Posted at 08 March 2022 / Categories Market Roundups
Market roundup
• French 3-Month BTF Auction -0.755%, -0.745% previous
• French 6-Month BTF Auction -0.640% ,-0.702% previous
• French 12-Month BTF Auction -0.721% ,-0.605% previous
• US Feb CB Employment Trends Index 119.18 ,117.62 previous
• US Jan Consumer Credit 6.84B, 23.80B forecast,18.90B previous
Looking Ahead Economic Data
• 05:00 Japan Jan Coincident Indicator (MoM) -0.1% previous
• 05:00 Japan Jan Leading Index (MoM) 0.9% previous
• 05:00 Japan Jan Leading Index 103.7 forecast, 104.8 previous
• 05:00 Japan Feb Economy Watchers Current Index forecast 38.1, 37.9 previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro tanked more than 1% versus the dollar on Monday on concerns that higher energy prices will spark stagflation and hammer the European economy as it tries to recover from the pandemic.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, having lost 3% in three days, on Monday held above $1.08. 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. 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/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as the greenback broadly climbed and extreme volatility in oil prices weighed on Wall Street. The prospect of surging commodity prices hurting economic activity was a drag on investor sentiment. Equity markets globally tumbled, while the safe-haven U.S. dollar rose against a basket of major currencies. The loonie was 0.5% lower at 1.2790 to the greenback , after trading between 1.2686 and 1.2801.Immediate resistance can be seen at 1.2515 (23.6%fib), an upside break can trigger rise towards 1.2535 (Higher BB).On the downside, immediate support is seen at 1.2465(38.2%fib), a break below could take the pair towards 1.2420(50%fib).
USD/JPY: The dollar strengthened against yen on Monday as investors rushed to the safety of dollar as investors weighed the effects on global economic growth after oil prices hit 14-year highs after the United States and European allies considered banning Russian crude imports. Delegations from Russia and Ukraine have started a third round of talks in Belarus, the Interfax news agency reported on Monday, the 12th day of Russia's invasion of Ukraine. The dollar was last trading 0.44 percent higher versus the Japanese yen at 115.46 .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 tumbled to fresh multi-month lows on Monday, extending recent losses, due to rising worries about inflation as oil prices zoomed to a 14-year high amid reports the U.S. and its Western allies might impose a ban on Russian oil.
UK's benchmark FTSE 100 closed down by 0.40 percent, Germany's Dax ended down by 1.98 percent, France’s CAC finished the day down by 1.31 percent.
Wall Street's main indexes fell sharply on Monday as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.
Dow Jones closed down by 2.37% percent, S&P 500 closed down by 2.95% percent, Nasdaq settled down by 3.62% 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 worsened.
Spot gold rose 1.3% to $1,993.22 per ounce, after earlier scaling its highest since Aug. 19, 2020 at $2,002.31.U.S. gold futures settled 1.5% higher to $1,995.90.
Oil and other commodities prices soared while global shares tanked on Monday as the United States said it was willing to ban Russian oil imports, stoking investor fears over inflation and slowing economic growth.
Brent, the international benchmark, briefly hit more than $139 a barrel, its highest level since 2008. Brent crude futures settled up 4.3% at $123.21 a barrel. U.S. crude settled up 3.22% at $119.40 a barrel.