Posted at 19 March 2021 / Categories Market Roundups
Market Roundup
• German Feb PPI (YoY) 1.9%, 2.0% forecast, 0.9% previous
•German Feb PPI (MoM) 0.7%, 0.7% forecast, 1.4% previous
•UK Feb Public Sector Net Borrowing 18.41B , 18.02B previous
•UK Feb Public Sector Net Cash Requirement 14.162B, -19.526B previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Jan Core Retail Sales (MoM ) -2.6% forecast, -4.1% previous
• 12:30 Canada Retail Sales (MoM) -3.0% forecast,-3.4% previous
•16:00 Russian Jan Real Wage Growth (YoY) 4.6% previous
•16:00 Russian Feb Retail Sales (YoY) -1.1% forecast, -0.1% previous
•16:00 Russian Feb Unemployment Rate 5.7% forecast, 5.8% previous
•17:00 U.S. Baker Hughes Oil Rig Count 310 previous
•17:00U.S. Baker Hughes Total Rig Count 403 previous
Looking Ahead - Events, Other Releases (GMT)
•UK BoE MPC Member Cunliffe Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday as single currency was weighed down by rising U.S. Treasury yields and a worsening pandemic situation. France imposed fresh regional lockdowns to curb the spread of the coronavirus amid signs of slowing vaccination in some countries. France reported 35,000 new cases on Thursday and there were more COVID patients in intensive care in Paris than at the peak of the second wave. Immediate resistance can be seen at 1.1944 (38.2%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1889(Daily low), a break below could take the pair towards 1.1825 (23.6%fib).
GBP/USD: The pound was steady against dollar on Friday, a day after a Bank of England meeting that gave sterling traders little reason to change from their generally bullish outlook. Sterling has gained more than 2% so far this year against the dollar and 4.3% versus the euro, which analysts say is largely due to Britain's success in rolling out COVID-19 vaccines and relief that a last-minute Brexit trade deal was reached at the end of 2020.At 0853 GMT on Friday, sterling was at $1.3911, up 0.1% on the day. Immediate resistance can be seen at 1.4000( Psychological level), an upside break can trigger rise towards 1.4059 (23.6%fib).On the downside, immediate support is seen at 1.3897 (38.2%fib), a break below could take the pair towards 1.3793 (50%fib).
USD/CHF: The dollar held its ground against the Swiss franc on Friday as investors digested the U.S. Federal Reserve’s pledge this week to look past inflation and keep interest rates low. The Fed’s loose policy stance on Wednesday triggered a dollar sell-off and pushed up 10-year Treasury yields to 14-month highs.But the greenback’s losses have since reversed, with the dollar index last up 0.1% on the day and on track for around a quarter of a percent gain over the week. Immediate resistance can be seen at 0.9292(23.6%fib), an upside break can trigger rise towards 0.9325(12th March).On the downside, immediate support is seen at 0.9256 (9DMA), a break below could take the pair towards 0.9204 (38.2% fib).
USD/JPY: The dollar edged lower against the Japanese yen on Friday after Bank of Japan widened band around long-term rate target. The Bank of Japan on Friday widened the band at which it allows long-term interest rates to move around its target, as part of a raft of measures to make its ultra-easy policy more sustainable amid a prolonged battle to fire up inflation.As widely expected, the BOJ kept intact its target of -0.1% for short-term rates and 0% for the 10-year bond yield under its yield curve control policy. Strong resistance can be seen at 109.37 (23.6%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.79 (9DMA), a break below could take the pair towards 108.54(38.2% fib).
Equities Recap
European stocks slid on Friday, erasing a large part of the weekly gains, after France imposed fresh regional lockdowns to curb the spread of the coronavirus amid signs of slowing vaccination in some countries.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.55 percent, Germany's Dax was down by 0.56 percent, France’s CAC finished was down by 0.76 percent.
Commodities Recap
Gold edged higher on Friday, on track for a second consecutive weekly gain, as a slight retreat by the dollar and U.S. Treasury yields offered support to the safe-haven metal.
Spot gold was up 0.3% at $1,741.60 an ounce by 1143 GMT, with bullion up more than 0.8% over the week. U.S. gold futures gained 0.3% to $1,738.
Oil prices rose by more than $1 on Friday, after a big sell-off in the previous session as a new wave of coronavirus infections across Europe triggered fresh lockdowns and dampened expectations of any imminent recovery in fuel demand.
Brent crude was up $1.01, or 1.6%, to $64.29 a barrel by 0917 GMT.West Texas Intermediate (WTI) U.S. crude rose $1.02, or 1.7%, to $61.02 a barrel.