Posted at 07 March 2022 / Categories Market Roundups
Market Roundup
•German Jan Factory Orders (MoM) 1.8% ,1.0% forecast, 2.8% previous
•UK Feb Halifax House Price Index (MoM) 0.5% ,0.3% previous
•German Jan Retail Sales (YoY) 10.3% ,9.8% forecast, 0.0% previous
•French Feb Reserve Assets Total 232,616.0M ,224,650.0M previous
•EU March Sentix Investor Confidence -7.0 ,5.3 forecast, 16.6 previous
Looking Ahead Economic Data
•14:00 French 3-Month BTF Auction -0.745% previous
•14:00 French 6-Month BTF Auction -0.702% previous
•14:00 French 12-Month BTF Auction -0.605% previous
•15:00 US Feb CB Employment Trends Index 117.62 previous
•16:30 US 6-Month Bill Auction 0.670% previous
•20:00 US Jan Consumer Credit 23.80B forecast,18.90B previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Fxbeat
EUR/USD: The euro tanked more than 1% versus the dollar on Monday and was on track for its biggest three-day loss in two years as soaring oil prices stoked fears of a stagflationary shock that could hammer European recovery hopes.Europe is the most vulnerable as it imports as much as 40% of its natural gas from Russia and the single currency has become increasingly correlated with oil prices the higher oil climbs, the more the euro falls as investors fret about higher inflation and the blow to the economy. The euro fell more than 1% to $1.0806, a May 2020 low. Immediate resistance can be seen at 1.0921(38.2%fib), an upside break can trigger rise towards 1.1002(50%fib).On the downside, immediate support is seen at 1.0875(Lower BB), a break below could take the pair towards 1.0802 (23.6%fib).
GBP/USD: Sterling declined against the dollar on Monday as another volatile session sent investors to buy dollars. European currencies have been falling fast since Russia invaded Ukraine as investors worry about the impact on their economies of the war and the surge in commodity prices. While the UK economy is not as exposed as euro zone economies, the pound has been suffering versus the dollar but powered ahead against a euro falling against nearly all currencies. The pound was down 0.4% at $1.3183, having weakened to as low as $1.3157, its lowest since December 2020.Immediate resistance can be seen at 1.3220(38.2%fib), an upside break can trigger rise towards 1.3284(50%fib).On the downside, immediate support is seen at 1.3163(Lower BB), a break below could take the pair towards 1.3144(23.6%fib).
USD/CHF: The dollar rose against the Swiss franc on Monday as concerns about the impact of the Ukraine-Russia conflict on inflation and a global economic recovery increased demand for greenback. Fighting in Ukraine intensified over the weekend and attempts at a ceasefire to allow civilians to evacuate from the besieged city of Mariupol seem to have so far failed.Markets are bracing for the fallout from rising commodity prices, particularly higher inflation which could pressure the U.S. Federal Reserve and other central banks to quickly tighten monetary policy, just as the world emerges from its pandemic slump. Immediate resistance can be seen at 0.9251 (38.2%fib), an upside break can trigger rise towards 0.9286 (23.6%fib).On the downside, immediate support is seen at 0.9220 (50% fib), a break below could take the pair towards 0.9192(61.8% fib).
USD/JPY: The dollar strengthened against yen on Monday as investors rushed to the dollar as the Russia-Ukraine crisis worsened. As the conflict enters its 12th day, Ukraine is set to ask the United Nations' highest court today to intervene to halt Moscow's invasion. Russian President Vladimir Putin has said his campaign in Ukraine will not end until Kyiv stops fighting. The dollar was aslo supported in part by a strong payrolls report that only reaffirmed market expectations for a Fed hike this month. The dollar was last trading 0.44 percent higher versus the Japanese yen at 115.23 .Strong resistance can be seen at 115.56(23.6%fib), an upside break can trigger rise towards 116.04(Higher BB).On the downside, immediate support is seen at 115.10(38.2%fib), a break below could take the pair towards 114.69(50%fib).
Equities Recap
European stocks hit one-year lows on Monday in light of a possible Western ban on Russian oil.
At (GMT 13:20 ),UK's benchmark FTSE 100 was last trading down at 0.29 percent, Germany's Dax was down by 0.89 percent, France’s CAC finished was down by 0.65 percent.
Commodities Recap
Gold prices hit $2,000 for the first time in 1-1/2 years, with investors rushing to the safe-haven metal as the Russia-Ukraine crisis worsens, while supply disruption fears sent palladium to an all-time high on Monday.
Spot gold was up 1.1% at $1,990.20 per ounce by 0751 GMT, after scaling its highest since Aug. 19, 2020 at $2,000.69 earlier in the session. U.S. gold futures rose 1.4% to $1,993.30.
Oil and other commodities prices soared while shares sank in frantic trading on Monday as the risk of a U.S. and European ban on Russian crude imports threatened stretched supply chains and heaped further inflationary pressure on economies worldwide.
Brent was last quoted 6.25% higher on the day at $125.44, while U.S. crude rose $7.19 to $122.78.