Posted at 17 March 2022 / Categories Market Roundups
Market Roundup
•UK Feb Car Registration (MoM) -48.7%,6.0% previous
•UK Feb Car Registration (YoY) 15.0%,27.5% previous
• Italian Feb Car Registration (MoM) 2.8%, 24.4% previous
• German Feb Car Registration (YoY) 3.2%,8.5% previous
• Spanish Trade Balance-6.10B, -5.30B previous
• EU Feb Core CPI (MoM) 0.5%,0.5%forecast, 0.5% previous
• EU Feb Core CPI (YoY) 2.7%, 2.7% forecast, 2.7% previous
• EU Feb Core CPI (YoY ) 5.9%,5.8% forecast, 5.8% previous
• EU Feb CPI (MoM) 0.9%,0.9% forecast, 0.3% previous
•UK Mar BoE Interest Rate Decision 0.75%, 0.75% forecast, 0.50% previous
• US Feb Building Permits 1.859M,1.850M forecast, 1.895M previous
• US Feb Building Permits (MoM) -1.9%,0.5% previous
•US Feb Continuing Jobless Claims 1,419K,1,485K forecast, 1,494K previous
• US Feb Housing Starts 1.769M, 1.690M forecast, 1.638M previous
• US Initial Jobless Claims 214K,220K forecast, 227K previous
•US Mar Philadelphia Fed Manufacturing Index 27.4,15.0 forecast, 16.0 previous
•US Mar Philly Fed Business Conditions 22.7, 28.1 previous
•US Feb Capacity Utilization Rate 77.6%, 77.8% forecast, 77.6% previous
•US Feb Industrial Production (MoM) 0.5%,0.5% forecast, 1.4% previous
• US Feb Manufacturing Production (MoM) 1.2%, 0.6% forecast, 0.2% previous
Looking Ahead Economic Data(GMT)
•15:30 US 4-Week Bill Auction 0.195% previous
Looking Ahead - Events, Other Releases (GMT)
•12:30 US ECB's Schnabel Speaks
Fxbeat
EUR/USD: The euro rose on Thursday with investors closely watching for developments in talks between Russia and Ukraine, while the Federal Reserve’s monetary policy decision failed to affect the market as the bar for a hawkish surprise was high. The Kremlin said that Russia was putting colossal energy into talks on a possible peace deal with Ukraine. Meanwhile, Ukrainian President Volodymyr Zelenskiy has not altered his position that Ukraine’s international borders must be recognised, an adviser said.The euro was up 0.2% at $1.106, after touching a one-week high of $1.1067 earlier in the session. Immediate resistance can be seen at 1.1096 (50%fib), an upside break can trigger rise towards 1.1141 (March 2nd high).On the downside, immediate support is seen at 1.1006 (38.2%fib), a break below could take the pair towards 1.0970 (5DMA)
GBP/USD: Sterling declined against the dollar on Thursday after BoE rate announcement . The Bank of England raised interest rates on Thursday for a third meeting running, as expected, but softened its language on the need for further increases from here.Eight out of nine members of the Monetary Policy Committee (MPC) voted to raise Bank Rate to 0.75% from 0.5%, following the U.S. Federal Reserve's decision on Wednesday to raise borrowing costs for the first time since the COVID-19 pandemic. But policymakers on Thursday pushed back against investors' bets that Bank Rate will rise sharply to around 2% by the end of this year, toning down its language on the need for more hikes. Immediate resistance can be seen at 1.3164 (50%fib), an upside break can trigger rise towards 1.3228 (61.8%fib).On the downside, immediate support is seen at 1.3095 (38.2%fib), a break below could take the pair towards 1.3019 (23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Thursday as investors continued to watch Ukraine-Russia peace talks and the U.S. Federal Reserve . 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 U.S. central bank on Wednesday raised interest rates by 25 basis points, but as the hike was on expected lines. 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 0.9384 (50% fib), a break below could take the pair towards 0.9354(61.8% fib).
USD/JPY: The dollar held near a five-year high against the yen on Thursday as a rate hike with a hawkish outlook from the U.S. Federal Reserve underscored just how far the Bank of Japan is likely to lag worldwide policy tightening. The Fed has raised interest rates for the first time since 2018 and policymakers' projections for as many as six more hikes this year were even more aggressive than expected. A return of risk appetite was no help to the yen, either, as hopes for a breakthrough in Russia-Ukraine peace talks set equities surging and safe-havens falling.The yen hit 119.13 per dollar overnight, its lowest since early 2016, and was last at 118.78. Strong resistance can be seen at 119.00(Psychological level), an upside break can trigger rise towards 119.24(Higher BB).On the downside, immediate support is seen at 118.52(38.2%fib), a break below could take the pair towards 118.15(50%fib).
Equities Recap
European stocks edged higher on Thursday, tracking overnight gains on Wall Street after a widely anticipated U.S. interest rate hike, while lingering optimism about Russia-Ukraine peace talks aided sentiment further.
At (GMT 13:23 ),UK's benchmark FTSE 100 was last trading up at 0.43 percent, Germany's Dax was down by 1.12 percent, France’s CAC was last trading down by 0.42 percent.
Commodities Recap
Gold rose on Thursday after the U.S. Federal Reserve’s first hike in borrowing costs in three years bore no surprises, with gains underpinned by a drop in the dollar and U.S. Treasury yields.
Spot gold advanced 0.6% to $1,939.78 per ounce by 1219 GMT. U.S. gold futures were up 1.75 % to $1,942.40.
Oil prices climbed 6% on Thursday after the International Energy Agency (IEA) said three million barrels a day (bpd) of Russian oil and products could be shut in from next month and despite the U.S. Federal Reserve's decision to raise interest rates.
Benchmark Brent crude futures gained $6.41, or 6.5%, to $104.43 a barrel by 1205 GMT. U.S. West Texas Intermediate (WTI) crude was up $5.95, or 6.3%, to $100.99 a barrel.