Posted at 22 April 2022 / Categories Market Roundups
Market Roundup
•German Apr Services PMI 54.5,55.5 forecast, 56.1previous
•German Apr Composite PMI 54.5, 54.1 forecast, 55.1 previous
•German Apr Manufacturing PMI 54.1,54.5 forecast, 56.9 previous
•EU Apr Manufacturing PMI 55.3, 54.7 forecast,56.5 previous
•EU Apr Services PMI 57.7,55.0 forecast, 55.6 previous
•EU Apr Markit Composite PMI 55.8, 53.9 forecast, 54.9 previous
•UK Manufacturing PMI55.3,59.0 forecast, 55.2 previous
•UK Apr Composite PMI 57.6,59.7 forecast, 60.9 previous
•UK Apr Services PMI 58.3,60.0 forecast, 62.6 previous
Looking Ahead - Economic data ahead (GMT)
•12:30 Canada Manufacturing Sales (MoM) 4.2% previous
•12:30 Canada Retail Sales (MoM) -0.4% forecast, 3.2% previous
•12:30 Canada Mar RMPI (MoM) 6.0% previous
•12:30 Canada Feb Core Retail Sales (MoM) 0.1% forecast, 2.5% previous
•13:45 US Apr Manufacturing PMI 58.2 forecast,58.8 previous
•13:45 US Apr Markit Composite PMI 57.0 forecast, 57.7 previous
•13:45 US Apr Services PMI 58.0 forecast, 58.0 previous
•17:00 U.S. Baker Hughes Total Rig Count 693 previous
•17:00 U.S. U.S. Baker Hughes Oil Rig Count 548 previous
Looking Ahead - Economic events and other releases (GMT)
•14:30 UK BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro edged lower on Friday after European Central Bank officials made mixed comments, while expectations of a 50 basis points (bps) rate hike from the Federal Reserve supported the U.S. dollar. ECB President Christine Lagarde provided some dovish signals by saying the central bank might need to cut its growth outlook. This followed ECB dove Luis de Guindos joining a growing number of ECB policymakers in calling for an early end of the Asset Purchase Programme coupled with a rate rise in July. Euro zone PMI data showing business growth unexpectedly accelerated this month failed to provide immediate further direction to the market. Against the U.S. dollar, the euro fell 0.2% to $1.0812.Immediate resistance can be seen at 1.0857(38.2%fib), an upside break can trigger rise towards 1.0938(50%fib).On the downside, immediate support is seen at 1.0809 (5DMA), a break below could take the pair towards 1.0766 (23.6%fib).
GBP/USD: The British pound weakened against dollar on Friday after data showed Britain's private sector suffered a sharp slowdown this month as high inflation and the conflict in Ukraine weighed on the country's giant services sector. The preliminary S&P Global/CIPS composite Purchasing Managers' Index (PMI) dropped to a three-month low of 57.6 in April from 60.9 in March. Economists polled had mostly expected a smaller fall to 59.0. A separate survey published earlier on Friday showed consumer confidence close to its lowest level since records began nearly 50 years ago. Immediate resistance can be seen at 1.2951 (38.2%fib), an upside break can trigger rise towards 1.3017 (50%fib).On the downside, immediate support is seen at 1.2857 (23.6%fib), a break below could take the pair towards 1.2800(Psaychological level).
USD/CHF: The dollar steadied on Friday as an ever-more hawkish outlook for U.S. interest rates boosted dollar U.S. Federal Reserve Chairman Jerome Powell said on Thursday a half-point interest rate increase "will be on the table" when the central bank meets in May and that it would be appropriate to "be moving a little more quickly. Benchmark U.S. 10-year Treasury yields extended gains on the Fed's hawkish tone on tightening policy in its effort to tame soaring inflation. Meanwhile the dollar index scaled a fresh peak since March 2020. Immediate resistance can be seen at 0.9554 (23.6%fib), an upside break can trigger rise towards 0.9585 (Higher BB).On the downside, immediate support is seen at 0.9502(38.2% fib), a break below could take the pair towards 0.9465(50% fib).
USD/JPY: The dollar was headed for its seventh consecutive weekly gain on the yen on Friday as higher U.S. yields boosted the greenback. Overnight Federal Reserve Chairman Jerome Powell said a 50 basis-point rate hike was on the table at the next meeting in two weeks. The remark, though more or less in line with market expectations, sent five-year U.S. yields above 3% for the first time since 2018.The yen is down 1.6% for the week and last traded at 128.44 to the dollar, just above Wednesday's 20-year low of 129.43. The U.S. dollar index held above 100 at 100.61. Strong resistance can be seen at 128.53 (23.6%fib), an upside break can trigger rise towards 129.46 (Higher BB).On the downside, immediate support is seen at 127.99(5DMA), a break below could take the pair towards 126.38(50%fib).
Equities Recap
European shares wilted on Friday as traders ramped up interest rate hike bets following hawkish comments from central bank officials, while German software giant SAP and French luxury goods company Kering dropped after glum first-quarter results.
At (GMT 11:09 ),UK's benchmark FTSE 100 was last trading down at 0.80 percent, Germany's Dax was down by 1.83 percent, France’s CAC finished was down by 1.53 percent.
Commodities Recap
Gold prices fell on Friday as the prospect of aggressive interest rate hikes boosted U.S. Treasury yields and the dollar, denting zero-yielding bullion's appeal and setting prices on track for their first weekly decline in three.
Spot gold was down 0.44% to $1,942.91 per ounce at 1005 GMT. U.S. gold futures eased 0.2% to $1,945.20.
Oil slipped on Friday, burdened by the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand even as the European Union considers a ban on Russian oil that would further tighten supply.
Brent crude was down $1.73, or 1.6%, at $106.60 a barrel by 1045 GMT. U.S. West Texas Intermediate (WTI) crude declined $1.89, or 1.8%, to $101.09.