Posted at 22 March 2022 / Categories Market Roundups
Market Roundup
•UK Public Sector Net Borrowing 12.35B, 8.50B forecast ,-7.83B previous
•UK Public Feb Sector Net Cash Requirement 2.478B -21.992B previous
• EU Jan Current Account 22.6B,24.3B forecast , 22.6B previous
• EU Jan Current Account n.s.a -1.7B forecast ,35.7B previous
• Belgium Mar Consumer Confidence -16 forecast, 1 previous
• EU Jan Construction Output (MoM) 3.94% forecast, -1.54% previous
•Canada Feb IPPI (MoM) 3.1%,3.0% previous
•Canada Feb IPPI (YoY) 16.4%,16.9% previous
•Canada Feb RMPI (MoM) 6.0%,6.5% previous
•US Redbook (YoY) 12.4% , 12.6% previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•14:35 US FOMC Member Williams Speaks
•15:15 BoE MPC Member Cunliffe Speaks
•17:00 EU ECB's Lane Speaks
•18:00 FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday as investors braced for more aggressive U.S. rate hikes. The dollar strengthened after U.S. Federal Reserve Chair Jerome Powell on Monday delivered his most muscular message to date on his battle with too-high inflation as he flagged a more aggressive tightening of monetary policy than previously anticipated. Investors will be watching for any positive signal from Ukraine, but the question of territory could remove any chance of an agreement to end the war. Immediate resistance can be seen at 1.1037(38.2%fib), an upside break can trigger rise towards 1.1124 (50%fib).On the downside, immediate support is seen at 1.0991(14DMA), a break below could take the pair towards 1.0928 (23.6%fib).
GBP/USD: The British pound strengthened against the dollar on Tuesday before the chancellor's spring statement on Wednesday . Focus turned to the UK inflation data and British finance minister Rishi Sunak’s Spring Statement, both scheduled on Wednesday. Sunak, who is preparing the budget update, said on Tuesday it was more important than ever to take a responsible approach to public finances. The Bank of England hiked its interest rate by 25 basis points on Thursday and signalled a slower pace of tightening, but the pound has outperformed the dollar since the decision. The pound rose 0.2% against the U.S. dollar to $1.3190. Immediate resistance can be seen at 1.3253 (50%fib), an upside break can trigger rise towards 1.3318 (61.8%fib).On the downside, immediate support is seen at 1.3190 (38.2%fib), a break below could take the pair towards 1.3108 (23.6%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Tuesday as investors braced for aggressive U.S. rate hikes while a lack of progress in the Russia-Ukraine peace negotiations continued to weigh on sentiment. Conflict raged on as Ukraine said on Monday it would not obey ultimatums from Russia after Moscow demanded it stop defending besieged Mariupol. Russia's invasion of Ukraine has triggered a rally in commodities including oil and industrial metals on concerns about supply disruptions, with crude prices jumping as some European Union members discussed a potential oil embargo on Moscow .Immediate resistance can be seen at 0.9329(38.2% fib), an upside break can trigger rise towards 0.9365 (23.6% fib).On the downside, immediate support is seen at 0.9310 (14DMA), a break below could take the pair towards 0.9299 (23.6%fib ).
USD/JPY: The dollar hit six-year high against the yen on Tuesday as the Bank of Japan reiterated its support for ultra-loose monetary policy. Japan must maintain ultra-loose monetary policy lest inflation hurt the economy, Bank of Japan Governor Haruhiko Kuroda said on Tuesday - contrasting with hawkish overnight comments from Fed's Powell. The yen hit a six-year low of 120.50, down 0.8% on the day, having lost more than 4% against the dollar this month, as leaping U.S. yields and a deteriorating trade balance suck cash from the world's third-biggest economy. Strong resistance can be seen at 120.80 (Daily high), an upside break can trigger rise towards 113.00(Psychological level).On the downside, immediate support is seen at 120.23(23.6%fib), a break below could take the pair towards 119.76(38.2%fib).
Equities Recap
European shares rose on Tuesday, buoyed by energy stocks extending a rally on the back of higher oil prices and gains for banks following hawkish comments from the U.S. Federal Reserve chair.
At (GMT 12:47 ),UK's benchmark FTSE 100 was last trading up at 0.44 percent, Germany's Dax was up by 0.65 percent, France’s CAC was last up by 0.52 percent.
Commodities Recap
Gold prices fell on Tuesday, tracking a retreat in crude oil prices, with pressure also coming from the U.S. Federal Reserve head's hawkish approach to tackling inflation which lifted Treasury yields.
Spot gold fell 0.4% $1,928.30 per ounce by 1053 GMT. U.S. gold futures dipped 0.1% to $1,928.00.
Oil rose towards $116 a barrel on Tuesday, adding to a 7% surge the previous day, supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities.
Brent crude rose 26 cents, or 0.2%, to $115.88 a barrel by 1140 GMT. U.S. West Texas Intermediate crude slipped 10 cents to $112.02. Both contracts had settled up more than 7% on Monday.