Posted at 29 March 2022 / Categories Market Roundups
Market Roundup
•German Feb Import Price Index (MoM) 1.3%,1.8% forecast,4.3% previous
•German Feb Import Price Index (YoY)26.3%, 26.9% forecast,26.9% previous
• German GfK Apr Consumer Climate -15.5, -14.0 forecast,-8.1 previous
• French Mar Consumer Confidence 91, 94 forecast,98 previous
•UK BoE Feb Consumer Credit 1.876B, 0.843B forecast, 0.608B previous
•UK Feb Mortgage Lending 4.67B, 6.00B forecast,98 5.92B previous
•UK Feb Mortgage Approvals 70.99K, 74.85K forecast, 73.99K previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 12.4% previous
•13:30 US Jan S&P/CS HPI Composite - 20 n.s.a. (MoM) 1 .1% previous
•13:30 US Jan S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.4% forecast, 18.6% previous
•13:30 US Jan House Price Index (YoY) 17.6% previous
•13:30 US Jan S&P/CS HPI Composite - 20 s.a. (MoM) 1.5% forecast,1.5% previous
•13:30 US Jan House Price Index (MoM) 1.2% previous
•13:30 US Feb JOLTs Job Openings 11.000M forecast,11.263M previous
•13:30 US Mar CB Consumer Confidence 107.0 forecast,110.5 previous
•14:00 US Texas Mar Services Sector Outlook 16.6 previous
•14:00 US Mar Dallas Fed Services Revenues 21.9 previous
Looking Ahead - Events, Other Releases (GMT)
•14:45 US FOMC Member Harker Speaks
Fxbeat
EUR/USD: The euro rose higher on Tuesday as Ukrainian and Russian negotiators met in Turkey for the first direct talks in more than two weeks. Any step towards a ceasefire or a potential peace deal would support the single currency as the euro area is seen suffering the most significant economic impact of the conflict.Ukraine and the United States hold little hope of a breakthrough at the meeting later on Tuesday, even though Russia's invasion appeared to have stalled on several fronts. The euro was up 0.2% at $1.1003 Immediate resistance can be seen at 1.1057 (38.2%fib), an upside break can trigger rise towards 1.1143 (50%fib).On the downside, immediate support is seen at 1.1001(5DMA), a break below could take the pair towards 1.0948 (23.6%fib).
GBP/USD: The British pound dropped to its lowest level in almost two weeks on Tuesday, a day after Bank of England governor Andrew Bailey reiterated the central bank’s cautious message from the mid-March policy decision. Bailey said on Monday that the BoE had started to see evidence of an economic slowdown, which it expects to weigh down on domestically generated inflation.The central bank raised its interest rate for the third consecutive meeting earlier in March, but softened its language on the need for further rate hikes. Sterling dropped 0.3% against the U.S. dollar to its lowest level since March 16 at $1.3055. Immediate resistance can be seen at 1.3133(5DMA), an upside break can trigger rise towards 1.3152 (38.2%fib).On the downside, immediate support is seen at 1.3070 (23.6%fib), a break below could take the pair towards 1.2959 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as market participants looked forward to Russia-Ukraine peace talks. Ukraine said its top objective at the first face-to-face talks with Russia in more than two weeks, due to take place in Turkey on Tuesday, was to secure a ceasefire, although both it and the United States were sceptical of a major breakthrough. Yields on U.S. benchmark 10 year treasury notes were steady at 2.4696%, little changed on the day due to a pause in the sharp sell-off seen in recent days. The dollar index held firm near a three-week high hit in the previous session. 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 dipped against the yen on Tuesday as some traders start to see risks of official pushback if Japan's currency falls much further. The yen has been hammered some 7% lower through March as the Bank of Japan (BoJ) has stuck with dovish policy settings this week buying bonds to defend its yield target while central banks in the rest of the world are hiking rates. On Monday yen dropped as far as 125.10 versus the dollar, round about where authorities have made verbal pushback in the past. Japan's central bank bought a little more than $500 million in bonds on Monday and another $2 billion on Tuesday morning, having vowed to make unlimited purchases in the market until Thursday to defend its 10-year yield target of 0.25%. Strong resistance can be seen at 124.07 (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 made strong opening gains on Tuesday, taking cues from strength in Asian markets and on Wall Street overnight, with investors eyeing peace talks between Moscow and Kyiv scheduled to be held in Turkey.
At (GMT 10:57 ),UK's benchmark FTSE 100 was last trading down at 1.37 percent, Germany's Dax was up by 2.07 percent, France’s CAC was last trading up by 2.62 percent.
Commodities Recap
Gold prices were steady on Tuesday as the U.S. dollar held firm and Treasury yields climbed, while market participants looked forward to Russia-Ukraine peace talks starting later in the day.
Spot gold was unchanged at $1,921.74 per ounce by 0723 GMT, having fallen as much as 2.1% on Monday. U.S. gold futures were down 0.9% at $1,922.60.
Oil prices rose on Tuesday, recovering some of the previous session's losses as Kazakhstan's supplies continued to be disrupted and major producers showed no sign of being in a hurry to boost output significantly.
Brent crude rose $1.41, or 1.3%, to $113.89 a barrel at 0848 GMT, and U.S. West Texas Intermediate (WTI) crude was up 95 cents, or 0.9%, at $106.91. Both benchmarks had lost about 7% on Monday.