News

America’s Roundup: Dollar edges up as traders assess Fed rate hike bets,Gold holds ground, Oil climbs as supplies expected to remain tight-January 18th,2022

Posted at 17 January 2022 / Categories Market Roundups


Market Roundup

•Canada Nov Manufacturing Sales (MoM)  2.6%,3.1% forecast, 4.3% previous

•Canada Nov Foreign Securities Purchases by Canadians  17.52B , 5.41B previous

•Canada Nov Foreign Securities Purchases  30.15B, 23.50B forecast, 23.92B previous

•French 12-Month BTF Auction -0.632%,-0.621% previous

•French 3-Month BTF Auction -0.650%,-0.633% previous

•French 6-Month BTF Auction -0.646%,-0.624% previous

•Canada BoC Business Outlook Survey

Looking Ahead - Economic events and other releases (GMT)

• 02:30 New Zealand NZIER Business Confidence (Q4) -11%  96.1%

• 08:00 Japan BoJ Interest Rate Decision -0.10%,-0.10% previous

Looking Ahead - Economic events and other releases (GMT)

• 08:00 Japan   BoJ Press Conference

• 08:00 Japan   BoJ Monetary Policy Statement

• 08:30 Japan BoJ Outlook Report (YoY)

Currency Summaries

EUR/USD: The euro dipped on Monday as traders continued to hold on to dollars but took the view that Federal Reserve tightening plans were largely priced in. With no major economic data for the euro zone on the calendar this week, investors will focus on speeches from President Christine Lagarde, other ECB members and on the minutes of the ECB’s December policy meeting out on Thursday. European Central Bank President Christine Lagarde said on Friday, the bank is ready to take any measures necessary to get inflation down to its 2% target. The euro slipped 0.2% versus the dollar at $1.1396, after rising on Friday to a two-month high. Immediate resistance can be seen at 1.1430 (38.2% fib), an upside break can trigger rise towards 1.1468 (23.6%fib).On the downside, immediate support is seen at 1.1402 (50% fib), a break below could take the pair towards 1.1372(61.8%fib).

GBP/USD: The British pound's early gains evaporated on Monday and it turned lower, away from a 2-1/2 month high, as investors consolidated bets ahead of a Bank of England meeting next month where it is widely expected to raise interest rates.Recent data has raised expectations the British economy is rebounding strongly from the pandemic. Money markets are fully pricing in one rate hike by next month and one full percentage point increase in interest rates by the end of 2022.But some economists believe the boost to the British economy from the pandemic rebound may be over and the economy is likely to face stiff headwinds in the coming months. Immediate resistance can be seen at 1.3672(38.2% fib), an upside break can trigger rise towards 1.3746 (23.6%fib).On the downside, immediate support is seen at 1.3619(38.2%fib), a break below could take the pair towards 1.3560(50%fib).

USD/CAD : The Canadian dollar rose against its U.S. counterpart on Monday as oil prices held on to recent gains and domestic data provided more evidence that Canada's economy strengthened in the final quarter of last year. Canadian factory sales rose 2.6% in November from October driven mostly by higher sales of primary metals, petroleum and coal products, non-metallic minerals, and food product, Statistics Canada said. The price of oil, one of Canada's major exports, was steady as investors bet that global supply will remain tight despite a rise in Libyan output.U.S. crude prices were unchanged at $83.82 a barrel, while the Canadian dollar strengthened 0.3% to 1.2517 per greenback, adding to last week's gains. It traded on Monday in a range of 1.2501 to 1.2557.. Immediate resistance can be seen at 1.2540 (38.2%fib), an upside break can trigger rise towards 1.2601 (23.6%fib).On the downside, immediate support is seen at 1.2483(50%fib), a break below could take the pair towards 1.2439(61.8%fib).

USD/JPY: The dollar rose against the Japanese yen on Monday as dollar was boosted on expectation that Federal Reserve will soon raise interest rate. Investors are also bracing for the Federal Reserve's decision following the Jan. 25-26 policy meeting, after recent hawkish comments have seen the market almost fully price in a first rate hike for March and rates of 1.0% by the year-end. Investors are wagering the sharp hawkish shift by the Federal Reserve. A first hike to 0.25% is priced in by June, with a better than 50-50 chance of a move in May, while rates are seen topping 1.0% by the end of the year. Strong resistance can be seen at 114.56 (5DMA), an upside break can trigger rise towards 114.71 (38.2%fib).On the downside, immediate support is seen at 114.23 (50%fib), a break below could take the pair towards 113.871(61.8%fib).

Equities Recap

European shares closed higher on Monday, with healthcare stocks lifted by M&A activity, while Credit Suisse slipped after its chairman quit after an internal probe into his personal conduct.

 UK's benchmark FTSE 100 closed up by 0.91 % percent, Germany's Dax ended up   by 0.32% percent, France’s CAC finished the day up by 0. 82%percent.

US Stocks market was closed on Monday on account of Martin Luther King, Jr. Day

Treasuries Recap

U.S. bond markets were closed for Martin Luther King Day

Commodities Recap

Gold prices held their ground on Monday, with gains capped by expectations of monetary policy tightening in the United States.

Spot gold rose 0.1% to $1,819.41 an ounce by 1526 GMT while U.S. gold futures also edged up by 0.1% to $1,818.80. U.S. markets were closed for a public holiday.

Oil prices rose on Monday with investors betting that global supply will remain tight, although restraint by major producers was partially offset by a rise in Libyan output.

Brent crude settled up 42 cents, or 0.5%, to $86.48 a barrel. Earlier in the session, the contract touched its highest price since Oct. 3, 2018, at $86.71.

U.S. West Texas Intermediate crude was up 53 cents, or 0.6%, at $84.35 after touching its highest price since Nov. 10 at $84.78.


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