Posted at 22 March 2022 / Categories Market Roundups
Market Roundup
•US Feb Chicago Fed National Activity 0.69 previous
•French 12-Month BTF Auction -0.561% ,-0.563% previous
•French 3-Month BTF Auction -0.661%,-0.722% previous
•French 6-Month BTF Auction -0.667% ,-0.706%
Looking Ahead - Events, Other Releases (GMT)
•05:00 Japan Leading Index (MoM) -1.0%forecast, 0.9% previous
•05:00 Japan Leading Index 103.7 forecast, 104.8 previous
• Looking Ahead Economic Data(GMT)
•01:00 Australia RBA Governor Lowe Speaks
Fxbeat
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 1.1028 (38.2%fib), an upside break can trigger rise towards 1.1141 (March 2nd high).On the downside, immediate support is seen at 1.091(23.6 %fib), a break below could take the pair towards 1.0744 (Lower BB).
GBP/USD: The British pound recovered against the dollar on Monday ahead of key domestic drivers for the currency, including inflation data, a panel discussion from Bank of England Governor Andrew Bailey and finance minister Rishi Sunak's Spring Statement.All are set to take place on Wednesday. Annual headline CPI is seen climbing to 5.9%, according to a, which would mark the highest level in thirty years. Sunak, who is preparing the budget update, said on Sunday he would help where he could with the current cost-of-living squeeze, but warned that the Ukraine crisis and sanctions on Russia would add to the British economy's problems. Sterling also rose 0.2% against the dollar to $1.3201 and was on track for its fourth day of gains in five. 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/CAD: The Canadian dollar strengthened to its highest level in nearly two months against its U.S. counterpart on Monday, as oil prices climbed and investors weighed hawkish comments by Federal Reserve Chairman Jerome Powell. The price of oil, one of Canada's major exports, settled 7.1% higher at $112.12 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. The loonie edged 0.1% higher to 1.2595 per greenback, having touched its strongest intraday level since Jan. 26 at 1.2566..Immediate resistance can be seen at 1.2618(5 DMA), an upside break can trigger rise towards 1.2116(38.2%fib).On the downside, immediate support is seen at 1.2578(23.6%fib), a break below could take the pair towards 1.2555 (Lower BB).
USD/JPY: The dollar held near six-year high against the yen on Monday in the wake of comments from U.S. Federal Reserve Chair Jerome Powell that opened the door for the central bank to take a more aggressive monetary policy path. The policymaker said he sees six rate hikes this year and two for 2023, a more dovish stance than most of his colleagues as he has concerns about the effects of the conflict between Russia and Ukraine on the U.S. economy. Markets have been volatile over the past month as the situation in Ukraine has escalated, increasing the prices of commodities such as oil and putting upward pressure on already high inflation. The Japanese yen weakened 0.17% versus the greenback at 119.38 per dollar, after touching 119.46 yen, its lowest level since February 2016.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 lower on Monday as oil prices resumed their surge, while continued fighting in Ukraine kept broader risk sentiment in check.
UK's benchmark FTSE 100 closed up by 0.51 percent, Germany's Dax ended down by 0.60 percent, France’s CAC finished the day down by 0.57 percent.
U.S. stocks declined broadly while oil prices and Treasury yields pushed higher on Monday as investors refocused on risks from conflict in Ukraine and the U.S. Federal Reserve's actions on inflation.
Dow Jones closed down by 0.58 percent, S&P 500 closed down by 0.04 percent, Nasdaq settled down by 0.40 % percent.
Treasuries Recap
U.S. Treasury yields rose on Monday on growing chatter among Federal Reserve policymakers about raising interest rates faster than they outlined last week and after crude prices jumped more than $4 a barrel to further pressure inflation.
The yield on benchmark 10-year Treasury notes rose 8.8 basis points to 2.236%, while two-year notes added 6.9 basis points to yield 2.026%.
Commodities Recap
Oil prices settled up more than 7% on Monday, with global benchmark Brent climbing above $115 a barrel, as European Union nations disagreed on whether to join the United States in a Russian oil embargo after an attack on Saudi oil facilities.
Brent futures settled at $115.62 per barrel, up $7.69 or 7.12%, while U.S. West Texas Intermediate (WTI) crude futures settled at $112.12 per barrel, up $7.42 or 7.09%.
Gold prices rose on Monday as fighting in Ukraine boosted demand for safe-haven bullion, while investors kept a close tab on Moscow-Kyiv peace talks.
Spot gold rose 0.5% to $1,931.16 per ounce by 1:51 p.m. ET (1751 GMT). U.S. gold futures for April settled mostly unchanged at $1,929.50.