Posted at 04 April 2022 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction -0.410%, -0.472% previous
•French 3-Month BTF Auction -0.649% ,-0.650% previous
•French 6-Month BTF Auction -0.652% ,-0.616% previous
•US Mar CB Employment Trends Index 120.56 ,119.18 previous
•US Factory Orders (MoM) -0.5% % ,-0.5% forecast,1.4% previous
•US Feb Durables Excluding Defense (MoM) -2.6%, -2.7% previous
•US Feb Factory orders ex transportation (MoM) 0.4%, 1.0% previous
•US 3-Month Bill Auction 0.670%, 0.605% previous
•US 6-Month Bill Auction1.110%, 1.050% previous
Looking Ahead - Economic Data (GMT)
• 06:00 Japan Mar Services PMI 48.7 forecast, 4.2 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Monday as talk of Europe banning Russian gas kept a lid on the euro weighed on single currency .French President Emmanuel Macron said on Monday that a new round of sanctions targeting Russia were needed and that there were clear indications Russian forces were responsible for the killings of civilians in the Ukrainian town of Bucha. The euro , which has been under pressure due to worries about the economic damage from the war in Ukraine, slipped 0.4% versus the dollar to park to $1.0975. Immediate resistance can be seen at 1.1057 (30DMA), an upside break can trigger rise towards 1.1099 (38.2%fib).On the downside, immediate support is seen at 1.0980 (23.6%fib), a break below could take the pair towards 1.0892 (Lower BB).
GBP/USD: Sterling gained versus the dollar on Monday as traders continue to bet on a rapid pace of interest rate rises from the Bank of England. Investors will also be listening closely for any clues on that pace when BoE Governor Andrew Bailey and his deputy speak later on Monday. This week is light on important UK economic data, and markets will be very much focused on any talk about rate rises, as well as how financial market and risk sentiment hold up amid the war in Ukraine. The dollar the pound versus the rose 0.1% to $1.3125, keeping it firmly within a tight trading range it has been in since mid-February. Immediate resistance can be seen at 1.3152 (38.2%fib), an upside break can trigger rise towards 1.3211 (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 strengthened against its U.S. counterpart on Monday as oil prices rose and investors awaited the release of two Bank of Canada surveys that could offer clues on the inflation outlook. U.S. crude prices were up 3.4% at $102.64 a barrel as the release of strategic reserves by consuming nations failed to eliminate supply fears arising from Russia's invasion of Ukraine and the lack of an Iranian nuclear deal. Oil is one of Canada's major exports The Canadian dollar was up 0.3% at 1.2482 to the greenback, or 80.12 U.S. cents, after trading in a range of 1.2485 to 1.2528. .Immediate resistance can be seen at 1.2494(5 DMA), an upside break can trigger rise towards 1.2538(38.2%fib).On the downside, immediate support is seen at 1.2465(23.6%fib), a break below could take the pair towards 1.2424 (Lower BB).
USD/JPY: The dollar strengthened against the yen on Monday as greenback strengthened on back of the monthly U.S. jobs report indicating a strong labour market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance. Data on Friday showed U.S. unemployment hitting a two-year low of just 3.6% last month, strong enough that investors bet it would strengthen the Federal Reserve's resolve to tackle inflation by lifting rates sharply. Fed funds futures have priced a near 4/5 chance of a 50 basis point hike next month and two-year yields stand at a three-year high of 2.4930%. Strong resistance can be seen at 123.12 (23.6%fib), an upside break can trigger rise towards 124.34(29th March high).On the downside, immediate support is seen at 122.23(38.2%fib), a break below could take the pair towards 121.56(50%fib).
Equities Recap
European stocks closed higher on Monday amid reports Western nations have called for new sanctions on Moscow after Ukraine accused Russia of carrying out a "massacre" in the town of Bucha.
UK's benchmark FTSE 100 closed up by 0.28 percent, Germany's Dax ended up by 0.50 percent, France’s CAC finished the day up by 0.70 percent.
Wall Street's main indexes rose on Monday, boosted by megacap tech and growth stocks and a surge in Twitter after Elon Musk revealed his stake in the company, amid cautionary signals in the bond market and talk of more sanctions against Russia over Ukraine.
Dow Jones closed up by 0.30 percent, S&P 500 closed up by 0.81 percent, Nasdaq settled up by 1.90 % percent.
Treasuries Recap
The benchmark U.S. 10-year Treasury yield ticked up on Monday and the 2-year/10-year yield curve remained inverted, as a lack of major economic news left traders without many clues to act on.
The yield on 10-year Treasury notes was up 3.5 basis points to 2.410% while the 2-year note yield was up 2.7 basis points at 2.459%.
Commodities Recap
Gold rose on Monday as investors sought the safe-haven asset amid prospects of Western countries imposing more sanctions on Russia over its invasion of Ukraine and likely higher inflation, though a stronger dollar and rising U.S. Treasury yields capped gains.
Spot gold was up 0.4% at $1,932.78 per ounce by 2:32 p.m. EDT (1832 GMT). U.S. gold futures settled up 0.5% at $1,934.
Oil prices jumped over 3% on Monday, with investors worried about tighter supply as mounting civilian deaths in Ukraine increased pressure on European countries to impose sanctions on Russia's energy sector.
Global benchmark Brent crude jumped$3.14, or 3%, to settle at $107.53 a barrel. U.S. West Texas Intermediate crude rose $4.01, or 4%, to settle at $103.28 a barrel.