Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

Trends & Analysis
News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

European stocks edge higher ahead of Fed Minutes

 

Tuesday, February 21, 2023

The news shaping the markets today

US President Joe Biden made his first visit to Ukraine since the war and announced additional assistance of half a billion dollars. The safe-haven US dollar index rose this morning.


Singapore’s current account surplus narrowed to S$23.52 billion in the fourth quarter, from S$27.52 billion in the year-ago period, exerting pressure on the SGD/USD forex pair.


Japan’s au Jibun Bank manufacturing PMI declined to 47.4 in February, versus a final reading of 48.9 a month ago, which sent the JPY/USD pair lower in forex trading this morning.


Australia’s Judo Bank services PMI rose to 49.2 in February, versus 48.6 in the previous month. However, this being the fifth straight month of contraction in the country’s services activity exerted pressure on the AUD/USD forex pair.


New Zealand’s producer input prices increased 0.5% in the three months to December, compared to a 0.8% rise in the previous quarter, which sent the NZD/USD pair slightly lower in forex trading this morning.

 

What’s happening: European stocks rose on Monday in a choppy trading session.

What happened: With US markets remaining closed on Monday for the Presidents’ Day holiday, investors assessed economic reports from the Eurozone.

Markets await the minutes from the latest US Federal Reserve meeting, due for release on Wednesday.

Why it matters: The pan-European index defied US and Asian markets to record gains last week, despite moving lower on Friday. Investor sentiment was supported by a strong forecast for the region’s economy and upbeat earnings reports from major companies.

The STOXX Europe 600 index jumped to a one-year high, while the FTSE 100 and CAC 40 indices hit record highs last week.

Investors monitored economic data released on Monday, which showed consumer confidence in the Eurozone rising by 1.7 points to a reading of -19 in February, the strongest level in a year. Although consumer confidence improved for four months in a row, it remains below the long-term average, the European Commission said.

Eurozone’s construction output fell 1.3% year-over-year in December, versus a 1.6% increase in the prior period. This marked the first monthly contraction since December 2021.

Trading volumes remained subdued on Monday due to a holiday in the US, with investors weighing hawkish remarks from Fed officials.

The STOXX Europe 600 Index rose 0.07% to close at 464.64 on Monday, after swinging between gains and losses for most of the session. Mining stocks were among the top performers, gaining around 2.5%, while tech stocks lost 0.5%.

London’s FTSE 100 added 0.12% to reach 8,014.31, amid gains in stocks of materials and financials. Germany’s DAX 40 slipped 0.04% to 15,477.55, while France’s CAC 40 fell 0.16% to settle at 7,335.61 on Monday.

What to watch: Investors await economic reports on manufacturing PMI, services PMI, composite PMI and ZEW economic sentiment index from the Eurozone today. The S&P Global Eurozone manufacturing PMI is expected to improve to 49.5 in February, from 48.8 in January, while the services PMI is projected to rise to 51.5, from the previous reading of 50.8. The ZEW Indicator of Economic Sentiment for the Eurozone, which climbed by 40.3 points to 16.7 in January, is expected to improve further to 18.5 in February.

The markets today

The Canadian dollar will be in focus today ahead of a couple of major economic reports

Context: The CAD/USD forex pair edged higher on Monday with non-US assets getting some respite due to the closure of markets in the US.

Details: The US dollar, which is on course to record its biggest single-month gain since September 2022, traded almost flat on Monday, as US markets remained closed for the Presidents’ Day holiday.

The US dollar index, which measures the greenback’s performance versus a basket of major peers, traded at 103.86 on Monday.

A rise in the price of crude oil, one of Canada’s major exports, also provided some support to the loonie during the session. WTI crude oil prices snapped a five-session losing streak on Monday.

At its latest meeting, the Bank of Canada raised its key interest rate to 4.5%, the highest level in 15 years. After raising interest rates by 425 basis points over 10 months, the central bank signalled to halt rate hikes for now.

Canada’s inflation rate eased to 6.3% in December, although it is still well above the BoC’s 2% target.

What are expectations: The release of data on Canada’s inflation rate and retail sales will remain in focus today. Canada’s annual inflation rate, which declined to 6.3% in December, is expected to ease further to 5.9% in January. Analysts expect Canada’s retail sales to grow 0.5% in December.

Other Markets: Asian markets closed mixed on Monday, with the Shanghai and Sensex indices rising by 0.10% and 0.38%, respectively, and the Asia Dow, Nikkei 225, and Hang Seng down by 0.60%, 0.16% and 0.99%, respectively.

Support & resistances for today

Technical Levels News Sentiment
EUR/USD  – 1.0661 and 1.0669 Positive
AUD/USD – 0.6897 and 0.6908 Negative
WTI Crude Oil – 76.66 and 76.87 Negative
Natural Gas  – 2.298 and 2.306 Negative
Nasdaq 100 – 12329.01 and 12373.11 Positive

Market snapshot

Futures at 0400 (GMT)
EUR/USD (1.0666, -0.20%) Dow ($33,725, -0.42%) Brent ($83z.22, -1%)
GBP/USD (1.2022, -0.16%) S&P500 ($4,070, -0.43%) WTI ($76.71, -0.9%)
USD/JPY (134.42, 0.12%) Nasdaq ($12,347, -0.35%) Gold ($1,847, -0.2%)

What else to watch today

Saudi Arabia’s balance of trade, European Union’s new passenger car registrations, South Africa’s leading business cycle indicator, UK’s public sector net borrowing, CBI industrial trends orders, manufacturing PMI, services PMI and composite PMI, France’s manufacturing PMI, services PMI and composite PMI, Germany’s manufacturing PMI, services PMI, composite PMI, ZEW indicator of economic sentiment and ZEW indicator of current conditions, Mexico’s retail sales and government budget value, as well as US manufacturing PMI, services PMI, composite PMI and existing home sales.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.