Posted at 03 March 2022 / Categories Market Roundups
Market Roundup
•US Continuing Jobless Claims 1,476K, 1,475K forecast,1,476K previous
•US Jobless Claims 4-Week Avg 230.50K ,236.25K previous
•US Initial Jobless Claims 230.50K, 226K forecast,232K previous
•US Unit Labor Costs (QoQ) (Q4) 0.9%,0.3% forecast,0.3% previous
•US Feb Markit Composite PMI 55.9,56.0 forecast,51.1 previous
•US Feb Services PMI 56.5, 56.7 forecast,51.2 previous
•US Feb ISM Non-Manufacturing Business Activity 55.1,59.9 previous
•US Feb ISM Non-Manufacturing 83.1,Prices 82.3 previous
•US Feb ISM Non-Manufacturing PMI 56.5, 61.0 forecast,59.9 previous
•US Jan Factory Orders (MoM) 1.4%,0.5% forecast ,-0.4% previous
•US Feb ISM Non-Manufacturing Employment 48.5,52.3 previous
Looking Ahead Economic Data (GMT)
•23:30 Japan Jan Unemployment Rate 2.7% forecast, 2.7% previous
•23:30 Japan Jan Jobs/applications ratio 1.16 forecast, 1.16 previous
00:30 Australia Retail Sales (MoM) 1.8% forecast, -4.4% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was pinned near 21-month lows versus the dollar on Thursday as investors worried about the impact of rising oil prices after Russia's invasion of Ukraine. Russia and Ukraine have agreed on the need to set up humanitarian corridors and a possible ceasefire around them for fleeing civilians, both sides said after talks on Thursday, while Russian invasion forces surrounded and bombarded Ukrainian cities as the conflict entered its second week. The euro was down 0.5% at $1.1060 and again reached its lowest since May 2020. It is headed for its fourth straight weekly fall against the U.S. dollar. Immediate resistance can be seen at 1.1119(38.2%fib), an upside break can trigger rise towards 1.1169(50%fib).On the downside, immediate support is seen at 1.1058(23.6%fib), a break below could take the pair towards 1.1000 (Psychological level).
GBP/USD: Sterling declined against the dollar on Thursday as traders weighed the impact of Russia’s invasion of Ukraine on monetary policy. The Bank of England remains likely to hike its interest rate for a third consecutive meeting this month but expectations of a rate hike from the European Central Bank by the end of the year have declined since Russia invaded Ukraine a week ago. Against the dollar, sterling was down 0.2% to $1.3344 as the dollar was supported by Wednesday’s comments from Federal Reserve Chair Jerome Powell in which he reiterated his support for a 25 basis point interest rate hike this month. Immediate resistance can be seen at 1.3346(50%fib), an upside break can trigger rise towards 1.3412(61.8%fib).On the downside, immediate support is seen at 1.3300(Psychological level), a break below could take the pair towards 1.3266(23.6%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as the price of oil pulled back from its highest level in 14 years and the safe-haven greenback broadly climbed. The loonie was trading 0.4% lower at 1.2685 to the greenback, or 78.83 U.S. cents. Earlier in the day, it touched its strongest intraday level since Jan. 26 at 1.2588. The price of oil, one of Canada's major exports, touched its loftiest since September 2008 at $116.57 a barrel on disruption to Russian oil exports but then turned lower. U.S. crude prices settled down 2.7% at $107.67 a barrel. Immediate resistance can be seen at 1.2682 (50%fib), an upside break can trigger rise towards 1.2734(61.8%fib).On the downside, immediate support is seen at 1.2676(38.2%fib), a break below could take the pair towards 1.2574 (23.6%fib).
USD/JPY: The dollar strengthened against yen on Thursday as risk appetite improved after the U.S. Federal Reserve chairman tried to assuage fears about aggressive interest rate hikes. U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank would begin "carefully" raising interest rates this month, but was ready to move more aggressively if needed more or less the scenario traders have priced in. The Japanese yen weakened 0.01% at 115.46 per dollar .Strong resistance can be seen at 115.75(23.6%fib), an upside break can trigger rise towards 116.00(Psychological level).On the downside, immediate support is seen at 115.39(50%fib), a break below could take the pair towards 115.27(5DMA).
Equities Recap
European stocks ended sharply lower on Thursday, rocked by reports that the Russian forces hit many in the Ukrainian capital Kyiv overnight, resulting in several explosions.
UK's benchmark FTSE 100 closed down by 2.57 percent, Germany's Dax ended down by 2.16 percent, France’s CAC finished the day down by 1.84 percent.
Wall Street ended lower on Thursday, with growth stocks including Tesla and Amazon denting the Nasdaq, as the Ukraine crisis kept investors on edge.
Dow Jones closed down by 0.29% percent, S&P 500 closed down by 0.53 % percent, Nasdaq settled down by 1.56%percent.
Treasuries Recap
The U.S. Treasury yield curve reached its flattest level since March 2020 on Thursday as Federal Reserve Chairman Jerome Powell reiterated that he supports a 25-basis-point hike this month, and before Friday's highly anticipated February jobs report.
The yields , which are highly sensitive to interest rate moves, increased 2 basis points to 1.536%. They had fallen to 1.261% on Tuesday, the lowest since Feb. 4.
Benchmark 10-year yields fell 2 basis points to 1.844%, after getting as high as 1.910% on Wednesday. They fell as low as 1.682% on Tuesday, the lowest since Jan. 5.
Commodities Recap
Gold rose on Thursday as the Ukraine crisis and soaring inflation lifted demand for safe-haven gold.
Spot gold was up 0.4% at $1,933.31 per ounce and U.S. gold futures settled 0.7% higher to $1,935.90.
Oil slid 2% on Thursday, after hitting prices not seen in roughly a decade, as sellers jumped on hopes the United States and Iran will agree soon on a nuclear deal that could add barrels to a tight global market.
Brent futures were down $2.47, or 2.2%, to $110.46 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.93, or 2.6%, to $107.67.