Posted at 07 April 2022 / Categories Market Roundups
Market Roundup
•US Initial Jobless Claims 166K,200K forecast, 202K previous
•US Jobless Claims 4-Week Avg 170.00K,208.50K previous
•US Continuing Jobless Claims 1,523K,1,311K forecast, 1,307K previous
•US Natural Gas Storage -33B,-26B forecast,26B previous
•US Feb Consumer Credit 41.82B,16.65B forecast, 6.84B previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Feb Current Account n.s.a 1.437T forecast, -1.189T previous
• 23:50 Japan Adjusted Current Account 0.19T previous
Looking Ahead - Economic events and other releases (GMT)
•01:30 Australia RBA Financial Stability Review
Currency Summaries
EUR/USD: The euro edged higher against dollar on Thursday after minutes of the latest ECB meeting hinted at less dovish conditions for raising rates. European Central Bank policymakers appeared keen to unwind stimulus at their March 10 meeting, with some pushing for even more action, as conditions for raising rates had either been met or were about to be met, the accounts of the gathering showed. Policymakers agreed at the meeting to end bond buys some time in the third quarter but made no further commitment to roll back stimulus, even as inflation continued to soar on high energy and food prices. Immediate resistance can be seen at 1.0965(38.2%fib), an upside break can trigger rise towards 1.0993 (14DMA).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 initially gained versus dollar on Thursday but gave up ground as expectation of more aggressive Fed rate hikes vs BoE weighed on pound. Meeting minutes showed Federal Reserve officials viewed hefty rate increases as appropriate at future meetings, especially if inflation pressures intensify.Bank of England Chief Economist Huw Pill said on Thursday quantitative easing may be the wrong tool to tackle any future episodes of bond market turmoil, especially given how high inflation is now. The U.S. dollar versus the pound flattened at $1.3074, after touching a three-week low in the previous day against the greenback. Immediate resistance can be seen at 1.3121 (38.2%fib), an upside break can trigger rise towards 1.3161(30DMA).On the downside, immediate support is seen at 1.3045 (23.6%fib), a break below could take the pair towards 1.3001 (Lower BB).
USD/CAD: The Canadian dollar weakened to its lowest level in more than two weeks against its U.S. counterpart on Thursday as investors adjusted to the Federal Reserve's more hawkish stance and awaited the presentation of Canada's federal budget. The price of oil , one of Canada's major exports, settled 0.2% lower at $96.03 a barrel The loonie was trading 0.3% lower at 1.2575 to the greenback , after touching its weakest since March 22 at 1.2611. On Tuesday, it touched its strongest in nearly five months at 1.24. Immediate resistance can be seen at 1.2652 (30DMA), an upside break can trigger rise towards 1.2652(50%fib).On the downside, immediate support is seen at 1.2572 (38.2%fib), a break below could take the pair towards 1.2473 (23.6%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. The dollar index hit 99.823 on Thursday, the highest since late May 2020. It was last up 0.2% at 99.810.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 shares on Thursday recovered from a selloff, as healthcare stocks surged to a record high even though risks from a hawkish Federal Reserve and Washington's new sanctions on Russia kept investors on edge..
UK's benchmark FTSE 100 closed down by 0.47 percent, Germany's Dax ended down by 0.52 percent, France’s CAC finished the day down by 0.57 percent.
The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve.
Dow Jones closed up by 0.25% percent, S&P 500 closed up by 0.43% percent, Nasdaq settled up by 0.06% percent.
Treasuries Recap
The U.S. Treasury 10-year yield rose near a three-year high on Thursday and the 2 year-10 year spread widened as traders, having priced in a string of rate hikes from the U.S. central bank, have sharpened their focus on the pace and scope of the Fed's plans to reduce its balance sheet.
The yield on 10-year Treasury notes was up 4.1 basis points to 2.650% while the 2-year note yield was down 5.7 basis points at 2.445%, leaving the 2-10 curve at 20.32 basis points, the steepest since March 25.
The yield on the 30-year Treasury bond was up 7.1 basis points to 2.703%, its highest since May 2019.
Commodities Recap
Gold prices rose on Thursday as concerns over rising costs and the Ukraine crisis bolstered its appeal as an inflation hedge and a safe haven, but the U.S. Federal Reserve's aggressive policy stance limited gains.
Spot gold was up 0.5% to $1,934.69 per ounce by 2:13 p.m. ET (1812 GMT). U.S. gold futures rose 0.8% to $1,937.80.
Oil settled lower on Thursday, adding to weekly losseson uncertainty that the euro zone will be able to effectively sanction Russian energy exports and after consuming nations announced a huge release of oil from emergency reserves.
Brent crude futures fell 49 cents, or 0.5%, to settle at $100.58 a barrel while U.S. West Texas Intermediate (WTI) crude fell 20 cents, or 0.6%, to settle at $96.03 a barrel.