Posted at 13 May 2022 / Categories Market Roundups
•French CPI (YoY) 4.8%,4.8% forecast, 4.5% previous
• French April HICP (YoY) 5.4%, 5.4% forecast, 5.1% previous
•French Apr CPI (MoM) 0.4%, 0.4% forecast, 1.4% previous
•French Apr HICP (MoM) 0.5%, 0.5% forecast, 1.6% previous
•EU Mar Industrial Production (MoM) -1.8%, -2.0% forecast, 0.7% previous
•EU Mar Industrial Production (YoY) -0.8%, -1.0% forecast, 2.0% previous
•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
Looking Ahead - Economic Data (GMT)
•14:00 US May Michigan 5-Year Inflation Expectations 3.00% previous
•14:00 US May Michigan Consumer Sentiment 64.0 forecast, 65.2 previous
•14:00 US May Michigan Consumer Expectations 63.0 forecast, 62.5 previous
•14:00 US May Michigan Current Conditions 70.5 forecast, 69.4 previous
•17:00 U.S. Baker Hughes Oil Rig Count 557 previous
•17:00 U.S. U.S. Baker Hughes Total Rig Count 705 previous
Looking Ahead - Economic events and other releases (GMT)
•16:00 ECB's Schnabel Speaks
EUR/USD: The euro hovered near its weakest point since early 2017 on Friday after Russian sanctions led to disruptions in gas supplies to Europe, renewing fears about an economic slowdown in the euro zone. 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. 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 1.0368 (Daily high), an upside break can trigger rise towards 1.0453(38.2%fib).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 edged up against the dollar on Friday, offering some respite from a week of selling that pushed the currency to two-year lows.By 0835 GMT, the pound was up 0.21% at $1.2216, a day after falling to a fresh two-year low of $1.2165 as a slew of data pointed to a weakening British economy. Senior British politicians want to overhaul the agreement on trade between Northern Ireland and the United Kingdom that they signed up to in order to get Brexit done. They have warned they might have to take unilateral action. Data on Thursday showed Britain's economy unexpectedly shrank 0.1% in March after a slump in car sales due to supply-chain problems. Immediate resistance can be seen at 1.2232(Daily high), an upside break can trigger rise towards 1.2272 (38.2%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/CHF: The dollar strengthened against Swiss franc on Friday as concerns that tighter monetary policies to tame surging inflation will hurt the global economy dampened risk sentiment and drove investors into the safe-haven currency. The rally in the dollar, aided by a flight-to-safety bid by investors concerned about inflation and economic uncertainty, has hit most major currencies. The U.S. dollar remained firm near 20-year highs, with the dollar index, which tracks it against a basket of currencies of other major trading partners, at 104.8. Immediate resistance can be seen at 1.0052(23.6 % fib), an upside break can trigger rise towards 1.0097(Higher BB).On the downside, immediate support is seen at 0.9982(5DMA), a break below could take the pair towards 0.9934 (38.2 % fib ).
USD/JPY: The dollar strengthened against yen on Friday as prospects of aggressive interest rate hikes by the U.S. Federal Reserve continued to boost dollar. Fed Chair Jerome Powell repeated on Thursday his expectation that the Fed will raise interest rates by half a percentage point at each of its next two policy meetings, easing worries about a bigger 75 basis point rate hike that some investors were expecting.The dollar index was bound for a sixth consecutive weekly gain, hovering near a 20-year high, as concerns persisted the Fed's actions to tame inflationary pressures would crimp global economic growth. The dollar rose 0.36% to 128.76 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).
European shares rose on Friday, as sentiment stabilised at the end of a volatile week dominated by worries about aggressive monetary policy tightening and slowing global growth.
At (GMT 13:47),UK's benchmark FTSE 100 was last trading up at 1.95 percent, Germany's Dax up by 1.37 percent, France’s CAC finished was up by 1.78 percent.
Gold fell on Friday and was headed for a fourth consecutive weekly decline pressured by overall strength in the dollar on prospects of aggressive interest rate hikes by the U.S. Federal Reserve.
Spot gold fell 0.2% to $1,817.39 per ounce by 1039 GMT, after hitting $1,810.86, its lowest since Feb. 7. Bullion has lost over 3% so far this week.
Oil prices rose on Friday but were headed for their first weekly loss in three weeks as worries about inflation and China's COVID lockdowns slowing global growth offset concerns about dwindling supplies from Russia.
Brent crude futures were up $1.88, or 1.8%, at $109.33 a barrel at 1227 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed $1.96, or 1.9%, to $108.09 a barrel.