America Roundup: Dollar Gains as Fed’s Warmongering Policy Outlook Takes Center Stage, Wall Street Ends Lower, Gold Slips, Oil Eases on Welfare Concerns pandemic – April 6, 2022

Market overview

• February Canadian imports 56.08 billion, 54.68 billion forecast, 54.00 billion previous

•Canada’s trade balance in February 2.66 billion, forecast 2.90 billion, previous 2.62 billion

•US trade balance -89.20 billion, -88.50 forecast, -89.70 billion previous

• US exports 228.60 billion, previous 224.40 billion

• American imports 317.80 B, 314.09 B previous

• US Red Book (Annual) 14.3%, previous 12.9%

• US services PMI 58.0, 58.9 forecast, 56.5 previous

• US Mar Markit Composite PMI 57.7, 58.5 forecast, 55.9 previous

• March ISM non-manufacturing employment in the United States 54.0 48.5 previous

• US Mar ISM Non-Manufacturing PMI 58.3, 58.4 forecast, 56.5 previous

• US March ISM non-manufacturing business activity 55.5, previous 55.1

• US ISM March Non-Manufacturing New Orders 60.1 ,56.1 previous

• Global Dairy Trade Price Index from New Zealand -1.0%, previous -0.9%

Future Outlook – Economic Data (GMT)

• 1:00 New Zealand ANZ Commodity Price Index (MoM) 3.9% previous

•01:45 China Mar Caixin Services PMI 50.2 previous

Future Outlook – Economic Events and Other Releases (GMT)

• No significant event

Currency summaries

EUR/USD: The euro fell on Tuesday as the greenback was boosted by hawkish comments from Federal Reserve officials who pushed for a rapid reduction in the central bank’s bloated balance sheet, with one expressing its openness to steep rate hikes of half a percentage point. Fed Governor Lael Brainard, typically one of the Fed’s more dovish policymakers, said on Tuesday she expects methodical interest rate increases and rapid balance sheet reductions of nearly $9 trillion from the Fed to move US monetary policy to a more neutral stance” later this year. The euro was down 0.6% at $1.0901 and matched a low of 1.09 $ reached on March 14. Immediate resistance can be seen at 1.0946 (23.6% fib, a break up can trigger a rise towards 1.1016 (14DMA). On the downside, immediate support is seen at 1, 0881 (BB ​​lower), a break below could take the pair towards 1.0847 (3 March low).

GBP/USD: The pound rose against the dollar on Tuesday after data showed the UK services PMI firmed in March. Britain’s services businesses enjoyed stronger-than-expected growth last month despite rampant inflationary pressures, with business activity growing at the fastest pace in 10 months, according to a survey released on Tuesday. The S&P Global/CIPS UK services PMI rose to 62.6 in March from 60.5 in February, an upward revision from an early reading of 61.0 and well above the threshold for growth. 50. The recovery reflected the removal of pandemic-related health restrictions and increased spending on leisure and entertainment services, but the survey pointed to tougher times ahead for the UK economy. Immediate resistance can be seen at 1.3125 (5DMA), a break up can trigger a rise towards 1.3152 (38.2%fib). On the downside, immediate support is seen at 1.3070 (23.6%fib), a break below could take the pair towards 1.3003 (BB lower).

USD/CAD: The Canadian dollar was little changed against its US counterpart on Tuesday, returning its earlier gains, as hawkish comments from a Federal Reserve policymaker pushed US bond yields and the greenback higher. Canadian data showed exports rose 2.8% in February to a record high. It was driven mainly by energy products, including oil. The price of oil settled down 1.3% to $101.96 a barrel, under pressure from the rising U.S. dollar and growing concerns that new coronavirus cases could dampen demand. Canadian data showed exports rose 2.8% in February to a record high. It was driven mainly by energy products, including oil. Immediate resistance can be seen at 1.2518 (14DMA), a break up can trigger a rise towards 1.2536 (38.2%fib). On the downside, immediate support is seen at 1.2466 (23.6%fib), a break below could take the pair towards 1.2433 (Daily Low).

USD/JPY: The dollar strengthened against the yen on Tuesday as hawkish comments from a Federal Reserve policymaker pushed US bond yields and the greenback higher. he U.S. dollar rallied against a basket of major currencies after Fed Governor Lael Brainard said she expected a

combination of interest rate increases and a rapid collapse of balance sheets to bring US monetary policy to a “more neutral stance” later this year. The greenback gained 0.03% against the yen to 123.64. Strong resistance can be seen at 123.95 (23.6% fib), a break up can trigger a move higher towards 124.60 (29th Mar high). On the downside, immediate support is seen at 122.11 (38.2%fib), a break below could take the pair down to 122.49(50%fib).

Summary of actions

European stock markets closed higher after a volatile session on Monday, recouping losses caused by collapsing oil prices and fears of the worst quarterly earnings season since the global financial crisis.

Britain’s benchmark FTSE 100 closed up 0.72%, Germany’s Dax ended down 0.65%, France’s CAC ended the day up 2.03%.

Wall Street’s major indexes fell on Tuesday, dragged down by weakness in tech and other growth stocks, after comments from Federal Reserve Governor Lael Brainard spooked investors over the company’s potential aggressive actions. central bank to control inflation.

The Dow Jones closed 0.80%, the S&P 500 closed 1.26%, the Nasdaq stabilized 2.26%.

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Summary of raw materials

Gold fell on Tuesday as rising US Treasury yields and expectations of more aggressive monetary policy tightening from the Federal Reserve offset safe-haven demand for bullion boosted by possible new Western sanctions on Russia. .

Spot gold was down 0.6% at $1,921.47 an ounce as of 2:16 p.m. EDT (6:16 p.m. GMT). US gold futures settled down 0.3% at 1,927.50.

Oil prices fell in volatile trade on Tuesday, under pressure from the rising U.S. dollar and growing concerns that new coronavirus cases could dampen demand, but losses were limited by health concerns. supply due to sanctions against Russia for alleged war crimes.

Brent crude futures fell 89 cents, or 0.8%, to settle at $106.64 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.32, or 1.3%, to settle at $101.96.

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