Posted at 01 April 2022 / Categories Market Roundups
Market Roundup
•US Feb Personal Income (MoM) 0.5%,0.5% forecast, 0.0% previous
•US Feb Real Personal Consumption (MoM) -0.4%, 1.5% previous
•US Feb Personal Spending (MoM) 0.2% , 0.5% forecast, 2.1% previous
•US Feb PCE Price index (YoY) 6.4,6.1 previous
•US Feb PCE price index (MoM) 0.6%,0.6% previous
•US Feb Core PCE Price Index (MoM) 0.4%,0.4% forecast, 0.5% previous
•US Canada GDP (MoM) 0.2%,0.2% forecast, 0.0% previous
•US Continuing Jobless Claims1,307K, 1,350K forecast, 1,350K previous
•US Initial Jobless Claims 202K, 197K forecast,187K previous
•US Jobless Claims 4-Week Avg 208.50K,211.75K previous
•Canada GDP (YoY) 3.50%,3.26% previous
•US Chicago Mar PMI 62.9, 57.0 forecast,56.3 previous
•US Natural Gas Storage 26B, 21B previous
Looking Ahead - Economic Data (GMT)
•11:00 Australia Commodity Prices (YoY) 16.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped on Thursday as euro was weighed as Ukraine braced for fresh attacks. The euro has rebounded in recent sessions against most currencies after a bruising month, as investors have become a bit concerned about the hit from the war in Ukraine on the euro zone economy. European Central Bank chief economist Philip Lane said on Thursday euro zone inflation was increasingly likely to stabilise around 2% but the ECB should be ready to change course if the outlook deteriorates due to the war in Ukraine.The euro was down 0.8% at $1.1068, after hitting its highest since March 1 at $1.1184. Immediate resistance can be seen at 1.1165 (38.2%fib), an upside break can trigger rise towards 1.1274 (50%fib).On the downside, immediate support is seen at 1.1064 (5DMA), a break below could take the pair towards 1.1047 (23.6%fib).
GBP/USD: Sterling slipped versus the dollar on Thursday as investor anxiety intensified over the war in Ukraine. Ukrainian forces are preparing for new Russian attacks in the east of the country as Moscow deploys more troops there after suffering setbacks near the capital Kyivmaking it clear that while Russia may have scaled back its immediate ambitions, the conflict may still intensify. In the absence of any major economic or policy news, the pound has drifted in recent sessions against the dollar. By 0935 GMT, sterling weakened 0.1% to $1.3124. Immediate resistance can be seen at 1.3155 (38.2%fib), an upside break can trigger rise towards 1.3214 (50%fib).On the downside, immediate support is seen at 1.3070 (23.6%fib), a break below could take the pair towards 1.3003(Lower BB).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Thursday, with the currency holding onto its first-quarter gains as investors cheered Canada's potential combination of increased government spending and interest rate hikes. Investors are betting that the Bank of Canada will begin hiking its key interest rate in half-percentage-point increments, with the first of the rarely used upsized moves possibly coming as soon as April 13. Investors are betting that the Bank of Canada will begin hiking its key interest rate in half-percentage-point increments, with the first of the rarely used upsized moves possibly coming as soon as April 13. Immediate resistance can be seen at 1.2540 (38.2%fib), an upside break can trigger rise towards 1.2563(14DMA).On the downside, immediate support is seen at 1.2464(23.6%fib), a break below could take the pair towards 1.2431(30th March low).
USD/JPY: The dollar strengthened against the yen on Thursday as a lack of progress in peace talks between Russia and Ukraine boosted demand for the safe-haven currency. Hopes from earlier this week that peace talks would lead to a ceasefire in Ukraine five weeks after Russia’s invasion have dwindled, with Ukrainian forces preparing for new Russian attacks in the southeast of the country. Peace talks were set to resume on Friday.The dollar has attracted safe-haven flows since Russia’s Feb. 24 invasion of Ukraine, and is on track for a rise of around 1.6% for the month of March, and around 2.8% for the first quarter. Strong resistance can be seen at 122.78 (23.6%fib), an upside break can trigger rise towards 123.00(Psychological level).On the downside, immediate support is seen at 120.65(38.2%fib), a break below could take the pair towards 121.57(50%fib).
Equities Recap
European shares dropped on Thursday as concerns about a recession and the Russian-Ukranian war spurred selling.
The UK's benchmark FTSE 100 ended down by 0.83 percent, Germany's Dax ended down by 1.31 percent, and France’s CAC finished the down by 1.21 percent.
U.S. stocks slumped to close out the first quarter on Thursday with its biggest quarterly decline in two years as concerns persisted about the continuing conflict in Ukraine and its inflationary effect on prices and the Federal Reserve's response.
Dow Jones closed down at 1.56 percent, S&P 500 ended down 1.57 percent, Nasdaq finished the day down by 1.54 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as demand for the bonds was boosted by quarter-end rebalancing and as investors waited on highly anticipated jobs data for March on Friday.
Benchmark 10-year yields fell to 2.34% and are down from 2.56% on Monday, which was the highest since May 2019.
Commodities Recap
Gold on Thursday was headed for its biggest quarterly gain since the pandemic-led surge in mid-2020 as concerns over soaring consumer prices and the Ukraine crisis bolstered bullion's safe-haven appeal.
Spot gold was up 0.5% at $1,942.48 per ounce by 02:38 p.m. ET (1838 GMT). For the month, bullion was up about 1.8%.U.S. gold futures settled up 0.8% at $1,954.
U.S. oil prices fell 7% to close just above $100 on Thursday as President Joe Biden announced the largest ever release from the U.S. Strategic Petroleum Reserve and called on oil companies to increase drilling to boost supply.
U.S. West Texas Intermediate futures for May delivery settled down $7.54, or 7%, at $100.28 a barrel, after touching a low of $99.66.
Brent crude futures for May, which expired on Thursday, closed down $5.54, or 4.8%, at $107.91 a barrel.