Posted at 05 February 2022 / Categories Market Roundups
Market Roundup
•US Jan Unemployment Rate 4.0%,3.9% forecast, 3.9% previous
•US Jan Average Hourly Earnings (YoY) (YoY) 5.7%, 5.2% ,4.7% pre5th 5thvious
•US Jan Participation Rate 62.2%,61.9% previous
•Canada Jan Employment Change -200.1K,-117.5K forecast, 78.6Kprevious
•Canada Jan Unemployment Rate 6.5%,6.2% forecast, 5.9% previous
•US Jan Nonfarm Payrolls 467K,150K forecast, 199K previous
•Canada Jan Part Time Employment Change- 117.4K, -67.7K previous
•US Jan Full Employment Change -82.7K,122.5K previous
•US Jan Average Hourly Earnings (MoM) 0.7%, 0.5% forecast,0.6% previous
•US Jan Private Nonfarm Payrolls 444K,150K forecast, 211K previous
•Canada Jan Ivey PMI 50.7,45.0 previous
•Canada Jan Ivey PMI n.s.a 57.4,51.1 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
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 on Friday after U.S. payrolls shocked markets with a surprisingly large 467,000 gain that revived hawkish Fed expectations and lifted U.S. yields, leaving sterling vulnerable after initially leading the rate-hike charge among major central banks. Bulls are paying the price for the BoE's early liftoff, with traders scrambling to add to USD and EUR long positions as developed markets join the UK in normalizing rates..Immediate resistance can be seen at 1.3615 (38.2%fib), an upside break can trigger rise towards 1.3662(Jan 20th high).On the downside, immediate support is seen at 1.3500(Daily low), a break below could take the pair towards 1.3465(61.8%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back all this week's gains, as domestic data showing the economy shed more jobs than expected in January offset a seven-year high for oil prices.The Canadian economy lost 200,100 jobs in January, compared to forecasts for a decline of 117,500 as many jurisdictions implemented restrictions to fight the Omicron variant of the coronavirus, Statistics Canada data showed. The Canadian dollar was trading 0.8% lower at 1.2775 to the greenback , after touching its weakest level since last Friday at 1.2787. Immediate resistance can be seen at 1.2767(23.6%fib), an upside break can trigger rise towards 1.2793 (Higher BB).On the downside, immediate support is seen at 1.2702(38.2%fib), a break below could take the pair towards 1.651(50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday after data showed the world's largest economy created far more jobs than expected, raising the chances of a larger Federal Reserve interest rate increase at the March policy meeting. Data showed U.S. nonfarm payrolls grew 467,000 jobs last month. Data for December was revised higher to show 510,000 jobs created instead of the previously reported 199,000. The dollar index, a gauge of its value against six major currencies, rose 0.1% to 95.446.Strong resistance can be seen at 115.48(23.6%fib), an upside break can trigger rise towards 115.61 (Higher BB).On the downside, immediate support is seen at 114.86 (38.2%fib), a break below could take the pair towards 114.35 (50%fib).
Equities Recap
European stocks ended lower on Friday after strong Amazon earnings and upbeat economic data.
UK's benchmark FTSE 100 closed down by 10.17 percent, Germany's Dax ended down by 1.75 percent, France’s CAC finished the day down by 0.77 percent.
Another bumpy ride on Wall Street ended on Friday as Amazon's positive earnings capped a run of mixed big-tech numbers, with the Nasdaq recovering much of its losses from the previous session and all three benchmarks ending the week in positive territory.
Dow Jones ended by 0.06 percent, S&P 500 ended higher by 0.52 percent, Nasdaq ended up by 1.58 percent.
Treasuries Recap
Yields of benchmark 10-year U.S. Treasuries hit their highest levels since December 2019 on Friday after strong payrolls data showed that the U.S. economy added 467,000 jobs last month.
The yield on 10-year Treasury notes was up 9.8 basis points to 1.925%.The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 12.8 basis points at 1.320%, its highest level since February 2020.
Commodities Recap
Gold prices edged higher in choppy trade on Friday as growing inflation worries helped cushion pressure from a firmer dollar and higher U.S. Treasury yields after a surprisingly upbeat U.S. jobs data.
Spot gold was up 0.1% at $1,805.95 per ounce by 13:41 EST (1841 GMT), after hitting a one-week high earlier in the session. Bullion is up 0.8% so far this week.U.S. gold futures settled 0.2% higher at $1,807.80.
Oil prices surged to seven-year highs on Friday, extending their rally into a seventh week on ongoing worries about supply disruptions fueled by frigid U.S. weather and ongoing political turmoil among major world producers.
Brent crude rose $2.16, or 2.4%, to settle at $93.27 a barrel having earlier touched its highest since October 2014 at $93.70.
U.S. West Texas Intermediate crude ended $2.04, or 2.3%, higher at $92.31 a barrel after trading as high as $93.17