Market Roundup
•Sweden Feb CPI (MoM) 0.9%, 0.5% forecast,-0.5% previous
•German Feb WPI (MoM) 1.7%, 0.9% forecast, 2.3% previous
•German Feb WPI (YoY) 16.6% forecast, 16.2% previous
•French Jan Current Account -1.80B , -7.10B previous
•French Jan Trade Balance -8.0B, -9.8B forecast,-11.3B previous
Looking Ahead Economic Data(GMT)
•14:00 French 3-Month BTF Auction -0.755% previous
•14:00 French 6-Month BTF Auction -0.721% previous
•14:00 French 12-Month BTF Auction -0.640% previous
•15:30 US 3-Month Bill Auction 0.380% previous
•15:30 US 6-Month Bill Auction 0.710% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Monday as investors bracing for the outcome of the central banks’ policy meetings due this week, while hopes for progress in peace talks over Ukraine propped up risk appetite. Russian and Ukrainian officials suggested there could be positive results within days, while Ukraine reported renewed air strikes on an airport in the west, near the border with NATO member Poland. Investors’ focus will be on the Federal Reserve policy meeting, which ends on Wednesday, with money markets currently pricing in rate hikes for over 170 bps by December 2022. Immediate resistance can be seen at 1.1006 (38.2%fib), an upside break can trigger rise towards 1.1094(50%fib).On the downside, immediate support is seen at 1.0901 (23.6%fib), a break below could take the pair towards 1.0801 (Lower BB).
GBP/USD: Sterling initially dipped but recovered some ground against dollar on Monday as investors awaited monetary policy updates from the Bank of England and Federal Reserve later in the week. Both the BoE and Fed are seen raising their main interest rates by 25 basis points at their respective meetings. Money markets are currently pricing in 163 basis points of monetary tightening from the Bank of England this year, equivalent to at least six 25 basis point rate increases.Sterling fell as low as $1.3013 against the dollar, its lowest level since November 2020, before paring losses to trade marginally higher at $1.3044. Immediate resistance can be seen at 1.3105(38.2%fib), an upside break can trigger rise towards 1.3171(50%fib).On the downside, immediate support is seen at 1.3024(23.6%fib), a break below could take the pair towards 1.2953 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Monday on hopes that further talks due between Kyiv and Moscow might ease the situation in Ukraine, while shares were mixed. Ukrainian and Russian negotiators were set to talk again after both sides cited progress, even though Russia attacked a base near the Polish border and fighting raged elsewhere. Futures are pricing in between six and seven U.S. rate hikes of 25 basis points each this year, and six in Britain as the war in Ukraine adds to global inflationary pressures. This week, the U.S. Federal Reserve and the Bank of England are expected to raise interest rates, while a slew of other central bank meetings, including in Russia, Brazil, Turkey and the European Central Bank are likely to dominate investor focus. Immediate resistance can be seen at 0.9360 (23.6%fib), an upside break can trigger rise towards 0.9374 (Higher BB).On the downside, immediate support is seen at 0.9325 (38.2%fib), a break below could take the pair towards 0.9294(50%fib).
USD/JPY: The dollar strengthened against yen on Monday as traders braced for the U.S. Federal Reserve to begin hiking rates, while reckoning the Bank of Japan remains dovish. The dollar touched 117.88 yen in Asia trade, its strongest since January 2017, at the start of a busy week of central bank meetings in the United States, Britain and Japan. Futures are pricing in between six and seven U.S. rate hikes of 25 basis points each this year, and six in Britain as the war in Ukraine adds to global inflationary pressures.In contrast, the BOJ is set to remain dovish at its meeting this week as policymakers try to boost the country’s weak economic recovery from the pandemic. Strong resistance can be seen at 117.90(23.6%fib), an upside break can trigger rise towards 118.63(Jan 7th 2017 high).On the downside, immediate support is seen at 117.63(38.2%fib), a break below could take the pair towards 117.20(50%fib).
Equities Recap
European stocks rose on Monday as investors pinned hopes for a diplomatic solution to end a weeks-long conflict.
At (GMT 12:55 ),UK's benchmark FTSE 100 was last trading up at 0.23 percent, Germany's Dax was up by 2.14 percent, France’s CAC finished was up by 1.41 percent.
Commodities Recap
Gold prices fell on Monday, dragged by firmer U.S. Treasury yields and improved risk appetite on hopes of peace between Russia and Ukraine.
Spot gold was down 1.2% at $1,962.01 per ounce, while U.S. gold futures shed 1% to $1,964.00.
Oil prices fell by around $5 a barrel on Monday as investors pinned hopes on diplomatic efforts by Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.
Brent was down by $4.67, or 4.1%, at $108.00 a barrel at 1000 GMT, and U.S. West Texas Intermediate (WTI) crude fell $5.71, or 5.2%, to $103.62 a barrel.
