|   Market Roundups


  |   Market Roundups


America’s Roundup:U.S dollar rises to more than 2-year high on hawkish Fed rate hike outlook, Wall Street slumps, Gold falls 1%, Oil falls, posts nearly 5% weekly loss on growth concerns-23rd, 2022

Market Roundup

•Canada Retail Sales (MoM) 0.1%,-0.4% forecast, 3.2% previous

•Canada Mar RMPI (MoM)  11.8%,6.0% previous

•Canada Feb Core Retail Sales (MoM)  2.1%,0.1% forecast, 2.5% previous

•US Apr Manufacturing PMI   59.7, 58.2 forecast,58.8 previous

•US Apr Markit Composite PMI  55.1, 57.0 forecast, 57.7 previous

•US Apr Services PMI   54.7,58.0 forecast, 58.0 previous

•U.S. Baker Hughes Total Rig Count 695 ,693 previous

• U.S. Baker Hughes Oil Rig Count 549,548 previous

Looking Ahead - Economic data ahead (GMT)

•No data ahead

Looking Ahead - Economic events and other releases (

•No significant events

Currency Summaries

EUR/USD: The euro declined against dollar on Friday after European Central Bank officials made mixed comments, while expectations of a 50 basis points (bps) rate hike from the Federal Reserve supported the U.S. dollar. ECB President Christine Lagarde provided some dovish signals by saying the central bank might need to cut its growth outlook. This followed ECB dove Luis de Guindos joining a growing number of ECB policymakers in calling for an early end of the Asset Purchase Programme coupled with a rate rise in July. Euro zone PMI data showing business growth unexpectedly accelerated this month failed to provide immediate further direction to the market. Against the U.S. dollar, the euro fell 0.2% to $1.0794.Immediate resistance can be seen at 1.0831(38.2%fib), an upside break can trigger rise towards 1.0889(50%fib).On the downside, immediate support is seen at 1.0766 (23.6%fib), a break below could take the pair towards 1.0700(Psychological level).

GBP/USD: The British pound weakened against dollar on Friday  after data showed Britain's private sector suffered a sharp slowdown this month as high inflation and the conflict in Ukraine weighed on the country's giant services sector. The preliminary S&P Global/CIPS composite Purchasing Managers' Index (PMI) dropped to a three-month low of 57.6 in April from 60.9 in March. Economists polled   had mostly expected a smaller fall to 59.0. A separate survey published earlier on Friday showed consumer confidence close to its lowest level since records began nearly 50 years ago. Immediate resistance can be seen at 1.2915 (38.2%fib), an upside break can trigger rise towards 1.2991 (50%fib).On the downside, immediate support is seen at 1.2832 (23.6%fib), a break below could take the pair towards 1.2800(Psychological level).

USD/CAD: The Canadian dollar on Friday posted its biggest decline against the greenback in five months, as oil prices dropped and investors weighed prospects of upsized interest rate hikes by the Federal Reserve and the Bank of Canada to tackle inflation. The loonie fell 1% to 1.2710 per greenback , its biggest decline since November last year. The currency touched its weakest since March 16 at 1.2726 and was down 0.8% for the week, its fourth straight week of declines. The price of oil, one of Canada's major exports, was burdened by the prospect of higher interest rates, weaker global growth and COVID-19 lockdowns in China hurting demand. U.S. crude futures settled 1.7% lower at $102.07 a barrel. Immediate resistance can be seen at 1.2720 (38.2%fib), an upside break can trigger rise towards 1.2799 (23.6%fib).On the downside, immediate support is seen at 1.2663 (50%fib), a break below could take the pair towards 1.2604 (61.8%fib).

USD/JPY: The dollar strengthened against the yen on Friday   as dollar continued to draw support from Federal Reserve Chair Jerome Powell's comments on Thursday that seemed to back a half a percentage point tightening at next month's policy meeting, as well as his remarks on a likely consecutive rate hikes this year.The dollar index, a gauge of the greenback's value against six major currencies, hit 101.33, the highest since March 2020, It was last up 0.6% at 101.16, the largest daily percentage gain since mid-March. So far this year, the dollar index has gained 5.7%. Against the yen, the dollar rose 0.2% to 128.55 yen. The yen is still within striking distance of its weakest level since April 2002 at 129.43 yen per dollar hit on Wednesday.  Strong resistance can be seen at 129.30 (23.6%fib), an upside break can trigger rise towards 129.44 (Higher BB).On the downside, immediate support is seen at 126.77(38.2%fib), a break below could take the pair towards 126.18(14DMA).

Equities Recap

European shares wilted on Friday as traders ramped up interest rate hike bets following hawkish comments from central bank officials, while German software giant SAP and French luxury goods company Kering dropped after glum first-quarter results.

UK's benchmark FTSE 100 closed down  by 1.39 percent, Germany's Dax ended down  by 2.48 percent, France’s CAC finished the day down by 1.99 percent.

Wall Street tumbled more than 2.5% on Friday, ensuring the three main benchmarks ended in negative territory for the week, as surprise earnings news and increased certainty around aggressive near-term interest rate rises took its toll on investors.

Dow Jones closed down  by  2.85% percent, S&P 500 closed down by 2.77% percent, Nasdaq settled down by 2.55%  percent.

Treasuries Recap

Short-dated U.S. Treasury yields hit fresh three-year highs on Friday, a day after Federal Reserve officials, including Chairman Jerome Powell, indicated that the U.S. central bank will aggressively hike interest rates to stem soaring inflation.

Two-year note yields  , which are highly sensitive to interest rate moves, rose to 2.789%, the highest since December 2018, before dipping back to 2.713%. Benchmark 10-year yields   were last at 2.905%, after reaching 2.981% on Wednesday, also the highest since December 2018.

Commodities Recap

Oil slipped on Friday, posting a weekly loss of nearly 5%, on the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand even as the European Union considers a ban on Russian oil that would tighten supply.

Brent crude settled down $1.68, or 1.6%, at $106.65 a barrel. U.S. West Texas Intermediate (WTI) crude declined $1.72, or 1.7%, to $102.07.

Gold fell 1% on Friday and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the U.S. Federal Reserve lifted Treasury yields and the dollar.

Spot gold was down 0.8% at $1,936.14 per ounce by 12:21 a.m. ET (1621 GMT), having earlier touched its lowest level in two weeks. The metal has lost 1.9% so far this week.U.S. gold futures shed 0.5% to $1,938.70.

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.