News

Europe Roundup:Euro boosted by French election, Gold slips, Oil drops below $100 on reserves release and China lockdowns-April 11th,2022

Posted at 11 April 2022 / Categories Market Roundups


Market Roundup

•UK GDP (YoY)  9.5%,9.5% forecast, 10.0%previous

•U.K. Feb Construction Output (YoY ) 6.1%,6.8% forecast, 9.9% previous

•U.K. Feb Industrial Production (MoM) -0.6%,0.3% forecast,0.7% previous

•U.K. Feb Industrial Production (YoY) 1.6%, 2.1% forecast, 2.3% previous

•U.K. Feb GDP (MoM)  0.3% forecast, 0.8% previous

•U.K. Feb Monthly GDP 3M/3M Change 1.0%, 1.1% previous

•U.K. Feb Manufacturing Production (MoM) -0.4%, 0.3% forecast, 0.8% previous

•French 12-Month BTF Auction                 -0.320%, -0.410% previous

•French 3-Month BTF Auction -0.664%, -0.649% previous

•French 6-Month BTF Auction  -0.579%, -0.652% previous

Looking Ahead - Economic Data (GMT) 

•15:30 US 3-Month Bill Auction  0.670% previous

•15:30 US 6-Month Bill Auction 1.110% previous

Looking Ahead - Economic events and other releases (GMT)

•13:30 US FOMC Member Bostic Speaks              
•13:30 US FOMC Member Bowman Speaks        
•16:00 US FOMC Member Williams Speaks         

Fxbeat

EUR/USD: The euro recovered from earlier decline versus the dollar on Monday, after French President Emmanuel Macron won a larger than expected vote share in Sunday's election. With 97% of the votes counted for Sunday's presidential election first round, Macron garnered 27.6% of the votes and far-right candidate Marine Le Pen won 23.4%. Macron will now go into a runoff against Le Pen on April 24. The first round result saw Macron record a bigger lead than he managed in 2017, leaving the euro 0.4% higher on the day at $1.0915, after it initially rose to $1.0955 overnight then fell to $1.0874. Immediate resistance can be seen at 1.0944(38.2%fib), an upside break can trigger rise towards 1.0994 (30DMA).On the downside, immediate support is seen at 1.0846 (Lower BB), a break below could take the pair towards 1.0813 (23.6%fib).

GBP/USD: Sterling fell on Monday against the dollar after data showed the UK economy slowed more sharply than expected in February. Monthly gross domestic product rose by 0.1% in February, down from 0.8% growth in January. Economists had forecast a 0.3% increase. The pound edged 0.1% to $1.3025 at 0840 GMT, after briefly falling below $1.30, remaining not far from its lowest level against the dollar since November 2020. Versus a strengthening euro, sterling fell 0.4% to 83.75 pence, after rising on Friday to its highest level against the single currency since March 23.Immediate resistance can be seen at 1.3092 (50%fib), an upside break can trigger rise towards 1.3117(21DMA).On the downside, immediate support is seen at 1.3030 (38.2%fib), a break below could take the pair towards 1.2948(23.6%fib).

 USD/CHF: The dollar initially gained  on Monday but gave up ground as fresh concerns about the war in Ukraine kept investors cautious. Ukrainian troops have repulsed several Russian assaults in the country's east, the focus of a new offensive by the invading forces, British intelligence said on Monday, while President Volodymyr Zelenskiy said this week will be crucial to the course of the war. Austrian leader Karl Nehammer planned to meet Russian President Vladimir Putin in Moscow on Monday and will call for an end to the conflict.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 Monday  as surging Treasury yields boosted the dollar. The U.S. dollar index was up after topping 100 for the first time in nearly two years on Friday, bolstered by prospects of aggressive rate hikes by the U.S. Federal Reserve to contain soaring inflation. The benchmark 10-year yield added another seven basis points to hit a more than three-year high of 2.77%, as the Fed readies to cut its asset holdings and move interest rates sharply higher.Strong resistance can be seen at 125.75(Higher BB), an upside break can trigger rise towards 126.00 (Psychological level).On the downside, immediate support is seen at 124.84(23.6%fib), a break below could take the pair towards 123.97(38.2%fib).

Equities Recap

European stocks fell on Monday as surging bond yields slammed technology shares and volatility gripped French blue-chip stocks on forecast of a tight race between President Emmanuel Macron and far-right challenger Marine Le Pen in the final round of voting.

At (GMT 14:58) UK's benchmark FTSE 100   was last down at 0.57% percent, Germany's Dax was last down by 0.57 % percent, France’s CAC was last up by 0.13 % percent.

Commodities Recap

Gold prices slipped in range-bound trading on Monday as surging Treasury yields boosted the dollar and countered fresh concerns about the war in Ukraine, while palladium extended gains fuelled by London’s decision to block trading of the metal from Russia.

Spot gold was down 0.2% at $1,941.95 per ounce, as of 0452 GMT, after hitting a more than one-week high of $1,949.32 earlier in the day. U.S. gold futures were flat at $1,945.70.

Oil prices dropped by $4 a barrel on Monday, with Brent crude tumbling below $100 on plans to release record volumes of crude and oil products from strategic stocks and on continuing coronavirus lockdowns in China.

Brent crude for June delivery was down $4.29, or 4.2%, at $98.49 a barrel by 1341 GMT. U.S. West Texas Intermediate crude lost $4.33, or 4.4%, to $93.93.


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