Posted at 26 January 2022 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 15.6%, 15.2% previous
•US Nov House Price Index (MoM) 1.1%,1.1% forecast, 1.1% previous
•US Nov S&P/CS HPI Composite - 20 s.a. (MoM) 1.2%, 0.9% forecast, 0.9% previous
•US Nov House Price Index 362.4,358.3 previous
•US Nov House Price Index (YoY) 17.5%, 17.4% previous
•US S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.3%,18.0% forecast, 18.4% previous
•US Jan Belgium NBB Business Climate 2.7,4.2 forecast, 3.6 previous
•US Jan Richmond Manufacturing Shipments 14, 12 previous
•US Jan CB Consumer Confidence 113.8,111.8 forecast, 115.8 previous
•US Jan Richmond Manufacturing Index 8, 14 forecast, 16 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Tuesday as dollar was lifted by rising geopolitical risk over Ukraine and a likely hawkish stance from the Federal Reserve at its policy meeting this week. Markets until recently had mostly shrugged off the massing of Russian troops on Ukraine's borders, but tensions have ratcheted up lately. NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as an escalation of tensions. The euro down 0.23% to $1.1297. Immediate resistance can be seen at 1.1310 (38.2%fib), an upside break can trigger rise towards 1.1341(50%fib).On the downside, immediate support is seen at 1.1264 (23.6%fib), a break below could take the pair towards 1.1244 (Lower BB).
GBP/USD: Sterling initially dipped against dollar on Tuesday but recovered ground as investors remained cautious amid growing tensions in Ukraine and bet the Federal Reserve will hike rates. Sterling, which is considered a riskier currency, has been under pressure as investors were nervous about the potential for military conflict in Ukraine.Russia said on Tuesday it was watching with great concern after the United States put 8,500 troops on alert to be ready to deploy to Europe in case of an escalation in the Ukraine crisis. Sterling was trading up 0.06 percent to greenback at $1.3510, after touching its lowest level since Jan. 3 of $1.3436.Immediate resistance can be seen at 1.3528 (5DMA), an upside break can trigger rise towards 1.3572(23.6%fib).On the downside, immediate support is seen at 1.3494 (38.2%fib), a break below could take the pair towards 1.3438 (61.8%fib).
USD/CAD: The Canadian dollar edged higher against the greenback on Tuesday as some of the recent disquiet in financial markets eased a notch and investors prepared for a potential interest rate hike by the Bank of Canada. The price of oil, one of Canada's major exports, was supported by bullish signals from a tight supply picture. U.S. crude prices settled 2.8% higher at $85.60 a barrel. The loonie was trading 0.2% higher at 1.2615 to the U.S. dollar, or 79.27 U.S. cents, after trading in a range of 1.2598 to 1.2669.On Monday, it touched its weakest intraday level in more than two weeks at 1.2701 amid equity market turbulence. .Immediate resistance can be seen at 1.2638 (23.6%fib), an upside break can trigger rise towards 1.2700 (Jan 24th high).On the downside, immediate support is seen at 1.2557 (38.2%fib), a break below could take the pair towards 1.2528 (50%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as tensions between Russia and the West over Ukraine drew investors to the safe haven yen. Western leaders stepped up preparations for any Russian military action in Ukraine while Moscow said it was watching with great concern after 8,500 U.S. troops were put on alert to deploy to Europe in the event of an escalation.Tensions remained high after NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets in response to Russia's troop build-up near its border with Ukraine. Strong resistance can be seen at 113.88(5DMA), an upside break can trigger rise towards 114.06 (23.6%fib).On the downside, immediate support is seen at 113.58 (50%fib), a break below could take the pair towards 113.27 (Lower BB).
Equities Recap
European stocks closed lower on Monday, with banks, miners and travel stocks bearing the brunt of investor worries of a second wave of coronavirus cases as many countries emerge from lockdowns.
UK's benchmark FTSE 100 closed up by 1.02 percent, Germany's Dax ended up by 0.75 percent, France’s CAC finished the day up by 0.72 percent.
Wall Street ended the day lower on Tuesday after another tumultuous day of trading while oil jumped more than 2% as geopolitical tensions and Wednesday's Federal Reserve update occupied investor focus..
Dow Jones closed down by 1.26 % percent, S&P 500 closed down by 2.14% percent, Nasdaq settled down by 3.05% percent.
Treasuries Recap
U.S. Treasury yields from 2-year notes and higher rose on Tuesday ahead of a Federal Reserve policy statement that is widely expected to signal an interest rate increase in March, the first since the start of the coronavirus pandemic nearly two years ago.
The yield curve steepened a little on the day, after flattening for most of the session, as long-term yields extended their rise.
Commodities Recap
Gold hit a more than two-month high on Tuesday as geopolitical concerns over Ukraine pushed investors toward safe havens including bullion, ahead of the U.S. Federal Reserve's meet that could offer cues on its monetary policy tightening plan.
Spot gold rose 0.5% to $1,852.03 per ounce by 14:03 ET (1903 GMT), after hitting its highest since Nov. 19 at $1,852.65. U.S. gold futures settled up 0.6% at $1,852.50.
Oil prices rose over 2% on Tuesday on concerns supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and struggles by OPEC+ to hit its targeted monthly output increase.
Brent futures rose $1.93, or 2.2%, to settle at $88.20 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.29, or 2.8%, to settle at $85.60.