Posted at 06 April 2022 / Categories Market Roundups
Market Roundup
• German Feb Factory Orders (MoM) -2.2%,-0.2% forecast,1.8% previous
• Sweden Industrial Production (MoM) 0.5%,1.1% previous
•German IHS Mar Markit Construction PMI 50.9, 54.9 previous
•UK Mar Construction PMI 59.1, 57.8 forecast, 59.1 previous
•EU Feb PPI (YoY) 31.4%,31.5% forecast, 30.6% previous
•EU Feb PPI (MoM) 1.1%,1.3% forecast, 5.2% previous
Looking Ahead - Economic Data (GMT)
•14:00 Canada Mar Ivey PMI 60.0 forecast, 60.6 previous
•14:00 Canada Mar Ivey PMI n.s.a 62.2 previous
• 14:30 Gasoline Inventories 0.063M forecast, 0.785M previous
• 14:30 Crude Oil Inventories-2.056M forecast,-3.449M previous
• 14:30 US Cushing Crude Oil Inventories -1.009M previous
Looking Ahead - Economic events and other releases (GMT)
• 13:30 US FOMC Member Harker Speaks
• 18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro declined on Wednesday as stronger dollar and the prospect of new Western sanctions on Russia weighed on euro. The United States and its allies prepared new sanctions on Moscow over civilian killings which President Volodymyr Zelenskiy described as war crimes, as heavy fighting and Russian airstrikes pounded the besieged port of Mariupol. The euro was 0.15% lower versus the dollar at $1.0907 at 11:00 GMT, after briefly touching a nearly one-month low of $1.0873. Immediate resistance can be seen at 1.0974(38.2%fib), an upside break can trigger rise towards 1.1016 (50%fib).On the downside, immediate support is seen at 1.0876 (Lower BB), a break below could take the pair towards 1.0853 (23.6%fib).
GBP/USD: The British pound weakened to a three-week low versus dollar on Wednesday, as latest comments by U.S. Federal Reserve’s officials highlighted a divergence between the U.S. and UK central banks on how to tackle inflationary pressures. A hawkish stance from the Fed bolstered the dollar and contrasts with the Bank of England. BoE deputy governor Jon Cunliffe said earlier this week he did not believe expectations of persistently high inflation were becoming embedded in companies’ and consumers’ thinking. The pound was flat against the dollar to $1.3073, after earlier touching its lowest level since March 16 at $1.3046. 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 rose against the Swiss franc on Wednesday as investors bet that the U.S. Federal Reserve raise interest rate hike to quell decades-high inflation. Fed Governor Lael Brainard said overnight that she expected a combination of interest rate rises and a rapid balance sheet runoff to take U.S. monetary policy to a "more neutral position" later this year. The focus of investors on Wednesday will be on the release of minutes from the Fed's last policy meeting, out at 1800 GMT. At (GMT 11:16), greenback dipped 0.46% versus the Swiss franc to 0.9337. Immediate resistance can be seen at 0.9346(23.6%fib), an upside break can trigger rise towards 0.9373 (29th March high).On the downside, immediate support is seen at 0.9311(50% fib), a break below could take the pair towards 0.9279(50%fib).
USD/JPY: The dollar strengthened against the yen on Wednesday as hawkish comments from U.S. Federal Reserve officials bolstered the dollar. The dollar scaled new height as Fed officials 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. Investors were awaiting the release of minutes from the Fed's last policy meeting out at 1800 GMT on Wednesday. At (GMT 11:20), greenback gained 0.29% versus the yen to 123.95. Strong resistance can be seen at 123.97 (23.6%fib), an upside break can trigger rise towards 124.28 (29th March high).On the downside, immediate support is seen at 123.07(38.2%fib), a break below could take the pair towards 122.89(50%fib).
Equities Recap
European stocks were sharply lower on Wednesday, with weak German data, uncertainty ahead of Sunday's first round presidential vote in France and hawkish comments from Fed Governor Lael Brainard weighing on sentiment.
At (GMT 11:30),UK's benchmark FTSE 100 was last trading down at 0.33 % percent, Germany's Dax was down by 1.72 %percent, France’s CAC finished was down by 1.81 % percent.
Commodities Recap
Gold turned positive on Wednesday as risk-off sentiment gripped financial markets amid the possibility of more Western sanctions on Russia, although aggressive U.S. rate hike bets kept bullion near a one-week low.
Spot gold rose 0.3% to $1,928.96 per ounce by 1005 GMT. U.S. gold futures were 0.3% higher at $1,932.40.
Oil futures rose on Wednesday, paring early losses, as the threat of new sanctions on Russia raised supply concerns, countering fears of weaker demand following a build in U.S. crude stockpiles and Shanghai's extended lockdown.
Brent crude futures were up $1.14, or 1.1%, at $107.78 a barrel as of 1115 GMT. U.S. West Texas Intermediate futures climbed $1.42, or 1.4%, to $103.38 a barrel.