America’s Roundup: The dollar rises on optimism about rising interest rates in the United States, Wall Street tumbles, gold slumps, oil prices fall on demand concerns and increase in Libyan production-January 11, 2022

Market overview

• French 3-month auctions BTF-0.633%, – 0.667%

• French 6-month BTF auctions: 0.624%, 0.640%

• French BTF auctions over 12 months 0.624%, 0.635%

• US wholesale inventories (MoM) 1.4%, 1.2% forecast, 2.3% previous

• US Dec CB Employment Trends Index 116.63, previous 114.49

• Wholesale sales (MoM) in November in the United States: 1.3%, 1.5% expected, 2.2% previous

Future Outlook – Economic Data (GMT)

• 05:20 Japan Dec Bank Lending (YoY) 0.7% forecast, 0.6% previous

• 05:20 Japan Nov Current account nos 0.585T forecast, previous 1.180T

• 05:20 Japan Adjusted Current Account 1.03T previous

• 07:00 China Dec PPI (YoY) 11.1% forecast, 12.9% previous

• 07: 00 China Dec CPI (MoM) 0.2% forecast, 0.4% previous

• 07:00 China Dec CPI (YoY) 1.8% forecast, 2.3% previous

Future Outlook – Economic Events and Other Releases (GMT)

• 06:30, the governor of the BoJ of Japan, Kuroda, speaks

Currency Summaries

EUR / USD: The euro fell on Monday as the dollar strengthened amid rising bets that U.S. inflation will strengthen the case for a hike in interest rates as the Bank’s dovish stance European Central on the rise in prices weighed on the euro. The dollar sold off late last week after a weaker than expected US job creation figure prompted traders to exit long dollar positions. But better-than-expected unemployment figures and US inflation figures this week are expected to post a headline CPI at 7% yoy on Wednesday, making the case for a hike in interest rates the most. early as possible. Immediate resistance can be seen at 1.1332 (38.2% fib), a bullish breakout can trigger a rise towards 1.1369 (23.6% fibB). On the downside immediate support is seen at 1.1305 (50% fib), a break below could take the pair towards 1.1278 (61.8% fib).

GBP / USD: The British Pound strengthened against the Dollar on Monday as BoE expectations will raise interest rates and ease fears about the negative impact of the Omicron variant on the UK economy boosted the pound sterling. Investors have stepped up expectations that the Bank of England will raise interest rates as early as next month after a surprise hike in December. The pound has strengthened since mid-December, as UK government resistance to further COVID-19 restrictions gave sentiment a much-needed boost. 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), a bullish breakout can trigger a rise towards 1.3658 (higher BB). 38.2% fib).

USD / CAD: The Canadian dollar weakened against its US counterpart on Monday as oil prices fell and the prospect of a rise in US interest rates weighed on investor morale. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to changes in risk appetite. U.S. crude prices fell 0.9% to $ 78.23 a barrel as the rapid global rise in Omicron coronavirus infections weighed on the demand outlook, outpacing concerns over the country’s oil supply. Kazakhstan. The Canadian dollar was trading down 0.3% to 1.2684 against the greenback, or 78.84 US cents, after trading in a range of 1.2611 to 1.2697. Immediate resistance can be seen at 1.2687 (38.2% fib), a bullish breakout can trigger a rise towards 1.2751 (23.6% fib). On the downside immediate support is seen at 1.2636 (50% fib), a break below could take the pair towards 1.2585 (61.8% fib).

USD / JPY: The dollar edged up against the Japanese yen on Monday as bets that the US Federal Reserve could raise interest rates as early as March supported the greenback across the board. Traders have increased bets on rate hikes this year after the US central bank’s minutes of the December meeting suggested an earlier-than-expected rate hike and the possibility of the Fed reducing its bond holdings sooner. than many initially thought. Investors will be watching inflation data and testimony from Fed Chairman Jerome Powell and Fed Governor Lael Brainard this week for clues about the timing and speed of rate hikes. Strong resistance can be seen at 115.64 (38.2% fib), a bullish breakout can trigger a rise towards 116.23 (23.6% fib). On the downside immediate support is seen at 115.14 (50% fib), a break below could take the pair towards 114.66 (61.8% fib).

Summary of actions

European stocks posted their biggest single-day decline since late November Monday, as rising bond yields weighed on the heavyweight tech sector, while the rapid spread of the Omicron COVID-19 variant also rocked the feeling.

The UK benchmark FTSE 100 closed down 0.53%, the German Dax ended down 1.13%, the French CAC ended the day down 1.44%.

Major Wall Street indices fell on Monday as heavy tech stocks fell amid expectations of an earlier-than-expected rate hike that pushed US Treasury yields to new two-year highs.

The Dow Jones closed down 1.22%, the S&P 500 1.61%, the Nasdaq stabilized 0.05%.

Summary of treasury bills

The benchmark 10-year U.S. Treasury yield hit its highest level in nearly two years on Monday, as investors continue to anticipate the Federal Reserve will begin its tightening policy with an interest rate hike as early as March. .

The 10-year Treasury bill yield rose 3.6 basis points to 1.805% after climbing to 1.808%, its highest since January 21, 2020.

Summary of commodities

Gold edged down on Monday, weighed by a firmer dollar and high Treasury yields, with investors focusing on key inflation data expected later this week that could underpin faster rate hikes by the Federal Reserve American.

Spot gold last lost 0.2% to $ 1,799.75 an ounce at 1:37 p.m. ET (6:37 p.m. GMT), after hitting a three-week low on Friday. US gold futures were up 0.1% to $ 1,798.80.

Oil prices fell on Monday as worries over demand fears, fueled by the rapid global rise in Omicron coronavirus infections, outpaced concerns over the reduction in Kazakhstan’s oil supply.

Brent crude fell 88 cents, or 1.1%, to $ 80.87 a barrel. U.S. West Texas Intermediate (WTI) crude fell 67 cents, or 0.9%, to $ 78.23.

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