Posted at 22 March 2021 / Categories Market Roundups
Market Roundup
•US Feb Chicago Fed National Activity -1.09,0.66 previous
•14:00 French 6-Month BTF Auction -0.620%,-0.604% previous
•14:00 French 3-Month BTF Auction-0.619%, -0.607% previous
•14:00 French 12-Month BTF Auction -0.625%,-0.605% previous
•US Feb Existing Home Sales (MoM) -6.6%, -3.0% forecast, 0.6% previous
•US Feb Existing Home Sales 6.22M, 6.50M forecast, 6.69M previous
Looking Ahead Economic Data (GMT)
•02:00 New Zealand Credit Card Spending (YoY) -6.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro gained against dollar on Monday as concerns that developments in Turkey would threaten other financial markets boosted euro. Turkey’s President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor. Erdogan fired the central bank governor only two days after a sharp rate increase that was meant to head off inflation ofnearly 16% and support the lira.The new central bank governor will most likely lead to a reversal of the hawkish and orthodox steps taken to battle inflation Immediate resistance can be seen at 1.2000 (Psychological level), an upside break can trigger rise towards 1.1990(50% fib).On the downside, immediate support is seen at 1.1860 (23.6% fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: The pound slipped against the dollar on Monday as investors weighed up the impact of the European Union’s threat to impose a ban on vaccine imports to Britain. The EU’s leaders are due to discuss imposing a possible ban on vaccine exports to Britain at a summit on Thursday. British Prime Minister Boris Johnson spoke on Sunday to the EU’s most powerful leaders, German Chancellor Angela Merkel and French President Emmanuel Macron, to steer them away from bans. At 17:58 GMT, the pound was down around 0.10% against the dollar, at $1.3859. Versus the euro it was down around 0.3%, at 86.135 pence per euro. Immediate resistance can be seen at 1.3899(5DMA), an upside break can trigger rise towards 1.3930 (23.6%fib).On the downside, immediate support is seen at 1.3814(38.2%fib), a break below could take the pair towards 1.3179 (50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday as oil, one of Canada's major exports, steadied and ahead of a speech on Tuesday by a senior Bank of Canada official. U.S. crude prices were little changed at $61.40 a barrel after a broad sell-off last week when new European coronavirus lockdowns dimmed hopes for a quick economic recovery. The Canadian dollar was trading nearly unchanged at 1.2495 to the greenback, or 80.03 U.S. cents, having traded in a range of 1.2473 to 1.2534. Last Thursday, the loonie touched a three-year high at 1.2361. Immediate resistance can be seen at 1.2564 (21DMA), an upside break can trigger rise towards 1.2640 (38.2%fb).On the downside, immediate support is seen at 1.2464 (23.6%fib), a break below could take the pair towards 1.3355 (18th March low).
USD/JPY: The dollar edged higher against the Japanese yen on Monday after Turkey’s President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor, pushing investors towards dollar. Worries that events in Turkey will cause disruptions in other financial markets also supported the dollar. Against a basket of its rivals, the dollar was broadly steady at 92.022 and within sight of a near four-month high of 92.50 hit earlier this month. The dollar was little changed at 108.80 yen. Strong resistance can be seen at 108.84 (21 DMA), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.31 (50%fib), a break below could take the pair towards 107.84(61.8%fib).
Equities Recap
European stocks eked out gains by the closing bell on Monday after automakers resumed their rally, while banks fell after a slump in Turkey’s currency and worries lingered about more restrictions due to rising coronavirus cases on the continent.
UK's benchmark FTSE 100 closed up by 0.26 percent, Germany's Dax ended up by 0.25 percent, France’s CAC finished the day down by 0.29percent.
Wall Street rallied on Monday as technology stocks rebounded from a recent selloff sparked by surging bond yields and Tesla jumped after a fund run by an influential investor in the electric-car maker said its shares could approach $3,000 by 2025.
Dow Jones closed up by 0.32% percent, S&P 500 closed up by 0.70% percent, Nasdaq settled up by 1.23% percent.
Treasuries Recap
Yields dipped on Monday but held near more than one-year highs as investors bet on a faster U.S. economic recovery and higher inflation pressures, and before the Treasury will this week sell $183 billion in short- and intermediate-dated notes.
Benchmark 10-year notes fell 5 basis points to 1.684%, after reaching 1.754% on Thursday, the highest since January 2020.
Commodities Recap
Gold slipped 1% on Monday, with a dip in the dollar and U.S. Treasury yields offering little respite as U.S. equities gained, which dulled bullion's appeal.
Spot gold was down 0.3% at $1,738.93 per ounce by 1:41 P.M EDT (1741 GMT). U.S. gold futures settled 0.2% down at $1,738.1.
Oil steadied on Monday as hopes for a pick-up in demand later this year helped arrest last week’s broad sell-off, but prices stayed under pressure as new European coronavirus lockdowns made a quick recovery look less likely.
Brent crude was up 6 cents or 0.1% to $64.59 a barrel by 1:33 p.m. ET (1733 GMT), while U.S. oil for delivery in April fell 22 cents, or 0.4%, to $61.20 a barrel ahead of expiry.