Posted at 26 March 2022 / Categories Market Roundups
Market Roundup
•U.S. pending home sales decline in fourth straight month
•For the week, Dow up 0.3%, S&P 500 up 1.8%, Nasdaq up 2%
•US Mar Michigan 5-Year Inflation Expectations 3.00%, 3.00%
•US Mar Michigan Consumer Expectations 54.3, 54.4 forecast ,59.4 previous
•US Michigan Consumer Sentiment 59.4, 59.7 forecast , 62.8 previous
•US Mar Michigan Current Conditions 67.2, 67.8 forecast , 68.2 previous
•US Pending Home Sales (MoM) -4.1%, 1.0% forecast , -5.7% previous
•US Feb Pending Home Sales Index 109.5 previous
•Canada Jan Budget Balance (YoY) -75.29B, -70.11B previous
•Canada Jan Budget Balance -5.18B ,3.58B previous
•U.S. Baker Hughes Oil Rig Count 531,524 previous
•U.S. Baker Hughes Total Rig Count 670, 663 previous
Looking Ahead Economic Data (GMT)
•No significant events
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro declined against dollar on Friday as concerns about a potential slowdown of Eurozone economy kept bearish pressure on the pair.German business morale deteriorated in March due to worsening supply chain issues resulting from high petrol prices and driver shortages, a survey showed on Friday. The data had little impact on bond markets, following PMI data on Thursday showing euro zone business activity was stronger than expected in March, although prices rose at a record pace and business optimism came under a severe dent. Immediate resistance can be seen at 1.1016(5DMA), an upside break can trigger rise towards 1.1056 (38.2%fib).On the downside, immediate support is seen at 1.0948(23.6%fib), a break below could take the pair towards 1.0900 (14th March low).
GBP/USD: The British pound edged lower against the U.S. dollar on Friday after consumer morale fell to its lowest level in 16 months and an unexpected decline in retail sales.The Office for National Statistics said February retail sales volumes were down by 0.3% from January as stormy weather deterred some shoppers from venturing out. Meanwhile, a survey by GfK showed British consumer confidence fell to its lowest level since November 2020 in March because of inflation worries, high interest rates and the war in Ukraine.The pound gradually slipped against the dollar to trade 0.1% lower at $1.3178. Immediate resistance can be seen at 1.3206 (38.2%fib), an upside break can trigger rise towards 1.3271(50%fib).On the downside, immediate support is seen at 1.3170(9DMA), a break below could take the pair towards 1.3127 (23.6%fib).
USD/CAD: The Canadian dollar strengthened to its highest level in more than two months against the greenback on Friday as oil prices rose and comments by a Bank of Canada deputy governor reinforced the central bank's hawkish stance on interest rates. The loonie was trading 0.4% higher at 1.2477 to the greenback, after touching its strongest intraday level since Jan. 20 at 1.2471. It was the ninth consecutive day of gains for the currency, which is the longest winning streak since August 2016. For the week, the currency was up 1%.Immediate resistance can be seen at 1.2534(38.2%fib), an upside break can trigger rise towards 1.2598(50%fib).On the downside, immediate support is seen at 1.2463(23.6%fib), a break below could take the pair towards 1.2436 (Lower BB).
USD/JPY: The dollar declined against the yen on Friday after BOJ's Kuroda repeated view that weak yen benefits Japan's economy. The Bank of Japan (BOJ) provided a bullish signal as it refrained from stepping into the market Friday morning, even as the 10-year government bond yield rose above the level at which the central bank had offered to buy an unlimited amount in February. However, Governor Haruhiko Kuroda clarified that a weak yen benefits the economy The Japanese yen strengthened 0.21% versus the greenback to 122.07 per dollar after hitting a fresh low of 122.43, the weakest in more than six years. Strong resistance can be seen at 121.90 (38.2%fib), an upside break can trigger rise towards 122.33(23.6%fib).On the downside, immediate support is seen at 121.44(50%fib), a break below could take the pair towards 120.08(61.8%fib).
Equities Recap
European shares fell for a third straight session on Friday and was set to end the week lower, as the escalating Russia-Ukraine conflict kept investors cautious heading into the weekend.
UK's benchmark FTSE 100 closed up by 0.21 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day down by 0.03 percent.
Shares on Wall Street took a breather on Friday after a tech-driven rally and U.S. Treasury yields rose to fresh heights as markets evaluated a world of elevated interest rates and the effects of Russia's war in Ukraine.
Dow Jones closed up by 0.44 percent, S&P 500 closed up by 0.51 percent, Nasdaq settled down by 0.16 % percent.
Treasuries Recap
Yields on benchmark 2- and 10-year U.S. Treasury notes jumped to almost three-year highs on Friday as the market anticipates inflation will spiral higher and mulls how aggressive the Federal Reserve will be as it tightens policy.
Ten-year Treasury yields rose 11 basis points to 2.451%, a rate last seen in early May 2019. The 2-year yield, which typically moves in step with interest rate expectations, was up 12.2 basis points at 2.247%
Commodities Recap
Gold was on course to gain for the week as concerns over the war in Ukraine and rising prices boosted its appeal as a safe-haven and an inflation hedge, but prices eased on Friday as U.S. Treasury yields reached new highs.
Spot gold fell 0.3% to $1,952.60 per ounce by 01:49 p.m. EDT (1749 GMT).U.S. gold futures settled down 0.4% to $1,954.20.
Crude prices rose more than 1% to over $120 a barrel on Friday, as traders reconciled the impact of a missile attack on an oil distribution facility in Saudi Arabia with a possible release of oil reserves by the United States.
Brent crude settled up $1.62, or 1.4%, to $120.65 a barrel and U.S. West Texas Intermediate (WTI) crude ended $1.56, or 1.4% higher, at $113.90. Both had dropped $3 earlier.