Posted at 05 April 2022 / Categories Market Roundups
Market Roundup
•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
•US Services PMI 58.0,58.9 forecast, 56.5 previous
•US Mar Markit Composite PMI 57.7, 58.5 forecast,55.9 previous
•US Mar ISM Non-Manufacturing Employment 54.0,48.5 previous
•US Mar ISM Non-Manufacturing PMI 58.3, 58.4 forecast, 56.5 previous
•US Mar ISM Non-Manufacturing Business Activity 55.5, 55.1 previous
•US Mar ISM Non-Manufacturing New Orders 60.1 ,56.1 previous
•New Zealand Global Dairy Trade Price Index -1.0%, -0.9% previous
Looking Ahead - Economic data (GMT)
• 1:00 New Zealand ANZ Commodity Price Index (MoM) 3.9% previous
•01:45 China Mar Caixin Services PMI 50.2 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Tuesday as greenback was boosted by hawkish comments from Federal Reserve officials who pushed for a quick reduction in the central bank's bloated balance sheet, with one of them expressing openness to hefty rate increases of half a percentage point.Fed Governor Lael Brainard, usually one of the Fed's more dovish policymakers, said on Tuesday she expects methodical interest rate increases and rapid reductions to the Fed's nearly $9 trillion balance sheet to bring U.S. monetary policy to a more neutral position" later this year. The euro was down 0.6% at $1.0901 and matched a low of $1.09 hit on March 14. Immediate resistance can be seen at 1.0946 (23.6%fib, an upside break can trigger rise towards 1.1016 (14DMA).On the downside, immediate support is seen at 1.0881(Lower BB), a break below could take the pair towards 1.0847 (Mar 3rd low).
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/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, giving back its earlier gains, as hawkish comments by a Federal Reserve policymaker pushed U.S. bond yields and the greenback sharply higher. Canadian data showed that exports rose 2.8% in February to a record high. It was driven mostly by energy products, including oil. The price of oil settled 1.3% lower at $101.96 a barrel, pressured by the rising U.S. dollar and growing worries that new coronavirus cases could slow demand. Canadian data showed that exports rose 2.8% in February to a record high. It was driven mostly by energy products, including oil. Immediate resistance can be seen at 1.2518 (14DMA), an upside break can trigger rise towards 1.2536 (38.2%fib).On the downside, immediate support is seen at 1.2466 (23.6%fib), a break below could take the pair towards 1.2433 (Daily low ).
USD/JPY: The dollar strengthened against the yen on Tuesday as hawkish comments by a Federal Reserve policymaker pushed U.S. bond yields and the greenback sharply higher. The U.S. dollar rallied against a basket of major currencies after Fed Governor Lael Brainard said she expects a combination of interest rate increases and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later this year. Greenback gained 0.03% versus the yen to 123.64. Strong resistance can be seen at 123.95 (23.6%fib), an upside break can trigger rise towards 124.60(29th March high).On the downside, immediate support is seen at 122.11(38.2%fib), a break below could take the pair towards 122.49(50%fib).
Equity Recap
European stock markets closed higher after a volatile session on Monday, recovering losses caused by a collapse in oil prices and fears of the worst quarterly earnings season since the global financial crisis.
UK's benchmark FTSE 100 closed up by 0.72 percent, Germany's Dax ended down by 0.65 percent, France’s CAC finished the day up by 2.03 percent.
Wall Street's main indexes fell on Tuesday, dragged by weakness in tech and other growth stocks, after comments from Federal Reserve Governor Lael Brainard spooked investors about potential aggressive actions by the central bank to control inflation.
Dow Jones closed down by 0.80 %percent, S&P 500 closed down by 1.26% percent, Nasdaq settled down by 2.26 % percent.
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Commodities Recap
Gold fell on Tuesday as rising U.S. Treasury yields and expectations for more aggressive monetary policy tightening by the Federal Reserve offset safe-haven demand for bullion spurred by possible new Western sanctions on Russia.
Spot gold was down 0.6% at $1,921.47 per ounce by 2:16 p.m. EDT (1816 GMT). U.S. gold futures settled down 0.3% at 1,927.50.
Oil prices eased in volatile trade on Tuesday, pressured by a rising U.S. dollar and growing worries that new coronavirus cases could slow demand but losses were limited by supply concerns due to sanctions on Russia for alleged war crimes.
Brent futures fell 89 cents, or 0.8%, to settle at $106.64 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.32, or 1.3% to settle at $101.96.