Posted at 11 April 2022 / Categories Market Roundups
Market Roundup
•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
•US 3-Month Bill Auction 0.785%,0.670% previous
•US 6-Month Bill Auction 1.220%,1.110% previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Mar Bank Lending (YoY) 0.4% previous
•23:50 Japan Mar PPI (MoM) 0.9% forecast,0.8% previous
•J23:50 apan Mar PPI (YoY) 9.3% forecast, 9.3% previous
•01:30 Australian Mar NAB Business Confidence 13 previous
•01:30 Australian Mar NAB Business Survey 9 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro initially gained against the dollar on Monday but reversed course as investors digested first round of France’s presidential election. French leader Emmanuel Macron and challenger Marine Le Pen qualified on Sunday for what promises to be a very tightly fought presidential election runoff on April 24, pitting a pro-European economic liberal against a far-right nationalist. With partial results putting Macron in first place ahead of Le Pen after the first-round voting, other major candidates admitted defeat. Immediate resistance can be seen at 1.0887(5DMA), an upside break can trigger rise towards 1.0941 (38.2%fib).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 euro and 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. The pound edged flattened to $1.3036 by 1435 GMT, after falling below $1.30, remaining not far from its lowest level against the dollar since November 2020.Immediate resistance can be seen at 1.3046(5DMA), an upside break can trigger rise towards 1.3084 (50%fib).On the downside, immediate support is seen at 1.3021 (38.2%fib), a break below could take the pair towards 1.2970(Lower BB).
USD/CAD : The Canadian dollar weakened against the greenback on Monday, and the yield on benchmark government debt climbed. Canadian government 10-year bond yields rose 7 basis points to 2.704%. The yield on similar U.S. government benchmark debt rose to 2.7801%.U.S. May crude futures fell $3.97 to settle at $94.29 a barrel on Monday. The loonie was trading 0.4% lower at C$1.2619 to the greenback, or 79.25 U.S. cents, after trading in a range of 1.2567 to 1.2637. Immediate resistance can be seen at 1.2638 (50 %fib), an upside break can trigger rise towards 1.2678 (Higher BB).On the downside, immediate support is seen at 1.2593 (5 DMA), a break below could take the pair towards 1.2559 (38.2%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. Focus was now on the March U.S. consumer price report due on Tuesday, with traders expecting further rises due to the impact of the Ukraine war on energy costs .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 broadly on Monday as investors fretted over the threat to growth from the Russia-Ukraine war, high inflation and rising interest rates.
UK's benchmark FTSE 100 closed down by 0.67 percent, Germany's Dax ended down by 0.64percent, France’s CAC finished the day up by 0.12 percent.
Wall Street closed sharply lower on Monday as investors started the holiday-shortened week in a risk-off mood, as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data.
Dow Jones closed down by 1.19% percent, S&P 500 closed down by 1.67% percent, Nasdaq settled down by 2.17% percent.
Treasuries Recap
The benchmark 10-year U.S. Treasury yield rose on Monday to its highest level in more than three years as investors awaited key inflation data later this week to determine how hawkish the Federal Reserve will need to be on its policy path.
The yield on 10-year Treasury notes was up 3.8 basis points to 2.753% after climbing to 2.784%, its highest level since January 2019. The yield was on track to climb for a seventh straight session.
Commodities Recap
Palladium steadied after jumping as much as 5% on Monday on supply concerns following a recent suspension on trading of the metal sourced from Russia in the London hub, while gold was buoyed by inflation fears.
Spot gold was up 0.1% at $1,947.80 per ounce after hitting its highest since March 14 at $1,968.91. U.S. gold futures settled up 0.1% at $1,948.2.
Oil prices fell about 4% on Monday, with Brent crude tumbling below $100 a barrel on worries that the COVID-19 pandemic will cut demand in China and as International Energy Agency (IEA) countries plan to release record volumes of oil from strategic stocks.
Brent futures fell $4.30, or 4.2%, to settle at $98.48 a barrel, while WTI crude fell $3.97, or 4.0%, to settle at $94.29. It was the lowest close for Brent since March 16.