Posted at 26 April 2022 / Categories Market Roundups
Market Roundup
• UK March Public Sector Net Cash Requirement -2.416B, 2.478B previous
• UK March Public Sector Net Borrowing 17.32B ,12.35B previous
•Swiss March Trade Balance 2.988B, 5.953B previous
Looking Ahead Economic Data (GMT)
•12:30 US March Durables Excluding Defense (MoM) -2.6% previous
•12:30 US March Core Durable Goods Orders (MoM) 0.6% forecast,-0.6% previous
•12:30 US March Durable Goods Orders (MoM) 1.0% forecast,-2.1% previous
•12:30 US March Goods Orders Non Defense Ex Air (MoM) 0.5% forecast,-0.2% previous
•12:55 Redbook (YoY) 15.2% previous
•13:00US Feb House Price Index (MoM) 1.6% previous
•13:00US Feb House Price Index 373.3 previous
•13:00US Feb House Price Index (YoY) 18.2% previous
•13:00 US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 19.0% forecast, 19.1% previous
•13:00 US Feb S&P/CS HPI Composite - 20 s.a. (MoM) 1.5% forecast,1.8% previous
•14:00 US Manufacturing Sales (MoM) 4.2% previous
•14:00 US March New Home Sales (MoM) -2.0% previous
•14:00 US March New Home Sales 765K forecast, 772K previous
•14:00 US April Richmond Services Index 9 previous
•14:00 US April CB Consumer Confidence 108.0 forecast, 107.2 previous
•14:00 US April Texas Services Sector Outlook 10.6 previous
•14:00 US April Dallas Fed Services Revenues 23.4 previous
Looking Ahead - Events, Other Releases (GMT)
•No events ahaed
Fxbeat
EUR/USD: The euro declined against dollar on Monday as concerns about the impact on the global economy of pandemic restrictions in China weighed on euro.Investors focused on monetary policy expectations ahead of the Federal Reserve meeting next week while also watching for European Central Bank officials' signals. Money markets continue to price in more than 80 bps of ECB interest rate rises by year-end, amid new hawkish comments from central bank officials. The euro slid 0.9%, near the session's trough and its weakest level since the initial COVED panic of March 2020. Immediate resistance can be seen at 1.0755(38.2%fib), an upside break can trigger rise towards 1.0780 (5DMA).On the downside, immediate support is seen at 1.0680(Daily low), a break below could take the pair towards 1.0651 (23.6%fib).
GBP/USD: Sterling held near its lowest levels since 2020 on Tuesday against a broadly firm dollar, with worries about Britain's economic outlook exacerbated by latest debt numbers and fears that COVID-19 restrictions in China will hurt world growth. Data on Tuesday showed British government borrowing in the recently ended 2021/22 financial year was almost 20% higher than forecast by the country's budget office last month. Sterling was down 0.25% at $1.2702 at 1005 GMT, after falling on Monday below $1.27 for the first time since September 2020.Immediate resistance can be seen at 1.2805 (38.2%fib), an upside break can trigger rise towards 1.2863(5DMA).On the downside, immediate support is seen at 1.2672 (23.6%fib), a break below could take the pair towards 1.2600(Psychological level).
USD/CHF: The dollar edged lower against the Swiss franc on Tuesday as global growth concerns and fears of aggressive Fed tightening increased demand for safe haven asset. Markets have been fretting that an aggressive pace of tightening by the U.S. Fed could derail the global economy, which has only just started to recover from the pandemic.The Fed is expected to raise rates by a half a percentage point at each of its next two meetings. 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 0.9550(5DMA), a break below could take the pair towards 0.9535(38.2 % fib ).
USD/JPY: The dollar dipped against yen on Tuesday as renewed concerns about rising interest rates and China's sputtering economy boosted safe haven yen appeal. Fears over China's COVID-19 outbreaks spooked investors already worried that higher U.S. interest rates could dent economic growth. Three-quarters of Beijing’s 22 million people lined up for COVID-19 tests as the Chinese capital raced to stamp out a nascent outbreak and avert the city-wide lockdown that debilitated Shanghai for a month . Strong resistance can be seen at 129.29(23.6%fib), an upside break can trigger rise towards 129.94(Higher BB).On the downside, immediate support is seen at 127.07(38.2%fib), a break below could take the pair towards 126.66 (14DMA).
Equities Recap
European shares breathed a sigh of relief on Tuesday as earnings from companies including Swiss bank UBS and shipping giant Maersk boosted sentiment, following an equity sell-off in the previous session driven by global growth fears.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 1.10 percent, Germany's Dax up by 1.21 percent, France’s CAC finished was up by 1.38 percent.
Commodities Recap
Oil prices rose modestly in volatile trading on Tuesday as the market weighed concerns over Russian supply and Chinese demand.
Brent crude futures were up 41 cents, or 0.4%, at $102.73 a barrel at 1117 GMT, while U.S. West Texas Intermediate contracts were up 18 cents, or 0.2%, at $98.72 per barrel.
Gold prices rose on Tuesday as investors sought the safe-haven asset amid fears over global growth and soaring inflation, though bets of aggressive U.S. interest rate hikes kept bullion pinned near four-week lows hit in the previous session.
Spot gold edged 0.3% higher to $1,904.20 per ounce by 1138 GMT. Prices touched $1,890.20 on Monday - its lowest since March 29.