Posted at 15 March 2022 / Categories Market Roundups
Market Roundup
•UK Jan Average Earnings ex Bonus 3.8% ,3.7% forecast, 3.7% previous
•UK Jan Average Earnings Index +Bonus 4.8%, 4.6% forecast, 4.6% previous
•UK Feb Claimant Count Change -48.1K, -28.0K forecast, -67.3K previous
•UK Jan Employment Change 3M/3M (MoM) -12K, 23K forecast ,-38K previous
•UK Jan Unemployment Rate 3.9%,4.0% forecast ,4.1% previous
•Swiss Feb PPI (MoM) 0.4%,0.4% forecast,0.6% previous
• French Feb CPI (MoM) 0.8%,0.7% forecast, 0.3% previous
• French Feb HICP (MoM) 0.9%,0.8% forecast, 0.2% previous
• German Mar ZEW Economic Sentiment -39.3, 10.0 forecast,54.3 previous
•EU Jan Industrial Production (MoM) 0.0%, 0.1% forecast, 1.3% previous
•EU March ZEW Economic Sentiment -38.7, 10.3 forecast, 48.6 previous
Looking Ahead Economic Data(GMT)
•12:30 US Feb Core PPI (MoM) 0.6% forecast, 0.8% previous
•12:30 US Feb Core PPI (YoY) 8.7% forecast, 8.3% previous
•12:30 US March NY Empire State Manufacturing Index 7.00 forecast, 3.10 previous
•12:30 US Feb PPI (MoM) 0.9% forecast, 1.0% previous
•12:30 Canada Jan Manufacturing Sales (MoM) 1.3% forecast, 0.7% previous
• 14:30 New Zealand GlobalDairyTrade Price Index 5.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 15:15 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro rose on Tuesday on hopes of progress in peace talks between Ukraine and Russia despite soaring COVID-19 cases in China dampening risk appetite. Further talks between Ukrainian and Russian negotiators to ease the crisis were expected on Tuesday after discussions via video ended with no new progress announced. The single currency weakened recently as the euro zone is far more dependent than other areas on Russian energy. Brent futures extended losses on Tuesday, sliding to a two-week low as ceasefire talks between Russia and Ukraine eased fears of further supply disruptions. Immediate resistance can be seen at 1.1012 (38.2%fib), an upside break can trigger rise towards 1.1096 (50%fib).On the downside, immediate support is seen at 1.0903 (Daily low), a break below could take the pair towards 1.0906 (23.6%fib).
GBP/USD: Sterling rose against the dollar on Tuesday as strong jobs data supported the prospect of a Bank of England rate hike, but fell against the euro which was boosted by optimism around talks between Russia and Ukraine. Money markets are fully pricing in a 25 basis points BoE interest rate hike on Thursday. Britain’s unemployment rate fell more than expected to 3.9% in the three months to January, official figures showed, while vacancies hit a record high in the three months to February. Sterling had risen 0.2% against the dollar to $1.3058 by 11:56 GMT, after touching $1.3000 trading, its lowest level versus the dollar since November 2020.Immediate resistance can be seen at 1.3072 (38.2%fib), an upside break can trigger rise towards 1.3137 (50%fib).On the downside, immediate support is seen at 1.2994(23.6%fib), a break below could take the pair towards 1.2953 (Lower BB).
USD/CHF: The dollar initially gained but gave up some ground against the Swiss franc on Tuesday as a combination of rising COVID-19 cases in China, the war in Ukraine and worries about the Federal Reserve raising interest rates kept investors cautious. A lack of major progress in Ukraine-Russia talks on Monday added to the nervousness while concerns grew of possible new tensions between China and the United States. China on Tuesday reported 3,602 new confirmed coronavirus cases, compared with 1,437 on Monday. The dollar was 0.03 percenthigher versus the Swiss franc at 0.9389. Immediate resistance can be seen at 0.9400 (38.2%fib), an upside break can trigger rise towards 0.9437(23.6%fib).On the downside, immediate support is seen at 0.9374 (50%fib), a break below could take the pair towards 0.9346(61.8%fib).
USD/JPY: The dollar dipped against yen on Tuesday as expectation that the Bank of Japan will keep monetary policy ultra-loose this week boosted yen. The Bank of Japan is set to keep monetary policy ultra-loose on Friday and warn of heightening economic risks from the Ukraine crisis, unfazed by prospects of rising inflation and anticipated U.S. interest rate hikes.BOJ Governor Haruhiko Kuroda has said Japan won't follow in the footsteps of its U.S. and European counterparts eyeing interest rate hikes, a stance he is likely to repeat at his post-meeting briefing. The Japanese yen rose 0.3% after falling to a fresh 5-year low against the dollar at 118.44. Strong resistance can be seen at 118.44(23.6%fib), an upside break can trigger rise towards 119.00(Psychological level).On the downside, immediate support is seen at 118.02(38.2%fib), a break below could take the pair towards 117.58(50%fib).
Equities Recap
European stocks fell more than 2% on Tuesday, with commodity-linked sectors leading the losses, as concerns about surging coronavirus cases in China added to nerves ahead of a widely expected U.S. interest rate hike.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.82 percent, Germany's Dax was down by 0.83 percent, France’s CAC finished was down by 1.14 percent.
Commodities Recap
Gold extended its slide on Tuesday as ceasefire talks between Russia and Ukraine reduced demand for safe-haven assets, while bets that the U.S. Federal Reserve may raise interest rates for the first time in three years added to pressure on gold.
Spot gold was down 1.2% at $1,928.58 per ounce, as of 1032 GMT, after earlier touching its lowest since March 3 at $1,924.56.U.S. gold futures fell 1.5% to $1,930.70.
Oil prices dropped to their lowest in almost three weeks on Tuesday as Russia indicated it is in favour of the Iran nuclear deal resuming as soon as possible.
Brent futures were down $8.90, or 8.3%, to $98 a barrel at 1125 GMT, while U.S. West Texas Intermediate (WTI) crude was down $8.97, or 8.7%, to $94.04 a barrel.