Central Bank by December and price a first 10 bps hike by October. The common currency fell half a percent to as low as $1.1069. Immediate resistance can be seen at 1.1116(38.2%fib), an upside break can trigger rise towards 1.1169(50%fib).On the downside, immediate support is seen at 1.1060(23.6%fib), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling rebounded sharply against the dollar on Wednesday as investors focus shifted to bets on UK and euro zone rate hikes amid concerns about the economic impact of the war in Ukraine. Money markets are currently pricing in 108 basis points (bps) of UK rate hikes this year compared with around 130 bps before the Russian invasion, while discounting just about 20 bps of rate hikes from the European Central bank by December 2022. Investors are also focused on comments from the Bank of England (BoE), with Deputy Governor for Financial Stability Jon Cunliffe due to give a speech at 2000 GMT. Immediate resistance can be seen at 1.3369(5DMA), an upside break can trigger rise towards 1.3393(38.2%fib).On the downside, immediate support is seen at 1.3310(23.6%fib), a break below could take the pair towards 1.3270(Daily low).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as the dollar ticked higher outweighing safe-haven demand fuelled by the intensifying Russia-Ukraine conflict. Investors were also anticipating Federal Reserve Chair Jerome Powell's testimony before the U.S. Congress on Wednesday and Thursday for more clarity on interest rate hikes amid the Ukraine tensions and soaring inflation. The dollar was last trading 0.14 percent higher versus the swiss franc at 0.9195 . Immediate resistance can be seen at 0.9200 (38.2%fib), an upside break can trigger rise towards 0.9231 (23.6%fib).On the downside, immediate support is seen at 0.9175 (50%fib), a break below could take the pair towards 0.9148 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Wednesday as concerns about the impact of Western sanctions on Russia increased appetite for dollar. A week after Russian President Vladimir Putin ordered a full-scale invasion of its neighbour, the bombardments of Ukrainian cities continued while Western nations tightened sanctions on Moscow. Russia said its forces took control of the first sizable Ukrainian city on Wednesday, seizing Kherson, in the south, as fighting raged around the country.The dollar was last trading 0.39 percent higher versus the Japanese yen at 115.32 .Strong resistance can be seen at 115.37(38.2%fib), an upside break can trigger rise towards 115.74(23.6%fib).On the downside, immediate support is seen at 115.10(50%fib), a break below could take the pair towards 114.81(61.8%fib).
Equities Recap
European bank shares halted their slide on Wednesday after dropping to their lowest level in nearly 11-months on fallout from the Ukraine crisis, which has forced the European arm of Russia's Sberbank to close.
At (GMT 12:49 ),UK's benchmark FTSE 100 was last trading up at 0.52 percent, Germany's Dax was up by 0.08 percent, France’s CAC was last up by 0.44 percent.
Commodities Recap
Gold eased on Wednesday as U.S. yields ticked up and the dollar charged higher.
Spot gold fell 1% to $1,924.00 per ounce. U.S. gold futures dipped 0.4% to $1,935.60.
Oil prices surged on Wednesday as supply disruptions mounted following sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.
Brent crude futures rose by more than $8, touching a peak of $113.02 a barrel, the highest since June 2014, before easing to $111.53, up by $6.56 or 6.3% by 0950 GMT.