Posted at 19 March 2022 / Categories Market Roundups
Market Roundup
•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
• US Feb Existing Home Sales -7.2%,6.10M forecast , 6.50M previous
• US Feb Existing Home Sales (MoM) -6.02M, 6.10M forecast , 6.49M previous
• US Feb US Leading Index (MoM) 0.3% ,0.3% forecast, -0.3% previous
• U.S. Baker Hughes Oil Rig Count 524,527 previous
• U.S. Baker Hughes Total Rig Count 663, 663 previous
• Looking Ahead Economic Data(GMT)
• No economic data
Looking Ahead - Events, Other Releases (GMT)
• No events ahead
Currency Summaries
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 strengthened 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 up 0.17% percent against the dollar at $1.3176. Immediate resistance can be seen at 1.3206(50%fib), an upside break can trigger rise towards 1.3266 (61.8%fib).On the downside, immediate support is seen at 1.3138 (38.2%fib), a break below could take the pair towards 1.3100 (5DMA).
USD/CAD: The Canadian dollar strengthened for a fourth day against the greenback on Friday as stronger-than-expected domestic retail sales data supported the view that the Bank of Canada will keep pace with expected rate hikes this year by the Federal Reserve. Canadian retail sales rose 3.2% in January, beating estimates for a 2.4% increase, as shoppers ventured out to car dealerships and home improvement shops, though a preliminary estimate showed sales falling 0.5% in February. The loonie was trading 0.2% higher at 1.2595 to the greenback, its strongest level since March 3.Immediate resistance can be seen at 1.2655 (38.2%fib), an upside break can trigger rise towards 1.2697(5DMA).On the downside, immediate support is seen at 1.2583(23.6%fib), a break below could take the pair towards 1.2556 (Lower BB).
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 119.43(23.6%fib), an upside break can trigger rise towards 119.81(Higher BB).On the downside, immediate support is seen at 118.94(38.2%fib), a break below could take the pair towards 118.59(50%fib).
Equities Recap
European stocks closed higher on Friday with investors largely making cautious moves amid worries about Russia-Ukraine conflict.
UK's benchmark FTSE 100 closed up by 0.26 percent, Germany's Dax ended down by 0.17percent, France’s CAC finished the day up by 0.12 percent.
Wall Street's three major indexes closed higher on Friday, with the biggest boost from recently battered technology stocks, after talks between U.S. President Joe Biden and Chinese President Xi Jinping over the Ukraine crisis ended without big surprises.
Dow Jones closed up by 0.80 percent, S&P 500 closed up by 1.70 percent, Nasdaq settled up by 2.05% percent.
Treasuries Recap
Long-term U.S. Treasury yields edged down on Friday as lack of a resolution of the Russia-Ukraine conflict continued to weigh on markets, while short-term yields kept rising on the back of a hawkish U.S. central bank, further flattening the curve.
The benchmark 10-year yield was down to 2.145% from 2.167% and the 30-year yield was at 2.416% from 2.461% on Thursday, in a sign of risk aversion.
Commodities Recap
Gold was on track for its biggest weekly drop in nearly four months on Friday, after demand for the safe-haven metal was hit by hopes of progress in peace talks between Russia and Ukraine as well as the fallout from a U.S. interest rate hike.
Spot gold was down 0.7% to $1,929.56 per ounce, as of 2:01 p.m. EDT (1801 GMT), weighed down by a stronger dollar.U.S. gold futures settled down 0.7% to $1,929.30.
Oil prices settled higher on Friday, but posted a second straight weekly loss, after a volatile trading week with no easy replacement for Russian barrels in a tight market.
Brent crude futures settled up $1.29, or 1.2%, to $107.93 a barrel, a day after surging nearly 9% in the biggest daily percentage gain since mid-2020.