Posted at 27 April 2022 / Categories Market Roundups
Market Roundup
• German GfK May Consumer Climate -26.5, -16.0 forecast, -15.7 previous
• French Apr Consumer Confidence 88, 92 forecast, 90 previous
• Swiss ZEW Apr Expectations -51.6 ,-27.8 previous
•Italian Mar Trade Balance Non-EU -0.51B, -1.55B previous
•UK Apr CBI Distributive Trades Survey -35 ,-3 forecast,9 previous
Looking Ahead Economic Data (GMT)
•12:30 US Mar Goods Trade Balance -106.35B previous
•12:30 US Wholesale Inventories (MoM) 2.5% previous
•12:30 US Mar Retail Inventories Ex Auto 1.4% previous
•12:30 US ADP Nonfarm Employment Change 475.0K previous
•12:30 US Mar Pending Home Sales (MoM) -1.6% forecast,-4.1% previous
•12:30 US Crude Oil Inventories 2.000M forecast, -8.020M previous
•12:30 US Cushing Crude Oil Inventories -0.185M previous
Looking Ahead - Events, Other Releases (GMT)
•11:30 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro fell below $1.06 for the first time in five years against a broadly strong U.S. dollar on Wednesday amid rising concerns around energy safety and growth slowdown in China and Europe. The euro slipped to a five-year low of $1.05860 after Russia’s Gazprom said it would cut gas supply to Poland and Bulgaria, as the crisis in Ukraine deepened. It was 0.35% lower at $1.0601 at 1020 GMT.The single currency has fallen more than 4% so far in April and is heading for its worst monthly loss in more than seven years as uncertainty around the war in Ukraine and China’s COVID lockdown measures led traders to ditch the euro in favour of the safe-haven dollar. Immediate resistance can be seen at 1.0700(38.2%fib), an upside break can trigger rise towards 1.0721 (5DMA).On the downside, immediate support is seen at 1.0593(23.6%fib), a break below could take the pair towards 1.0563 (23.6%fib).
GBP/USD: Sterling fell to a new 21-month low against a strengthening dollar on Wednesday after Britain's weak economic outlook and higher than expected government borrowing dented the Bank of England's (BoE) monetary tightening narrative. Money markets have been scaling back bets on the size of BoE rate hikes, pricing in around 140 basis points (bps) worth of tightening by year-end from 160 bps last Friday . Data showed that government borrowing in the 2021/22 financial year was almost 20% higher than forecast. Optimism among British manufacturers has fallen at its fastest pace since the coronavirus crisis, a survey showed on Monday, adding to signs of a slowdown in the economy on the back of rising inflation. The pound was down 0.2% at $1.2547, after falling to a fresh 21-month low at $1.2543. Immediate resistance can be seen at 1.2601 (5DMA), an upside break can trigger rise towards 1.2678(38.2%fib).On the downside, immediate support is seen at 1.2558 (23.6%fib), a break below could take the pair towards 1.2500(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as growing fears about the global economy forced investors to switch to currencies such as the U.S. dollar. Financial markets, already anxious about the prospects for aggressive U.S. interest rate hikes, a spike in global inflation and the Ukraine war, were rattled this week over slowdown fears in China as Beijing stuck firm to stringent COVID-19 lockdowns. The dollar, which hit a two-year high this week, rallied further against a basket of rival currencies to 102.34. Immediate resistance can be seen at 0.9659 (23.6 % fib), an upside break can trigger rise towards 0.9710(Higher BB).On the downside, immediate support is seen at 0.9598(38.2%fib), a break below could take the pair towards 0.9548(38.2 % fib ).
USD/JPY: The dollar dipped against yen on Wednesday as the prospect of U.S. rate hikes boosted dollar. The dollar has roared 4.3% higher in April and is on course for its best month since January 2015, propelled by mounting expectations for the Federal Reserve to hike interest rates aggressively in coming months and the U.S. economy to hold up better than that of Japan.The Bank of Japan meets on Wednesday and Thursday and markets see some risk of adjustment to forecasts or even policy changes to try and arrest the yen’s recent tumble.Japanese Prime Minister Fumio Kishida played down such a risk on Tuesday . Strong resistance can be seen at 128.14(23.6%fib), an upside break can trigger rise towards 129.04(20th April high).On the downside, immediate support is seen at 127.00(Daily low), a break below could take the pair towards 126.24 (38.2%fib).
Equities Recap
European shares steadied on Wednesday on the back of commodity stocks, while Russian energy giant Gazprom halting gas supplies to Bulgaria and Poland and a plunge in German consumer morale kept gains in check.
At (GMT 10:32 ),UK's benchmark FTSE 100 was last trading up at 0.80 percent, Germany's Dax up by 0.52 percent, France’s CAC finished was up by 0.85 percent.
Commodities Recap
Gold prices slipped 1% to a two-month low earlier on Wednesday as a rally in dollar on expectations of faster U.S. rate hikes dented the appeal of greenback-priced bullion.
Spot gold fell 0.6% at $1,894.96 per ounce as of 1001 GMT, having dropped to $1,886.09, a low since Feb. 25. U.S. gold futures slid 0.4% to $1,896.
Oil was broadly steady on Wednesday after Russia cut gas supplies to Bulgaria and Poland, although lingering concerns about Asian coronavirus lockdowns weighing on economic growth and oil demand kept a lid on prices.
Brent crude futures rose 26 cents, or 0.3%, to $105.25 a barrel by 0823 GMT. U.S. West Texas Intermediate crude futures gained 10 cents, or 0.1%, to $101.80 a barrel.