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America’s Roundup: Dollar surpasses two-week high as safe haven demand helps,Wall Street slides, Gold slips, Oil extends losses in post-settlement trade on oversupply worries-March 24th,2021

Posted at 23 March 2021 / Categories Market Roundups


Market Roundup

•US Current Account (Q4)  -188.5B -189.9B forecast , -178.5B previous

•US Redbook (MoM) 9.4%, -17.9% previous

•US Redbook (YoY) -17.6%, 8.5% previous

•US March Richmond Services Index 16, -6 previous

•US Feb New Home Sales 775K, 875K forecast, 923K previous

•US Mar Richmond Manufacturing Index 17,  14 previous

•US Mar Richmond Manufacturing Shipments  22, 12 previous

•US Feb New Home Sales (MoM)  -18.2%, -6.5% forecast, 4.3% previous

Looking Ahead - Economic Data (GMT) 

•22:00 Australia Manufacturing PMI 56.9 previous

•22:00 Australia Services PMI 53.4 previous

•23:50 Japan Corporate Services Price Index (CSPI) (YoY)  -0.5% previous

•00:30 Japan  March Manufacturing PMI  51.4 previous

•00:30 Japan  March Services PMI  46.3 previous

Looking Ahead - Economic events and other releases (GMT)

•23:50 Japan Monetary Policy Meeting Minutes

Fxbeat

EUR/USD: The euro dipped against dollar on Tuesday as a wave of coronavirus infections, a fresh lockdown in Germany weighed on euro. Chancellor Angela Merkel on Tuesday decided to extend lockdown until April 18 and called on citizens to stay at home for five days over the Easter holidays. Germany’s new infections rose by 7,485 on Tuesday to 2.674 million, while another 250 deaths took its toll to 74,964. The number of cases per 100,000 in the last seven days rose to 108 from 107 on Monday.Immediate resistance can be seen at 1.1942(Daily high), an upside break can trigger rise towards 1.1978 (38.2%fib).On the downside, immediate support is seen at 1.1871 (23.6%fib), a break below could take the pair towards 1.1833 (9 DMA).

GBP/USD: Sterling fell to a two-week low against the dollar on Tuesday amid talk of the European Union banning vaccine exports to Britain, which relies heavily on imports for its COVID-19 vaccination drive.After falling far behind post-Brexit Britain and the United States in rolling out vaccines, EU leaders are due to discuss a possible ban on vaccine exports to Britain at a summit on Thursday. Immediate resistance can be seen at 1.3843 (38.2%fib), an upside break can trigger rise towards 1.3894 (9DMA).On the downside, immediate support is seen at 1.3748 (50 %fib), a break below could take the pair towards 1.3650(61.8%fib).

 USD/CAD: The Canadian dollar weakened to its lowest in nearly two weeks against the greenback on Tuesday as oil prices tumbled, while a senior Bank of Canada official said there were signs of more investment activity in Canada's housing market. The price of oil, one of Canada's major exports, plunged as concerns over new pandemic curbs and slow vaccine rollouts in Europe added to oversupply uneasiness. U.S. crude oil futures settled 6.2% lower at $57.76 a barrel. Immediate resistance can be seen at 1.2600 (30DMA), an upside break can trigger rise towards 1.2637(38.2%fib) .On the downside, immediate support is seen at 1.2470(23.6%fib), a break below could take the pair towards 1.2400 (Psychological level).

USD/JPY: The dollar edged higher against the Japanese yen on Tuesday, after U.S. Federal Reserve Chair Jerome Powell told Congress inflation will not get out of hand. The dollar index was last up 0.65% at 91.8, reversing course from Monday when it dipped but hovered below four-month highs. The dollar index has gained around 2.4% so far in 2021 as investors see the relatively quick rollout of COVID-19 vaccines and stimulus spending in the United States as boosting economic growth. Strong resistance can be seen at 108.85 (23.6%fib), an upside break can trigger rise towards 109.32 (18th March ).On the downside, immediate support is seen at 108.48(Daily low), a break below could take the pair towards 108.26 (38.2%fib).

Equities Recap

uropean stocks eased from a one-year peak on Tuesday, as a new wave of coronavirus infection and a fresh lockdown in Germany raised fears of a slow economic recovery from the pandemic.

UK's benchmark FTSE 100 closed down by 0.40 percent, Germany's Dax ended up by 0.03 percent, France’s CAC finished the day down by 0.39 percent.

U.S. stocks tumbled on Tuesday as concerns about the cost of infrastructure spending and potential tax hikes to pay for President Joe Biden’s $1.9 trillion relief bill weighed on investors who also fear further downside in the market.

 Dow Jones closed  down by 0.94 percent, S&P 500 closed lower by 0.76 percent, Nasdaq settled  down by 1.12 percent.

Commodities Recap

Gold prices slipped on Tuesday as the dollar's rally to a two-week peak offset a dip in U.S Treasury yields.

 Spot gold fell 0.7% to $1,726.76 per ounce by 2:31 P.M EDT (1831 GMT). U.S. gold futures        settled 0.8% lower at $1,725.10.

Oil prices plunged about 6% on Tuesday, falling even lower in post-settlement trade, as concerns over new pandemic curbs and slow vaccine rollouts in Europe added to oversupply uneasiness.

Brent crude futures settled down $3.83, or 5.9%, at $60.79 a barrel, after hitting a session low of $60.50. West Texas Intermediate crude (WTI) ended $3.80, or 6.2%, lower at $57.76 a barrel, after touching a low of $57.32.


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