News

Europe Roundup: Euro dips against dollar,European shares fall,Gold eases,Oil extends rally on prospect of more Russia sanctions-April 5th,2022

Posted at 05 April 2022 / Categories Market Roundups


Market Roundup

•Spanish Mar Services PMI 53.4, 54.2 forecast,56.6 previous

•Italian Mar Composite PMI  52.1,51.5 forecast,52.8 previous

•French Markit Mar Composite PMI 56.3,56.2 forecast,55.552.8 previous

•French Mar Services PMI  57.4, 57.4 forecast,55.5 previous

•German Mar Services PMI 56.1               ,55.0 forecast, 55.8 previous

•EU Services PMI  55.6, 54.8 forecast, 55.5 previous

•UK Mar Composite PMI ,60.9, 59.7 forecast,59.9 previous

•UK Mar Services PMI 62.6, 61.0 forecast, 60.5 previous

•Canada Feb Imports  56.08B, 54.68B forecast,54.00B previous

•Canada Feb Trade Balance 2.66B, 2.90B forecast, 2.62B previous

•US Trade Balance -89.20B, -88.50 forecast,-89.70B previous

•US  Exports  228.60B, 224.40B previous

•US Imports 317.80B, 314.09B previous

•US Redbook (YoY)  14.3%, 12.9% previous

•Brazil Markit Composite PMI 56.6, 53.5 previous

Looking Ahead - Economic Data (GMT) 

•13:45 US Services PMI 58.9 forecast, 56.5 previous

•13:45 US Mar Markit Composite PMI  58.5 forecast,55.9 previous

•14:00 US Mar ISM Non-Manufacturing Employment  48.5 previous

•14:00 US Mar ISM Non-Manufacturing PMI  58.4 forecast, 56.5 previous

•14:00 US Mar ISM Non-Manufacturing Business Activity 55.1 previous

•14:00 US Mar ISM Non-Manufacturing New Orders 56.1 previous

•15:00 New Zealand Global Dairy Trade Price Index  -0.9% previous

Looking Ahead - Economic events and other releases (GMT)

•14:05 US FOMC Member Brainard Speaks

•15:05 FOMC Member Brainard Speaks

•18:00 FOMC Member Williams Speaks  

Fxbeat

EUR/USD: The euro declined on Tuesday as French election worries and the chance of more sanctions against Russia unnerved investors. French financial markets acknowledged the possibility of far-right candidate Marine Le Pen beating President Emmanuel Macron in this month's elections, with sharp losses on Paris blue chip index and government bonds. Against the U.S. dollar, the single currency briefly fell to more than a one-week low of $1.0956. The euro reached a one-month high of $1.1185 just days earlier amid increased optimism over an end to the Ukraine conflict.  Immediate resistance can be seen at 1.1039 (5DMA), an upside break can trigger rise towards 1.1073 (38.2%fib).On the downside, immediate support is seen at 1.0946 (23.6%fib), a break below could take the pair towards 1.0901 (Lower BB).

GBP/USD: Sterling gained versus the dollar on Tuesday  after data showed UK services PMI firmed in March. British services companies enjoyed stronger growth last month than first estimated despite rampant inflation pressures, with business activity rising at the fastest rate in 10 months, a survey showed on Tuesday. The S&P Global/CIPS UK Services PMI rose to 62.6 in March from 60.5 in February, an upward revision from a preliminary "flash" reading of 61.0 and far above the 50 threshold for growth. The upturn reflected the removal of pandemic health restrictions and increased spending on leisure and entertainment services, but the survey pointed to tougher times ahead for Britain's economy. Immediate resistance can be seen at 1.3125 (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 1.3003(Lower BB).

USD/CHF: The dollar steadied against the Swiss franc on Tuesday as expectations of aggressive interest rate hikes by the Federal Reserve boosted dollar. Markets are looking forward to Wednesday’s release of minutes from the Fed’s last policy meeting for signs if the central bank would raise its benchmark overnight interest rate by 50 basis points next month to rein in inflation. At (GMT 11:22), greenback dipped 0.12% versus the Swiss franc to 0.9250. Immediate resistance can be seen at 0.9278(30DMA), an upside break can trigger rise towards 0.9290 (23.6%fib).On the downside, immediate support is seen at 0.9255(38.2% fib), a break below could take the pair towards 0.9222 (50%fib).

USD/JPY: The dollar strengthened against the yen on Tuesday as greenback strengthened bets  that U.S. Federal Reserve would continue to raise interest rates as Russia’s invasion of Ukraine kept inflationary pressures building. Global markets were looking to Wednesday's release of minutes from the Federal Reserve's last policy meeting for hints on how much the U.S. central bank will raise interest rates next month. At (GMT 11:20), greenback gained 0.06% versus the yen to 122.84.  Strong resistance can be seen at 123.15 (38.2%fib), an upside break can trigger rise towards 123.91(23.6%fib).On the downside, immediate support is seen at 122.49(50%fib), a break below could take the pair towards 121.78(61.8%fib).

Equities Recap

European shares were trading flat on Tuesday, as a rally in oil prices on the prospect of more sanctions against crude exporter Russia lifted energy stocks and helped offset losses in banks and industrial stocks.

At (GMT 13:07),UK's benchmark FTSE 100 was last trading up at 0.11 % percent, Germany's Dax was down by 0.75 %percent, France’s CAC finished was down by 1.65 % percent.

Commodities Recap

Gold edged lower on Tuesday as higher U.S. Treasury yields and expectations of aggressive interest rate hikes by the Federal Reserve dimmed the appeal of non-yielding bullion.

 Spot gold  was down 0.2% at $1,929.43 per ounce, as of 0933 GMT, trading in a narrow range. U.S. gold futures   eased 0.1% to $1,932.

Oil prices rose on Tuesday as the United States and Europe planned new sanctions to punish Russia over alleged war crimes in Ukraine, raising concerns over tighter global supply, while Iran's nuclear talks with world powers stalled.

Brent crude was up $1.17, or 1.1%, to $108.70 a barrel at 0952 GMT. U.S. West Texas Intermediate was up $1.15, or 1.1%, at $104.43.


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