Posted at 18 March 2022 / Categories Market Roundups
Market Roundup
• Italian Jan Trade Balance -5.052B,1.103B previous
• Italian Jan Trade Balance EU -0.89B, -3.64B previous
•EU Labor Cost Index (YoY) (Q4) 1.90% ,2.50% previous
•EU Jan Trade Balance -27.2B, -4.6B previous
•Canada Jan Core Retail Sales (MoM) 2.5%, 2.4%forecast, -2.5% previous
• Canada Jan Foreign Securities Purchases 13.49B, 37.56B previous
• Canada Jan Foreign Securities Purchases by Canadians -14.42B, 21.29B
• Canada Jan Retail Sales (MoM) 3.2%, 2.4% forecast ,-1.8% previous
• Looking Ahead Economic Data(GMT)
•14:00 US Feb Existing Home Sales 6.10M forecast , 6.50M previous
• 14:00 US Feb Existing Home Sales (MoM) -1.0% forecast , 6.7% previous
• 14:00 US Feb US Leading Index (MoM) 0.3% forecast, -0.3% previous
• 17:00 U.S. Baker Hughes Oil Rig Count 527 previous
• 17:00 U.S. Baker Hughes Total Rig Count 663 previous
Looking Ahead - Events, Other Releases (GMT)
• 16:30 US FOMC Member Barkin Speaks
• 18:00 US Chicago Fed President Evans Speaks
• 19:00 US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro fell on Friday but was set for its biggest weekly gains in six weeks as traders heaved a sigh of relief after Russia avoided default on dollar-denominated debt and markets weighed the broader impact of the start of the U.S. rate hike cycle. The single currency declined 0.3% at $1.1066 on Friday but was up 1.62% for the week, posting its biggest weekly rise since the first week of February when European Central Bank President Christine Lagarde signalled for the first time that interest rates will rise in the eurozone in 2022.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 was little changed against the U.S. dollar on Friday, a day after the Bank of England increased its interest rate for the third consecutive meeting but softened its language over future tightening plans. The Bank of England followed the U.S. Federal Reserve in raising rates this week but the differing message from the two central banks will failed to provide support to the pound.Sterling was flat against the dollar at $1.3135 but was still on track for its first positive week in four. 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 Friday as investors continued to assess the impact of the start of the Federal Reserve’s rate tightening cycle this week. The dip came despite the Federal Open Market Committee raising rates on Wednesday and signalling the equivalent of a quarter-point increase at each of its six remaining policy meetings this year. The safe-haven greenback lost traction as traders stayed optimistic for an end to the war in Ukraine as talks continued between Moscow and Kyiv, although progress on Thursday was elusive. Immediate resistance can be seen at 0.9384 (50%fib), an upside break can trigger rise towards 0.9410 (38.2%fib).On the downside, immediate support is seen at 0.9353 (61.8% fib), a break below could take the pair towards 0.9334(Daily low).
USD/JPY: The dollar rose to six-year high against the yen on Friday after the Bank of Japan left its ultra-accommodative policy settings unchanged. The Bank of Japan maintained its massive stimulus on Friday and warned of heightening risks to a fragile economic recovery from the Ukraine crisis, reinforcing expectations it will remain an outlier in the global shift towards tighter monetary policy. As widely expected, the BOJ maintained its short-term rate target at -0.1% and that for the 10-year bond yield around 0% at the two-day policy meeting that ended on Friday.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 shares inched lower on Friday as investors focussed on Russia-Ukraine peace talks that has shown no tangible progress so far.
At (GMT 13:35 ),UK's benchmark FTSE 100 was last trading down at 0.62 percent, Germany's Dax was down by 1.24 percent, France’s CAC was last trading down by 1.17 percent.
Commodities Recap
Gold dipped on Friday as the dollar strengthened, with prices on course for their worst week in nearly four months as some of the safe-haven demand spurred by Russia’s invasion of Ukraine cooled.
Spot gold slipped 0.5% to $1,932.20 per ounce, as of 1002 GMT. U.S. gold futures fell 0.5% to $1,933.10.
Oil prices remained above $100 a barrel after slim progress in peace talks between Russia and Ukraine raised the spectre of tighter sanctions and a prolonged disruption to crude supply.
Brent crude futures were last up 1.3% and at $108, have added more than $10 a barrel in two sessions.