Posted at 23 March 2022 / Categories Market Roundups
Market Roundup
•UK Core Feb CPI (MoM) 0.8%,0.5% forecast, -0.4% previous
•UK Core Feb PPI Output (MoM) 0.7% forecast,1.2% previous
•UK Feb Core PPI Output (YoY) 9.9% forecast, 9.5% previous
•UK Feb CPI (MoM) 0.8%,0.6% forecast, -0.1% previous
•UK Feb CPI (YoY) 6.2%,5.9% forecast, 5.5% previous
•UK Feb PPI Input (MoM) 1.4%, 1.2% forecast, 1.5% previous
•UK Feb PPI Output (YoY) 10.1%, 10.1% forecast, 9.9% previous
•UK Feb PPI Output (MoM) 0.8%, 0.9% forecast, 1.2%previous
• Canada Wholesale Sales (MoM) 0.9%, 4.2% previous
Looking Ahead Economic Data(GMT)
• 14:00 US New Feb Home Sales (MoM) -4.5% previous
• 14:00 US Feb New Home Sales 810K, 801K previous
• 14:30 US Crude Oil Inventories 0.114M forecast, 4.345M previous
• 14:30 US Crude Oil Imports -0.438M previous
• 14:30 US Cushing Crude Oil Inventories 1.786M previous
• 14:30 US Gasoline Inventories -1.986M forecast, -3.616M forecast
•15:00 EU March Consumer Confidence -12.9 forecast,-8.8 forecast
Looking Ahead - Events, Other Releases (GMT)
•15:45 US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro weakened against the dollar on Wednesday amid another sharp increase in oil and natural gas prices and while investors waited for U.S. President Joe Biden to unveil new sanctions against Russia during his trip to Europe.Biden, who's heading to Brussels for talks with NATO and European leaders, will push Europe to reduce its reliance on Russian oil and gas, and could announce new sanctions on members of the Russian parliament over Moscow's invasion of Ukraine. The euro opened broadly flat but gradually lost ground against the greenback and fell about 0.4% below the $1.10. 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: Sterling held at a three-week high on Wednesday as investors awaited British finance minister Rishi Sunak’s Spring Statement later in the day and as latest data showed UK inflation hit a 30-year high. CPI figures showed inflation at 6.2% in February, up 5.5% in the 12 months to February 2022, more than expected by the market. Sunak will speak at 1230 GMT. He will add to the support he gave households only last month, since when energy prices have been propelled even higher by Russia’s invasion of Ukraine. The pound is down 0.2% against the U.S. dollar at $1.3234. Immediate resistance can be seen at 1.3250 (50%fib), an upside break can trigger rise towards 1.3315(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 steadied against the Swiss franc on Wednesday as investors waited for President Joe Biden to unveil new sanctions against Russia during his trip to Europe. Biden, who heads to Brussels on Wednesday for talks with NATO and European leaders, will push Europe to reduce reliance on Russian oil and gas, and could announce new sanctions on members of the Russian parliament over Moscow's invasion of Ukraine. At 0842 GMT, the dollar index , which measures the greenback against six major peers, was unchanged at 98.540. Immediate resistance can be seen at 0.9343 (5DMA), an upside break can trigger rise towards 0.9358 (23.6%fib).On the downside, immediate support is seen at 0.9353 (38.2% fib), a break below could take the pair towards 0.9294(50%fib).
USD/JPY: The dollar held around six-year high against the yen on Wednesday as rising commodity costs and expectations of a quicker Federal Reserve tightening steadied dollar against yen. High commodity prices have been a clear negative for the yen , as Japan imports the bulk of its energy, widening the country's trade deficit. Bank of Japan Governor Haruhiko Kuroda said on Tuesday it was premature to debate an exit from ultra-loose policy, including how to whittle down its massive holdings of exchange-traded funds (ETF).The currency slipped to a new six-year low of 121.415 per dollar overnight but later recouped its losses and ticked up 0.05% at 120.75 per dollar. Strong resistance can be seen at 121.42 (23.6%fib), an upside break can trigger rise towards 121.85(Higher BB).On the downside, immediate support is seen at 120.65(38.2%fib), a break below could take the pair towards 112.25(50%fib).
Equities Recap
European stocks traded mostly to the downside on Wednesday as worries lingered about the economic fallout of the Ukraine crisis.
At (GMT 12:58 ),UK's benchmark FTSE 100 was last trading down at 1.32 percent, Germany's Dax was down by 1.28 percent, France’s CAC was last trading down by 0.94percent.
Commodities Recap
Gold prices gained on Wednesday as investors looked to shield against soaring inflation and uncertainty caused by events in Ukraine, with elevated U.S. bonds yields capping gains in non-interest bearing metal.
Spot gold was up 0.3% at $1,927.42 per ounce by 1246 GMT. U.S. gold futures rose 0.2% to $1,926.00.
Oil prices rose in volatile trading on Wednesday, supported by disruption of Russian and Kazakh crude exports via the CPC pipeline.
Brent crude futures were up $3.13, or 2.7%, at $118.61 a barrel at 1100 GMT. Prices had earlier fallen to a low of $114.45.
U.S. West Texas Intermediate (WTI) crude futures rose $2.69, or 2.5%, to $111.96 a barrel.