Posted at 01 February 2022 / Categories Market Roundups
Market Roundup
•German Jan Nationwide HPI (YoY) 11.2%,10.8% forecast,10.4% previous
•German Jan Nationwide HPI (MoM) 0.8%,0.6% forecast, 1.0% previous
•German Dec Retail Sales (MoM) -5.5%,-1.4% forecast, 0.6% previous
•Swiss Dec Retail Sales (YoY) -0.4%,5.5% forecast,5.8 previous
•French HICP (MoM) 0.1%,-0.2% forecast,0.2% previous
•French CPI (MoM) 0.3%,-0.2%forecast, 0.2 previous
•German Jan Unemployment Change -48K, -6K forecast, -23K previous
•German Jan Manufacturing PMI 59.8, 60.5 forecast, 57.4 previous
•UK Jan Manufacturing PMI 57.3,56.9 forecast,57.9 previous
Looking Ahead - Economic data ahead (GMT)
• 13:30 Canada Nov GDP (MoM) 0.3% forecast,0.8% previous
• 13:30 Canada GDP (YoY) 3.80% previous
• 13:55 Redbook (YoY) 15.6% previous
• 14:55 US Jan Manufacturing PMI 55.0 forecast, 57.7 previous
• 15:00 US GlobalDairyTrade Price Index 4.6% previous
• 15:00 US Dec Construction Spending (MoM) 0.6%forecast, 0.4% previous
• 15:00 US Dec JOLTs Job Openings 10.300M forecast, 10.562M previous
• 15:00 US Jan ISM Manufacturing Prices 68.1 forecast, 68.2 previous
• 15:00 US Jan ISM Manufacturing PMI 57.5 forecast, 58.7 previous
• 15:00 US Jan ISM Manufacturing Employment 53.5 forecast, 54.2 previous
• 15:30 US Jan Texas Services Sector Outlook 12.9 previous
• 15:30 US Jan Dallas Fed Services Revenues 20.4 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Tuesday after data showed Euro zone factory growth accelerated in Jan. Euro zone manufacturing activity accelerated last month as supply chain bottlenecks eased, although the improvement was not evenly spread across member countries and factories still faced high inflationary pressures, a survey showed on Tuesday.IHS Markit's final manufacturing Purchasing Managers' Index (PMI) rose to a five-month high of 58.7 in January from December's 58.0, below an initial "flash" estimate of 59.0 but comfortably above the 50 mark separating growth from contraction. Immediate resistance can be seen at 1.1268 (50%fib), an upside break can trigger rise towards 1.1300 (61.8%fib).On the downside, immediate support is seen at 1.1223 (38.2 % fib), a break below could take the pair towards 1.1193 (23.6%fib).
GBP/USD: Sterling strengthened against a broadly weaker dollar Tuesday as upbeat Britain UK factory data propelled the pound higher. British manufacturing output grew at the fastest pace in six months in January as global supply chain pressures began to ease and factories largely shrugged off a wave of cases caused by the Omicron variant of coronavirus, a survey showed on Tuesday. The IHS Markit/CIPS Purchasing Managers' Index (PMI) showed the output index rose to 54.5 in January its highest since July 2021 from 53.6 in December, stronger than an initial flash estimate of 53.8. Immediate resistance can be seen at 1.3499 (23.6%fib), an upside break can trigger rise towards 1.3526 (30DMA).On the downside, immediate support is seen at 1.3430 (38.2%fib), a break below could take the pair towards 1.3373 (50%fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as demand for safe haven assets increased on concerns over the Russia-Ukraine discord, while investors looked forward to a slew of economic data and central bank meetings to decide their next move. On Tuesday, the market will be watching for developments from phone conversations between Foreign Minister Sergei Lavrov and U.S. Secretary of State Antony Blinken.Russian President Vladimir Putin and UK Prime Minister Boris Johnson had also been expected to talk by phone but the Kremlin said this won't happen on Tuesday, although another date for the call could be agreed. Immediate resistance can be seen at 0.9265(38.2%fib), an upside break can trigger rise towards 0.9361 (23.6% fib).On the downside, immediate support is seen at 0.9220 (50% fib), a break below could take the pair towards 0.9180 (61.8%fib ).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as the U.S. dollar lost ground after Federal Reserve policymakers allayed investor fears of a rapid pace of monetary tightening. Fed policymakers signalled a lift-off in rates in March, but spoke cautiously about what might follow. Investors would now look ahead to central bank decisions from the Bank of England and the European Central Bank later this week.Tension surrounding the standoff between Moscow and Western capitals over Ukraine also remained in focus with the United States and UK threatening to slap fresh sanctions on Russia if it takes aggressive steps towards Ukraine. Strong resistance can be seen at 115.09 (38.2%fib), an upside break can trigger rise towards 115.72 (23.6%fib).On the downside, immediate support is seen at 114.55 (50% fib), a break below could take the pair towards 114.12 (61.8%fib).
Equities Recap
European stocks advanced on Tuesday following another session of solid gains on Wall Street overnight and data showing acceleration in Eurozone factory activity growth in January.
At (GMT 10:56 ),UK's benchmark FTSE 100 was last trading up at 0.79 percent, Germany's Dax was up by 0.94 percent, France’s CAC was last up by 0.97 percent.
Commodities Recap
Gold prices rose on Tuesday, as investors opted for the safe-haven metal on concerns over the Russia-Ukraine discord, while looking forward to a slew of economic data and central bank meetings to decide their next move.
Spot gold rose 0.3% to $1,802.51 per ounce by 0747 GMT. U.S. gold futures also rose 0.4% to $1,804.20.
Oil slipped on Tuesday, staying close to a seven-year high, weighed by speculation OPEC+ could go further than expected to add supply at a meeting this week and expectations of a rise in U.S. inventories.
Brent crude was down 74 cents, or 0.8%, at $88.52 a barrel at 1030 GMT. U.S. West Texas Intermediate crude slipped 83 cents, or 0.9%, to $87.32.