Posted at 10 March 2022 / Categories Market Roundups
Market Roundup
•Italian Jan PPI (MoM) 9.7%,0.8% previous
•Italian Jan PPI (YoY) 32.9% forecast,22.6% previous
•Greek Jan Industrial Production (YoY) -0.2% ,8.1% previous
•Portuguese CPI (MoM) 0.4%,0.3% previous
Looking Ahead Economic Data(GMT)
•12:45 ECB Mar Interest Rate Decision 0.00% forecast, 0.00% previous
•12:45 ECB Marginal Lending Facility 0.25% previous
•12:45 ECB Mar Deposit Facility Rate -0.50% forecast, -0.50% previous
•13:30 US Initial Jobless Claims 216K forecast, 215K previous
•13:30 US Continuing Jobless Claims 1,475K forecast ,1,476K previous
•13:30 US Jobless Claims 4-Week Avg 230.50K previous
•13:30 US Feb Real Earnings (MoM) -0.5% previous
•13:30 US Feb Core CPI Index 286.43 previous
•13:30 US Feb CPI (YoY) 7.9% forecast,7.5% previous
•13:30 US Feb Core CPI (YoY) 5.9% forecast,6.0% previous
•13:30 US Feb Core CPI (MoM) 0.5% forecast,0.6% previous
•13:30 US Feb CPI (MoM) 0.8% forecast,0.6% previous
•15:00 US Feb Cleveland CPI (MoM) 0.6%
Looking Ahead - Events, Other Releases (GMT)
•13:30 ECB Press Conference
Fxbeat
EUR/USD: The euro declined against dollar on Thursday as traders waited for a European Central Bank meeting and a European Union summit to shed light on the bloc’s policy response to Russia's invasion of Ukraine. The euro has been widely seen as a gauge of Europe's biggest security crisis since 1945 and touched a 22-month low of $1.0804 earlier in the week with investors expecting a sizeable impact on European growth. Traders were looking to the ECB meeting later in the day for clues about how policy makers will balance the risk of higher inflation with the damage war in Ukraine will cause to economic growth. Immediate resistance can be seen at 1.0091(50%fib), an upside break can trigger rise towards 1.1171(61.8%fib).On the downside, immediate support is seen at 1.0043(9DMA), a break below could take the pair towards 1.1003 (38.2%fib).
GBP/USD: The British pound dipped against the U.S. dollar on Thursday as investors assessed the impact of a worsening conflict in Ukraine as investors assessed the impact of the worsening conflict in eastern Europe and a new U.S. ban on Russian oil. Investors will also closely watch ECB President Christine Lagarde’s news conference (1330 GMT) to see how the central bank balances the risk of higher inflation against weaker European economic growth caused by the war. The pound fell 0.25% versus dollar to $1.3155, within striking distance of its lowest level since November 2020 of $1.3083 it hit on Tuesday. Immediate resistance can be seen at 1.3224(50%fib), an upside break can trigger rise towards 1.3277(9DMA).On the downside, immediate support is seen at 1.3159(38.2%fib), a break below could take the pair towards 1.3079 (23.6%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Thursday as investors awaited outcome of diplomatic talks between Moscow and Kyiv. Foreign ministers from Russia and Ukraine will meet in Turkey on Thursday in the first high-level talks between the two countries since Moscow invaded its neighbour, with Ankara hoping they could mark a turning point in the conflict. Investors also kept an eye on February U.S. consumer price index data which is due later in the day, against the backdrop of surging oil prices and ahead of the Federal Reserve's next policy statement on March 16.Immediate resistance can be seen at 0.9268 (38.2%fib), an upside break can trigger rise towards 0.9302 (23.6%fib).On the downside, immediate support is seen at 0.9238 (50% fib), a break below could take the pair towards 0.9217(9DMA).
USD/JPY: The dollar strengthened against yen on Thursday as traders were waiting for U.S. inflation figures, due later in the day, to further guide expectations for the Federal Reserve's meeting next week. Economists polled forecast the U.S. Consumer Price Index to have climbed 7.9% on a year-on-year basis in February, up from 7.5% in January, although this data will only show a preliminary impact from the surge in oil prices caused by the conflict. While the Fed is widely expected to raise its benchmark overnight interest rate by a quarter of a percentage point, growing calls before the war for a larger half a percentage point rise have quietened .Strong resistance can be seen at 116.02(23.6%fib), an upside break can trigger rise towards 116.15(Higher BB).On the downside, immediate support is seen at 115.53(38.2%fib), a break below could take the pair towards 115.39(11DMA).
Equities Recap
European stocks fell on Thursday with investor focus on diplomatic Russia-Ukraine talks and the European Central Bank policy's decision, which is likely to highlight the impact of the eastern Europe crisis on the euro zone economy.
At (GMT 11:31 ),UK's benchmark FTSE 100 was last trading down at 1.15 percent, Germany's Dax was down by 2.25 percent, France’s CAC was last trading down by 2.20percent.
Commodities Recap
Gold firmed on Thursday after a sharp correction in the previous session as worries over the Russia-Ukraine crisis persisted after no progress was made in talks between the two sides, while key U.S. inflation data is also likely to provide direction.
Spot gold was up 0.2% at $1,996.09 per ounce by 1047 GMT after tumbling as much as 3% on Wednesday. U.S. gold futures gained 0.7% to $2,002.40.
Oil prices bounced on Thursday from a sharp drop in the previous session after the United Arab Emirates backtracked on statements saying that OPEC and its allies might increase output to help to plug the gap in exports from Russia.
In a volatile market, Brent crude futures were up $5.43, or 4.9%, at $116.57 a barrel by 1042 GMT after trading in an $8 range.