Posted at 16 May 2022 / Categories Market Roundups
•German Apr WPI (MoM) 2.1% ,6.9% previous
•German Apr WPI (YoY) 23.8% 22.6% previous
•EU Mar Trade Balance -16.4B,-7.6B previous
•German 12-Month Bubill Auction -0.107% ,-0.540% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Apr Housing Starts 246.4K forecast,246.2K previous
•12:30 US May NY Empire State Manufacturing Index 17.00 forecast, 24.60 previous
•12:30 US Mar Manufacturing Sales (MoM) 1.7% forecast,4.2% previous
•12:30 US Mar Wholesale Sales (MoM) -0.3% forecast,-0.4% previous
•13:00 French 12-Month BTF Auction -0.120% previous
•13:00 French 3-Month BTF Auction -0.631% previous
•13:00 French 6-Month BTF Auction -0.477% previous
•15:30 US 3-Month Bill Auction 0.900% previous
•15:30 US 6-Month Bill Auction 1.385% previous
•12:55 US FOMC Member Williams Speaks
•14:15 BoE MPC Treasury Committee Hearings
Looking Ahead - Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro edged higher against dollar on Monday after European Central Bank policymaker Francois Villeroy de Galhau said a weak euro threatened price stability in the currency bloc. The currency has tumbled almost 9% since February and fell to its lowest levels since 2017 last week, a move that accelerated upward pressure on inflation in the euro area, which is already running at record highs at 7.5%. The euro's weakness on currency markets could threaten the ECB's efforts to steer inflation towards its target, Villeroy said .The euro was at $1.0427, slightly up, and only just above the $1.0354 level it hit on Thursday. Immediate resistance can be seen at 1.0449(38.2% fib), an upside break can trigger rise towards 1.0501 (10DMA).On the downside, immediate support is seen at 1.0345 (23.6% fib), a break below could take the pair towards 1.0316 (Lower BB).
GBP/USD: Sterling was little changed on Monday as weak Chinese economic data added pressure on risky currencies, while investors scaled down their expectations for Bank of England interest rate rises this year. Risk-sensitive sterling has fallen 10% against the dollar this year as the war in Ukraine, rising inflation, poor domestic economic growth and fears for a slowdown in the global economy have hit risk sentiment. In a choppy start to the day, sterling fell 0.2% against the dollar to trade at $1.2236 at 0900 GMT, and was not too far from a two-year low of $1.2156 touched on Friday. Immediate resistance can be seen at 1.2303 (38.2%fib),an upside break can trigger rise towards 1.2342 (9 DMA).On the downside, immediate support is seen at 1.2185 (23.6%fib), a break below could take the pair towards 1.2100 (Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as investors sought safety due to fears about global growth that were highlighted by Monday’s poor Chinese economic data. China’s retail and factory activity fell sharply in April as wide COVID-19 lockdowns confined workers and consumers to their homes. The offshore Chinese yuan held near a September 2020 low of 6.8380 yuan hit last week. The dollar index was at 104.57, having briefly crossed the 105 level on Friday, its highest since December 2002, after six successive weeks of gains. Immediate resistance can be seen at 1.1058 (23.6%fib), an upside break can trigger rise towards 1.100 (Higher BB).On the downside, immediate support is seen at 0.9995 (38.2%fib), a break below could take the pair towards 0.9947 (50%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Monday as investors sought safety in dollar due to fears about global growth. Investors have flocked to the safe-haven U.S. dollar on concerns about the U.S. Federal Reserve's ability to dampen inflation without causing a recession, along with worries about slowing growth arising from the Ukraine crisis and the economic effects of China's zero-COVID-19 policy. The U.S. dollar consolidated gains near a two-decade peak after an unexpectedly weak economic data from China highlighted fears about a slowdown in growth .Strong resistance can be seen at 129.80 (10 DMA), an upside break can trigger rise towards 130.17 (23.6%fib).On the downside, immediate support is seen at 128.54 (38.2%fib), a break below could take the pair towards 127.27(50%fib).
European shares opened lower on Monday, with French stocks down almost 1%, as alarmingly weak economic data from China fanned global recession fears.
At (GMT 10:46 ),UK's benchmark FTSE 100 was last trading up at 0.04 percent, Germany's Dax was down by 0.56 percent, France’s CAC finished was down by 0.26 percent.
Gold prices fell more than 1% to their lowest in 3-1/2 months on Monday as elevated bond yields and a firmer U.S. dollar dampened bullion demand, even as riskier assets dropped after grim China economic data.
Spot gold was down 0.7% at $1,798.80 per ounce as of 0920 GMT, after hitting its lowest since Jan. 31 at $1,786.60 earlier in the session. U.S. gold futures fell 0.6% to $1,798.
Oil prices fell on Monday as widespread lockdowns in China and weak economic data in the country fuelled fears of a global recession, though the market found some support as the European Union stepped closer to an import ban on Russian crude.
Brent crude was down 28 cents, or 0.3%, at $111.27 a barrel at 0934 GMT, and U.S. West Texas Intermediate (WTI) crude slipped 9 cents, or 0.1%, to $110.40 a barrel.