Posted at 17 January 2022 / Categories Market Roundups
Market Roundup
• Italian Dec HICP (YoY) 4.2% ,4.2% forecast, 4.2% previous
•Italian Dec HICP (MoM) 0.5%, 0.5% forecast, 0.5% previous
•Italian Dec CPI (MoM) 0.4%,0.4% previous
Looking Ahead - Economic Data (GMT)
•12:00 UK NIESR GDP Estimate-2.5%
•13:30 Canada Nov Manufacturing Sales (MoM) 3.1% forecast, 4.3% previous
•13:30 Canada Nov Foreign Securities Purchases by Canadians 5.41B previous
•13:30 Canada Nov Foreign Securities Purchases 23.50B forecast, 23.92B previous
•14:00 French 12-Month BTF Auction -0.621% previous
•14:00 French 3-Month BTF Auction-0.633% previous
•14:00 French 6-Month BTF Auction -0.624% previous
•15:30 Canada BoC Business Outlook Survey
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro firmed on Monday as central bank tightening remained the main investor focus. The euro rose 0.1% versus the dollar at $1.1432, with no major economic data on the calendar this week, investors will focus on speeches from President Christine Lagarde and other ECB members. European Central Bank President Christine Lagarde said on Friday, the bank is ready to take any measures necessary to get inflation down to its 2% target. Inflation rose to 5% last month, the highest on record for the 19-country currency bloc. Immediate resistance can be seen at 1.1430 (38.2% fib), an upside break can trigger rise towards 1.1468 (23.6%fib).On the downside, immediate support is seen at 1.1402 (50% fib), a break below could take the pair towards 1.1372(61.8%fib).
GBP/USD: The British pound edged higher on Monday, nearing a 2-1/2 month high, as investors ramped up bets that the Bank of England will raise interest rates as early as next month. Recent data has raised expectations the British economy is rebounding strongly from the pandemic. GDP data on Friday showed the economy is bigger than what it was before the first COVID-19 lockdown while employment data on Tuesday is expected to be robust. Money markets are fully pricing in one rate hike by next month and one full percentage point increase in interest rates by the end of 2022.Against the U.S. dollar, the pound edged 0.1% higher at $1.3689. Immediate resistance can be seen at 1.3737(23.6% fib), an upside break can trigger rise towards 1.3758 (Higher BB).On the downside, immediate support is seen at 1.3662 (38.2%fib), a break below could take the pair towards 1.3610(50%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Monday as the dollar found its footing on expectations that U.S. Federal Reserve will raise interest rate hikes this year. The dollar index held on to Friday's gains, as investors braced for the Fed meeting and raised bets it will chart a year ahead containing several rate hikes. Traders await speeches from Fed officials this week ahead of the central bank's Jan. 25-26 policy meeting, but there have been more than enough hawkish comments to see the market almost fully price in a first interest rate hike for March and rates of 1.0% by the year-end. Immediate resistance can be seen at 0.9149 (38.2 % fib), an upside break can trigger rise towards 0.9202 (23.6%fib).On the downside, immediate support is seen at 0.9105 (50%fib), a break below could take the pair towards 0.9064 (61.8% fib ).
USD/JPY: The dollar rose against the Japanese yen on Monday as dollar was boosted on expectation that Federal Reserve will soon raise interest rate. Investors are also bracing for the Federal Reserve's decision following the Jan. 25-26 policy meeting, after recent hawkish comments have seen the market almost fully price in a first rate hike for March and rates of 1.0% by the year-end. Investors are wagering the sharp hawkish shift by the Federal Reserve. A first hike to 0.25% is priced in by June, with a better than 50-50 chance of a move in May, while rates are seen topping 1.0% by the end of the year. Strong resistance can be seen at 114.56 (5DMA), an upside break can trigger rise towards 114.71 (38.2%fib).On the downside, immediate support is seen at 114.23 (50%fib), a break below could take the pair towards 113.871(61.8%fib).
Equities Recap
European shares rose higher on Monday as investors focused on company earnings and U.S. Federal Reserve policymakers entered a quiet period ahead of their meeting next week.
At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading up at 0.57 percent, Germany's Dax was up by 0.34 percent, France’s CAC finished was up by 0.57 percent.
Commodities Recap
Gold prices held steady on Monday as market participants gauged the global economic policy outlook, with inflation-based demand for bullion countering hawkish comments from U.S. Federal Reserve officials which lifted the dollar and Treasury yields.
Spot gold rose 0.2% to $1,820.80 per ounce by 0807 GMT. U.S. gold futures rose 0.3% to $1,821.20.
Oil prices were steady on Monday, as investor bets that global supply will remain tight amid restraint by major producers were offset by a rise in Libyan output.
Brent crude was down 4 cents, or 0.1%, to $86.02 a barrel by 0953 GMT. Earlier in the session, the contract touched its highest since Oct. 3, 2018 at $86.71.
U.S. West Texas Intermediate crude was up 20 cents, or 0.2%, at $84.02 a barrel, after hitting $84.78, the highest since Nov. 10, 2021, earlier in the session.