2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
Daily News: Monday, March 5
Finally, Italian parliamentary and German coalition elections happened. Let’s look how they affected the single currency and which events happened during the weekend.
- As the information from Italy and Germany was mixed, the euro showed an unclear movement.
Based on the positive news from Germany where the Social Democrats agreed to work in a coalition with Angela Merkel’s Christian Democrat bloc, the single currency climbed to the important level at 1.2360. However, Italian elections’ results did not let it go further, so the euro turned around and started declining. Final votes have not been counted yet, but at the moment, the anti-establishment parties are outperforming. The majority of the Euro-sceptic parties in the parliament will lead to the unstable environment in the European Union. However, there are some factors that can support the single currency. They are Brexit negotiations and a US market situation.
- The Australian dollar is falling. It was a big amount of data today in the morning, however, it was mixed and could not support the Aussie. Building approvals (m/m) and company operating profits (q/q) data were bigger than expected, but the actual MI inflation gauge (m/m) was less than the forecast one. Tomorrow there will be a bigger amount of important data: current account (2:30 MT time), retail sales (2:30 MT time), and interest rate (5:30 MT time). However, according to the forecast, the data will not support the Aussie as well. The interest rate will remain unchanged, the current account will be less than the previous one.
- The US tariffs on imported steel and aluminum caused worries of investors. Global trade wars hit risk appetite that led to the stock fall. US equity futures declined as well.
- The yen is continuing to appreciate against the dollar. USD/JPY opened below an important level of 105.5 and went further. Now the pair is trading near 105.35. The next crucial level is 105.
- The gold is continuing to rise since Friday. The commodity is trading above 1328 an ounce.
- As there is no important data for the Cable, the pound does not show a big movement, however, it lost some points since Friday.
- USD/CHF is rising today. Swiss CPI data that is anticipated tomorrow at 10:15 MT time. If the actual data is greater than the forecast one, the Swiss franc will be able to move closer to the resistance at 0.9398.
- There were no important data for other currencies yet. So their positions have not changed a lot since the Friday session.
- China’s National People’s Congress opens today. Debt, gambling, and property tax can be discussed at meetings. Policy shifts can move the big banks, green stocks or bonds. So do not forget to follow.
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Happy Monday, dear traders! Hope you had a great weekend and you’re ready for the last trading week in 2022! Later this week we’ll announce some exciting news for you, but now let’s look through some interesting news! Today’s events: USA, UK, Hong…
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.