Posted at 08 April 2022 / Categories Market Roundups
Market Roundup
•Italian Feb Retail Sales (YoY) 4.8%, 8.4% previous
•Italian Feb Retail Sales (MoM) 0.7%, -0.5% previous
•Greek Mar HICP (YoY ) 8.0%,6.2% forecast, 6.3% previous
•Greek Mar CPI (YoY) 8.9%,7.0% forecast, 7.2% previous
•Canada Mar Participation Rate 65.4%,65.4% forecast, 65.4% previous
•Canada Mar Employment Change 72.5K, 80.0K forecast, 336.6K previous
•Canada Mar Unemployment Rate 5.3%, 5.3% forecast, 5.5% previous
•Brazil Feb Current Account (USD) -1.90B forecast, -8.10B previous
•US Feb Wholesale Trade Sales (MoM) 1.7%, 4.4% previous
•US Wholesale Inventories (MoM) 2.5%,2.1% forecast, 0.8% previous
Looking Ahead - Economic Data (GMT)
•U.S. Baker Hughes Total Rig Count 670 previous
•U.S. Baker Hughes Oil Rig Count 531 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Friday as markets focused on French election on the weekend. Risk of a populist upset in French presidential elections has also sent jitters through markets dragging on the euro ahead of the first round of voting on Sunday. A victory for far-right leader Marine Le Pen over incumbent Emmanuel Macron, while still unlikely, is now within the margins of error, opinion polls show. The euro edged down to a one-month low of $1.0858. 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 1.0853 (Lower BB), a break below could take the pair towards 1.0811 (23.6%fib).
GBP/USD: Sterling fell to its lowest level since November 2020 against a strengthening dollar on Friday as greenback was supported by the prospect of a more aggressive pace of Federal Reserve rate hikes. Minutes of the Fed’s March policy meeting that showed many policymakers were prepared to raise rates in half-percentage-point increments in coming meetings to curb inflation. The stronger dollar has heaped pressure back on the euro and British pound. Immediate resistance can be seen at 1.3036 (38.2%fib), an upside break can trigger rise towards 1.3080(50%fib).On the downside, immediate support is seen at 1.2991 (Lower BB), a break below could take the pair towards 1.2958(23.6%fib).
USD/CHF: The dollar rose against the Swiss franc on Friday as greenback was supported by the prospect of a more aggressive pace of Federal Reserve interest rates hikes. Minutes of the Fed's March 15-16 meeting showed deepening concern among policymakers that inflation had broadened through the economy, which convinced them to not only raise the target policy rate by a quarter of a percentage point from its near-zero level but also to expeditiously push it to a neutral posture, estimated to be around 2.4%. Immediate resistance can be seen at 0.9347(23.6%fib), an upside break can trigger rise towards 0.9373 (Daily high).On the downside, immediate support is seen at 0.9311(38.2% fib), a break below could take the pair towards 0.9281(50%fib).
USD/JPY: The dollar strengthened against the yen on Friday as indications by U.S. policymakers of aggressive rate hikes and balance sheet reductions boosted dollar. The dollar extended its gains against the Japanese yen, rising as much as 124.23, its highest in over a week and approaching last month's near seven-year high of 125.1.The yen has steadied this month after tumbling in March, but remains under pressure as the U.S. raises interest rates and the Bank of Japan is intervening in the bond market to keep rates low. Strong resistance can be seen at 124.59 (23.6%fib), an upside break can trigger rise towards 125.00 (Psychological level).On the downside, immediate support is seen at 123.60(5DMA), a break below could take the pair towards 123.2138.2%fib).
Equities Recap
European shares rebounded on Friday, playing catch-up with a modest bounce the previous day on Wall Street, and the dollar index hit 100 for the first time in nearly two years as U.S. bond yields hovered near multi-year highs.
UK's benchmark FTSE 100 ended up at 1.56% percent, Germany's Dax ended up by 1.46 % percent, France’s CAC finished ended up by 1.34 % percent.
Commodities Recap
Gold prices traded in a narrow range on Friday caught between expectations of aggressive U.S. interest rate increases and jitters over high inflation and the economic fallout of the Ukraine crisis.
Spot gold ticked 0.1% lower to $1,931.00 per ounce by 1114 GMT, but was up 0.3% for the week. U.S. gold futures eased 0.1% to $1,935.80.
Oil prices were stable on Friday in choppy trading but remained on course for a second weekly fall after countries announced plans to release crude from their strategic stocks.
Brent crude futures were up 77 cents, or 0.77%, at $101.35 a barrel by 12:19 p.m ET (1619 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 90 cents to $96.93.