Posted at 09 March 2022 / Categories Market Roundups
Market Roundup
•Canada Imports 54.00B,308.90B previous
•US Exports 224.40B, 228.10B previous
•US Imports 314.09B,308.90B previous
•US Jan Trade Balance-89.70B, -87.10B forecast, -80.70B previous
•Canada Jan Exports 56.62B, 57.61B previous
•Canada Jan Trade Balance 2.62B,1.60B forecast,-0.14B previous
•US Jan Wholesale Trade Sales (MoM) 4.0%,1.2% forecast, 0.2% previous
•US IBD/TIPP Economic Optimism 41.0, 45.7 forecast,44.0 previous
•US Wholesale Inventories (MoM) 0.8%, 0.8% forecast,2.2% previous
Looking Ahead Economic Data (GMT)
•13:30 China Feb PPI (YoY) 8.7% forecast,9.1% previous
•13:30 China Feb CPI (MoM) 0.3% forecast,0.4% previous
•13:30 China Feb CPI (YoY) 0.9% forecast, 0.9% previous
Looking Ahead - Events, Other Releases (GMT)
•02:00 Australia RBA Governor Lowe Speaks
Currency Summaries
EUR/USD: The euro claimed from 22-month low on Tuesday as the single currency was lifted in part by expectations that the euro zone will increase fiscal spending to help offset the economic effects of Russia's invasion of Ukraine.Investors were also hesitant to sell the euro ahead of a European Central Bank policy meeting on Thursday. The euro regained some ground after five sessions of declines versus the dollar. It was up more than a cent from a trough of $1.0806 on Monday, its lowest since March 2020 when the COVID-19 pandemic gripped Europe.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. Immediate resistance can be seen at 1.3160(38.2%fib), an upside break can trigger rise towards 1.3179(5DMA).On the downside, immediate support is seen at 1.3085(23.6%fib), a break below could take the pair towards 1.3000(Psychological level).
USD/CAD: The Canadian dollar on Tuesday fell to its lowest level this year against the greenback as the United States banned Russian oil imports, adding to an uncertain outlook for the global economy. Oil is one of Canada's major exports but the historic link between the Canadian dollar and energy prices has weakened during the Russia-Ukraine crisis, leaving the Bank of Canada with one less tool to fight inflation. Canada's jobs report for February, due on Friday, can provide further clues on the strength of the domestic economy. The loonie was trading 0.5% lower at 1.2885 to the greenback, or 77.61 U.S. cents, after touching its weakest intraday level since Dec. 22 at 1.2901. Immediate resistance can be seen at 1.2899 ( 38.2%fib), an upside break can trigger rise towards 1.2964 (23.6%fib).On the downside, immediate support is seen at 1.2843 (50%fib), a break below could take the pair towards 1.2800 (5DMA).
USD/JPY: The dollar strengthened against yen on Tuesday as rising Treasury-JGB yield spreads supported gains in the pair. Bank of Japan Governor Haruhiko Kuroda on Tuesday ruled out the chance of tightening monetary policy or withdrawing stimulus to deal with any rise in inflation driven by soaring fuel costs, stressing the need to wait for wage growth to pick up . Japan's bank lending rose at the slowest increase in a decade in February as immediate pressure for corporates to borrow cash continued to ease amid a broader economic recovery from the pandemic slump .Strong resistance can be seen at 115.91(23.6%fib), an upside break can trigger rise towards 116.18(Higher BB).On the downside, immediate support is seen at 115.59(Daily low), a break below could take the pair towards 115.42(38.2%fib).
Equities Recap
European stocks settled roughly flat on Tuesday after swinging between gains and losses almost right through the session.
UK's benchmark FTSE 100 closed up by 0.07 percent, Germany's Dax ended down by 0.02percent, France’s CAC finished the day down by 0.32 percent.
Major U.S. stock indexes ended lower in rocky trading on Tuesday, as investors weighed fast-paced developments around the crisis in Ukraine as the United States banned Russian oil and other energy imports over the invasion.
Dow Jones closed down by 0.56 percent, S&P 500 ended down by 0.73 percent, Nasdaq finished down by 0.28 percent.
Treasuries Recap
The yield on the benchmark U.S. 10-year Treasury climbed on Tuesday after reports that the European Union could reveal a plan for joint bond issuance and as concerns rose that rising oil prices will add to mounting inflation.
The yield on 10-year Treasury notes was up 11.2 basis points to 1.861% after hitting a two-month low on Monday and was on track for a second straight day of gains.
Commodities Recap
Oil prices settled around 4% higher on Tuesday as the United States banned Russian oil imports and Britain said it will phase them out by year end, decisions expected to further disrupt the global energy market where Russia is the second-largest exporter of crude.
Brent crude futures settled at $127.98 a barrel, 3.9% higher, while U.S. crude futures settled at $123.70 a barrel, a 3.6% increase.
Gold extended its rally towards a record high on Tuesday, after investors made a beeline for the traditional safe-haven metal on mounting fears around the Russia-Ukraine crisis, with the U.S. and Britain saying they would ban oil from Moscow.
Spot gold was up 2.4% to $2,046.49 per ounce as of 01:36 p.m. ET (1836 GMT), after rising to $2,069.89 earlier in the session, a whisker away from a peak of $2,072.50 touched in August 2020.
U.S. gold futures settled 2.4% higher to $2,043.30.