Posted at 14 May 2022 / Categories Market Roundups
Market Roundup
•US Apr Import Price Index (MoM) 0.0%, 0.6% forecast, 2.6% previous
•US Apr Export Price Index (MoM) 0.6%, 0.7% forecast, 4.5% previous
•Canada New Motor Vehicle Sales (MoM) 144.6%,103.0% previous
•US May Michigan 5-Year Inflation Expectations 3.00%, 3.00% previous
•US May Michigan Consumer Sentiment 5.4%,64.0 forecast, 65.2 previous
•US May Michigan Consumer Expectations 56.3,63.0 forecast, 62.5 previous
•US May Michigan Current Conditions 70.5 forecast, 69.4 previous
•U.S. Baker Hughes Oil Rig Count 563, 557 previous
•U.S. U.S. Baker Hughes Total Rig Count 714, 705 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
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Currency Summaries
EUR/USD: The euro edged higher against dollar on Friday as investor sentiment stabilized after a volatile week of trading, helping to push up euro . Investors are anxious about whether U.S. Federal Reserve Chair Jerome Powell can accomplish a “soft landing,” where the Fed raises interest rates just enough to reduce elevated inflation without causing the economy to contract.The single currency has been battered in recent weeks by a combination of fears for the economy suffering from the fallout of the war in Ukraine, and a huge rally in the U.S. dollar fuelled by bets the Federal Reserve will deliver a series of big interest rate hikes to tame inflation. Immediate resistance can be seen at 1.0451 (38.2%fib), an upside break can trigger rise towards 1.0478(5DMA).On the downside, immediate support is seen at 1.0345(23.6%fib), a break below could take the pair towards 1.0325 (Lower BB).
GBP/USD Britain’s pound steadied against the dollar on Friday, although it was set for a fourth consecutive week of losses after selling that pushed the currency to two-year lows. Britain’s pound steadied against the dollar on Friday, although it was set for a fourth consecutive week of losses after selling that pushed the currency to two-year The pound had fallen to a two-year low of $1.2165 on Thursday after data showed Britain’s economy unexpectedly shrank 0.1% in March following a slump in car sales. Sterling was up 0.3% to $1.22340 at 1537 GMT, swinging back from modest losses earlier in afternoon trading, when it had been down 0.07% against the U.S. currency. Immediate resistance can be seen at 1.2283(38.2%fib), an upside break can trigger rise towards 1.2370(50%fib).On the downside, immediate support is seen at 1.2157 (23.6%fib), a break below could take the pair towards 1.2053(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as oil prices rose and equity markets globally clawed back some recent losses, but the currency still added to a string of weekly declines.The loonie was up 0.7% higher at 1.2950 to the greenback, after trading in a range of1.2915 to 1.3049. The price of oil, one of Canada's major exports, climbed onfears supplies would tighten if the European Union bans Russian oil. U.S. crude oil futures settled 4.1% higher at $110.49 a barrel. For the week, the loonie was down 0.3%, its seventh straight weekly decline. It touched on Thursday its weakest intraday level in 18 months at 1.3076. Immediate resistance can be seen at 1.2927 (38.2%fib), an upside break can trigger rise towards 1.3044 (23.6%fib).On the downside, immediate support is seen at 1.2827 (50%fib), a break below could take the pair towards 1.2797 (5DMA).
USD/JPY: The dollar strengthened against yen on Friday as investors remained concerned about slowing global growth and Federal Reserve policy tilting the United States into a recession. High inflation and the Fed's rate hike path have fueled worries of a policy error that could cause recession or a stagflation scenario of slowing growth and high prices. The dollar showed little reaction on Friday to data showing U.S. import prices were unexpectedly flat in April as a decline in petroleum costs offset gains in food and other products, a further sign that inflation has probably peaked.The dollar rose 0.36% to 129.23 yen. Strong resistance can be seen at 129.75(5DMA), an upside break can trigger rise towards 130.40 (23.6%fib).On the downside, immediate support is seen at 127.64(38.2%fib), a break below could take the pair towards 126.91 (Lower BB).
Equities Recap
European shares rose on Friday, closing higher for the first time in five weeks, as a bout of bargain hunting took over after worries about aggressive monetary policy tightening and slowing global growth.
The UK's benchmark FTSE 100 closed up by 2.55 percent, Germany's Dax ended up by 2.10 percent, and France’s CAC finished the up by 2.52 percent.
Wall Street surged on Friday to end higher, closing the book on a week of wild market gyrations as relief at signs of peaking inflation vied with fears that policy tightening by the Federal Reserve could tilt the economy into recession.
Dow Jones closed up by 1.47 percent, S&P 500 ended up 2.38 percent, Nasdaq finished the day up by 3.82 percent.
Treasuries Recap
Treasury yields rose on Friday, reversing the week's rally in bond prices driven by the largest weekly inflows since COVID-19 slammed markets in March 2020, as fears of a Federal Reserve policy error and runaway inflation subsided.
The yield on 10-year Treasury notes rose 9.4 basis points to 2.911%, helped by Labor Department data that showed import prices were flat in April. That added evidence of a slight moderation in the rising pace of inflation.
Commodities Recap
Gold fell more than 1% on Friday and is set for its fourth straight weekly decline, as the dollar's strong run with more aggressive U.S. interest rates on the horizon sapped appetite for bullion.
Spot gold fell 0.7% to $1,808.89 per ounce by 01:54 p.m. EDT (1754 GMT), after hitting its lowest since Feb. 4 at $1,798.86. It has declined nearly 4% this week.
Oil prices rose about 4% on Friday as U.S. gasoline prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the European Union bans Russian oil.
Brent futures rose $4.10, or 3.8%, to settle at $111.55 a barrel. U.S. West Texas Intermediate (WTI) crude rose $4.36, or 4.1%, to settle at $110.49.