Posted at 25 March 2022 / Categories Market Roundups
Market Roundup
• US Continuing Jobless Claims 1,350K,1,410K forecast, 1,419K previous
• US Jobless Claims 4-Week Avg 211.75K,223.00K previous
• US Initial Jobless Claims 187K, 212K forecast, 214K previous
• US Feb Core Durable Goods Orders (MoM)-0.6%, 0.6% forecast, 0.7% previous
• US Current Account (Q4) -217.9B, -218.0B forecast, -214.8B previous
• US Feb Durable Goods Orders (MoM) -2.2%,-0.5%,1.6% previous
•US Mar Manufacturing PMI 58.5,56.3 forecast, 57.3 previous
•US Mar Markit Composite PMI 58.5, 55.9 previous
•US Mar Services PMI 58.9, 56.0 forecast, 56.5 previous
•US KC Mar Fed Composite Index 37, 29 previous
• US KC Fed Manufacturing Index 46 , 31 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro weakened against the dollar on Thursday as economic data on the US labor market helped firm expectations the U.S. Federal Reserve will be more aggressive in taking steps to curb inflation. Weekly initial jobless claims fell to a seasonally adjusted 187,000 last week, the lowest level since September 1969 and below the 212,000 forecast. While new durable goods orders unexpectedly fell in February as shipments slowed, demand for goods remained strong. The data and recent comments from Federal Reserve officials have strengthened views the central bank will hike rates by more than 25 basis points at its next policy meeting in May. Immediate resistance can be seen at 1.1028(5DMA), an upside break can trigger rise towards 1.1056 (38.2%fib).On the downside, immediate support is seen at 1.0991(14DMA), a break below could take the pair towards 1.0953 (23.6%fib).
GBP/USD: Sterling drifted lower against the dollar on Thursday as data showing resilient British business activity in March failed to prop up the currency for which traders are now anticipating a slower pace of monetary tightening by the Bank of England.By contrast, buoyant U.S. job data fuelled speculation the Federal Reserve would raise interest rates by half a percentage point at its next policy meeting in May, giving the greenback a boost. Sterling was last down 0.16% lower against the dollar at $1.3186 .Immediate resistance can be seen at 1.3209 (38.2%fib), an upside break can trigger rise towards 1.3269(50%fib).On the downside, immediate support is seen at 1.3168 (9DMA), a break below could take the pair towards 1.3130 (23.6%fib).
USD/CAD: The Canadian dollar strengthened to a two-month high against its U.S. counterpart on Thursday, notching its eighth straight day of gains, as Wall Street rallied and domestic attention shifted to an upcoming speech by a senior Bank of Canada policymaker. The price of oil, one of Canada's major exports, settled 2.25% lower at $112.34 a barrel as EU countries remained divided on whether to sanction Russian oil and gas directly. The loonie was trading 0.2% higher at 1.2535 to the greenback, after touching its strongest intraday level since Jan. 21 at 1.2510 . The currency's winning streak of eight days was the longest since August 2016. Immediate resistance can be seen at 1.2552 (5 DMA), an upside break can trigger rise towards 1.2583(38.2%fib).On the downside, immediate support is seen at 1.2507(23.6%fib), a break below could take the pair towards 1.2478 (Lower BB).
USD/JPY: The dollar steadied for the fifth session in a row against the yen on Thursday s economic data on the U.S. labor market helped firm expectations that the Fed will be more aggressive in taking steps to curb inflation. Top Federal Reserve policymakers have all week signalled they stood ready to take more aggressive action to bring down decades-high inflation, including a possible half-percentage-point rate hike at the next policy meeting in May. Minneapolis Fed President Neel Kashkari added on Thursday he has pencilled in seven quarter-point interest rate hikes this year, but warned against going too far. Strong resistance can be seen at 121.74 (23.6%fib), an upside break can trigger rise towards 122.85(Higher BB).On the downside, immediate support is seen at 121.81(38.2%fib), a break below could take the pair towards 121.47(50%fib).
Equities Recap
European shares inched higher on Thursday, helped by gains in defensive sectors amid worries over the deepening crisis in Ukraine as Western nations planned more sanctions on Russia.
UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day down by 0.39 percent.
Major U.S. stock indexes rallied more than 1% on Thursday, extending the market's recent rebound, as investors snapped up beaten-down shares of chipmakers and big growth names and as oil prices dropped.
Dow Jones closed up by 1.02% percent, S&P 500 closed up by 1.43% percent, Nasdaq settled up by 1.93% percent.
Treasuries Recap
U.S. Treasuries resumed a selloff and bond yields rose on Thursday on fresh data that added to fears that rapidly rising inflation may spur the Federal Reserve to tighten policy too much and cause an economic downturn.
The yield on 10-year Treasury notes was up 4.2 basis points to 2.363%, while the yield on the 30-year Treasury bond US30YT=RR was up 3.3 basis points to 2.553%.
Commodities Recap
Gold rose to a more than one-week high on Thursday as concerns over soaring prices and uncertainty surrounding the war in Ukraine lifted bullion's appeal as a safe-haven and an inflation hedge.
Spot gold was up 1% at $1,963.21 per ounce at 1:48 p.m. EDT (1748 GMT), its highest level since March 14. U.S. gold futures settled up 1.3% at $1,962.20.
Crude prices slid around 3% on Thursday after the European Union could not agree on a plan to boycott Russian oil and on reports that exports from Kazakhstan's Caspian Pipeline Consortium terminal could partially resume.
Brent futures fell $2.57, or 2.1%, to settle at $119.03 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.59, or 2.3%, to settle at $112.34.