Posted at 24 January 2022 / Categories Market Roundups
Market Roundup
• French Jan Services PMI 53.1, 55.3 forecast, 57.0 previous
• French Jan Markit Composite PMI 52.7, 54.5 forecast, 55.8 previous
•French Jan Manufacturing PMI 55.5, 55.5 forecast, 55.6 previous
•German Jan Composite PMI 54.3, 49.2 forecast, 49.9 previous
•German Jan Manufacturing PMI 60.5, 57.0 forecast, 57.4 previous
• German Jan Services PMI 52.2 forecast, 48.0 ,48.7 previous
• EU Jan Services PMI 51.2, 52.2 forecast, 53.1 previous
•UK Manufacturing PMI 56.9,57.7 forecast, 57.9 previous
•UK Composite PMI 53.4, 53.4 forecast,53.6 previous
Looking Ahead - Economic Data (GMT)
•13:30 Canada Manufacturing Sales (MoM) 2.6% previous
•13:30 Chicago Fed National Activity 0.37 previous
•14:00 French 6-Month BTF Auction -0.646% previous
•14:00 French 3-Month BTF Auction-0.650% previous
•14:45 US Jan Manufacturing PMI 56.7 forecast, 57.7 previous
•14;45 US Jan Markit Composite PMI 57.0 previous
•14;45 US Jan Services PMI 55.0 forecast, 57.6 previous
•16;30 US 3-Month Bill Auction 0.170% previous
•16;30 US 6-Month Bill Auction 0.365% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged higher against dollar on Monday as investors held their breath ahead of the U.S. Federal Reserve's meeting later this week and kept a close eye on developments over tensions between Russia and Ukraine. Expectations for earlier rate hikes by the Fed and any escalation of tensions on Ukraine's border with Russia could increase volatility u in the market. The euro slipped 0.15% by 10:43 GMT to $1.1319, trading just off two-week lows touched on Friday. Immediate resistance can be seen at 1.1340 (38.2%fib), an upside break can trigger rise towards 1.1379 (23.6%fib).On the downside, immediate support is seen at 1.1318 (50%fib), a break below could take the pair towards 1.1276 (61.8% fib).
GBP/USD: Sterling declined against dollar on Monday as investor was cautious as tensions between Russia and the West remained tense. Investors are bracing for a U.S. Federal Reserve meeting this week, in which the central bank will likely announce the timing of rate hikes. Meanwhile, the United States told diplomats’ families to leave Ukraine. The pound was down 0.43 percent o at $1.3495. Immediate resistance can be seen at 1.3558(38.2%fib), an upside break can trigger rise towards 1.3575 (5DMA).On the downside, immediate support is seen at 1.3500 (50%fib), a break below could take the pair towards 1.3445 (61.8%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Monday as the prospect of a Russian attack on Ukraine increased demand for dollar. The U.S. State Department said on Sunday it was ordering diplomats' family members to leave Ukraine in one of the clearest signs yet that American officials are bracing for an aggressive Russian move in the region. Nerves over the Fed's meeting on Wednesday added to the mix. Anxious markets are now even pricing in a small chance the Fed hikes rates this week, though the overwhelming expectation is for a first move to 0.25% in March and three more to 1.0% by year end. Immediate resistance can be seen at 0.9151 (38.2%fib), an upside break can trigger rise towards 0.9202(23.6% fib).On the downside, immediate support is seen at 0.9189 (38.2% fib), a break below could take the pair towards 0.9097 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Monday as concerns about Russia-Ukraine increased demand for safe haven yen, while markets await cues on rate hikes from the U.S. Federal Reserve policy meeting this week. The Fed will tighten monetary policy at a much faster pace than thought a month ago to tame persistently high inflation, now viewed by economists polled by Reuters as the biggest threat to the U.S. economy over the coming year. The Fed starts a two-day meeting on Tuesday and may signal the start of interest rate rises from March. At 10:43 GMT, the dollar was 0.02 percent lower versus the yen at 113.62 . Strong resistance can be seen at 114.86 (38.2% fib), an upside break can trigger rise towards 115.46 (23.6% fib).On the downside, immediate support is seen at 113.67 (50%fib), a break below could take the pair towards 113.00 (61.8%fib).
Equities Recap
European shares rose on Wednesday as luxury stocks stood out on upbeat trading updates from Richemont and Burberry.
At (GMT 11:07 ),UK's benchmark FTSE 100 was last trading down at 1.32 percent, Germany's Dax was up by 1.76 percent, France’s CAC finished was down by 1.81 percent.
Commodities Recap
Gold prices advanced towards last week's two-month high on Monday as U.S. bond yields continued to fall and investors looked to invest in the safe-haven metal over concerns about tensions between Russia and Ukraine.
Spot gold was 0.5% higher at $1,841.50 per ounce by 1013 GMT, holding close to last week's high of $1,847.42 an ounce. U.S. gold futures rose an equal amount to $1,840.70.
Oil prices rose on Monday on worries about supply disruption amid concerns about Russia-Ukraine discord and rising tensions in the Middle East, which could make an already tight market even tighter.
Brent crude rose 31 cents, or 0.4%, to $88.20 a barrel by 1009 GMT. U.S. West Texas Intermediate (WTI) crude gained 21 cents, or 0.3%, to $85.35.