Posted at 04 January 2022 / Categories Market Roundups
Market Roundup
•French 6-Month BTF Auction -0.640%,-0.675% previous
•French 3-Month BTF Auction -0.667%,-0.764% previous
•French 12-Month BTF Auction -0.635%,-0.644% previous
•US Dec Manufacturing PMI 57.7,57.8 forecast, 58.3 previous
•US Nov Construction Spending (MoM) 0.4%,0.6% forecast, 0.2% previous
Looking Ahead Economic Data
•01:30 China Dec Caixin Manufacturing PMI 50.0 forecast, 49.9 previous
•05:30 Australia Commodity Prices (YoY) 36.2% previous
Looking Ahead - Events, Other Releases (GMT)
• No data ahead
Fxbeat
EUR/USD: The euro edged lower against dollar on Monday after data showed German manufacturers PMI was unchanged . IHS Markit's Final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of the economy, was unchanged at 57.4, slightly lower than a flash reading of 57.9.The outlook for factories in Europe's biggest economy has been clouded by shortages of semiconductors and raw materials, affecting the German auto industry in particular. The euro slipped 0.21% to $1.1345. Immediate resistance can be seen at 1.1311(38.2%fib), an upside break can trigger rise towards 1.1336(23.6%fib).On the downside, immediate support is seen at 1.1291(50%fib), a break below could take the pair towards 1.1272 (61.8%fib).
GBP/USD: Sterling dipped against the dollar on Monday as a surge in COVID-19 infections globally due to the Omicron variant dampened risk appetite. Peak of a wave of coronavirus infections caused by the highly contagious Omicron variant, a surge of infections in other countries remained a concern for investors. Investor focus at the start of the new year was also on how the U.S. Federal Reserve plans to taper monetary stimulus, especially in light of the spreading Omicron variant. Sterling dipped 0.05% at $1.3517.Immediate resistance can be seen at 1.3540 (23.6%fib), an upside break can trigger rise towards 1.3571 (Higher BB).On the downside, immediate support is seen at 1.3463(38.2%fib), a break below could take the pair towards 1.3404 (50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as greenback strengthened in anticipation that the Federal Reserve will stay on its path of interest rate hikes in 2022.While the surge in coronavirus cases caused by the Omicron variant continued to impact global travel and public services, investors remained optimistic that lockdowns would be averted. Immediate resistance can be seen at 1.2783 (38.2%fib), an upside break can trigger rise towards 1.2815 (Dec 30th high).On the downside, immediate support is seen at 1.2735 (5 DMA), a break below could take the pair towards 1.2680 (61.8%fib).
USD/JPY: The dollar rose to hit four month high against the Japanese yen on Monday as traders bet on an early Federal Reserve interest rate hike despite surging COVID-19 cases. Focus turned to US data this week, US manufacturing PMI, durable goods, ADP jobs, non-farm payrolls data is due this week. Positive numbers may confirm US economic strength may influence Fed to hike rates. Investors are also closely watching how the U.S. Federal Reserve will taper its monetary policy, as it faces the economic risks from the Omicron variant and rising inflation rates. Strong resistance can be seen at 115.46 (23.6%fib), an upside break can trigger rise towards 116.00 (Psychological level).On the downside, immediate support is seen at 115.16 (5DMA), a break below could take the pair towards 114.87(38.2%fib).
Equities Recap
European shares ended at all-time highs on Monday, starting the year in an upbeat mood on hopes of steady economic recovery despite a surge in COVID-19 cases due to the Omicron variant.
Germany's Dax ended up by 0.86 percent, France’s CAC finished the day up by 0.90 percent.
U.S. stock indexes inched higher on Monday, looking to extend a market recovery from the pandemic shock into the new year, while shares in heavyweight Tesla jumped after the electric carmaker posted bumper delivery numbers.
Dow Jones closed closed up by 0.68 percent, S&P 500 closed up by 0.64 percent, Nasdaq closed up by 1.20 % percent.
Treasuries Recap
U.S. Treasury yields advanced on Monday in thin trading, with several global markets closed, as investors still priced in an interest rate hike by mid-2022 despite the surge in COVID cases after the holidays.
U.S. 10-year yields hit a six-week high of 1.607% and was last up 10 basis points at 1.6019% , U.S. 30-year yields were up 8 basis points at 1.9708% .
Commoditise Recap
Gold prices gained on Tuesday amid curbs to contain the spread of Omicron coronavirus cases, while a rise in U.S. Treasury yields supported by inflation fears kept safe-haven bullion's gains in check.
Spot gold rose 0.3% to $1,806.20 per ounce , after slipping from a more than one-month high of $1,831.62 in the previous session.U.S. gold futures were up 0.2% to $1,804.50.
Oil settled higher on Monday on hopes of further demand recovery in 2022, despite OPEC+ looking set to agree to another output increase and persistent concerns about how rising COVID infections might affect demand.
Brent crude settled up $1.20, or 1.5%, at $78.98 a barrel at 12 p.m. EST (1700 GMT), having earlier risen as high as $79.05. U.S. West Texas Intermediate (WTI) crude settled up 87 cents at $76.08 a barrel.