Posted at 18 March 2021 / Categories Market Roundups
Market Roundup
•US Continuing Jobless Claims 4,124K, 4,070K forecast, 4,144K previous
•US Jobless Claims 4-Week Avg 746.25K, 759.00K previous
•US Initial Jobless Claims 770K,700K forecast, 712K previous
•Canada Feb New Housing Price Index (MoM) 1.9%,0.7% previous
•Canada ADP Nonfarm Employment Change -100.8K,-231.2K previous
•US March Philadelphia Fed Manufacturing Index 51.8, 23.0 previous , 23.1 previous
•US March Philly Fed Employment 30.1, 25.3 previous
•US March Philly Fed New Orders 50.9, 23.4 previous
•US March Philly Fed CAPEX Index 25.20 previous
•US March Philly Fed Prices Paid 35.90, 54.40 previous
• US Feb Leading Index (MoM) 0.3% ,0.3% forecast ,0.5% previous
Looking Ahead Economic Data (GMT
•23:30 Japan Feb CPI, n.s.a (MoM) 0.5% previous
•23:30 Japan Feb National Core CPI (YoY) -0.4% forecast , -0.6% previous
•23:30 Japan Feb National CPI (YoY) -0.6% previous
•0030 Australia Retail Sales (MoM) 0.5% previous
•02:30 Japan BoJ Interest Rate Decision -0.10%,-0.10% previous
Looking Ahead - Events, Other Releases (GMT)
•02:30 Japan BoJ Press Conference
•02:30 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD: The euro initially gained against dollar on U.S. Federal Reserve dovish stance but gave up some ground as rising U.S. Treasury yields saw the dollar regain traction. U.S. yields picked up as European markets opened, with the 10-year Treasury yield rising above 1.74% for the first time since January 2020, amid uncertainty about the impact of the Fed’s new framework of allowing inflation to overshoot. The euro eased to $1.19505, off a one-week high of $1.19900 hit after rallying 0.6% on Wednesday. Immediate resistance can be seen at 1.1992 (50%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1915 (38.2%fib), a break below could take the pair towards 1.1835 (March 9th low).
GBP/USD: Sterling slipped against the dollar and cut some of its earlier gains versus the euro on Thursday as the Bank of England warned the outlook for Britain’s recovery remained unclear, dampening some speculation the bank would signal a more confident outlook.The BoE kept unchanged its interest rates and its 895 billion-pound bond-buying programme, as expected. Sterling was down 0.2% versus the dollar to $1.3939 at 1600 GMT. Versus the euro, it rose 0.2% to 85.58 pence, after rising as much as 0.5% on the day to its strongest in 13 months. 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 1.3906 (38.2%fib), a break below could take the pair towards 1.3803 (38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier three-year high as oil prices dropped and a jump in bond yields weighed on risk appetite.The price of oil, one of Canada's major exports, lost ground for a fifth day running after official data showed a further increase in U.S. crude and fuel inventories while the ever-present COVID-19 pandemic clouded the prospects for demand recovery. U.S. crude prices were down 0.9% at $64.02 a barrel. The Canadian dollar dipped 0.1% to 1.2417 per greenback, having touched its strongest intraday level since February 2018 at 1.2365. Immediate resistance can be seen at 1.2507 (9EMA), an upside break can trigger rise towards 1.2557 (38.2%fib).On the downside, immediate support is seen at 1.2347 (23.6%fib), a break below could take the pair towards 1.2300 (Psychological level)
USD/JPY: The dollar strengthened against the Japanese yen Thursday as U.S. bond yields spike supported dollar. The 10-year Treasury bond yield rose above 1.74% for the first time since January 2020. Market participants were uncertain about the impact of the Fed's new framework of allowing inflation to overshoot. Although the bond market reaction after the Fed's press conference was mixed, U.S. yields picked up as European markets opened. 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 108.64 (9EMA), a break below could take the pair towards 108.54(38.2% fib).
Equities Recap
Automakers lifted the German DAX share index to a record high on Thursday, while broader European stocks inched towards all-time highs after the U.S. Federal Reserve vowed to keep interest rates low despite forecasting a surge in economic growth.
UK's benchmark FTSE 100 closed up by 0.23 percent, Germany's Dax ended up by 1.24 percent, France’s CAC finished the day up by 0.13 percent.
Wall Street ended sharply lower on Thursday, with the Nasdaq tumbling 3%, hit by rising Treasury yields and fresh worries about the coronavirus pandemic in Europe.
Dow Jones closed down by 0.46%percent, S&P 500 closed down by 1.48% percent, Nasdaq settled down by 3.02% percent.
Treasuries Recap
The yield on the U.S. 10-year Treasury note on Thursday rose above 1.75% for the first time in 14 months after the Federal Reserve pledged to look past inflation and keep interest rates near 0% until at least 2024, then ticked lower after the release of mixed economic data.
The yield on 30-year bonds reached 2.518%, its highest since August 2019. It was last at 2.4515%.
Commodities Recap
Gold prices dropped on Thursday as a surge in U.S. bond yields and a firmer dollar hammered bullion's appeal, while palladium jumped as much as 7% on strong demand prospects amid supply disruption worries.
Spot gold was down 0.7% at $1,732.99 an ounce by 01:49 p.m. EDT (1749 GMT), after touching its highest since March 1 at $1,755.25. U.S. gold futures settled up 0.3% at $1,732.50.
Oil prices plunged for a fifth day in a row on Thursday, posting their biggest-one day declines since last summer on growing worries about rising COVID-19 cases in Europe and the strengthening U.S. dollar.