News

Europe Roundup: Euro set for biggest weekly drop in 7 yrs, European shares slips,Gold gains, Oil rises above $112 as Ukraine conflict offsets Iran supply hope-March 4th,2022

Posted at 04 March 2022 / Categories Market Roundups


Market Roundup

•German Jan Imports (MoM)  -4.2%, 4.7% previous

•German Jan Trade Balance 9.4B,7.1B forecast,6.8B previous

•German Jan Exports (MoM) -2.8% 0.9% previous

•French Jan Industrial Production (MoM) 1.6%, 0.5% forecast, -0.2% previous

•German Feb IHS Markit Construction PMI 54.9 forecast, 54.4 previous

•Italian GDP (YoY) (Q4)6.2%, 6.4% forecast,3.9% previous

•UK Feb Construction PMI 59.1,54.3 forecast, 56.3 previous

•EU Jan Retail Sales (YoY) 7.8%,9.5% forecast,2.0% previous

•EU Jan Retail Sales (MoM)  0.2% ,1.5% forecast,-3.0% previous

Looking Ahead Economic Data

•13:30 Canada Jan Building Permits (MoM) -1.5% forecast,-1.9% previous

•13:30 US Average Hourly Earnings (MoM) 0.5% forecast ,0.7% previous

•13:30 US Feb U6 Unemployment Rate 7.1% previous

•13:30 US Feb Participation Rate 62.2% previous

•13:30 US Labor Productivity (QoQ) (Q4) -0.8% forecast , -1.5% previous

•13:30 US Feb Nonfarm Payrolls  400K    forecast ,467K previous

•13:30 US Feb Private Nonfarm Payrolls 378K forecast, 444K previous

•13:30 US Feb Unemployment Rate 3.9% forecast, 4.0% previous

•13:30 US Feb Average Hourly Earnings (YoY) (YoY)  5.8% forecast,5.7% previous

•13:30 Canada Feb  Ivey PMI 54.2 forecast, 50.7 previous

•14:30 U.S. Baker Hughes Oil Rig Count  522 previous

•14:30 U.S. U.S. Baker Hughes Total Rig Count 650 previous

Looking Ahead - Events, Other Releases (GMT)

 •No events ahead

Fxbeat

EUR/USD: The euro declined on Friday as the war in Ukraine lowered expectations of European economic growth. Russian troops shelled the Zaporizhzhia power plant in Enerhodar, Ukraine earlier in the day. Russia also continued to surround and attack Ukrainian cities on the eighth day of its invasion, which began on Feb. 24. These include the eastern port city of Mariupol, which has come under heavy bombardment. The news sent the euro tumbling a further 0.48% to $1.1009, its lowest since May 2020. The single currency has lost 1.84% in the week to date, its worst week since June 2021. Immediate resistance can be seen at 1.0959(50%fib), an upside break can trigger rise towards 1.1096(5DMA).On the downside, immediate support is seen at 1.0959(38.2%fib), a break below could take the pair towards 1.0862 (23.6%fib).

GBP/USD: Sterling declined against the dollar on Friday as concern about a deepening Ukrainian conflict dampened risk appetite. A huge blaze at the site of Europe’s biggest nuclear power station was extinguished, and officials said the plant in Ukraine was operating normally after it was seized by Russian forces in fighting that caused global alarm. Investors await the U.S. employment report later in the day, which will provide the last data before next week’s Federal Reserve policy meeting. Immediate resistance can be seen at 1.3350(38.2%fib), an upside break can trigger rise towards 1.3440(11DMA).On the downside, immediate support is seen at 1.3270(23.6%fib), a break below could take the pair towards 1.3238(Lower BB).

USD/CHF: The dollar dipped against the Swiss franc on Friday as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine the largest of its kind in Europe. The Zaporizhzhia nuclear power plant in Ukraine was on fire early on Friday after an attack by Russian troops, the mayor of the nearby town of Energodar said. Russia has already captured the defunct Chernobyl plant,some 100 kilometres (62 miles) north of Ukraine's capital, Kyiv. Immediate resistance can be seen at 0.9183 (38.2%fib), an upside break can trigger rise towards 0.9217 (50%fib).On the downside, immediate support is seen at 0.9149 (23.6% fib), a break below could take the pair towards 0.9135(Lower BB ).

USD/JPY: The dollar dipped against yen on Friday after Russian forces seized a huge nuclear power plant in Ukraine, sparking fears of a potential nuclear disaster.Financial markets have been on edge amid new developments in the bombardment of Ukraine by Russian forces. A fire identified at a part of the Zaporizhzhia plant, Europe's largest nuclear power plant had been extinguished. The dollar was last trading 0.02 percent lower versus the Japanese yen at 115.50 .Strong resistance can be seen at 115.76(23.6%fib), an upside break can trigger rise towards 116.04(Higher BB).On the downside, immediate support is seen at 115.35(38.2%fib), a break below could take the pair towards 115.10(50%fib).

Equities Recap

European stocks sank on Friday, on course for their third consecutive week of declines following reports of a nuclear power plant on fire amid fierce fighting between Ukraine and Russian troops.

At (GMT 12:17 ),UK's benchmark FTSE 100 was last trading down  at 3.43 percent, Germany's Dax was down by 3.69 percent, France’s CAC was last down by 3.66 percent.

Commodities Recap

Gold gained on Friday as the war in Ukraine kept safe-haven gold on firm ground.

Spot gold gained 0.5% to $1,944.20 per ounce, and U.S. gold futures jumped 0.6% to $1,947.40.

Oil rose above $112 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.

Brent crude rose as high as $114.23 a barrel and by 1050 GMT was up $1.97, or 1.8%, at $112.43. U.S. West Texas Intermediate (WTI) added $2.21, or 2.1%, to $109.88 after touching a high of $112.84.


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