Posted at 09 April 2022 / Categories Market Roundups
Market Roundup
•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
•U.S. Baker Hughes Total Rig Count 546, 533 previous
•U.S. Baker Hughes Oil Rig Count 689, 673 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
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 dropped for the seventh straight session to a one-month low of $1.0837. It last changed hands at $1.0873, down 0.3% on the day. 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. Sterling fell 0.5% against the greenback to $1.3005, after hitting a fresh low since November 2020 earlier in the session at 1.2982.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/CAD : The Canadian dollar pared its weekly decline against the greenback on Friday and bond yields climbed to multi-year highs as domestic data showing a record low jobless rate supported expectations for an upsized interest by the Bank of Canada. Canada’s unemployment rate fell to 5.3% in March, highlighting the tightening of the country's labor market, with the economy adding 72,500 jobs . The Canadian dollar was trading 0.1% higher at 1.2580 to the greenback, or 79.49 U.S. cents, recovering after it touched its weakest intraday level since March 22 at 1.2619. For the week, the currency was down 0.5%, losing ground after posting on Tuesday its strongest intraday level in nearly five months at 1.24.Immediate resistance can be seen at 1.2628(30 DMA), an upside break can trigger rise towards 1.2640(50%fib).On the downside, immediate support is seen at 1.2566 (38.2%fib), a break below could take the pair towards 1.2456 (23.6%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 124.65, 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.
The Dow rose and the S&P 500 ended lower in choppy trade on Friday, as beaten-down bank shares gained and investors grappled with how best to deal with an economy that could skid as the Federal Reserve moves to aggressively tackle inflation.
Dow Jones closed up by 0.40% percent, S&P 500 closed down by 0.27% percent, Nasdaq settled down by 1.34% percent.
Treasuries Recap
The U.S. Treasury 10-year yield hit a three-year high above 2.7% on Friday while the U.S. dollar index posted its largest weekly percentage gain in a month, helped by the prospect of more aggressive Federal Reserve tightening.
The yield on 10-year Treasury notes was up 5.2 basis points to 2.706% while the 2-year note yield was up 5.8 basis points at 2.520%, leaving the 2/10 spread at 18.41 basis points.
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 rose 0.5% to $1,941.94 per ounce and was up 0.9% for the week, while U.S. gold futures rose 0.4% to $1,945.6.
Oil prices rose 2% on Friday but notched their second straight weekly decline after countries announced plans to release crude from their strategic stocks.
Brent crude futures settled up $2.20, or 2.19%, at $102.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose $2.23 to $98.26.