Posted at 16 March 2022 / Categories Market Roundups
Market Roundup
•Italian Feb CPI (YoY) 5.7% ,5.7% forecast, 4.8% previous
• Italian Feb CPI (MoM) 0.9%,0.9% forecast, 1.6% previous
• Italian Feb HICP (MoM) 0.8%, 0.8% forecast, 0.0% previous
• Italian Feb HICP (YoY) 6.2% ,6.2% forecast, 5.1% previous
Looking Ahead Economic Data(GMT)
•12:30 US Feb Core Retail Sales (MoM) 0.9% forecast, 3.3% previous
•12:30 US Feb Export Price Index (MoM) 1.6% forecast, 2.9% previous
•12:30 US Feb Import Price Index (MoM) 1.5% forecast, 2.0% previous
•12:30 US Feb Retail Control (MoM) 0.4% forecast, 4.8% previous
•12:30 US Feb Retail Sales (MoM) 0.4% forecast, 3.8% previous
•12:30 US Feb Retail Sales Ex Gas/Autos (MoM) 3.8% previous
•12:30 Canada Common CPI (YoY) 2.4% forecast, 2.3% previous
•12:30 Canada Feb Core CPI (MoM) 0.8% previous
•12:30 Canada Feb Core CPI (YoY) 4.5% forecast, 4.3% previous
•12:30 Canada Feb CPI (YoY) 5.5% forecast, 5.1% previous
•12:30 Canada Feb CPI (MoM) 0.9% forecast,0.9% previous
•12:30 Canada Jan Wholesale Sales (MoM) 3.9% forecast, 0.6% previous
•14:00 US Jan Business Inventories (MoM) 1.1% forecast, 2.1% previous
•14:00 US Mar NAHB Housing Market Index 81 forecast, 82 previous
•14:00 US Jan Retail Inventories Ex Auto 1.7% forecast, 3.3% previous
•14:30 US Crude Oil Inventories -1.375M forecast, -1.863M previous
•23:30 US Fed Interest Rate Decision 0.50% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
• 23:30 US FOMC Statement
Fxbeat
EUR/USD: The euro jumped on Wednesday after Russian Foreign Minister Sergei Lavrov said peace talks with Ukraine were not easy but there was hope for compromise. The euro briefly jumped to $1.10 after Lavrov said that some deals with Ukraine were close to being agreed, with neutral status for Kyiv under "serious" consideration. Ukrainian President Volodymyr Zelenskiy said peace talks were sounding more realistic but more time was needed. The euro was up 0.3% versus the dollar at $1.09910, extending its recovery from a plunge to a near 22-month low earlier this month. 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 strengthened against the dollar on Wednesday as markets watched for signs of light in the Ukraine conflict, while investors awaited Bank of England interest rate decision. The Bank of England is almost certain to increase borrowing costs on Thursday . Like most central banks the BoE slashed interest rates to a record low as the coronavirus swept across the world but is now facing soaring inflation, which reached a near 30-year high of 5.5% in January and is likely to rise further. The Monetary Policy Committee will add another 25 basis points to Bank Rate this week, taking it to 0.75% its pre-pandemic level . 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 was little changed against the Swiss franc on Wednesday as investors continued to watch Ukraine-Russia peace talks and the U.S. Federal Reserve .The Fed is expected to raise rates for the first time in three years later on Wednesday (1800 GMT) and give guidance on future tightening. Investors are expecting the U.S. central bank to raise interest rates by at least 25 basis points amid surging prices. Traders will also be closely watching the Fed for details on how it plans to end its bond-buying program. Immediate resistance can be seen at 0.9413 (38.2%fib), an upside break can trigger rise towards 0.9450 (23.6%fib).On the downside, immediate support is seen at 0.9412 (50% fib), a break below could take the pair towards 0.9366(5DMA).
USD/JPY: The dollar traded near a five-year high against the yen on Wednesday as investors awaited a Federal Reserve policy decision, with the Ukraine war and China’s surging COVID-19 cases as the backdrop. Treasury yields surged ahead of the Federal Open Market Committee decision, buoying the dollar against its Japanese peer, with traders fully priced for a first interest rate hike in three years. The dollar last was trading at 118.33 yen after hitting 118.45 overnight, its strongest since January 2017.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 118.02(38.2%fib), a break below could take the pair towards 117.58(50%fib).
Equities Recap
European stocks rose to near two-week highs on Wednesday, driven by China's promise to roll out more economic stimulus, while investors awaited the U.S. Federal Reserve's interest rate decision.
At (GMT 09:58 ),UK's benchmark FTSE 100 was last trading up at 0.93 percent, Germany's Dax was up by 2.07 percent, France’s CAC was last trading up by 2.28percent.
Commodities Recap
Oil rose almost 3% on Wednesday, back above $100 a barrel, recovering from a decline in the previous session as concern eased about slowing demand in China, although signs of progress in Russia-Ukraine peace talks limited gains.
Brent crude rose $2.55, or 2.6%, to $102.46 a barrel by 0923 GMT. U.S. West Texas Intermediate (WTI) crude added $1.34, or 1.4%, to $97.78 a barrel.
Gold prices eased on Wednesday, as U.S. Treasury yields firmed near multi-month peaks ahead of an expected rate hike by the U.S. Federal Reserve, while investors focused on peace talks between Russia and Ukraine.
Spot gold was down 0.1% at $1,916.44 per ounce, as of 0734 GMT, after touching its lowest since March 1 at $1,906 on Tuesday. U.S. gold futures fell 0.6% to $1,918.00.