Market Roundup
•German Jan Current Assessment 96.1, 96.3 forecast, 96.9 previous
•German Jan Ifo Business Climate Index 95.7, 94.7 forecast, 94.7 previous
• German Jan Business Expectations 95.2, 93.0 forecast, 92.6 previous
Looking Ahead - Economic Data (GMT)
•13:55 US Redbook (YoY) 15.2% previous
•14:00 US Nov House Price Index (MoM) 1.1% forecast, 1.1% previous
•14:00 US Nov S&P/CS HPI Composite - 20 s.a. (MoM) 0.9% forecast, 0.9% previous
•14:00 US Nov House Price Index 358.3 previous
•14:00 US Nov House Price Index (YoY) 17.4% previous
•14:00 US S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.0% forecast, 18.4% previous
•14:00 US Jan Belgium NBB Business Climate 4.2 forecast, 3.6 previous
•14:00 US Jan Richmond Manufacturing Shipments 12 previous
•14:00 US Jan CB Consumer Confidence 111.8 forecast, 115.8 previous
•15:00 US Jan Richmond Manufacturing Index 14 forecast, 16 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday as dollar was lifted by rising geopolitical risk over Ukraine and a likely hawkish stance from the Federal Reserve at its policy meeting this week. Markets until recently had mostly shrugged off the massing of Russian troops on Ukraine's borders, but tensions have ratcheted up lately. NATO said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as an escalation of tensions. Immediate resistance can be seen at 1.1310 (38.2%fib), an upside break can trigger rise towards 1.1341(50%fib).On the downside, immediate support is seen at 1.1264 (23.6%fib), a break below could take the pair towards 1.1244 (Lower BB).
GBP/USD: Sterling declined against dollar on Tuesday as investors remained cautious on risk assets amid growing tensions in Ukraine and bets the Federal Reserve will hike rates.Sterling, which is considered a riskier currency, has been under pressure as investors were nervous about the potential for military conflict in Ukraine. Additionally, markets are bracing for a Fed meeting this week that could signal the removal of its vast stimulus programme. The jitters sent the dollar higher against a basket of currency. Immediate resistance can be seen at 1.3494(38.2%fib), an upside break can trigger rise towards 1.3569(23.6%fib).On the downside, immediate support is seen at 1.3439 (50%fib), a break below could take the pair towards 1.3379 (61.8%fib).
USD/CHF: The dollar rose against the Swiss franc on Tuesday as investors bought greenback amid tensions between Russia and the West over Ukraine while awaiting the outcome of the Federal Reserve's policy meeting. The U.S. military put about 8,500 troops on alert to be ready to deploy to Europe if needed, in the latest effort to reassure jittery NATO allies in the face of a Russian military build-up near Ukraine. The euro was down 0.2% at 0848 GMT to $1.1300, trading just off its lowest since Dec. 20 touched on Monday. The dollar index was 0.1% higher at 96.02 , just off its two-week high of 96.135 hit on Monday. Immediate resistance can be seen at 0.9202(23.6%fib), an upside break can trigger rise towards 0.9237(Higher BB).On the downside, immediate support is seen at 0.9162 (21DMA), a break below could take the pair towards 0.9149 (38.2%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as the threat of Russia-Ukraine military conflict and wariness over U.S. monetary policy boosted greenback. The dollar index has gained some 1.5% since Jan. 14. During this period, several banks have raised forecasts for the speed and size of the Fed's policy tightening, a picture that should be clearer at the end of its two-day meeting on Wednesday.The Fed is expected to signal the start of interest rate hikes in March, while potentially indicating how fast it will shrink its holdings of Treasuries and mortgage debt that have swollen its balance sheet past $8 trillion. At 10:43 GMT, the dollar was 0.02 percent lower versus the yen at 113.62 . Strong resistance can be seen at 114.64(23.6% fib), an upside break can trigger rise towards 114.82 (21DMA).On the downside, immediate support is seen at 113.67 (50%fib), a break below could take the pair towards 113.00 (61.8%fib).
Equities Recap
European stocks rose higher on Tuesday, after a downbeat Asian session, with world stocks set for their biggest monthly drop since the pandemic hit markets in March 2020.
At (GMT 12:06 ),UK's benchmark FTSE 100 was last trading up at 0.79 percent, Germany's Dax was up by 0.42 percent, France’s CAC was up by 0.71 percent.
Commodities Recap
Gold fell on Tuesday as the U.S. dollar and Treasury yields gained on expectations of faster U.S. rate hikes, but bullion held above its $1,830 key level as safe-haven assets were still in demand amid escalating tensions over Ukraine.
Spot gold fell 0.4% to $1,836.06 per ounce by 1031 GMT, while U.S. gold futures slipped 0.3% to $1,836.20.
Oil prices bounced back on Tuesday, recovering some of the previous day's losses, as growing tension in Eastern Europe and the Middle East fuelled concerns over possible supply disruptions in an already tight market.
Brent crude futures rose $1.21, or 1.5%, to $87.52 a barrel at 0946 GMT, reversing a 1.8% fall in the previous session. U.S. West Texas Intermediate (WTI) crude futures climbed $1.11, or 1.3%, to $85.42 a barrel, having slid 2.2% on Monday.
