America’s Roundup: Dollar reverses losses, Wall Street drops, Gold gains, Oil prices edge lower-January 21st,2022

Posted at 21 January 2022 / Categories Market Roundups

Market Roundup

•US Initial Jobless Claims 286K, 220K forecast, 230K previous

•US Jobless Claims 4-Week Avg 231.00K,210.75K previous

•US Continuing Jobless Claims    1,635K,1,580K forecast, 1,559K previous

•Canada ADP Nonfarm Employment Change 19.2K,231.8K previous

•US Jan Philadelphia Fed Manufacturing Index  23.2,20.0 forecast, 15.4 previous

•US Jan Philly Fed CAPEX Index  26.20,20.00 previous

•US Jan Philly Fed Prices Paid  72.50,66.10 previous

•US Philly Jan Fed Employment  26.1,33.9 previous

•US Dec Existing Home Sales (MoM)  -4.6%,1.9% previous

•US Dec Existing Home Sales 6.18M, 6.44M forecast, 6.46M previous

•US Crude Oil Inventories 0.515M,-0.938M forecast, -4.553M previous

Looking Ahead Economic Data

•No data ahaed

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined on Thursday   as money markets slightly pulled back their bets on rate hikes and the European Central Bank appeared divided on the inflation outlook Record-high inflation in the euro area and an economy recovering from the COVID-19 pandemic that is allowing the ECB to pare back the monetary stimulus that has depressed the bloc’s bond yields for years . The bets are at odds with ECB economic projections and policymakers’ suggestions that the bank won’t raise rates this year. The euro slipped 0.06% to $1.1303 , which was its weakest level since Jan. 10.Immediate resistance can be seen at 1.1332 (38.2%fib), an upside break can trigger rise towards 1.1371 (23.6%fib).On the downside, immediate support is seen at 1.1300(50%fib), a break below could take the pair towards  1.1267 (61.8% fib).

GBP/USD: Sterling dipped against dollar on Thursday as investors assessed whether . Money markets currently price in more than 100 basis points (bps) in interest rate rises in 2022 and an 87% chance of a 25 bps increase in February, after data showed on Wednesday that UK inflation rose faster than expected to its highest in nearly 30 years in December. Domestic politics is not damaging sentiment, after Prime Minister Boris Johnson dismissed calls to resign on Wednesday. The pound was down 0.09% against the greenback at $1.3586. Immediate resistance can be seen at 1.3608(5DMA), an upside break can trigger rise towards 1.3638(38.2%fib).On the downside, immediate support is seen at 1.3577 (50%fib), a break below could take the pair towards 1.3539 (21DMA).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as equity markets clawed back some of this week's losses and investors weighed prospects of the Bank of Canada hiking interest rates next week. U.S. crude prices were down 0.2% at $86.75 a barrel on indications of rising U.S. stocks and as investors took profits after a recent price rally. Canadian retail sales data, due on Friday, could offer more clues on the strength of the domestic economy. The Canadian dollar was trading 0.3% higher at 1.2479 to the greenback , after trading in a range of 1.2476 to 1.2516.Immediate resistance can be seen at 1.2535(38.2%fib), an upside break can trigger rise towards 1.2599 (23.6%fib).On the downside, immediate support is seen at 1.2487 (50%fib), a break below could take the pair towards 1.2433(61.8%fib).

USD/JPY: The dollar declined against the Japanese yen on Thursday as Fed tightening fears spook investors. Concern that the Federal Reserve will aggressively move to raise rates this year is taking a toll on the market. Investors are anxiously awaiting the U.S. central bank's policy meeting next week for new details on how it will tackle inflation. On the data  front, the number of Americans filing new claims for unemployment benefits jumped to a three-month high last week, likely as a winter wave of COVID-19 infections disrupted business activity, which could weigh on job growth in January. Strong resistance can be seen at 114.25 (38.2% fib), an upside break can trigger rise towards 114.85 (23.6%fib).On the downside, immediate support is seen at 113.75 (50%fib), a break below could take the pair towards 113.24 (61.8%fib).

Equities Recap                               

European stocks closed broadly higher on Thursday as investors indulged in some buying at several counters, shrugging off concerns about inflation and worries about imminent interest rate hikes.

UK's benchmark FTSE 100 closed down by  0.06 percent, Germany's Dax ended up by 0.65 percent, France’s CAC finished the day up by 0.30 percent.                        

Wall Street's main indexes ended sharply lower on Thursday and a rally in U.S. stocks evaporated late in the session as investors considered whether equities were bargains after a sell-off to start the year that has seen the Nasdaq fall into correction territory.

Dow Jones closed down by 0.89 percent, S&P 500 closed down by 1.10  percent, Nasdaq settled down   by 1.30 % percent.

Treasuries Recap

U.S. Treasury yields were steady on Thursday, after dropping from two-year highs on Wednesday, following a rapid sell-off sparked by anticipation of a more hawkish Federal Reserve drew new buying interest.

Benchmark 10-year note yields were last at 1.825%, after reaching 1.902% in overnight trading on Wednesday, which was the highest since January 2020.

Commodities Recap

Gold   touched two-month highs on Thursday, lifted by worries surrounding inflation and Russia-Ukraine tensions

Spot gold rose 0.1% to $1,841.45 per ounce by 13:43 ET (1843 GMT), its highest since Nov. 22. U.S. gold futures settled flat at $1,842.60.

Oil edged lower on Thursday, posting slim losses after several days of strength that pushed benchmarks to seven-year highs due to concerns about tight supply.

Brent crude futures settled down 6 cents to $88.38 a barrel. U.S. West Texas Intermediate (WTI) crude futures for February delivery lost 6 cents to $86.90

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