Posted at 28 March 2022 / Categories Market Roundups
Market Roundup
•Sweden Feb Trade Balance 1.00B, 0.40B previous
•Irish Feb Retail Sales (MoM) 0.9%, -1.5% previous
•Irish Feb Retail Sales (YoY) 2.2%,18.9% previous
•Greek Credit Expansion (YoY) 10.3%, 9.9% previous
• US Wholesale Inventories (MoM) 0.8% previous
• US Feb Goods Trade Balance -106.59B, -107.57B previous
•US Feb Retail Inventories Ex Auto 2.1%,1.8% previous
Looking Ahead - Economic Data (GMT)
•13:00 French 3-Month BTF Auction -0.661% previous
•13:00 French 6-Month BTF Auction -0.667% previous
•13:00 French 12-Month BTF Auction -0.561% previous
•14:30 Dallas Mar Fed Mfg Business Index 14.0 previous
•15:30 US 6-Month Bill Auction 0.870% previous
•15:30 US 2-Year Note Auction 1.553% previous
•15:30 US 3-Month Bill Auction 0.480% previous
•17:00 US 5-Year Note Auction 1.880% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: Euro dipped on Monday as dollar strengthened on safe haven demand while, investor focused on potential Russia-Ukraine peace talks this week. The dollar has benefited from its status as a safe haven and the conflict in Ukraine has driven expectations the U.S. Federal Reserve will hike interest rates. The Ukraine conflict continues to heat up, with only modest expectations for progress on March 28-30 ceasefire negotiations. The euro has been an indicator of sentiment towards Ukraine, but it remains resilient despite assumptions that Europe's economy will suffer more than the rest of the world. Immediate resistance can be seen at 1.1020 (9DMA), an upside break can trigger rise towards 1.1046 (38.2%fib).On the downside, immediate support is seen at 1.0991(14DMA), a break below could take the pair towards 1.0852 (Lower BB).
GBP/USD: Sterling fell against the dollar on Monday, with investors focusing on the Bank of England’s next moves to tame inflation while avoiding recession risks. Recent policy updates from the BoE kept downward pressure on sterling as the BoE’s last monetary policy meeting signalled more caution over plans for further policy tightening Bank of England Governor Andrew Bailey will give a speech on Monday; Deputy Governor Ben Broadbent will speak on Wednesday. By 1121 GMT sterling was down 0.3% to $1.3138, not far from its lowest since November 2020 of $1.3 it hit on March 15. Immediate resistance can be seen at 1.3137(14DMA), an upside break can trigger rise towards 1.3173(38.2%fib).On the downside, immediate support is seen at 1.3091 (23.6%fib), a break below could take the pair towards 1.3000 (Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as investor focus on potential Russia-Ukraine peace talks this week further. Ukraine is prepared to discuss adopting a neutral status as part of a peace deal with Russia but such a pact would have to be guaranteed by third parties and put to a referendum, Ukrainian President Volodymyr Zelenskiy said in remarks aired on Sunday.Zelenskiy said Russia’s invasion had caused the destruction of Russian-speaking cities in Ukraine, with damage worse than the Russian wars in Chechnya. Russia has denied targeting civilians in Ukraine. Russia and Ukraine have traded blame for a failure to open humanitarian corridors. Immediate resistance can be seen at 0.9379(23.6% fib), an upside break can trigger rise towards 0.9440(Higher BB).On the downside, immediate support is seen at 0.9344 (38.2% fib), a break below could take the pair towards 0.9316 (50%fib).
USD/JPY: The dollar rose against the yen on Monday as after the Bank of Japan intervened to stop government bond yields from rising above its key target, while rising U.S. yields pushed the dollar higher against other currencies too. The BOJ, which has repeatedly said it is committed to keeping monetary policy loose, on Monday made two offers to buy an unlimited amount of government bonds with maturities of more than five years and up to 10 years. The central bank is aiming to stop rising global interest rates from pushing up Japanese yields. The dollar climbed roughly 0.95% to 123.25 yen, its highest since December 2015. It rallied over 7% so far in March, its biggest monthly gain in over five years. Strong resistance can be seen at 124.74 (38.2%fib), an upside break can trigger rise towards 124.90(23.6%fib).On the downside, immediate support is seen at 123.37(50%fib), a break below could take the pair towards 122.66(61.8%fib).
Equities Recap
European shares gained on Monday, led by interest rate-sensitive banks and insurers as government bond yields continued to rise, while hopes of a peace deal in the Ukraine crisis further aided sentiment.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading up at 0.32 percent, Germany's Dax was down by 1.44 percent, France’s CAC was last trading up by 1.33 percent.
Commodities Recap
Gold prices dropped more than 1% on Monday as a spike in U.S. Treasury yields, a stronger dollar and hopes of progress in Russia-Ukraine peace talks dented demand for the safe-haven metal.
Spot gold was down 0.87% to $1,940.46 per ounce by 1234 GMT. U.S. gold futures dropped 0.9% to $1,940.46.
Oil prices tumbled more than $6 on Monday as fears over weaker fuel demand in China grew after financial hub Shanghai lockdown efforts to curb a surge in COVID-19 infections.
Brent crude futures slid as low as $113.72 a barrel and were trading down $5.97, or 4.9%, at $114.68 at 1212 GMT.
U.S. West Texas Intermediate (WTI) crude futures hit a low of $106.81 a barrel, and were down $5.93, or 5.2%, at $107.97.