Posted at 12 March 2022 / Categories Market Roundups
Market Roundup
• Canada Feb Employment Change 336.6K, 160.0K forecast, -200.1K previous
• Canada Feb Participation Rate 65.4%,65.0% previous
• Canada Feb Unemployment Rate 5.5%, 6.2% forecast, 6.5% previous
• Canada Feb Capacity Utilization Rate (Q4) 82.,9%82.2% forecast, 81.4% previous
• Canada Feb Part Time Employment Change 215.1K,-117.4K previous
• US Mar Michigan 5-Year Inflation Expectations 3.00%,3.00% previous
• US Mar Michigan Current Conditions 66.0 forecast, 68.2 previous
• US Mar Michigan Consumer Expectations 58.8 forecast, 59.4 previous
• US Mar Michigan Consumer Sentiment 61.4 forecast ,62.8 previous
• US U.S. Baker Hughes Oil Rig Count 519 previous
• US U.S. Baker Hughes Total Rig Count 650 previous
Looking Ahead Economic Data(GMT)
•No significant events
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dipped on Friday but was still set for weekly gains as the European Central Bank's announcement that it will phase out its stimulus lent support to the single currency.But rising stagflation worries arising from the Ukraine war continued to add pressure on the euro. The euro slid 0.69% against the dollar to $1.0912, erasing gains from the overnight session and putting it on track to end the week slightly lower for what would be its sixth-straight weekly loss. The single currency has fallen more than 2.5% against the U.S. dollar in March. Immediate resistance can be seen at 1.1004 (38.2%fib), an upside break can trigger rise towards 1.1041(11DMA).On the downside, immediate support is seen at 1.0901(23.6%fib), a break below could take the pair towards 1.0826 (Lower BB).
GBP/USD: Sterling slipped to a 16-month low on Friday against the safe-haven U.S. dollar and was heading for its third consecutive weekly decline as stronger-than-expected UK economic growth did little to support the pound.The Office for National Statistics said Britain's economy grew 0.8% in January, the strongest monthly expansion since June and more than forecast by any economist in a poll, which had pointed to growth of 0.2%. The pound fell to its lowest level of $1.3052 against a strengthening dollar since November 2020. It was down 0.2% at $1.3035 . Immediate resistance can be seen at 1.3107(23.6%fib), an upside break can trigger rise towards 1.3171(38.2%fib).On the downside, immediate support is seen at 1.3029(23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its broadly stronger U.S. counterpart on Friday as domestic data showed a blockbuster jobs gain in February, helping to underpin expectations for another Bank of Canada interest rate hike next month. Canada added 336,600 jobs in February, more than double the 160,000 analysts had forecast, while the unemployment rate dropped below its pre-pandemic level .The Canadian dollar strengthened 0.2% to 1.2740 per greenback, or 78.49 U.S. cents, after trading in a range of 1.2695 to 1.2794.It was the only G10 currency to gain ground against the U.S. dollar . For the week, the loonie was down 0.1%. Immediate resistance can be seen at 1.2804 (38.2%fib), an upside break can trigger rise towards 1.2853 (Higher BB).On the downside, immediate support is seen at 1.2748 (38.2%fib), a break below could take the pair towards 1.2692 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Friday after Russian President Vladimir Putin said there had been some progress in talks between Moscow and Ukraine. Putin said in a meeting with his Belarusian counterpart Alexander Lukashenko that there had been certain positive shifts" in negotiations with Ukraine and that talks continued practically on a daily basis . The greenback hit a five-year high against the Japanese yen up 1.03% at 117.32 yen . Strong resistance can be seen at 117.33(Daily high), an upside break can trigger rise towards 117.52(23.6%fib).On the downside, immediate support is seen at 117.04(38.2%fib), a break below could take the pair towards 116.67(50%fib).
Equities Recap
European stocks closed higher on Friday amid hopes of some positive outcome from the talks between Russia and Ukraine, and data showing stronger than expected UK GDP growth.
UK's benchmark FTSE 100 closed up by 0.80 percent, Germany's Dax ended up by 1.38 percent, France’s CAC finished the day up by 0.85 percent.
Major U.S. stock indexes stumbled on Friday as tech and growth shares led a broad decline and investors worried about the conflict in Ukraine while attention turned to the Federal Reserve's policy meeting next week.
Dow Jones closed down by 0.69% percent, S&P 500 closed down by 1.30% percent, Nasdaq settled down by 2.18% percent.
Treasuries Recap
The benchmark U.S. 10-year Treasury yield edged higher on Friday, with expectations largely set that the Federal Reserve will raise interest rates next week, while comments from Russian President Vladimir Putin briefly buoyed risk-on sentiment.
The yield on 10-year Treasury notes was up 1.4 basis points at 2.008%.
Commodities Recap
Gold retreated on Friday as safe-haven appeal for the metal dimmed after Russian President Vladimir Putin said there had been progress in talks with Ukraine, with the likelihood of a looming U.S. rate hike adding pressure to bullion.
Spot gold fell 0.6% to $1,984.20 per ounce by 13:45 ET (1845 GMT), but remained poised to post a weekly rise of about 0.8% as concerns over the Ukraine conflict kept investors on their toes. U.S. gold futures settled down 0.8% at $1,985.
Oil prices settled higher on Friday but posted their steepest weekly decline since November, as traders assessed potential improvements to the supply outlook that has been disrupted by Russia's invasion of Ukraine.
Brent crude futures rose $3.34, or 3.1%, on Friday, settling at $112.67 a barrel, after hitting a session low of $107.13. U.S. West Texas Intermediate (WTI) crude futures rose $3.31, or 3.1%, to settle at $109.33 a barrel, off the session low of $104.48.