Posted at 25 April 2022 / Categories Market Roundups
Market Roundup
•German Apr Current Assessment 97.2, 95.8 forecast, 97.0previous
•German Apr Business Expectations 86.7, 83.5 forecast, 85.1 previous
•German Apr Ifo Business Climate Index 91.8, 89.1 forecast, 90.8 previous
•EU Feb Construction Output (MoM) 1.86%, 3.94% previous
•UK Apr CBI Industrial Trends Orders 14, 21 forecast, 26 previous
Looking Ahead - Economic data ahead (GMT)
•13:00 French 3-Month BTF Auction -0.653% previous
•13:00 French 6-Month BTF Auction-0.561% previous
•13:00 French 12-Month BTF Auction -0.291% previous
•13:00 Belgium Apr Business Climate 0.4 previous
• 14:30 US Dallas Apr Fed Mfg Business Index 8.7 previous
• US 15:30 3-Month Bill Auction 0.860% previous
• US 15:30 US 6-Month Bill Auction 1.250% previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 Canada BoC Gov Macklem Speaks
•15:00 Bank of Canada Senior Deputy Governor Rogers Speech
Fxbeat
EUR/USD: The euro declined against dollar on Monday as relief over Emmanuel Macron’s French presidential election win quickly gave way to renewed concerns about the global economy and the impact on it of rising interest rates. Much focus on is on how fast and far the Federal Reserve will raise U.S. interest rates this year and whether it will, along with all the other global worries, tip the world economy into recession. The euro’s tiny gains after news of French President Emmanuel Macron’s comfortable election victory over far-right rival Marine Le Pen quickly dissipated, with the single currency down 0.8% at $1.0729. Immediate resistance can be seen at 1.0807(5DMA), an upside break can trigger rise towards 1.0849 (38.2%fib).On the downside, immediate support is seen at 1.0713(23.6%fib), a break below could take the pair towards 1.0617 (Lower BB).
GBP/USD: Sterling fell on Monday to its lowest since September 2020 against a strengthening dollar as money markets scaled back their bets on future monetary policy tightening from the Bank of England (BoE).The greenback climbed as investors sought safety due to uncertainties over the global growth outlook. Money markets are currently pricing around 150 basis points (bps) of additional BoE rate hikes by year-end from 160 bps on Friday. BoE looked mainly concerned about risks of a possible recession and a slowdown in the labour market, analysts said after comments from BoE Governor Andrew Bailey last Thursday. The pound fell 0.8% to its lowest since September 2020 of $1.2725 after setting on Friday the biggest daily drop since September 2020.Immediate resistance can be seen at 1.2831 (38.2%fib), an upside break can trigger rise towards 1.2904(50%fib).On the downside, immediate support is seen at 1.2700 (Daily Low), a break below could take the pair towards 1.2654 (23.6%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Monday as investors sought safety amid uncertainty over the global growth outlook. Safe haven Swiss franc gained on fears about whether the global economy can withstand an increasingly hawkish U.S. Federal Reserve, worries about Chinese growth due to COVID-19 lockdowns, and the commodity shock caused by the Russia-Ukraine war. At (GMT 13:00), greenback dipped 0.14% versus the Swiss franc to 0.9553. Immediate resistance can be seen at 0.9596 (23.6 % fib), an upside break can trigger rise towards 0.9631(Higher BB).On the downside, immediate support is seen at 0.9546(38.2%fib), a break below could take the pair towards 0.9533(5DMA ).
USD/JPY: The dollar dipped against yen on Monday as concern over the global growth outlook boosting safe haven yen appeal. With war in Ukraine entering a third month and the lockdown of 25 million people in Shanghai about to enter a second month, investor sentiment was fragile amid worries that climbs in consumer prices will lead to rapid global interest rate rises. The U.S. dollar reached 128.86 yen for the first time since April 2002 before easing to last trade 0.21% lower at 128.14. Strong resistance can be seen at 129.16(23.6%fib), an upside break can trigger rise towards 130.00(Psychological level).On the downside, immediate support is seen at 127.40(9DMA), a break below could take the pair towards 126.78 (38.2%fib).
Equities Recap
European stocks tumbled on Monday to hit one-month lows due to worries surrounding China's Covid resurgence, runaway inflation and the expected response by global central banks.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 1.43 percent, Germany's Dax down by 0.91 percent, France’s CAC finished was down by 1.38 percent.
Commodities Recap
Gold prices slipped to their lowest in four weeks on Monday as prospects of aggressive policy tightening by the U.S. Federal Reserve and a stronger dollar dented the precious metal’s appeal.
Spot gold fell 0.7% to $1,916.17 per ounce by 0922 GMT, earlier hitting its lowest since March 29 at $1,911.80. U.S. gold futures were 0.9% lower at $1,917.60.
Oil slumped nearly 5% to its lowest in almost two weeks on Monday, extending last week's decline as concern grew that prolonged COVID-19 lockdowns in Shanghai and potential increases to U.S. interest rates would hurt global growth and oil demand.
Brent crude was down $5.19, or 4.9%, at $101.46 a barrel by 1145 GMT and touched $101.20 earlier in the session, its lowest since April 12. U.S. West Texas Intermediate (WTI) crude fell $4.61, or 4.5%, to $97.46.