Posted at 03 February 2022 / Categories Market Roundups
Market Roundup
•US Jan ADP Nonfarm Employment Change 207K forecast ,807K previous
•Canada Dec Building Permits (MoM) -1.5%forecast,6.8% previous
•US Cushing Crude Oil Inventories 2.119M,-1.823M previous
•US Crude Oil Inventories -1.046M,1.525M forecast, 2.377M previous
Looking Ahead Economic Data
•No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro rose for a third consecutive day on Wednesday after data showed euro zone inflation rose to a new record high last month. Euro zone inflation rose to a new record high last month, defying expectations for a big drop and piling pressure on the European Central Bank to finally admit that price growth is not as temporary and benign as it has long predicted. The euro firmed 0.3% to $1.1296, after earlier touching more than a one-week high. Immediate resistance can be seen at 1.1316(21DMA), an upside break can trigger rise towards 1.1332 (23.6%fib).On the downside, immediate support is seen at 1.1291 (38.2 % fib), a break below could take the pair towards 1.1260 (50%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 $1.3559 , 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/CAD: The Canadian dollar strengthened to its highest level in nearly one week against the greenback on Wednesday, as Wall Street shook off a decline in U.S. private payrolls and the Bank of Canada reiterated that interest rates are heading higher. The price of oil, one of Canada's major exports, held near a seven-year high after OPEC+ stuck to planned moderate output increases despite pressure from top consumers to raise output more quickly. Canada's jobs report for January, due on Friday, could provide further clues on the interest rate outlook. Immediate resistance can be seen at 1.2705 (38.2%fib), an upside break can trigger rise towards 1.2768 (23.6%fib).On the downside, immediate support is seen at 1.2653 (50%fib), a break below could take the pair towards 1.2617 (21DMA).
USD/JPY: The dollar declined against the Japanese yen on Wednesday after US private payrolls dropped in January. U.S. private payrolls fell for the first time in a year in January as soaring COVID-19 infections disrupted business operations, raising the risk of a sharp decline in employment that would deal a temporary setback to the labor market. Private payrolls decreased by 301,000 jobs last month, the first drop since December 2020, after increasing by 776,000 in December. Economists polled by Reuters had forecast private payrolls would increase by 207,000 jobs. 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 closed higher for a third straight session on Wednesday as strong fourth-quarter earnings and deal-making possibilities outweighed concerns over interest rate hikes ahead of key central bank decisions due on Thursday.
UK's benchmark FTSE 100 closed up by 0.63 percent, Germany's Dax ended up by 0.14 percent, France’s CAC finished the day up by 0.22 percent.
All three Wall Street benchmarks ended higher on Wednesday, rising for a fourth straight session after a turbulent start to the year, aided by upbeat earnings from Google-parent Alphabet and chipmaker Advanced Micro Devices.
Dow Jones closed up by 0.63% percent, S&P 500 closed up by 0.94 % percent, Nasdaq settled up by 0.40% percent.
Treasuries Recap
An unexpected decline in private payrolls Wednesday helped keep U.S. Treasury yields stable as investors weighed its potential impact on Friday's broader jobs report and the Federal Reserve's plan to raise interest rates this year.
The yield on 10-year Treasury notes was down 1.4 basis points to 1.786%, though it remains nearly 30 basis points higher than where it ended 2021. The yield on the 30-year Treasury bond US30YT=RR was down 1.2 basis points to 2.112%.
Commodities Recap
Oil prices edged up on Wednesday after OPEC+ stuck to planned moderate output increases despite pressure from top consumers to raise output more quickly.
Brent crude ended settling up 31 cents to $89.47 a barrel, while U.S. West Texas Intermediate crude gained 6 cents to $88.26 a barrel.
Gold rose on Wednesday as the U.S. dollar and Treasury yields declined after a downbeat jobs report, underpinning demand for the safe-haven metal amid simmering tensions between Russia and the West over Ukraine.
Spot gold gained 0.4% to $1,808.48 per ounce by 14:01 EST (1901 GMT). U.S. gold futures settled 0.5% higher at $1,810.30.