Posted at 19 April 2022 / Categories Market Roundups
Market Roundup
•Spanish 3-Month Letras Auction -0.657%,-0.692% previous
•German 5-Year Bobl Auction 0.640%,0.210% previous
•EU Mar Reserve Assets Total 1,102.82B,1,091.82B previous
Looking Ahead - Economic data ahead (GMT)
•12:30 Canada Mar Housing Starts 250.0K forecast, 247.3K previous
•12:30 Canada Feb Foreign Securities Purchases 13.49B previous
•12:30 Canada Feb Foreign Securities Purchases by Canadians -14.42B previous
•12:30 US Mar Housing Starts 1.745M forecast,1.769M previous
•12:30 US Mar Building Permits (MoM) -1.6% previous
•12:30 US Building Permits 1.825M forecast,1.865M previous
•12:30 US Housing Starts (MoM) 6.8% previous
•12:30 Canada ADP Nonfarm Employment Change 475.0K previous
•12:55 US Redbook (YoY) 13.4% previous
•13:00 French 12-Month BTF Auction -0.320% previous
•13:00 French 3-Month BTF Auction -0.664% previous
•13:00 French 6-Month BTF Auction -0.579% previous
•15:00 New Zealand GlobalDairyTrade Price Index -1.0% previous
Looking Ahead - Economic events and other releases (GMT)
•16:05 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro was little changed on Tuesday as the prospect of aggressive Fed tightening to rein in inflation kept investors on edge. Expectations that the U.S. Federal Reserve will tighten its monetary policy have continued to provide support to the dollar.U.S. inflation is “far too high”, St. Louis Federal Reserve Bank President James Bullard said on Monday as he repeated his case for increasing interest rates to 3.5% by the end of the year. Immediate resistance can be seen at 1.0826(50%fib), an upside break can trigger rise towards 1.0889 (61.8%fib).On the downside, immediate support is seen at 1.0755 (38.2%fib), a break below could take the pair towards 1.0681 (23.6%fib).
GBP/USD: The pound edged higher on Tuesday, breaking a three-day falling streak, as investors covered some of their short positions and as 10-year British government bond yields rose to their highest in more than seven years. But the outlook remained cautious, with the pound well within striking distance of a November 2020 low of $1.2973 hit last week.Even as British yields have extended gains in recent days, investors have become increasingly unsure whether the Bank of England (BoE) will follow its global counterparts in raising interest rates aggressively to curb inflation. Market focus is on a speech from BoE governor Andrew Bailey on Thursday, even as data showed hedge funds have increased their short bets on the pound to their highest levels since the start of the year.Immediate resistance can be seen at 1.3050 (50%fib), an upside break can trigger rise towards 1.3113 (61.8%fib).On the downside, immediate support is seen at 1.2991 (38.2%fib), a break below could take the pair towards 1.2926(23.6%fib).
USD/CHF: The dollar steadied on Tuesday as the dollar held on elevated U.S. Treasury yields and expectations that the Federal Reserve will tighten its monetary policy. The benchmark U.S. 10-year Treasury yield on Tuesday was just off its three-year high of 2.884% hit on Monday.St. Louis Fed President James Bullard on Monday repeated his case for increasing interest rates to 3.5% by the end of the year to rein in 40-year-high inflation readings. The dollar was firm against most other currencies and the dollar index was at 100.8, just off Monday’s two-year high of 100.86.Immediate resistance can be seen at 0.9487 (Higher BB), an upside break can trigger rise towards 0.9494 (23.6%fib).On the downside, immediate support is seen at 0.9436(38.2% fib), a break below could take the pair towards 0.9410(5DMA).
USD/JPY: The dollar rose on Tuesday to a fresh 20-year high against the Japanese yen as dollar was supported by high U.S. Treasury yields. Bonds climbed after St. Louis Fed President James Bullard said that rate increases of 75 basis points could be considered, if needed to combat inflation. The dollar index, which measures the greenback against six other currencies, climbed past 101 for the first time in more than two years. It edged 0.07% lower at 100.74, down 0.1% at 0825 GMT.The dollar’s gains have been most striking against the yen, climbing to its highest level of 128.32 yen against the Japanese currency since May 2002. It was last up 1.3% at 128.24 yen. Strong resistance can be seen at 128.34(23.6%fib), an upside break can trigger rise towards 128.78(Higher BB).On the downside, immediate support is seen at 126.97(38.2%fib), a break below could take the pair towards 125.56(5DMA).
Equities Recap
European stocks fell on Tuesday, with rising bond yields, Russia's renewed campaign in eastern Ukraine, worries over economic slowdown and expectations of aggressive monetary tightening by the U.S. Federal Reserve keeping investors on edge.
At (GMT 12:04) UK's benchmark FTSE 100 was last down at 0.46% percent, Germany's Dax was last down by 0.74 % percent, France’s CAC was last down by 1.16 % percent.
Commodities Recap
Gold prices ticked lower on Tuesday from more than a month high as the dollar strengthened, though bullion's appeal as a safe-haven and an inflation hedge capped declines amid concerns over the Ukraine war and a spike in consumer prices.
Spot gold was down 0.1% at $1,976.18 per ounce as of 0947 GMT. U.S. gold futures slipped 0.4% to $1,979.
Oil prices slipped in volatile trading on Tuesday as investors weighed demand concerns against tight global supplies after Libya halted some exports and as factories in Shanghai prepared to reopen following a COVID-19 shutdown.
Brent crude was down $1.41, or 1.2%, to $111.75 a barrel at 1028 GMT, after rising more than $1 to $114.21 earlier in the session.
U.S. West Texas Intermediate crude fell $1.64, or 1.5%, to $106.57 a barrel, after rising to $108.92 earlier.