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  |   Market Roundups


Europe Roundup: Euro dips against stronger dollar, European shares slip, Gold dips, Oil prices edge up on Kazakhstan, Libyan supply worries-January 10th,2022

Market Roundup

• Sweden Nov Industrial New Orders (YoY) 3.0%, 6.8% previous

•Sweden Industrial Production (YoY)  4.2%,3.7% previous

•Italian Nov Monthly Unemployment Rate 9.2% ,9.3%forecast ,9.4% previous   

•Eurozone Jan Sentix Investor Confidence 14.9,12.0,13.5 previous 

•Eurozone Unemployment Rate Nov 7.2%,7.2% forecast, 7.3 previous 

Looking Ahead - Economic Data (GMT) 

•14:00 French 3-Month BTF Auction-0.667%

•14:00 French 6-Month BTF Auction 0.644%

•14:00 French 12-Month BTF Auction 0.643%

•15:00 US Wholesale Inventories (MoM) 1.2% forecast ,2.3% previous

•15:00US Dec CB Employment Trends Index 114.49 previous

•15:00 US Nov Wholesale Trade Sales (MoM)  1.5%        

Looking Ahead - Economic events and other releases (GMT)

• No significant events


EUR/USD: The euro declined on Monday as dollar strengthened amid rising bets U.S. inflation will bolster the case for higher interest rates while the European Central Bank's dovish stance on rising prices weighed on the euro. The dollar had met with selling late last week after a weaker-than-expected headline U.S. job-creation figure squeezed traders out of long dollar positions. But better-than-expected unemployment numbers and U.S. inflation figures this week is expected to show headline CPI at a red-hot 7% year-on-year on Wednesday, make a good case for interest rates to rise sooner rather than later. Immediate resistance can be seen at 1.1369 (Daily high), an upside break can trigger rise towards 1.1378 (Higher BB).On the downside, immediate support is seen at 1.1335 (38.2%fib), a break below could take the pair towards  1.1305 (50% fib).

GBP/USD: Sterling strengthened against dollar on Monday as expectations BoE will raise interest rates and easing fears about the adverse impact of the Omicron variant on the UK economy boosted sterling. Investors have ramped up expectations that the Bank of England will raise interest rates as early as next month after a surprise hike in December. Sterling has strengthened since mid-December as UK government resistance to further COVID-19 restrictions provided a much-needed boost to sentiment. A preliminary estimate of UK gross domestic product for November is due on Tuesday. Immediate resistance can be seen at 1.3599 (23.6%fib), an upside break can trigger rise towards 1.3658 (Higher BB).On the downside, immediate support is seen at 1.3555 (5DMA), a break below could take the pair towards 1.3531 (38.2 % fib).

USD/CHF: The dollar strengthened against the Swiss franc on Monday as the greenback strengthened on the prospect that U.S. inflation data would bolster the case for the Federal Reserve to raise interest rates sooner than expected . U.S. inflation figures are due on Wednesday, with headline consumer inflation seen climbing to a red-hot 7% year-on-year. U.S. inflation is  expected to have risen 5.4% annually after climbing 4.9% in the prior month. Immediate resistance can be seen at 0.9227 (23.6%fib), an upside break can trigger rise towards 0.9254 (Higher BB).On the downside, immediate support is seen at 0.9172 (5DMA), a break below could take the pair towards 0.9131 (38.2%fib).

USD/JPY: The dollar declined against the Japanese yen on Monday as investors digested last weeks payroll data and its potential impact on Federal Reserve policy in the second week of trading of the year. Analysts fear the U.S. consumer price report on Wednesday will show core inflation climbing to its highest in decades at 5.4% and usher in a rate rise as soon as March.While the December payrolls number did miss forecasts, the drop in the jobless rate to just 3.9% and strength in wages suggested the economy was running short of workers. Strong resistance can be seen at 115.67 (38.2% fib), an upside break can trigger rise towards 116.23 (23.6% fib).On the downside, immediate support is seen at 115.19 (50%fib), a break below could take the pair towards 114.74 (61.8%fib).

Equities Recap

European shares slipped on Monday and were on course to extend losses for a third session, as surging inflation sparked worries of more rate hikes and rising COVID-19 cases added to economic uncertainty.

At (GMT 11:24 ),UK's benchmark FTSE 100 was last trading down at 0.14 percent, Germany's Dax was down  by 0.32 percent, France’s CAC finished was down by 0.27 percent.

Commodities Recap

Gold prices eased on Monday as traders awaited December U.S. inflation data that could stress the need for earlier-than-anticipated interest rate hikes by the Federal Reserve.

Spot gold was down 0.2% to $1,792.40 per ounce by 0820 GMT, after hitting its lowest level since Dec. 16 of $1,782.10 on Friday. U.S. gold futures fell 0.3% to $1,792.30.

Oil prices edged up on Monday as supply disruptions in Kazakhstan and Libya offset worries stemming from the rapid global rise in Omicron infections.

Brent crude rose 19 cents, or 0.2%, to $81.94 a barrel at 1006 GMT, and U.S. West Texas Intermediate (WTI) crude was up 20 cents, or 0.3%, at $79.10 a barrel.

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