Posted at 11 March 2022 / Categories Market Roundups
Market Roundup
•US Initial Jobless Claims 227K ,216K forecast, 215K previous
•US Continuing Jobless Claims 1,494K,1,475K forecast ,1,476K previous
•US Jobless Claims 4-Week Avg 231.25K,230.50K previous
•US Feb Real Earnings (MoM) -0.5%, -0.5% previous
•US Feb Core CPI Index 284.18,286.43 previous
•US Feb CPI (YoY) 7.9%,7.9% forecast,7.5% previous
•US Feb Core CPI (YoY) 6.4%,5.9% forecast,6.0% previous
•US Feb Core CPI (MoM) 0.5%, 0.5% forecast,0.6% previous
•US Feb CPI (MoM) 0.8%, 0.8% forecast,0.6% previous
•US Feb Cleveland CPI (MoM) 0.5% forecast,0.6% previous
Looking Ahead Economic Data(GMT)
•No significant data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Thursday after European Central Bank's announced it will phase out its stimulus in the third quarter. The statement from the ECB, which left the door open to an interest rate hike before the end of 2022 as soaring inflation outweighs concerns about the fallout from Russia's invasion of Ukraine, briefly sent the euro higher, before market sentiment turned negative. The euro was down 0.83% at $1.0985 , after having jumped 1.6% on Wednesday, its best day in nearly six years. Immediate resistance can be seen at 1.1002(38.2%fib), an upside break can trigger rise towards 1.1088(50%fib).On the downside, immediate support is seen at 1.0958(5DMA), a break below could take the pair towards 1.0896 (23.6%fib).
GBP/USD: The British pound dipped against the U.S. dollar on Thursday as red-hot U.S. inflation data raised bets for an interest rate hike by the Federal Reserve. The consumer price index (CPI) rose 7.9% on an annual basis in February, it’s largest increase in 40 years and well above the U.S. central bank’s 2.0% target, sending the dollar up 0.5% as it cemented expectations for a March rate hike. Expectations that the Fed will raise its benchmark overnight interest rate by at least 25 basis points on March 16 stand at 95.9%, according to CME's FedWatch .Immediate resistance can be seen at 1.3114(5DMA), an upside break can trigger rise towards 1.3161(38.2%fib).On the downside, immediate support is seen at 1.3079 (23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/CAD : The Canadian dollar strengthened against its U.S. counterpart on Thursday, adding to its gains the day before, as investors bet that commodity producing economies will take up the slack left by disruptions to Russia's exports. The only other G10 currencies to gain ground on Thursday were the Australian and New Zealand dollars. Canada, Australia and New Zealand are major producers of commodities. The loonie rose 0.3% to 1.2760 per greenback, or 78.37 U.S. cents, after trading in a range of 1.2751 to 1.2841. On Tuesday, the currency touched its weakest intraday level in 2-1/2 months at 1.2901 .Immediate resistance can be seen at 1.2807 (38.2%fib), an upside break can trigger rise towards 1.2876 (23.6%fib).On the downside, immediate support is seen at 1.2753(50%fib), a break below could take the pair towards 1.2694 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Thursday after U.S. inflation data confirmed rapidly rising prices, cementing expectations of a Federal Reserve interest rate hike next week. U.S. consumer prices surged in February, forcing Americans to dig deeper to pay for rent, food and gasoline, and inflation is poised to accelerate even further as Russia's war against Ukraine drives up the costs of crude oil and other commodities. The Federal Reserve is expected to start raising interest rates next Wednesday. With inflation nearly four times the U.S. central bank's 2% target.Strong resistance can be seen at 116.40(23.6%fib), an upside break can trigger rise towards 117.00(Psychological level).On the downside, immediate support is seen at 115.91(38.2%fib), a break below could take the pair towards 115.82(5DMA).
Equities Recap
European stocks closed lower on Thursday after the European Central Bank said it plans to end bond buying in the third quarter, as surging inflation outweighs the risks to economic growth from Russia's invasion of Ukraine..
UK's benchmark FTSE 100 closed down by 1.27 percent, Germany's Dax ended down by 2.93 percent, France’s CAC finished the day down by 2.82 percent.
Wall Street closes lower Wall Street resumed its slide on Thursday, ending in the red as inflation hit a four-decade high, cementing expectations that the U.S. Federal Reserve would hike key interest rates at the conclusion of next week's monetary policy meeting.
Dow Jones closed down by 0.34% percent, S&P 500 closed down by 0.43% percent, Nasdaq settled down by 0.95% percent.
Treasuries Recap
The benchmark U.S. 10-year Treasury yield rose on Thursday after U.S. inflation data confirmed rapidly rising prices, cementing expectations of a Federal Reserve interest rate hike next week, while the European Central Bank took a hawkish turn.
The yield on 10-year Treasury notes was up 4.9 basis points to 1.997% after hitting 2.013%, its highest level since Feb. 25. The 10-year yield is on track to climb for a fourth straight day, its longest streak of gains in a month.
Commodities Recap
Gold steadied near the $2,000 an ounce level on Thursday, after big gyrations over the past couple of sessions, as its safe-haven appeal was supported by a lack of progress in talks between Russia and Ukraine.
Spot gold rose 0.2% to $1,996.30 per ounce by 13:53 ET (1853 GMT), after tumbling as much as 3% on Wednesday. U.S. gold futures settled up 0.6% at $2,000.40.
Oil prices settled about 2% lower on Thursday after a volatile session, a day after its biggest daily dive in two years, as Russia pledged to fulfil contractual obligations and some traders said supply disruption concerns were overdone.
Brent futures fell $1.81, or 1.6%, to settle at $109.33 a barrel after gaining as much as 6.5% earlier in the session. U.S. West Texas Intermediate (WTI) crude fell $2.68, or 2.5%, to settle at $106.02 a barrel, giving up over 5.7% of intraday gains.