Posted at 20 April 2022 / Categories Market Roundups
Market Roundup
•German Mar PPI (MoM) 4.9%,2.6%forecast, 1.4% previous
•Italian Mar Car Registration (YoY) -29.7%,-22.6% previous
•German Mar PPI (YoY) 30.9%,28.2%forecast,25.9% previous
•German Mar Car Registration (MoM) 20.4%, 8.9% previous
•Italian Trade Balance EU -0.12B,-0.89B previous
• Italian Feb Trade Balance -1.662B,-5.052B previous
•EU Feb Industrial Production (MoM) 0.7%,0.2% forecast,-0.7% previous
Looking Ahead - Economic data ahead (GMT)
•12:30 Canada Median CPI (YoY) 3.5% previous
•12:30 Canada Trimmed CPI (YoY) 4.3% previous
•12:30 Canada ADP Nonfarm Employment Change 475.0K previous
•12:30 Canada New Housing Price Index (MoM) 1.1% previous
•12:30 Canada Mar CPI (MoM) 1.0% forecast,1.0% previous
•12:30 Canada Mar Core CPI (MoM) 0.5% forecast, 0.8% previous
•14:00 US Mar Existing Home Sales (MoM) -7.2% previous
•14:00 US Mar Existing Home Sales 5.80M forecast, 6.02M previous
•14:00 US Gasoline Inventories -0.976M forecast,-3.649M previous
•14:00 US Cushing Crude Oil Inventories 0.450M previous
•14:00 US Crude Oil Inventories 2.471M forecast, 9.382M previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US Beige Book
•14:30 US FOMC Member Daly Speaks
•14:30 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro strengthened on Wednesday as upbeat German producer prices data boosted euro across the board. German producer prices rose 30.9% on the year in March, reflecting the effects of the war in Ukraine for the first time, data from the Federal Statistics Office showed on Wednesday.March's figures mark six consecutive months of increasingly steeper increases, mainly due to rising energy prices, according to the statistics office. The jump in factory gate costs, considered a leading indicator for consumer prices, was the biggest since records started in 1949, the statistics office said. Producer prices registered a jump of 4.9% compared to the previous month. Immediate resistance can be seen at 1.0801(5DMA), an upside break can trigger rise towards 1.0849 (38.2%fib).On the downside, immediate support is seen at 1.0765 (23.6%fib), a break below could take the pair towards 1.0717 (Lower BB).
GBP/USD: The British pound climbed against the dollar on Wednesday, gaining after four days of losses, with investor attention turning to potential policy signals from the Bank of England this week. Speeches on Thursday by Bank of England (BoE) policymaker Catherine Mann and Governor Andrew Bailey were seen as potentially key drivers for the pound.After data last week showed British consumer price inflation hit at a thirty-year high of 7% in March, traders are watching for indications on how the BoE views the rate outlook. Sterling rose 0.2% to $1.30275, moving away from last week’s lows, not seen since November 2020. Immediate resistance can be seen at 1.3069 (38.2%fib), an upside break can trigger rise towards 1.3158 (50%fib).On the downside, immediate support is seen at 1.2970 (23.6%fib), a break below could take the pair towards 1.2946(Lower BB).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as investors assessed the impact on Eurozone economy due to the war in Ukraine. On Tuesday, dollar rose as hawkish comments from U.S. central bank officials, including St. Louis Federal Reserve Bank President James Bullard, propelled the dollar and 10-year Treasury yields to multi-year highs.The yield on 10-year Treasury Inflation-Protected Securities, or real yields, touched two-year highs on Wednesday, briefly rising into positive territory for a second straight day. Immediate resistance can be seen at 09533 (23.6 % fib), an upside break can trigger rise towards 0.9553 (23.6%fib).On the downside, immediate support is seen at 0.9446 (50%fib), a break below could take the pair towards 0.9422 (61.8% fib ).
USD/JPY: The dollar dipped on Wednesday after the Bank of Japan stepped into the market again to defend its ultra-low interest-rate policy, drawing a sharp contrast with the United States where Treasury yields hit new highs.The BOJ again offered to buy unlimited amounts of Japanese government bonds to check the rise in Japanese 10-year yields, which were butting against its 0.25% tolerance ceiling. The U.S. dollar reached 129.43 yen for the first time since April 2002 before easing to last trade 0.21% lower at 127.93. Strong resistance can be seen at 128.23(38.2%fib), an upside break can trigger rise towards 129.29(23.6%fib).On the downside, immediate support is seen at 127.37(50%fib), a break below could take the pair towards 126.35 (61.8%fib).
Equities Recap
European shares rose on Wednesday after a few positive earnings reports lifted sentiment, while worries over the Ukraine war, slowing growth and rising yields kept gains in check.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.12 percent, Germany's Dax was up by 1.14 percent, France’s CAC finished was up by 1.38 percent.
Commodities Recap
Gold prices eased on Wednesday to their lowest in nearly two weeks, as expectations of an aggressive tightening of U.S. monetary policy buoyed the dollar and Treasury yields, denting the appeal of zero-yielding bullion.
Spot gold was down 0.2% at $1,946.92 per ounce by 0949 GMT, after hitting its lowest since April 8. U.S. gold futures fell 0.4% to $1,950.80.
Oil prices rebounded on Wednesday as a drop in U.S. oil inventories and concerns over tighter supplies from Russia and Libya drove a recovery from the previous session's sharp losses.
Brent crude futures rose $1.46, or 1.4%, to $108.71 a barrel by 1139 GMT.