Posted at 23 March 2022 / Categories Market Roundups
Market Roundup
•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
•US March Richmond Manufacturing Index 13, 2 forecast, 1 previous
Looking Ahead Economic Data(GMT)
•05:00 Japan BoJ Core CPI (YoY) 0.8% previous
•05:00 Japan Leading Index (MoM) -1.0%, 0.9% prevuous
Looking Ahead - Events, Other Releases (GMT) ]
•No significant events
CurrencySummaries
EUR/USD: The euro strengthened against dollar on Tuesday hopes the central banks might resort to aggressive interest rate hikes this year boosted euro.Hopes about rate hikes have increased after Federal Reserve Chairman Jerome Powell said on Monday that the U.S. central bank was prepared to raise rates aggressively, if needed. Despite persisting worries about the war in Ukraine, investors reacted a bit positively to reports that Ukrainian President Volodymyr Zelensky was prepared to discuss a commitment from Ukraine not to seek NATO membership in exchange for a ceasefire, the withdrawal of Russian troops and a guarantee of Ukraine's security. Immediate resistance can be seen at 1.1038(38.2%fib), an upside break can trigger rise towards 1.1124 (50%fib).On the downside, immediate support is seen at 1.0988(14DMA), a break below could take the pair towards 1.0933 (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. Immediate resistance can be seen at 1.3275 (50%fib), an upside break can trigger rise towards 1.3338 (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/CAD: The Canadian dollar strengthened against its U.S. counterpart for a sixth straight day on Tuesday as money markets bet that the Bank of Canada would be just as aggressive as the Federal Reserve in hiking interest rates. The loonie was up 0.1% at 1.2575 to the greenback, after trading in a range of 1.2572 to 1.2623.It was the sixth straight day of gains for the currency, it longest winning run since March 2021. On Monday, it touched its strongest intraday level since Jan. 26 at 1.2562.Immediate resistance can be seen at 1.2591 (38.2%fib), an upside break can trigger rise towards 1.2633 (38.2%fib).On the downside, immediate support is seen at 1.2562 (23.6%fib), a break below could take the pair towards 1.2532 (Lower BB).
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 121.42 (Daily high), an upside break can trigger rise towards 122.00(Psychological level).On the downside, immediate support is seen at 120.77(23.6%fib), a break below could take the pair towards 112.22(38.2%fib).
Equities Recap
European stocks closed higher on Tuesday as bank stocks posted strong gains amid hopes the central banks might resort to aggressive interest rate hikes this year.
UK's benchmark FTSE 100 closed up by 0.40 percent, Germany's Dax ended up by 1.01 percent, France’s CAC finished the day up by 1.17 percent.
U.S. stock rebounded on Tuesday , as investors digested the increased likelihood of swift interest rate hikes following hawkish comments from the U.S. Federal Reserve..
Dow Jones closed up by 0.74 percent, S&P 500 closed up by 4.60 percent, Nasdaq settled up by 49 % percent.
Treasuries Recap
Treasury yields rose sharply on Tuesday but a key gauge that signals recession eased as traders weighed how fast interest rates will rise in coming months after Federal Reserve Chair Jerome Powell rattled bond investors a day earlier.
The yield on 10-year Treasury notes jumped 6.9 basis points to 2.386%. But the gap between its yield and that on two-year notes widened to 21.8 basis points.
Commodities Recap
Gold prices fell over 1% to a near one-week low on Tuesday after U.S. Federal Reserve Chair Jerome Powell hinted at big rate hikes this year to fight against soaring inflation, sending Treasury yields higher.
Spot gold was down 0.7% at $1,921.58 per ounce by 01:57 p.m. EDT (1757 GMT).U.S. gold futures settled down 0.4% at $1,921.50.
Oil edged lower on Tuesday after it looked unlikely that European Union nations would agree to join the United States in a Russian oil embargo in retaliation for its invasion of Ukraine.
Brent crude fell 14 cents, or 0.2%, to settle at $115.48 a barrel. U.S. West Texas Intermediate crude ended 36 cents, or 0.3%, lower at $111.76.