Posted at 16 March 2022 / Categories Market Roundups
Market Roundup
•US Feb Core PPI (MoM) 0.2%,0.6% forecast, 0.8% previous
•US Feb Core PPI (YoY) 8.4%, 8.7% forecast, 8.3% previous
•US March NY Empire State Manufacturing Index -11.80 , 7.00 forecast, 3.10 previous
•US Feb PPI (MoM) 0.8%, 0.9% forecast, 1.0% previous
•Canada Jan Manufacturing Sales (MoM) 0.6%, 1.3% forecast, 0.7% previous
• New Zealand Global DairyTrade Price Index -0.9%,5.1% previous
Looking Ahead Economic Data(GMT)
•01:30 China Feb House Prices (YoY) 2.3% previous
•02:00 China Feb Retail Sales YTD (YoY) 12.46% previous
•04:30 Japan Jan Capacity Utilization (MoM) -0.4% previous
•04:30 Japan Jan Industrial Production (MoM) -1.3% forecast,-1.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened 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 1.1006 (38.2%fib), an upside break can trigger rise towards 1.1096 (50%fib).On the downside, immediate support is seen at 1.0951 (5DMA), 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. 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/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, recovering from its lowest level in nearly one week, as gains for equity markets offset further pull-back in oil prices. Wall Street's main indexes climbed as oil prices fell and data showed a softer-than-expected rise in producer prices, with investors remaining focused on the outcome of the Federal Reserve's two-day policy meeting. The price of oil, one of Canada's major exports, tumbled to its lowest levels in almost three weeks as supply disruption fears eased and surging COVID-19 cases in China spurred demand concerns. The loonie was up 0.3% at 1.2761 to the greenback, after touching its weakest intraday level since March 9 at 1.2871.Immediate resistance can be seen at 1.2802 (38.2%fib), an upside break can trigger rise towards 1.2868 (23.6%fib).On the downside, immediate support is seen at 1.2747(50%fib), a break below could take the pair towards 1.2694 (61.8%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as markets grappled with the significance of talks between Russia and Ukraine while awaited outcome Federal Reserve policy meeting . Traders want to see if the Fed gives hints to how quickly it will raise rates again after putting through the quarter-point increase they expect to be announced on Wednesday. The dollar index had lost nearly 0.5% overnight after oil prices fell below $100 a barrel, bolstering the euro. The index recovered after oil turned up from a low for the day and was last at $99.14, up 3% since Russia invaded Ukraine on Feb. 24. The Japanese yen continued trading at its weakest levels to the dollar in five years as the greenback gained 0.1% to 118.33 yen. 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 stock markets fell on Tuesday, with commodity-linked shares hit by concerns about surging coronavirus cases in China, while nerves ahead of a U.S. Federal Reserve meeting this week added to the gloom.
UK's benchmark FTSE 100 closed down by 0.26 percent, Germany's Dax ended down by 0.09 percent, France’s CAC finished the day down by 0.23 percent.
The three main Wall Street stock indexes rallied on Tuesday, a day before an expected interest rate hike by the U.S. Federal Reserve, while oil prices dropped 7% on hopes of an end to the conflict in Ukraine.
Dow Jones closed up by 1.82% percent, S&P 500 closed up by 2.14 % percent, Nasdaq settled up by 2.94% percent.
Treasuries Recap
U.S. Treasury yields rose to their highest levels in two-and-a-half years on Tuesday ahead of an expected Federal Reserve announcement on Wednesday of its first interest rates hike in three years.
Two-year yields were last at 1.857%, after reaching 1.894% overnight, the highest since Aug. 2019. Benchmark 10-year note yields were last 2.158%, after earlier rising to 2.169%, the highest since June 2019.
Commodities Recap
Gold fell nearly 2% on Tuesday to a two week trough as hopes of progress in peace talks between Russia and Ukraine coupled with the likelihood of a U.S. interest rake hike dented demand for the safe-haven asset
Spot gold fell 1.35 % to $1,924.81 per ounce by 12:24 p.m. ET (1624 GMT), after earlier touching its lowest since March 1 at $1,913.10.U.S. gold futures fell 1.7% to $1,927.10.
Oil prices tumbled more than 6% on Tuesday to their lowest in almost three weeks, as Russia suggested it would allow a revival of the Iran nuclear deal to go forward and as traders worried growing pandemic lockdowns in China could dent demand.
Brent futures plummeted $6.99, or 6.5%, to settle at $99.91 a barrel. U.S. West Texas Intermediate (WTI) crude fell $6.57, or 6.4%, to settle at $96.44 a barrel. Brent fell as low as $97.44 and WTI hit $93.53, their lowest since Feb. 25.