Posted at 07 April 2022 / Categories Market Roundups
Market Roundup
• German Feb Industrial Production (MoM) 0.2%,-0.2% forecast,2.7% previous
•UK Halifax House Price Index (YoY) 11.0%, 10.8% previous
•French Mar Reserve Assets Total 232,616.0M previous
•EU Feb Retail Sales (YoY) 5.0%, 4.8% forecast,7.8% previous
•EU Feb Retail Sales (MoM) 0.3%,0.6% forecast, 0.2% previous
•Irish Mar CPI (YoY) 6.7%,5.6% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Initial Jobless Claims 200K forecast, 202K previous
•12:30 US Jobless Claims 4-Week Avg 208.50K previous
•12:30 US Continuing Jobless Claims 1,311K forecast, 1,307K previous
•12:30 US Natural Gas Storage -26B forecast,26B previous
•19:00 US Feb Consumer Credit 16.65B forecast, 6.84B previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US Chicago Fed President Evans Speaks
•18:00 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro edged lower on Thursday as markets focused on central bank signals ahead of a first-round presidential vote on the weekend. Markets have this week started to acknowledge the possibility of far-right candidate Marine Le Pen winning this month's presidential elections against incumbent Emmanuel Macron. Investors will watch the European Central Bank's March meeting minutes later in the session. But with markets pricing in 60 bps of ECB rate hikes by year-end, analysts don't expect the minutes to have a major impact. 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 edged higher versus dollar on Thursday as this week's FOMC minutes fuelled BoE to hike rates. Sterling's slight strength has helped buoy cable, though the possibility of the Fed beginning a series of 50bp hikes as it focuses exclusively on fighting U.S. inflation, while the BoE splits growth and inflation concerns and raises rates at a 25bp clip could send. The pound was up against the dollar to $1.3083, after earlier touching its lowest level since March 16 at $1.3046. Immediate resistance can be seen at 1.3124 (38.2%fib), an upside break can trigger rise towards 1.3167(30DMA).On the downside, immediate support is seen at 1.3042 (23.6%fib), a break below could take the pair towards 1.2999(Lower BB).
USD/CHF: The dollar rose against the Swiss franc on Thursday after meeting minutes showed the Federal Reserve preparing to move aggressively to fight inflation, while commodity-linked currencies fell further.Minutes from the March Fed meeting published on Wednesday showed "many" participants were prepared to raise interest rates in 50-basis-point increments in coming months. By 1045 GMT, the U.S. dollar index traded at 99.676 after earlier reaching 99.823, its strongest since May 2020 . Immediate resistance can be seen at 0.9347(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 0.9281(50%fib).
USD/JPY: The dollar strengthened against the yen on Thursday as indications by U.S. policymakers of aggressive rate hikes and balance sheet reductions boosted dollar. Minutes of the U.S. Federal Reserve's meeting in March released overnight showed deepening concerns among policymakers that inflation had broadened through the economy, and hinted at policymakers agreeing on balance sheet reductions. Investors have also been eyeing global central banks' policy moves to tackle runaway inflation and geopolitical tensions. 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 advanced on Thursday, even as a cautious undertone prevailed following hawkish Federal Reserve minutes and Washington's new sanctions against Russia..
At (GMT 11:46),UK's benchmark FTSE 100 was last trading down at 0.05% percent, Germany's Dax was up by 0.46 % percent, France’s CAC finished was up by 0.72 % percent.
Commodities Recap
Gold prices inched up on Thursday, as inflation worries intensified by the Ukraine war and mounting sanctions on Russia eclipsed pressure from the U.S. Federal Reserve's aggressive policy stance.
Spot gold rose 0.1% to $1,927.84 per ounce by 0953 GMT. U.S. gold futures gained 0.4% to $1,930.90.
Oil prices rose on Thursday from a three-week low touched in the previous session after consuming nations announced a huge release of oil from emergency reserves, as worries over tight supplies still clouded the market outlook.
Brent crude futures climbed $1.05 or 1.%, to $102.12 a barrel at 0921 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 86 cents, or 0.9%, to $97.09 a barrel.