News

Europe Roundup:Euro gains as market become less worried about Ukraine, European shares fall, Gold steadies, Oil rebounds on tight supply, prospects of new Russia sanctions-March 30th,2022

Posted at 30 March 2022 / Categories Market Roundups


Market Roundup

•Spanish HICP (MoM) 3.9%, 2.8%forecast, 0.8% previous

•Spanish CPI (YoY)9.8%, 8.0% forecast, 7.6% previous

•Spanish HICP (YoY) 9.8%,8.1%  forecast,7.6% previous

•Sweden Mar Consumer Confidence  73.5, 88.9 previous

•Swiss Mar ZEW Expectations  -27.8,9.0 previous

•Italian Jan Industrial Sales (YoY)  16.90% forecast,14.30% previous

•Italian Jan Industrial Sales (MoM) 2.30% forecast, -2.10% previous

• EU Mar Selling  Price Expectations  58.1 forecast, 49.8 previous

• EU Mar Consumer Inflation Expectation  59.8 forecast,  37.7 previous

• EU Mar Business and Consumer Survey  108.5, 109.0 forecast,  114.0 previous

• EU Mar Industrial Sentiment 10.4, 9.0 forecast, 14.0 previous

• EU Mar Services Sentiment  14.4, 10.0  forecast,13.0 previous

Looking Ahead Economic Data(GMT)

•12:00 German Mar CPI (MoM) 1.6%      forecast, 0.9% previous

•12:00 German Mar HICP (YoY)  6.7% forecast, 5.5% previous

•12:00 German Mar HICP (MoM)  1.8% forecast, 0.9% previous

•12:15 US Mar ADP Nonfarm Employment Change  450K forecast,475K previous

•12:30 US Core PCE Prices (Q4)  5.00%    forecast, 5.00% previous

•12:30 US GDP Price Index (QoQ) (Q4) 7.2% forecast, 7.2% previous

•12:30 US GDP (QoQ) (Q4) 7.1%                forecast, 2.3% previous

•12:30 US GDP Sales (Q4) 2.0% previous

•12:30 US Real Consumer Spending (Q4) 3.1% previous

•12:30 US Corporate Profits (QoQ) (Q4) 3.4% previous

•14:30 US Cushing Crude Oil Inventories 1.235M previous

•14:30 US Crude Oil Inventories                -1.022M forecast, -2.508M previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro rose higher on Wednesday as markets took a positive view on peace talks in Ukraine. Investors sentiment improved as markets became hopeful that the Ukraine conflict could end. Russia promised on Tuesday to reduce its attack on Kyiv, but the United States said it had not seen signs of real seriousness from Russia in pursuing peace. The dollar index was down 0.4% on the day at 98.019.The euro rallied against the dollar, with the pair up 0.4% at 1.1123.  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 strengthened against dollar on Wednesday as investors celebrated signs of progress in negotiations between Russia and Ukraine that they hoped would lead to a settlement in a five-week conflict. Russia promised to scale down its military operations around Kyiv and northern Ukraine. Even though the U.S. government warned that Russia's latest move was a sign it is redeploying, not withdrawing, troops, investors nonetheless piled into risky assets. Sterling gained 0.35% against the U.S. dollar  at  1.3135. Immediate resistance can be seen at 1.3139(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 declined against the Swiss franc on Wednesday as  investors bet that aggressive tightening by the Federal Reserve could hurt the U.S. economy over the longer term The U.S. Treasury yield curve, widely watched as a barometer of the economy's health, briefly  inverted  on Tuesday in a warning sign  to investors see a recession on the horizon. At (GMT 10:48), greenback dipped 0.55% versus the swiss franc to 0.9256. Immediate resistance can be seen at 0.9278(38.2% fib), an upside break can trigger rise towards 0.9314(23.6%fib).On the downside, immediate support is seen at 0.9248 (50% fib), a break below could take the pair towards 0.9220 (61.8%fib).

USD/JPY: The dollar dipped against the yen on Wednesday as traders began doubting whether Japanese authorities would tolerate too much more weakness, while hopes for a breakthrough in Russia-Ukraine peace talks helped investors sentiment . The yen   rose more than 1% to 121.32 per dollar, with a meeting between Bank of Japan (BOJ) Governor Haruhiko Kuroda and Prime Minister Fumio Kishida adding to speculation about the level of official discomfort with a falling yen. It has lost more than 5% on the dollar in March. Strong resistance can be seen at 122.02 (38.2%fib), an upside break can trigger rise towards 122.87(23.6%fib).On the downside, immediate support is seen at 121.34(50%fib), a break below could take the pair towards 120.66(61.8%fib).

Equities Recap

European shares fell on Wednesday, pulled lower by Swiss drugmaker Roche, with the STOXX 600 index retreating after three straight sessions of cautious gains that were driven by hopes of a breakthrough in Russia-Ukraine peace talks.

At (GMT 11:20),UK's benchmark FTSE 100 was last trading down at    0.03% percent, Germany's Dax was down by   1.49% percent, France’s CAC  was last down by 0.96% percent.

Oil prices clawed back heavy losses to rise more than 2% on Wednesday on supply tightness and the growing prospect of new Western sanctions against Russia even as signs of progress emerged from peace talks between Moscow and Kyiv.

Brent crude futures were up $2.48, or 2.3%, at $112.71 by 1003 GMT, reversing a 2% loss in the previous session.

U.S. West Texas Intermediate (WTI) crude futures rose $2.72, or 2.6%, to $106.96 a barrel, erasing a 1.6% drop on Tuesday.

Gold steadied on Wednesday, buoyed by a weaker dollar and a slight pullback in U.S. bond yields, while investors awaited more details from Russia-Ukraine talks in Turkey.

Spot gold   was nearly flat at $1,918.62 per ounce at 0947 GMT. U.S. gold futures  rose 0.3% to $1,923.10.


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