Posted at 02 February 2022 / Categories Market Roundups
Market Roundup
•EU Core CPI (MoM) 1.6% ,0.4% previous
•EU Core CPI (YoY) 2.3%, 2.6% previous
•EU CPI (MoM) 0.3% ,0.4% previous
•Italian Jan CPI (MoM) 0.4% previous
•EU Dec PPI (YoY) 22.9% forecast, 23.7% previous
•EU Jan CPI (YoY) 5.1%, 4.4% forecast, 5.0% previous
Looking Ahead Economic Data
•13:15 US Jan ADP Nonfarm Employment Change 207K forecast ,807K previous
•13:30 Canada Dec Building Permits (MoM) -1.5%forecast,6.8% previous
•15:30 US Cushing Crude Oil Inventories -1.823M previous
•15:30 US Crude Oil Inventories 1.525M forecast, 2.377M previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 Canada BoC Deputy Governor Gravelle Speaks
Fxbeat
EUR/USD: The euro rose for a third consecutive day on Wednesday, after hitting a 20-month low last week, as markets awaited euro zone inflation data for clues on the European Central Bank's next move.The euro has been under pressure, slipping 8% in three months, amid expectations that the ECB will become the latest central bank to raise interest rates. Against a basket of currencies, the dollar fell for a third day, slipping 0.11% to 96.162.The euro strengthened by 0.14% to $1.12865 at 0900 GMT. Immediate resistance can be seen at 1.1292(38.2%fib), an upside break can trigger rise towards 1.1332 (23.6%fib).On the downside, immediate support is seen at 1.1259 (50 % fib), a break below could take the pair towards 1.1227 (61.8%fib).
GBP/USD: The British pound climbed to a 1-1/2 week high on Wednesday before a Bank of England meeting on Thursday where policymakers are widely expected to raise interest rates. 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 trading higher at $1.3549 , its highest level since Jan. 24. Against the euro , it was broadly steady at 83.37 pence. Immediate resistance can be seen at 1.3552 (23.6%fibB), an upside break can trigger rise towards 1.3567 (24th Jan high).On the downside, immediate support is seen at 1.3513(Daily low), a break below could take the pair towards 1.3480 (38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as less-hawkish comments from Federal Reserve officials weighed on dollar. A noted hawk, Bullard said on Tuesday he would argue for interest rate rises in March, May and June, but did not favour a half-point move. Friday’s non-farm payroll figures in the United States will also be closely watched. Immediate resistance can be seen at 0.9237(38.2%fib), an upside break can trigger rise towards 0.9260 (5DMA).On the downside, immediate support is seen at 0.9192 (50% fib), a break below could take the pair towards 0.9150 (61.8%fib ).
USD/JPY: The dollar declined against the Japanese yen on Wednesday 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 of its safe haven allure. St. Louis Fed President James Bullard, on Tuesday said he would argue for rate rises in March, May and June, but did not favour a half-point move. Bullard said he thinks the U.S. economy is going to continue to grow strongly - so strong in fact he expects the unemployment rate to fall below 3% by year's end.Strong resistance can be seen at 114.88 (38.2%fib), an upside break can trigger rise towards 114.51 (5DMA).On the downside, immediate support is seen at 114.37 (38.2% fib), a break below could take the pair towards 113.88 (61.8%fib).
Equities Recap
European shares rose for a third straight session on Wednesday, recouping more than half of their January losses, as strong fourth-quarter earnings outweighed concerns surrounding interest rate hikes ahead of key central bank decisions due on Thursday.
At (GMT 10:24 ),UK's benchmark FTSE 100 was last trading up at 0.80 percent, Germany's Dax was up by 0.45 percent, France’s CAC finished was up by 0.52 percent.
Commodities Recap
Gold prices edged lower on Wednesday, moving away from the key psychological level of $1,800, as risk appetite spurred by less hawkish comments from U.S. Federal Reserve officials outweighed support from lower Treasury yields.
Spot gold dipped 0.2% to $1,796.90 per ounce, as of 0844 GMT. U.S. gold futures were down 0.1% to $1,799.60.
Oil prices climbed on Wednesday toward last week's seven-year highs as a draw in U.S. crude stocks confirmed strong demand and tightsupplies, but investors remained cautious ahead of an OPEC+ meeting later in the day.
Brent crude rose 11 cents, or 0.1%, to $89.27 a barrel by 0743 GMT, after easing 10 cents on Tuesday.
U.S. West Texas Intermediate crude was up 14 cents, or 0.2%, at $88.34 a barrel, having gained 5 cents the previous day.