Posted at 01 February 2022 / Categories Market Roundups
Market Roundup
• Canada Nov GDP (MoM) 0.6%,0.3% forecast,0.8% previous
• Canada GDP (YoY) 3.80%,3.80% previous
• Redbook (YoY) 15.8%,15.6% previous
• US Jan Manufacturing PMI 55.5,55.0 forecast, 57.7 previous
• New Zealand GlobalDairyTrade Price Index 4.1%, 4.6% previous
• US Dec Construction Spending (MoM) 0.2%,0.6%forecast, 0.4% previous
• US Dec JOLTs Job Openings 10.925M, 10.300M forecast, 10.562M previous
•US Jan ISM Manufacturing Prices 76.1, 68.1 forecast, 68.2 previous
• US Jan ISM Manufacturing PMI 57.6, 57.5 forecast, 58.7 previous
• US Jan ISM Manufacturing Employment 54.5,53.5 forecast, 54.2 previous
• US Jan Dallas Fed Services Revenues 2.8,20.4 previous
Looking Ahead - Economic data ahead (GMT)
•23:30 Japan Monetary Base (YoY) 8.5% forecast, 8.3% previous
Looking Ahead - Economic events and other releases (GMT)
• 01:30 Australia RBA Governor Lowe Speaks
Currency Summaries
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. The euro steadied at $1.1270 , having risen 0.3% overnight and further away from last week's 20-month trough at $1.1122. Immediate resistance can be seen at 1.1300 (50%fib), an upside break can trigger rise towards 1.1342 (61.8%fib).On the downside, immediate support is seen at 1.1256(38.2 % fib), a break below could take the pair towards 1.11938 (23.6%fib).
GBP/USD: Sterling rose to one week-high against a weakening dollar on Tuesday, lifted by a combination of strong economic data and speculation the Bank of England could set the path for further monetary tightening this week. Investors have now fully priced a 25-basis-point rise in the BoE’s main interest rate to 0.50% on Feb. 3 and economists polled also expect that outcome from the meeting. The pound was up 0.39% at $1.349, pulling further away from one-month lows of $1.3359 hit last week and back to the levels it was trading at on Jan. 26. Immediate resistance can be seen at 1.3530 (23.6%fib), an upside break can trigger rise towards 1.3553 (21DMA).On the downside, immediate support is seen at 1.3497 (11DMA), a break below could take the pair towards 1.3457 (38.2%fib).
USD/CAD :The Canadian dollar edged higher against its U.S. counterpart on Tuesday as investors shifted attention to central banks other than the Federal Reserve that are embracing a more hawkish stance. Money markets expect the Bank of England to hike interest rates for the second time in less than two months on Thursday. The price of oil, one of Canada's major exports, held near a seven-year high despite speculation that OPEC+ could go further than expected to add supply at a meeting this week. U.S. crude prices settled 0.1% higher at $88.20 a barrel. The Canadian dollar was trading 0.2% higher at 1.2685 to the U.S. dollar, adding to its previous day's gains. It traded in a range of 1.2656 to 1.2726. .Immediate resistance can be seen at 1.2703 (38.2%fib), an upside break can trigger rise towards 1.2766(23.6%fib).On the downside, immediate support is seen at 1.2653 (50%fib), a break below could take the pair towards 1.2602 (61.8%fib).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as Federal Reserve officials played down the chance of a half point rate hike in March and a rally in global equity markets tarnished some demand for greenback. St. Louis Fed President James Bullard, a noted hawk, on Tuesday said he would argue for rate rises in March, May and June, but did not favour a half-point move.The dollar was back at 114.70 yen , after dropping 0.4% overnight and away from last week's top at 115.68 which now marks major resistance. Still, it remains comfortably above key support around 113.47. Strong resistance can be seen at 115.03 (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 closed higher on Tuesday, extending gains to a second straight session, with investors looking ahead to the monetary policy meetings of the European Central Bank and the Bank of England, and digesting the latest batch of economic data and corporate earnings updates.
UK's benchmark FTSE 100 closed up by 0.96 percent, Germany's Dax ended up by 0.96 percent, France’s CAC finished the day up by 1.43 percent.
US Stocks showed a lack of direction throughout much of the trading session on Tuesday but managed to end the day mostly higher..
Dow Jones closed up by 0.78% percent, S&P 500 closed up by 0.68% percent, Nasdaq settled up by 0.75% percent.
Treasuries Recap
The bond market sell-off that has upended financial markets since the start of the year stalled on Tuesday, with benchmark U.S. 10-year Treasury yields hovering near their lowest levels in a week
The yield on 10-year Treasury notes was last up 0.7 basis points at 1.789%, while the yield on the 30-year Treasury bond was up 2.1 basis points at 2.119%.
Commodities Recap
Gold prices extended gains for a second session on Tuesday as the U.S. dollar retreated and ongoing tensions over Ukraine underpinned the metal's safe-haven demand.
Spot gold gained 0.2% to $1,800.36 per ounce by 13:51 ET (1851 GMT). U.S. gold futures settled 0.3% higher at $1,801.50.
Oil prices ended little changed on Tuesday, as geopolitical tensions and tight global supplies supported the market even as some speculated that OPEC+ might boost supplies more than expected.
Brent crude settled down 10 cents, or 0.1%, at $$89.16 a barrel while U.S. West Texas Intermediate crude rose 5 cents to $88.20.