Posted at 04 February 2022 / Categories Market Roundups
Market Roundup
•German Dec Factory Orders (MoM) 2.8%,0.5% forecast,3.7% previous
• French Non-Farm Payrolls (QoQ) (Q4 0.5% , 0.4% previous
•French Dec Industrial Production (MoM) -0.2%, 0.5% forecast,-0.4% previous
•UK Jan Construction PMI 56.3,54.3 forecast, 54.3 previous
•EU Dec Retail Sales (MoM) -3.0%,-0.5% forecast,1.0% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Jan Unemployment Rate 3.9% forecast, 3.9% previous
•13:30 US Jan Average Hourly Earnings (YoY) (YoY) 5.2% ,4.7% previous
•13:30 US Jan Participation Rate 61.9% previous
•13:30 US Jan Employment Change -117.5K forecast, 4.7K previous
•13:30 US Jan Unemployment Rate 6.2% forecast, 5.9% previous
•13:30 US Jan Nonfarm Payrolls 150K forecast, 199K previous
•13:30 US Jan Part Time Employment Change -67.7K previous
•13:30 US Jan Full Employment Change 122.5K previous
•13:30 US Jan Average Hourly Earnings (MoM) 0.5% forecast,0.6% previous
13:30 •US Jan Private Nonfarm Payrolls 150K forecast, 211K previous
•15:00 Canada Jan Ivey PMI 45.0 previous
•15:00 Canada Jan Ivey PMI n.s.a 51.1 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was on track on Friday for its best week versus the dollar since the COVID-19 pandemic hit, after a hawkish turn by the European Central Bank (ECB) sent shockwaves through markets. Rampant inflation across many global economies has forced central banks to tighten monetary policies that had been dramatically loosened to help consumers and businesses weather the financial hit from the pandemic. The ECB had resisted the tide. But on Thursday, despite holding rates in negative territory, President Christine Lagarde acknowledged mounting inflation risks and opened the door to potential rate hikes later this year. Immediate resistance can be seen at 1.1483(23.6%fib), an upside break can trigger rise towards 1.1510(Higher BB).On the downside, immediate support is seen at 1.1446(38.2%fib), a break below could take the pair towards 1.1413 (50%fib).
GBP/USD: Sterling dipped against dollar on Friday as focus switched from BoE to U.S. NFP data at 1330 GMT. Sterling also has been among the big currency movers this week, after the Bank of England raised rates to 0.5% on Thursday - marking the first back-to-back increases by the central bank since 2004.U.S. employment data is due later on Friday, which could give investors clues as to how quickly the Federal Reserve will tighten policy. The markets are now factoring in as many as five U.S. rate hikes this year. The pound is on track for a more than 1% weekly gain versus the dollar, although it lost some ground on Friday and was trading just shy of $1.36.Immediate resistance can be seen at 1.3623 (38.2%fib), an upside break can trigger rise towards 1.3711(23.6%fib).On the downside, immediate support is seen at 1.3554(50%fib), a break below could take the pair towards 1.3447(61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as dollar found some footing on as traders awaited nonfarm payroll data . The U.S. Labour Department will publish its closely watched employment report at 1330 GMT. The Labor Department will publish its closely watched employment report on Friday. Economists and White House officials have urged against reading too much into the report, which will also contain annual revisions to the establishment’s data and new population controls for the household survey. Federal Reserve officials, who are expected to start raising interest rates next month, are likely to brush aside the report. Immediate resistance can be seen at 0.9226 (38.2 % fib), an upside break can trigger rise towards 0.9276 (23.6%fib).On the downside, immediate support is seen at 0.9181 (50%fib), a break below could take the pair towards 0.9138(61.8% fib ).
USD/JPY: The dollar edged higher against the Japanese yen on Friday as traders awaited U.S. jobs data that could impact the Federal Reserve's hawkish stance on monetary policy. The greenback rose as far as 115.13 yen, its highest since 1st Feb. The U.S. dollar index against other major currencies has dropped 2% this week - its biggest weekly fall since March 2020 and a sharp reversal after the index rose a week earlier, when traders rejigged positions preparing for faster Fed rate hikes than had been previously expected. Strong resistance can be seen at 114.89(Daily high), an upside break can trigger rise towards 115.48 (23.6%fib).On the downside, immediate support is seen at 114.79 (5DMA), a break below could take the pair towards 114.38 (50%fib).
Equities Recap
European stock indexes faltered on Friday, despite strong Amazon earnings, while a sell-off in bonds briefly pushed Germany's 5-year yield positive for the first time in four years after the European Central Bank was more hawkish than expected.
At (GMT 12:59 ),UK's benchmark FTSE 100 was last trading up at 0.23 percent, Germany's Dax was down by 0.17 percent, France’s CAC was down by 0.60 percent
Commodities Recap
Gold prices rose on Friday and were headed for a weekly gain as a retreat in the dollar has propped up bullion in the run-up to data on U.S. jobs growth, which is expected to have slowed sharply in January.
Spot gold was up 0.3% at $1,810.01 per ounce by 1146 GMT. U.S. gold futures climbed 0.4% to $1,811.30.
Oil prices reached seven-year highs on Friday as geopolitical tensions and a winter storm in the United States fuelled concerns over supply disruptions.
Brent crude rose $1.32, or 1.5%, to $92.43 a barrel by 1120 GMT, having earlier touched its highest since October 2014 at $92.66.
U.S. West Texas Intermediate crude rose $1.45, or 1.6%, to $91.72 a barrel after also scaling a seven-year peak at $91.91.