Posted at 13 April 2022 / Categories Market Roundups
Market Roundup
•UK Mar Core CPI MoM (MoM) 0.9%,0.5% forecast, 0.8% previous
•UK Mar CPI (YoY) 7.0%,6.7% forecast, 6.2% previous
•UK Mar CPI (MoM) 1.1%, 0.7% forecast, 0.8% previous
•UK Mar PPI Input (MoM) 5.2%,2.5% forecast,1.4% previous
•UK Mar PPI Output (MoM) 2.0%,1.2% forecast, 0.8% previous
•Spanish Mar HICP (YoY) 9.8%,9.8% forecast, 7.6% previous
•Italy Feb Industrial Production (MoM) 4.0%, 1.4 % forecast,-3.4% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Mar PPI (YoY) 10.6% forecast,10.0% previous
• 12:30 US Mar Core PPI (YoY) 8.4% forecast, 8.4% previous
• 12:30 US Mar Core PPI (MoM) 0.5% forecast,0.2% previous
• 12:30 US PPI (MoM) 1.1%forecast, 0.8% previous
• 14:00 Canada BoC Interest Rate Decision 1.00% forecast, 0.50% previous
•14:30 Crude Oil Inventories 0.863M forecast,2.421M previous
Looking Ahead - Economic events and other releases (GMT)
• 14:00 Canada BoC Monetary Policy Report
• 14:00 Canada BoC Rate Statement
•15:00 Canada BOC Press Conference
Fxbeat
EUR/USD: The euro was pinned at a one-month low against dollar on Wednesday as investors flocked to the U.S. currency after some hawkish comments by Federal Reserve officials. Also weighing on the euro was Russian President Vladimir Putin's description of on-and-off negotiations to end the war in Ukraine as a dead-end situation" on Tuesday. The euro fell to $1.0821 overnight, its lowest level against the dollar in more than a month and hovered nearby at $1.0826. Immediate resistance can be seen at 1.0860(5DMA), an upside break can trigger rise towards 1.0914 (38.2%fib).On the downside, immediate support is seen at 1.0816 (23.6%fib), a break below could take the pair towards 1.0760 (Lower BB).
GBP/USD: Sterling dropped on Wednesday to its lowest level against the U.S. dollar since November 2020 as British consumer price inflation leapt to its highest level in three decades. Raising doubts on how aggressive the Bank of England tightening measures will be, British consumer prices jumped to an annual rate of 7.0% in March, the highest since March 1992 and up from 6.2% in February. Sterling fell to $1.2973, hitting its lowest level against the dollar since November 2020. It traded flat at $1.3004 at 0835 GMT.Immediate resistance can be seen at 1.3038(5DMA), an upside break can trigger rise towards 1.3158 (50%fib).On the downside, immediate support is seen at 1.2972 (23.6%fib), a break below could take the pair towards 1.2944 (Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Wednesday as the dollar held firm as U.S. inflation figures were not as high as markets had feared, boosting demand for dollar. Data published on Tuesday showed U.S. monthly consumer prices increased by the most in 16-1/2 years in March as war in Ukraine boosted the cost of gasoline to record highs, cementing the case for a 50 basis points interest rate hike from the Federal Reserve next month. However, monthly underlying inflation pressures moderated as goods prices, excluding food and energy, dropped by the most in two years. Immediate resistance can be seen at 0.9330(38.2%fib), an upside break can trigger rise towards 0.9378 (23.6%fib).On the downside, immediate support is seen at 0.9299(50% fib), a break below could take the pair towards 0.9261(61.8%fib).
USD/JPY: The dollar strengthened against the yen on Wednesday as U.S. inflation figures that fared better than markets worst expectations and boosted dollar to rise past 126.00 level against the yen. Data showed on Tuesday U.S. monthly consumer prices surged in March, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month as it seeks to tighten pandemic-era monetary policy. The data largely met market expectations, sending dollar higher against yen. The Dollar rose past the 126 yen per yen mark on Wednesday for the first time since 2002 .Strong resistance can be seen at 126.26(Daily high), an upside break can trigger rise towards 127.00 (Psychological level).On the downside, immediate support is seen at 125.03(5DMA), a break below could take the pair towards 124.01(38.2%fib).
Equities Recap
European stocks were broadly lower on Wednesday after Russian President Vladimir Putin vowed to continue the invasion of Ukraine until "full completion" of goals.
At (GMT 11:16) UK's benchmark FTSE 100 was last up at 0.12% percent, Germany's Dax was last down by 0.68 % percent, France’s CAC was last down by 0.24 % percent.
Commodities Recap
Gold firmed near a one-month peak on Wednesday, as the Russia-Ukraine conflict boosted bullion's safe-haven demand while investors also bought it as a cushion against soaring inflation.
Spot gold was up 0.5% at $1,975.45 per ounce, as of 0933 GMT, after hitting $1,978.21 on Tuesday, its highest since mid-March. U.S. gold futures were up 0.2% at $1,978.90.
Oil prices edged higher on Wednesday after Moscow said that peace talks with Ukraine had hit a dead end, fuelling supply worries, while weak economic data from China and Japan kept a lid on gains.
Brent crude rose by 48 cents, or 0.5%, to $105.12 a barrel by 0808 GMT while U.S. West Texas Intermediate (WTI) crude futures gained 28 cents, or 0.3%, to $100.88. Both benchmarks had surged by more than 6% on Tuesday.