Posted at 15 March 2022 / Categories Market Roundups
Market Roundup
• French 3-Month BTF Auction -0.722%,-0.755% previous
• French 6-Month BTF Auction -0.706% ,-0.721% previous
• US 3-Month Bill Auction 0.450%,0.380% previous
• US 6-Month Bill Auction 0.820%, 0.710% previous
Looking Ahead Economic Data(GMT)
•02:00 China Feb Fixed Asset Investment (YoY) 5.0% forecast, 4.9% previous
•02:00 China Feb Industrial Production (YoY) 3.9%forecast ,4.3% previous
•02:00 China Feb Unemployment Rate 5.1% forecast ,5.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Monday as investors were bracing for the outcome of the central banks’ policy meetings due this week, while hopes for progress in peace talks over Ukraine propped up risk appetite. Russian and Ukrainian officials suggested there could be positive results within days, while Ukraine reported renewed air strikes on an airport in the west, near the border with NATO member Poland. Investors’ focus will be on the Federal Reserve policy meeting, which ends on Wednesday, with money markets currently pricing in rate hikes for over 170 bps by December 2022. Immediate resistance can be seen at 1.0983 (11DMA), an upside break can trigger rise towards 1.1006 (38.2%fib).On the downside, immediate support is seen at 1.0901 (23.6%fib), a break below could take the pair towards 1.0801 (Lower BB).
GBP/USD: The British pound eked out gains against the U.S. dollar on Monday, recovering after falling to a 16-month low, as tentative hopes for progress in talks between Russia and Ukraine dampened demand for U.S. currency and other safe assets. The market was also looking to policy announcements from the Bank of England and U.S. Federal Reserve later this week. Both the BoE and Fed are seen raising their main interest rates by 25 basis points at their respective meetings this week. Sterling fell to as low as $1.3013 against the dollar, its lowest level since November 2020, before paring losses to trade 0.2% higher at $1.3061.Immediate resistance can be seen at 1.3070 (38.2%fib), an upside break can trigger rise towards 1.3130 (50%fib).On the downside, immediate support is seen at 1.2989(23.6%fib), a break below could take the pair towards 1.2953 (Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as signs of progress in peace talks between Russia and Ukraine reduced investor worries that commodity supplies will be in short supply. Canada is a major producer of commodities, including oil. Other commodity-linked currencies, such as the Australian dollar and the New Zealand dollar also lost ground. The loonie was 0.6% lower at 1.2820 to the greenback, after trading in a range of 1.2728 to 1.2823. Immediate resistance can be seen at 1.2871 (23.6%fib), an upside break can trigger rise towards 1.2907 (Higher BB).On the downside, immediate support is seen at 1.2802 (38.2%fib), a break below could take the pair towards 1.2770 (11 DMA).
USD/JPY: The dollar strengthened against yen on Monday as investors eyed Russia-Ukraine peace talks, while major central bank meetings this week kept large moves in foreign exchange in check. Tentative hopes of progress in peace talks between Ukraine and Russia helped boost the appetite for riskier currencies on Monday, though upcoming central bank meetings and another COVID-19 pandemic-related lockdown in China kept risk-taking muted. The U.S. Federal Reserve is widely expected to raise interest rates when it concludes a two-day policy meeting on Wednesday, with investors completely pricing in a hike of at least 25 basis points. The dollar hit a more than five-year high against the Japanese yen ,it was last up against the yen at 118.43 yen. Strong resistance can be seen at 118.45(23.6%fib), an upside break can trigger rise towards 119.00(Psychological level).On the downside, immediate support is seen at 117.99(38.2%fib), a break below could take the pair towards 117.58(50%fib).
Equities Recap
European stocks closed on a strong note on Monday amid hopes the fresh round of peace talks between Russia and Ukraine might help bring about a solution to the conflict between the two countries.
UK's benchmark FTSE 100 closed up by 0.53 percent, Germany's Dax ended up by 2.21 percent, France’s CAC finished the day up by 1.75 percent.
Major U.S. stock indexes closed mostly lower on Monday, led by a more than 2% drop in Nasdaq, as investors sold tech and big growth names ahead of this week's Federal Reserve meeting and an expected hike in interest rates.
Dow Jones closed down by 0.00% percent, S&P 500 closed down by 1.74% percent, Nasdaq settled down by 2.04% percent.
Treasuries Recap
U.S. Treasury yields jumped to two-and-a-half year highs on Monday, ahead of what is expected to be the U.S. Federal Reserve's first rate hike in three years on Wednesday to try to tame soaring inflation that shows no signs of slowing.
Two-year yields , which are the most sensitive to rate hikes, jumped to 1.851%, the highest since Aug. 2019. Benchmark 10-year yields reached 2.144%, the highest since July 2019.
Commodities Recap
Gold prices fell on Monday as U.S. rate-hike expectations lifted Treasury yields to their highest in a month, while hopes for a progress in Russia-Ukraine peace talks improved risk appetite, denting bullion's appeal.
Spot gold was down 1.4% to $1,957.57 per ounce. U.S. gold futures settled 1.2% lower to $1,960.80.
Oil prices fell on Monday as investors weighed positive comments from ceasefire talks between Russia and Ukraine.
Brent futures fell 5.1% to settle at $106.90 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 5.8% to settle at $103.01.