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Europe Roundup: Sterling falls as focus turns to domestic events, European shares edge higher,Gold firms, Oil prices jump over $4 as EU considers Russian oil ban-March 21st,2022

Posted at 21 March 2022 / Categories Market Roundups


Market Roundup         

• German Feb PPI (YoY) 25.9%,26.2%forecast ,25.0%previous

• German Feb PPI (MoM)  1.4%                ,1.7% forecast , 2.2% previous

• Looking Ahead Economic Data(GMT)

•12:30 US Feb Chicago Fed National Activity  0.69  previous

•14:00 French 12-Month BTF Auction -0.563% previous

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•14:00   French 6-Month BTF Auction -0.706%

Looking Ahead - Events, Other Releases (GMT)

•14:00 US Fed Chair Powell Speaks

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EUR/USD: The euro fell on Monday as investors focused on central banks’ tightening cycles while being wary about expectations for a possible pace deal over Ukraine. Turkey's foreign minister said Russia and Ukraine were nearing agreement on "critical" issues, while Ukraine on Monday rejected calls to surrender the port city of Mariupol, where residents are besieged with little food, water and power. European Central Bank's Robert Holzmann said the bank could send a clear message about fighting inflation by increasing interest rates before ending its bond purchases, a few days after president Christine Lagarde said the ECB would be in no hurry to raise rates. 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 1.1011 (38.2%fib), a break below could take the pair towards 1.0970 (5DMA).

GBP/USD: The British pound declined against   the U.S. dollar on Monday after weekly data showed a rise in bearish sterling bets, as investors turn their focus to domestic drivers, including Wednesday’s Spring Statement. Traders this week will have several domestic drivers to digest, including UK inflation data, a speech from Bank of England Governor Andrew Bailey as well as finance minister Rishi Sunak’s Spring Statement on Wednesday. Sterling fell 0.2% against the dollar to $1.3147 at 0909 GMT. Immediate resistance can be seen at 1.3208 (50%fib), an upside break can trigger rise towards 1.3273 (61.8%fib).On the downside, immediate support is seen at 1.3140 (38.2%fib), a break below could take the pair towards 1.3062 (23.6%fib).

USD/CHF: The dollar dipped against the Swiss franc on Monday as investors awaiting remarks from U.S. Federal Reserve chair Jerome Powell later in the day and from other central bank policymakers this week for monetary policy clues. Currency markets have been roiled over the past month by the financial fallout from Russia's invasion of Ukraine as the economic costs come into sharper focus, including higher inflation fuelled by rising energy costs. The Fed raised its key interest rate by 25 basis points last week for the first time since 2018. Traders are now focused on the potential speed and size of future rate hikes Immediate resistance can be seen at 0.9329 (50%fib), an upside break can trigger rise towards 0.9364 (61.8%fib).On the downside, immediate support is seen at 0.9300 (50% fib), a break below could take the pair towards 0.9370(Daily low).

USD/JPY: The dollar held near six-year high against the yen on Monday as investors awaiting remarks from U.S. Federal Reserve chair Jerome Powell later in the day and from other central bank policymakers this week for monetary policy clues.. A series of speeches by Fed policymakers this week, kicked off by Powell on Monday, could provide some clues. At least one Fed speaker is due each day this week and Powell himself is making another appearance on Wednesday. The Fed's stance has contrasted with the Bank of Japan, which on Friday maintained its huge stimulus programme and held rates steady, arguing that the rise in inflation would be temporary. The BOJ's dovish policy has helped weaken the yen, with the dollar trading near six-year high versus the yen.Strong resistance can be seen at 119.44(23.6%fib), an upside break can trigger rise towards 119.60(Higher BB).On the downside, immediate support is seen at 118.97(38.2%fib), a break below could take the pair towards 118.57(50%fib).

Equities Recap

European shares inched higher on Monday, helped by gains in energy stocks as oil prices resumed their surge, while continued fighting in Ukraine kept broader risk sentiment in check.

At (GMT 12:35 ),UK's benchmark FTSE 100 was last trading up at 0.44%percent, Germany's Dax was down by 0.03 percent, France’s CAC  was last trading down by 0.17 percent.

Commodities Recap

Gold prices edged up on Monday as fighting in Ukraine buoyed demand for the safe-haven asset, although strength in U.S. bond yields restricted bullion's gains.

Spot gold was up 0.3% at $1,926.46 per ounce by 1110 GMT. U.S. gold futures were down 0.2% at $1,925.90.

Oil prices jumped more than $4 on Monday, with Brent crude climbing above $111 a barrel, as European Union nations considered joining the United States in a Russian oil embargo and after a weekend attack on Saudi oil facilities.

Brent crude futures were up $4.55, or 4.2%, at $112.48 a barrel by 1205 GMT, adding to a 1.2% rise last Friday.

U.S. West Texas Intermediate (WTI) crude futures rose $4.35, or 4.2%, to $109.05, extending a 1.7% jump last Friday.


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