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Europe Roundup: Euro dips against dollar, European stocks falls, Gold stuck in range, Oil rises on OPEC warning and easing of Shanghai COVID curbs-April 12th,2022

Posted at 12 April 2022 / Categories Market Roundups


Market Roundup

•German Mar WPI (YoY ) 22.6%,16.6% previous

•German Mar WPI (MoM)  6.9%               ,1.7% previous

•UK Mar Claimant Count Change -46.9K,-48.1K previous

•UK Feb Average Earnings ex Bonus 4.0%, 4.0% forecast, 3.8% previous

•UK Feb Average Earnings Index +Bonus 5.4%, 5.4% forecast,4.8% previous

•UK Feb Unemployment Rate  3.8%,3.8% forecast,3.9% previous

•UK Feb Employment Change 3M/3M (MoM) 50K forecast, -12K previous

•German Mar CPI (MoM)  2.5%, 2.5%    forecast, 0.9% previous

•German Apr ZEW Economic Sentiment -41.0, -30.8,-48.0 forecast, -39.3 previous

•German Apr ZEW Current Conditions -30.8, -35.0 forecast,-21.4 previous

•German Apr ZEW Economic Sentiment -41.0,-41.1forecast ,38.7 previous

•US March Core CPI (MoM) 0.3%,0.5% forecast,0.5%

•US Mar CPI (MoM)  1.2% forecast,0.8% previous

•US Mar Core CPI (YoY)  6.5% ,6.6% forecast,6.4% previous

•US Mar CPI Index, n.s.a  287.50, ,287.41 forecast, 283.72 previous

•US Mar CPI (YoY)  8.5% , 8.4%  forecast, 7.9% previous

•US Mar CPI (MoM) 1.2% ,1.2%,0.8% previous

Looking ahead Economic Data(GMT)

•12:55 US Redbook (YoY) 14.3% previous

•14:00 US IBD/TIPP Economic Optimism  41.0 previous

•15:00 US Mar Cleveland CPI (MoM) 0.5% previous

•US Mar Federal Budget Balance  -191.0B forecast,-217.0B previous

Looking Ahead - Economic events and other releases (GMT)

•16:10 FOMC Member Brainard Speaks

Fxbeat

EUR/USD: The euro fell on Tuesday unable to hold on to the post-French election gains, as the dollar held firm supported by high U.S. yields. The euro fell 0.19% to $1.08625 at 0819 GMT, after surging in the previous day to $1.09550 on the news that incumbent President Emmanuel Macron beat far-right challenger Marine Le Pen in the first round of presidential voting. Immediate resistance can be seen at 1.0941(38.2%fib), an upside break can trigger rise towards 1.0966 (11DMA).On the downside, immediate support is seen at 1.0846 (Daily low), a break below could take the pair towards 1.0811 (23.6%fib).

GBP/USD: Sterling was a touch lower against a stronger dollar on Tuesday, but held up against the euro, as currency markets anticipated fresh inflation data from the United States. Sterling is overall down against the dollar so far this year, as rising U.S. Treasury yields due to expectations for aggressive Federal Reserve rate hikes have pushed the dollar higher. At 1119 GMT, the pound was down 0.1% on the day versus the dollar at $1.30145.Immediate resistance can be seen at 1.3054(5DMA), an upside break can trigger rise towards 1.3083 (50%fib).On the downside, immediate support is seen at 1.3015 (38.2%fib), a break below could take the pair towards 1.2969 (Lower BB).

USD/CHF: The dollar steadied on Tuesday as the dollar held firm on raising expectation Fed will raise interest rate soon. The dollar index, a measure of the greenback's value against six peers, was back above 100 to touch its highest level in almost two years. U.S. quarterly earnings season is set to begin this week with Wall Street banks. In Europe, the reporting season will kick into high gear later this month, with analysts’ predicting a 19.9% rise in profit for STOXX 600 companies. Immediate resistance can be seen at 0.9310(23.6%fib), an upside break can trigger rise towards 0.9345 (23.6%fib).On the downside, immediate support is seen at 0.9292(50% fib), a break below could take the pair towards 0.9253(61.8%fib).

USD/JPY: The dollar strengthened against the yen on Tuesday as the dollar held firm supported by high U.S. yields.  The dollar's recent gains against the Japanese yen have been its most striking. The greenback has gained almost 10% versus the Japanese currency in the past three months. It was trading 0.25% higher at 125.63 yen on Tuesday, very close to a June 2015 high of 125.77 touched on the previous day. Japanese Finance Minister Shunichi Suzuki said the government was closely watching the yen and that excess volatility and disorderly movements could have an adverse effect on the economy. Strong resistance can be seen at 126.67(23.6%fib), an upside break can trigger rise towards 126.00 (Psychological level).On the downside,immediate support is seen at 124.80(38.2%fib), a break below could take the pair towards 124.43(50%fib).

Equities Recap

European shares fell on Tuesday to their lowest in nearly a week as Deutsche Bank and Commerzbank slumped after a big stake sale, while investors awaited U.S. inflation data that could spur bets of bigger interest rate hikes.

At (GMT 12:46) UK's benchmark FTSE 100   was last down at 0.52% percent, Germany's Dax was last down by 0.48 % percent, France’s CAC was last down by 0.12 % percent.

Commodities Recap

Gold prices held steady on Tuesday as investors braced for likely hot U.S. inflation data that would consolidate bets of aggressive measures from the Federal Reserve to tame pricing pressures.

Spot gold ticked 0.1% higher to $1,955.61 per ounce by 1153 GMT, after hitting its highest in nearly a month on Monday. U.S. gold futures rose 0.4% to $1,956.60.

Oil prices climbed on Tuesday as Shanghai's relaxation of some COVID-19 restrictions eased concerns about Chinese demand and as OPEC warned it would be impossible to replace potential supply losses from Russia.

Brent crude futures rose by $3.26, or 3.31%, to $101.74 a barrel at 1002 GMT while U.S. West Texas Intermediate was up $3.01, or 3.19%, at $97.30. Both contracts lost about 4% on Monday.


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