Posted at 18 March 2022 / Categories Market Roundups
Market Roundup
• 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)
• 04:30 Japan Tertiary Industry Activity Index (MoM) 0.4% previous
• 02:30 Japan BoJ Interest Rate Decision -0.10% forecast, -0.10% previous
Looking Ahead - Events, Other Releases (GMT)
• 03:00 Japan BoJ Monetary Policy Statement
• 06:30 Japan BoJ Press Conference
Currency Summaries
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 0.5% at $1.1095 and touched its highest since early March. 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: The British pound reversed earlier drop on Thursday after the Bank of England raised interest rates but sounded less certain about the pace of further tightening to combat soaring inflation. Sterling gained before the BoE announced its Monetary Policy Committee had voted 8-1 to raise rates 25 basis points to 0.75%. The one dissenter voted to keep rates on hold. The Ukraine war and spike in commodity prices have made the BoE's job harder as it confronts an inflation rate already running at more than double its 2% target. Immediate resistance can be seen at 1.3204 (50%fib), an upside break can trigger rise towards 1.3266 (61.8%fib).On the downside, immediate support is seen at 1.3141 (38.2%fib), a break below could take the pair towards 1.3099 (5DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as falling measures of currency market volatility showed that investors were growing more confident holding riskier, commodity-linked currencies rather than the greenback. Price of oil, one of Canada's major exports, rebound from several days of losses. U.S. crude oil futures settled 8.4% higher at $102.98 a barrel. The loonie was trading 0.3% higher at 1.2640 to the greenback , after touching its strongest intraday level since March 3 at 1.2631. Immediate resistance can be seen at 1.2653 (38.2%fib), an upside break can trigger rise towards 1.2711 (50%fib).On the downside, immediate support is seen at 1.2605 (Lower BB), a break below could take the pair towards 1.2584(23.6%fib).
USD/JPY: The dollar held near a five-year high against the yen on Thursday as investors digested the Federal Reserve's monetary policy outlook a day after the U.S. central bank's expected rate hike. The Fed's monetary policy turned hawkish with its quarter-percentage-point rate increase Wednesday and projection that the federal funds rate would reach a range of 1.75% to 2% by the end of 2022 and 2.8% next year, but the central bank did not deliver a tougher surprise that some investors might have been expecting. 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.
UK's benchmark FTSE 100 closed up by 1.28 percent, Germany's Dax ended down by 0.36 percent, France’s CAC finished the day up by 0.36 percent.
All three of Wall Street's major indexes advanced more than 1% on Thursday as investors considered the Federal Reserve's path for interest rate hikes and worries eased about the prospects of a Russian default after creditors received payments.
Dow Jones closed up by 1.23% percent, S&P 500 closed up by 1.23% percent, Nasdaq settled up by 1.33% percent.
Treasuries Recap
The U.S. Treasury yield curve flattened to within touching distance of a two-year low on Thursday after the Federal Reserve raised interest rates as widely expected but trimmed its growth forecasts for the remainder of the year.
The spread between two-year and 10-year notes fell below 20 basis points (bps), from around 30 bps before the Fed statement and holding just above a March 2020 low of 18.5 bps hit last week.
Commodities Recap
Gold rose 1% on Thursday, supported by a retreat in the U.S. dollar and Treasury yields, with investors cautiously watching developments in peace talks between Russia and Ukraine.
Spot gold was up 0.8% to $1,943.30 per ounce by 1:41 p.m. EDT (1741 GMT). U.S. gold futures settled up 1.8% to $1,943.20 per ounce.
Oil prices climbed 8% on Thursday, extending a series of wild daily swings, as the market rebounded from several days of losses with a renewed focus on supply shortages in coming weeks due to sanctions on Russia.
Benchmark Brent crude futures added $8.62, or 8.79%, at $106.64 a barrel, its largest percentage gain since mid-2020.U.S. West Texas Intermediate (WTI) crude rose $7.94, or 8.35%, to $102.98 a barrel.