Posted at 19 April 2022 / Categories Market Roundups
Market Roundup
• US April NAHB Housing Market Index 77, 77 forecast,79 previous
• US 3-Month Bill Auction 0.860%, 0.785% previous
• US 6-Month Bill Auction 1.250%, 1.220% previous
Looking Ahead - Economic Data (GMT)
•04:30 Japan Feb Capacity Utilization (MoM) -3.2% previous
•04:30 Japan Feb Industrial Production (MoM) 0.1% previous
Looking Ahead - Economic events and other releases (GMT)
• 20:00 New Zealand RBNZ Gov Orr Speaks
•20:00 US FOMC Member Bullard Speaks
•01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro declined on Monday as the expectation of a flurry of Fed tightening well beyond that of the ECB and static BOJ, plus concerns about the war in Ukraine and global growth, kept demand for the dollar strong.With most of Europe and parts of Asia closed Monday there was less commercial friction to slow the dollar's gains that have been led by the notion the U.S. has far more growth momentum behind it's inflationary surge than Europe, which is also most directly exposed to the war in Ukraine that's entered a new phase. Immediate resistance can be seen at 1.0823(5DMA), an upside break can trigger rise towards 1.0883 (38.2%fib).On the downside, immediate support is seen at 1.0759 (23.6%fib), a break below could take the pair towards 1.0670 (Lower BB).
GBP/USD: Sterling declined on Monday as dollar strengthened as investors braced for multiple half a percentage-point rate hikes from the Federal Reserve. The U.S. Federal Reserve is expected to accelerate its pace of policy tightening when it meets next, with a rise of 50 basis points expected in the May and June meetings. The U.S. rate futures market has priced in a 96% chance of a 50 basis-point tightening at next month's Fed policy meeting, and about 215 basis points in cumulative rate increases in 2022, providing ample support for the dollar. Immediate resistance can be seen at 1.3060 (38.2%fib), an upside break can trigger rise towards 1.3115 (50%fib).On the downside, immediate support is seen at 1.2998 (23.6%fib), a break below could take the pair towards 1.2946(Lower BB).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Monday, as higher oil prices offset broad-based gains for the greenback and investors awaited domestic inflation data later in the week. Canada's consumer price index report for March, due on Wednesday, could help guide expectations for further tightening from the Bank of Canada. Meanwhile, U.S. crude oil futures settled 1.2% higher at $108.21 a barrel as outages in Libya deepened concern over tight global supply amid the Ukraine crisis.The Canadian dollar was nearly unchanged at 1.2613 to the greenback. Immediate resistance can be seen at 1.2632 (23.6%fib), an upside break can trigger rise towards 1.2680 (Higher BB).On the downside, immediate support is seen at 1.2587 (38.2%fib), a break below could take the pair towards 1.2550 (50%fib).
USD/JPY: The dollar rose against the yen on Monday as investors braced rate hikes from the Federal Reserve. The greenback also climbed to a new 20-year peak of 126.98 yen versus the Japanese currency, highlighting the contrast in monetary policy between a hawkish Fed and an ultra-dovish Bank of Japan. The yen, earlier came off a 20-year low after both Bank of Japan Governor Haruhiko Kuroda and Finance Minister Shunichi Suzuki voiced concerns about their weakening currency. The rally proved short-lived as the yen hit a fresh 20-year trough in the New York session. Strong resistance can be seen at 127.45(23.6%fib), an upside break can trigger rise towards 128.43(Higher BB).On the downside,immediate support is seen at 126.40(5DMA), a break below could take the pair towards 125.25(38.2%fib).
Equities Recap
U.S. stocks closed lower on Monday after a session which saw all three benchmarks slip between positive and negative territory, as investors contrasted Bank of America's positive earnings with surging bond yields ahead of further earnings cues this week.
Dow Jones closed down by 0.11% percent, S&P 500 closed up by 0.02% percent, Nasdaq settled up by 0.15% percent.
Treasuries Recap
U.S. Treasury yields reached three-year highs on Monday as investors adjusted for the Federal Reserve to aggressively raise rates as it tries to stem soaring inflation that is running at its fastest pace in 40 years.
Benchmark 10-year yields were last 2.855%, after reaching 2.884% earlier on Monday, the highest since Dec. 2018.
Thirty-year yields reached 2.969%, the highest since April 2019 and in striking distance of the key 3% level.
Commodities Recap
Gold rose to a one-month high on Monday, just shy of the $2,000 an ounce level, as concerns around the Russia-Ukraine conflict and rising inflationary pressures increased safe-haven bids for the precious metal.
Spot gold rose 0.1% to $1,976.56 per ounce by 2:09 p.m. ET (1809 GMT), after earlier hitting its highest since March 11 at $1,998.10. U.S. gold futures settled 0.6% higher at $1,986.4.
Oil prices rose more than 1% on Monday, with Brent crude topping $114 a barrel, as outages in Libya deepened concern over tight global supply amid the Ukraine crisis.
Brent crude , the global benchmark, rose $1.46, or 1.3%, to settle at $113.16 a barrel. The contract rose to $114.84 a barrel, its highest since March 28.
U.S. West Texas Intermediate rose $1.26, or 1.2%, to settle at $108.21 a barrel. The benchmark hit $109.81 a barrel, also the highest since March 28.