Posted at 22 August 2022 / Categories Market Roundups
Market Roundup
•Belgium Aug Consumer Confidence -11,-13 previous
•German 12-Month Bubill Auction 0.724%, 0.515% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Jul New Housing Price Index (MoM) 0.3% forecast, 0.2% previous
•12:30 US Chicago Jul Fed National Activity -0.19 previous
•13:00 French 12-Month BTF Auction 0.615% previous
•13:00 French 3-Month BTF Auction 0.019% previous
•13:00 French 6-Month BTF Auction 0.163% previous
•15:30 US 3-Month Bill Auction 2.610% previous
•15:30 US 6-Month Bill Auction 3.020% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro briefly fell back below parity against a robust dollar on Monday as concern that a three-day halt to European gas supplies later this month will exacerbate an energy crisis wighed on single currency . The euro bore the brunt of the selling pressure against the dollar after Russia announced late on Friday a three-day halt to European gas supplies via the Nord Stream 1 pipeline at the end of this month. The U.S. dollar index , which measures the currency against six rivals including the euro, rose to 108.47 its highest since July 15. The currency fell to as low as $0.99945, its lowest level since mid-July, and was last down 0.4% on the day. Immediate resistance can be seen at 1.0053(38.2%fib), an upside break can trigger rise towards 1.0110(50%fib).On the downside, immediate support is seen at 0.9989(23.6%fib), a break below could take the pair towards 0.9956 (July 14th low).
GBP/USD: The British pound weakened against the dollar on Monday as fears mounted that inflation-busting interest-rate hikes in the United States and Europe will weaken the global economy. The tightening gas supplies further stoked worries about the continent's economic growth following hawkish signals from European Central Bank policymakers. Authorities in Europe, as in the United States, are hiking rates to combat rocketing prices for fuel and goods. U.S. Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming, later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy. Immediate resistance can be seen at 1.1844(Daily high), an upside break can trigger rise towards 1.1944(50%fib).On the downside, immediate support is seen at 1.1786(Daily low),a break below could take the pair towards 1.1756 (23.6%fib).
USD/CHF: The dollar steadied against the Swiss franc on Monday as Federal Reserve officials continued to talk up the need for further interest rate hikes. Dollar strengthened amid expectations of more rate hikes from the U.S. Federal Reserve to tame surging inflation. U.S. Federal Reserve Chair Jerome Powell headlines a host of policymakers at a symposium in Jackson Hole, Wyoming, later in the week, with expectations growing of further rate hikes rather than a pivot to a more dovish policy . At (GMT 12:03), greenback gained 0.08% versus the Swiss franc to 0.9579. Immediate resistance can be seen at 0.9629(38.2%fib), an upside break can trigger rise towards 0.9656(Higher BB).On the downside, immediate support is seen at 0.9550(5DMA), a break below could take the pair towards 0.9532(38.2%fib)
USD/JPY: The dollar strengthened against yen on Monday as investors continued to digest the Fed meeting minutes. The Fed will likely raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a poll. Traders are now pricing in around a 46.5% chance of a75-basis-point rate hike in September and a 53.5% chance of a 50-bp increase after recent hawkish remarks from Fed officials. Focus this week will be on comments by Fed Chair Jerome Powell when he addresses the annual global central banking conference in Jackson Hole, Wyoming, on Friday. Strong resistance can be seen at 137.09(23.6%fib), an upside break can trigger rise towards 138.31(Higher BB).On the downside, immediate support is seen at 136.11 (38.2%fib), a break below could take the pair towards 135.80(5DMA).
EquitiesRecap
European shares fell on Monday, with major regional markets in the red, as investors fretted about hawkish signals from European Central Bank policymakers.
At (GMT 12:07),UK's benchmark FTSE 100 was last trading down at 0.22% percent, Germany's Dax was down by 1.98 % percent, France’s CAC was down by 1.43 % percent
Commodities Recap
Gold prices fell 1% on Monday to their lowest level in nearly four weeks, as expectations of more interest rate hikes by the U.S. Federal Reserve fuelled a rally in dollar and took the shine off bullion.
Spot gold fell 0.8% to $1,733.90 per ounce by 1104 GMT, its lowest since July 27. It is set to fall for a sixth straight session, having registered a 3% fall last week.
Oil prices were largely steady on Monday, recovering from earlier losses as a relatively tight global supply picture competed with fears of a recession and a rising dollar.
Brent crude futures for October settlement gained 15 cents, or 0.2%, to $96.87 a barrel by 1105 GMT.
U.S. West Texas Intermediate (WTI) crude for September delivery - due to expire on Monday - were up 45 cents, or 0.5%, at $91.22.