Posted at 17 March 2022 / Categories Market Roundups
Market Roundup
•US Feb Core Retail Sales (MoM) 0.2%,0.9% forecast, 3.3% previous
•US Feb Export Price Index (MoM) 3.0%,1.6% forecast, 2.9% previous
•US Feb Import Price Index (MoM) 1.4%,1.5% forecast, 2.0% previous
•US Feb Retail Control (MoM) -1.2%,0.4% forecast, 4.8% previous
•US Feb Retail Sales (MoM) 0.3%, 0.4% forecast, 3.8% previous
•US Feb Retail Sales Ex Gas/Autos (MoM) -0.4% , 3.8% previous
•Canada Common CPI (YoY) 2.6%,2.4% forecast, 2.3% previous
•Canada Feb Core CPI (MoM) 0.8%,0.8% previous
•Canada Feb Core CPI (YoY) 4.8%,4.5% forecast, 4.3% previous
•Canada Feb CPI (YoY) 5.7%, 5.5% forecast, 5.1% previous
•Canada Feb CPI (MoM) 1.0%, 0.9% forecast,0.9% previous
•Canada Jan Wholesale Sales (MoM) 4.2%,3.9% forecast, 0.6% previous
•US Jan Business Inventories (MoM) 1.1%,1.1% forecast, 2.1% previous
•US Mar NAHB Housing Market Index 79, 81 forecast, 82 previous
• US Jan Retail Inventories Ex Auto 1.8%, 1.7%forecast, 3.3% previous
• US Crude Oil Inventories 4.345M, -1.375M forecast, -1.863M previous
•US Fed Interest Rate Decision 0.50%,0.50% forecast, 0.25% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Feb Employment Change 37.0K forecast, 12.9K previous
•00:30 Australia Feb Unemployment Rate 4.1% forecast, 4.2% previous
Looking Ahead - Events, Other Releases (GMT)
• No events ahead
Currency Summaries
EUR/USD: The euro jumped on Wednesday after the U.S. Federal Reserve moved to a hawkish monetary policy but without delivering a tougher surprise that might have added to its weeks-long momentum. The Fed raised interest rates by the expected quarter of a percentage point and projected its policy rate would reach a range of 1.75% to 2% by the end of this year and 2.8% next year. The dollar lost value to the euro, which had been up earlier in the day on hope for a compromise in Russia and Ukraine peace talks. The euro gained 0.7%, trading at $1.1037. Immediate resistance can be seen at 1.1096 (50%fib), an upside break can trigger rise towards 1.1165(61.8%fib).On the downside, immediate support is seen at 1.1001 (38.2%fib), a break below could take the pair towards 1.0967 (5DMA).
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 1.3163 (50%fib), an upside break can trigger rise towards 1.3228 (61.8%fib).On the downside, immediate support is seen at 1.3097(38.2%fib), a break below could take the pair towards 1.3019 (23.6%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday as signs of progress in Russia-Ukraine peace talks bolstered investor sentiment and domestic data showed inflation climbing further in February. World stocks rallied and the safe-haven U.S. dollar fell as Ukrainian President Volodymyr Zelenskiy said peace talks between Russia and Ukraine were sounding more realistic. Canada’s annual inflation rate accelerated again in February to hit a fresh 30-year high at 5.7%, driven by phone, gas and food costs, Statistics Canada data showed. The Canadian dollar was trading 0.4% higher at 1.2707 to the greenback . Immediate resistance can be seen at 1.2714 (50%fib), an upside break can trigger rise towards 1.2769 (61.8%fib).On the downside, immediate support is seen at 1.2653 (38.2%fib), a break below could take the pair towards 1.2623 (Lower BB).
USD/JPY: The dollar strengthened against the yen on Wednesday as the U.S. Federal Reserve raised interest rates for the first time in three years. The Fed raised interest rates by a quarter of a percentage point and projected its policy rate would hit a range between 1.75% and 2% by year's end in a newly aggressive stance against inflation. The U.S. central bank also said it expects to begin unwinding its massive holdings of government bonds and mortgage-backed securities at an upcoming meeting. Strong resistance can be seen at 118.87(23.6%fib), an upside break can trigger rise towards 119.00(Psychological level).On the downside, immediate support is seen at 118.51(50%fib), a break below could take the pair towards 118.15(38.2%fib).
Equities Recap
European stocks closed at over two-week highs on Wednesday after fresh talks of compromise from Russia and Ukraine boosted gains spurred by China's promise to roll out more economic stimulus.
UK's benchmark FTSE 100 closed up by 1.62 percent, Germany's Dax ended up by 3.76 percent, France’s CAC finished the day up by 3.66 percent.
The S&P 500 closed up more than 2% while the Nasdaq rallied almost 4% on Wednesday as investors shrugged off initial jitters following the U.S. Federal Reserve's interest rate increase and its signal that more hikes would be needed to fight inflation, ending the pandemic-era's easy monetary policy.
Dow Jones closed up by 1.55 %percent, S&P 500 closed up by 2.23% percent, Nasdaq settled up by 3.77 % percent.
Treasuries Recap
The U.S. Treasury yield curve flattened sharply on Wednesday as yields on short- and intermediate-dated maturities that are highly sensitive to interest rates jumped, after the Federal Reserve raised interest rates by a quarter of a percentage points and indicated that it would act aggressively to stamp out inflation.
Two-year note yields rose to 2.002% while benchmark 10-year yields reached 2.246%, both the highest since May 2019, before falling back to 1.932% and 2.174%respectively.
Commodities Recap
Gold prices steadied on Wednesday as the dollar weakened after the U.S. Federal Reserve raised interest rates by a quarter of a percentage point in a widely expected move.
Spot gold was up 0.1% at $1,920.45 per ounce as of 3:20 p.m. EDT (1920 GMT). U.S. gold futures settled down 1.1% at $1,908.40.
Oil lost ground for the fifth time in the last six days on Wednesday as traders reacted to hoped-for progress in Russia-Ukraine peace talks and a surprising increase in U.S. inventories.
Global benchmark Brent traded in a $6 range, between $97.55 and $103.70 before settling at $98.02, down $1.89 a barrel, or 1.9%. U.S. West Texas Intermediate (WTI) crude ended down $1.40, or 1.5%, at $95.04 a barrel.