Posted at 08 March 2022 / Categories Market Roundups
Market Roundup
•German Jan Industrial Production (MoM) 2.7% ,0.5% forecast,-0.3% previous
•Italian Jan Retail Sales (YoY) 8.4%,9.4% previous
•Italian Jan Retail Sales (MoM) -0.5%,1.1% forecast,0.9% previous
•EU Employment Overall (Q4) 161,857.8K, 161,757.8K previous
•EU Employment Change (YoY) (Q4) 2.2%,2.1% forecast,2.1% previous
•EU GDP (QoQ) (Q4) 0.3%,0.3% forecast,2.2% previous
•EU GDP (YoY) (Q4) 4.6%,4.6% forecast,3.9% previous
•EU Employment Change (QoQ) (Q4) 0.5%, 0.5% forecast,0.9% previous
Looking Ahead Economic Data (GMT)
•13:30 Canada Imports 308.90B previous
•13:30 US Exports 28.10B previous
•13:30 US Imports 308.90B previous
•13:30 US Jan Trade Balance -87.10B forecast, -80.70B previous
•13:30 Canada Jan Exports 57.61B previous
•13:30 Canada Jan Trade Balance 1.60B forecast,-0.14B previous
•15:00 US Jan Wholesale Trade Sales (MoM) 1.2% forecast, 0.2% previous
•15:00 US IBD/TIPP Economic Optimism 45.7 forecast,44.0 previous
•15:00 US Wholesale Inventories (MoM) 0.8% forecast,2.2% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was trading near 22-month lows on Tuesday as war in Ukraine darkened Europe's economic outlook. The euro regained ground on the day after five sessions of declines, but is still trading near a trough of $1.08060 on Monday - its lowest since March 2020 when the COVID-19 pandemic gripped Europe. Traders are expecting choppy markets, with euro/dollar volatility gauges at their highest since the market chaos of March 2020. Overall forex volatility gauges were also up to the highest level since April 2020.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: The British pound was little changed against the U.S. dollar on Tuesday as an earlier bounce in the pair eased. Sterling has been at the mercy of dollar strength in recent days, which led to the currency pair dropping to its lowest level since Nov. 2020 during Asia-Pacific trading hours on Tuesday. Markets are still pricing in an interest rate hike from the Bank of England this month and a total of 145 basis points of tightening this year compared to just 25 basis points of interest rate hikes from the ECB in 2022.The pound dropped as low $1.3079 before moving into positive territory at $1.3120 by 1026 GMT. Immediate resistance can be seen at 1.3141(23.6%fib), an upside break can trigger rise towards 1.3262(5DMA).On the downside, immediate support is seen at 1.3085(Lower BB), a break below could take the pair towards 1.3000(Psychological level).
USD/CHF: The dollar rose against the Swiss franc on Tuesday as the Russia-Ukraine crisis fuelled demand for greenback. Russia's offensive in Ukraine continued at a slower pace. Russia opened "humanitarian corridors" to allow civilians to be evacuated from Ukrainian cities including Cherhihiv, Sumy, Kharkiv, Mariupol, as well as Kyiv, Interfax cited the Russian defence ministry saying.U.S. data this week expected to show its consumer price index climbed a stratospheric 7.9% on a year-on-year basis in February, up from 7.5% in January. Immediate resistance can be seen at 0.9288 (23.6%fib), an upside break can trigger rise towards 0.9302 (Higher BB).On the downside, immediate support is seen at 0.9250 (38.2% fib), a break below could take the pair towards 0.9221(50% fib).
USD/JPY: The dollar strengthened against yen on Tuesday as investors rushed to the dollar as concerns over the Russia-Ukraine conflict lingered. Russia-Ukraine peace talks made scant progress on Monday. The military conflict in Ukraine, which Russia calls a "special operation", has triggered sweeping sanctions on Russia that have rattled global markets. The dollar was last trading 0.32 percent higher versus the Japanese yen at 115.63 .Strong resistance can be seen at 115.78(23.6%fib), an upside break can trigger rise towards 116.18(Higher BB).On the downside, immediate support is seen at 115.13(38.2%fib), a break below could take the pair towards 114.91(50%fib).
Equities Recap
European stocks rebounded on Tuesday, bund yields turned positive and the euro rose after reports that the European Union is mulling a joint-bond sale to fund energy and defense spending.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading down at 0.09 percent, Germany's Dax was by 0.83 percent, France’s CAC finished was up by 1.04 percent.
Commodities Recap
Gold powered past the key $2,000 level on Tuesday as the Russia-Ukraine crisis fuelled demand for yellow metal.
Spot gold gained 0.4% to $2,006.40 per ounce, after climbing to $2,020.80, its highest since August 2020, earlier in the day.U.S. gold futures rose 0.7% to $2,008.90. Spot silver advanced 1.7% to $26.09.
Oil prices rose on Tuesday, with Brent surging past $127 a barrel, as the possibility of formal U.S. sanctions against Russian oil exports spurred concerns over supply.
Benchmark Brent crude futures for May climbed $3.56, or 2.9%, to $126.77 a barrel at 11:03 GMT.
U.S. West Texas Intermediate (WTI) crude futures for April delivery rose $3.12, or 2.6%, to $122.52 a barrel.