Posted at 31 March 2022 / Categories Market Roundups
Market Roundup
•US Mar ADP Nonfarm Employment Change 455K,450K forecast,475K previous
•US Core PCE Prices (Q4) 5.00%, 5.00% forecast, 5.00% previous
•US GDP Price Index (QoQ) (Q4) 7.1%,7.2% forecast, 7.2% previous
•US GDP (QoQ) (Q4) 6.9%,7.1% forecast, 2.3% previous
•US GDP Sales (Q4) 1.5%,2.0% previous
•US Real Consumer Spending (Q4) 2.5% ,3.1% previous
•US Corporate Profits (QoQ) (Q4) 0.2%,3.4% previous
•US Cushing Crude Oil Inventories -1.009M, 1.235M previous
•US Crude Oil Inventories -3.449M,-1.022M forecast, -2.508M previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Feb Construction Orders (YoY )11.0%
•05:00 Japan Feb Housing Starts (YoY) 1.1% forecast, 2.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose higher on Wednesday as data showing that German annual inflation rose to its highest mark in more than 40 years in March bolstered the euro . German annual inflation rose more than expected in March as prices of natural gas and mineral oil products soared after Russia's invasion of Ukraine, preliminary data showed on Wednesday. The national consumer price index (CPI) rose 7.3% year on year after an inflation rate of 5.1% in February. The euro rallied against the dollar, with the pair up 0.4% at 1.1171. Immediate resistance can be seen at 1.1209 (Higher BB), an upside break can trigger rise towards 1.1264 (50%fib).On the downside, immediate support is seen at 1.1157 (38.2%fib), a break below could take the pair towards 1.1078 (5DMA).
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 1.3130. Immediate resistance can be seen at 1.3154(38.2%fib), an upside break can trigger rise towards 1.3216 (50%fib).On the downside, immediate support is seen at 1.3070 (23.6%fib), a break below could take the pair towards 1.3006 (Lower BB).
USD/CAD: The Canadian dollar strengthened to its highest level in nearly five months against its U.S. counterpart on Wednesday as oil prices rose and investors rebalanced portfolios near the end of the first quarter of the year. The price of oil, one of Canada's major exports, settled 3.4% higher at $107.82 a barrel as another U.S. crude stock drawdown indicated tight supplies. In addition, investors worried about new Western sanctions against Moscow as Russian forces continued to bomb the outskirts of Ukraine's capital. The loonie was trading 0.2% higher at 1.2475 to the greenback, after touching its strongest level since Nov. 10 at 1.2430.Immediate resistance can be seen at 1.2523(9 DMA), an upside break can trigger rise towards 1.2535(38.2%fib).On the downside, immediate support is seen at 1.2464 (23.6%fib), a break below could take the pair towards 1.2406(Lower BB).
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 122.58 (23.6%fib), an upside break can trigger rise towards 123.00(Psychological level).On the downside, immediate support is seen at 121.73(38.2%fib), a break below could take the pair towards 121.02(50%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.
UK's benchmark FTSE 100 closed up by 0.55 percent, Germany's Dax ended down by 1.45 percent, France’s CAC finished the day down by 0,74 percent.
U.S. stocks fell on Wednesday, with the Dow and S&P 500 snapping four-session winning streaks, on waning signs of progress for peace talks between Ukraine and Russia against a backdrop of a hawkish Federal Reserve curbing economic growth.
Dow Jones closed down by 0.19% percent, S&P 500 closed down by 0.43% percent, Nasdaq settled down by 1.21% percent.
Commodities Recap
Gold prices rose nearly 1% on Wednesday, supported by a retreat in the U.S. dollar and renewed doubts about the possibility of a ceasefire between Russia and Ukraine.
Spot gold was up 0.7% at $1,932.14 per ounce by 03:26 p.m. EDT (1926 GMT). U.S. gold futures settled up 1.1% to $1,939.
Oil prices gained about 3% on Wednesday as another U.S. crude stock drawdown indicated tight supplies and investors worried about new Western sanctions against Moscow with Russian forces continuing to bomb the outskirts of Ukraine's capital.
Brent futures rose $3.22, or 2.9%, to settle at $113.45 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $3.58, or 3.4%, to settle at $107.82.