The US$ stronger, oil prices higher, equity markets flattish (at time of writing) while US yields gave up part of its gains. The dollar climbed to multi-week highs on the prospects of a faster/larger interest rate hikes in the months ahead. Although Powell stressed that no decisions had been made, the Fed was in a mind to begin raising rates in March to address inflation. US economic figures to be released today includes Durable Goods Orders, GDP and initial job claims. In other news. Russian and Ukrainian negotiators agreed that a permanent ceasefire in eastern Ukraine must be observed “unconditionally”. Russian negotiator added that many other issues in eastern Ukraine remain unresolved. North Korea fired 2 missiles making its 6th launch of 2022. Covid. According to the WHO half of Europe’s population to be infected with Omicron within weeks. Germany maintains restrictions as Omicron infections keep rising. Moderna begins testing omicron matched COVID shots in adults. In currency markets. The Australian and New Zealand dollars fell as markets rushed to price in more U.S. rate hikes. Ex-PBOC Official said that China’s economy can grow 5.5% in 2022.
The C$ fell as the BoC surprised some investors by leaving interest rates on hold, offsetting support for the currency from higher oil prices. Macklem said that the BoC will start raising rates soon to combat inflation.
Support rises to 1.2625 while resistance resets to 1.2747.
ECB’s Kazimir’s comment that Eurozone inflation should peak in nearest months, pushing the Euro to a 19-month low. He added that he sees signs of stabilization in global supply markets.
Support adjusts to 1.1115, while resistance sets at 1.1225.
EUR/GBP dips back under 0.8350 as risk appetite firms, pound remains resilient to domestic political noise. Support holds .8280 (1.2077) while resistance remains at .8400 (1.1905)
GBP/USD hits monthly lows below 1.3400 amid Fed-led risk-aversion, Brexit and political concerns. Support lowers to 1.3349 while resistance remains at 1.3455.