Europe roundup: Sterling gains on BoE rate hike bets, European equities rise, gold jumps over 1%, oil tumbles, caught between oil talks Iran and the Ukrainian Crisis – February 17, 2022

Market overview

• French car registrations in January (Annual) -18.6%, -15.1% previous

• Registration of Italian cars in January (Annual) -19.7%, -27.5% previous

• Registration of Italian cars in January (MoM) 24.4%, -17.0% previous

• Registration of German cars in January (Yearly) 8.5%, -26.9% previous

Forward-looking economic data (GMT)

• 13:30 US Jan Housing Starts 1.700M forecast, 1.702M previous

•13:30 US Jan Continuing UI claims 1,605K, previous 1,621K

•13:30 US Jan Jobless claims 4 week average 253.25K previous

• 13:30 US January Initial unemployment claims 219,000, previous 223,000

•13:30 US Jan Housing Starts (MoM) 1.4% previous

•13:30 US Feb Philly Fed CAPEX Index 26.20 previous

•13:30 United States February Philly Fed Price Paid 72.50 previous

•13:30 United States Feb Philly Fed Employment 26.1 previous

•13:30 United States February Philadelphia Fed Manufacturing Index 20.0 forecast, 23.2 previous

•13:30 United States Jan Building Permit (MoM) 9.8% previous

•13:30 US Jan Building Permit 1.760M forecast, 1.885M previous

•13:30 Canada Dec Purchases of foreign securities by Canadians 17.52B previous

•13:30 Canada Dec Purchases of foreign securities 30.15B previous

Future Outlook – Events, Other Releases (GMT)

• 4:00 p.m. Bullard, member of the US FOMC, speaks

fxbeat

EUR/USD: The euro fell slightly against the dollar on Thursday as investors spooked after Russian-backed separatists accused Ukrainian government forces7 of opening fire. Russian-backed separatists in eastern Ukraine have accused government forces of opening fire on their territory four times in the past 24 hours and said they were trying to establish whether anyone one had been injured or killed. The incidents come as Russia has massed more than 100,000 troops near Ukraine’s borders, raising fears of an invasion. The euro was down slightly, down 0.07% on the day at $1.1364. Immediate resistance can be seen at 1.1395 (11DMA), a break up can trigger a rise towards 1.1412 (23.6% fib). On the downside, immediate support is seen at 1.1348 (38.2% fib), a break below could take the pair towards 1.1298 (50% fib).

GBP/USD: The pound strengthened against the dollar on Thursday, as expectations of a rate hike by the Bank of England (BoE) continued to support the pound, while the market worried about the threat of a invasion of Ukraine by Russia. Data showing Britain’s inflation hit a nearly 30-year high on Wednesday bolstered expectations that the BoE will raise interest rates further. The BoE has already hiked interest rates twice since December – from 0.1% to 0.5% – and financial markets are expecting another rate hike to 0.75% or 1% on March 17. Immediate resistance can be seen at 1.3616 (38.2% fib), a break up can trigger a rise towards 1.3673 (BB upper). On the downside, immediate support is seen at 1.3549 (11DMA), a break below could take the pair towards 1.3533 (50%fib).

USD/CHF: The dollar fell against the Swiss franc on Thursday as demand for safe assets grew after Russian-backed separatists in eastern Ukraine accused government forces of attacking their territory. Ukraine denied that its troops had opened fire. Such incidents have happened repeatedly in recent years, but the latest episode comes as Russia has massed troops on the border and the West has warned the country could invade Ukraine. Immediate resistance can be seen at 0.9233 (50% fib), a break up can trigger a rise towards 0.9256 (61.8% fib). On the downside, immediate support is seen at 0.9209 (38.2%fib), a break below could take the pair down to 0.9172 (23.6%fib).

USD/JPY: The dollar fell against the yen on Thursday after a Russian report of mortar fire in eastern Ukraine rattled market nerves and boosted safe-haven appeal. The greenback fell against the yen after news broke as investors remained cautious about Russia’s invasion of Ukraine despite growing optimism earlier this week that a diplomatic solution would be found to prevent conflict. yen at 115.03. A strong resistance can be seen at 115.20 (50% fib), a break up can trigger a rise towards 115.48 (61.8% fib). On the downside, immediate support is seen at 114.93 (38.2% fib), a break below could take the pair towards 114.69 (23.6%fib).

Summary of actions

European stocks rose on Thursday as a string of strong earnings from companies such as Airbus, Kering and Commerzbank boosted risk appetite, helping to offset investor concerns over renewed tensions surrounding Ukraine. .

At (12:17 GMT), Britain’s benchmark FTSE 100 last traded at 0.50%, Germany’s Dax was up 0.12%, France’s CAC ended up 0.32 %.

Summary of raw materials

Gold jumped more than 1% on Thursday as Russian reports of a mortar fire in eastern Ukraine drove investors to safe-haven assets, while dovish signals from the lawsuit- Minutes from the US Federal Reserve meeting also supported the bullion.

Spot gold climbed 1.2% to $1,890.95 an ounce at 0942 GMT, after hitting its highest level since June 11 at $1,892.91 earlier. US gold futures also gained 1.2% to $1,893.60.

Oil prices fell on Thursday as talks to resuscitate a nuclear deal with Iran entered their final stages, but losses were capped by heightened tensions between top energy exporter Russia and Iran. West about Ukraine.

Brent crude was trading down $1.26, or 1.3%, at $93.55 a barrel at 0914 GMT. U.S. West Texas Intermediate (WTI) crude fell $1.34, or 1.4%, to $92.32.

Mary I. Bruner