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America’s Roundup: Dollar edges up as currency markets wait for Fed meeting ,Wall Street ends mixed, Gold eases, Oil drops as COVID-19 vaccine halt threatens demand-March 17th,2021

Posted at 16 March 2021 / Categories Market Roundups


Market Roundup

• US Import Price Index (YoY)  3.0%,0.9% previous

• US Export Price Index (YoY)  5.2%,2.3% previous

• US Feb Retail Control (MoM) -3.5%, -0.9% forecast, 6.0% previous

• US Feb Retail Sales (YoY)  6.27%, 7.43% previous

• US Jan Foreign Securities Purchases  1.27B, 5.08B previous

• Canada Jan Foreign Securities Purchases by Canadians 3.54B,26.94B previous

• Canada Feb Core Retail Sales (MoM) -2.7%, -0.1% forecast, 5.9% previous

• US Feb Export Price Index (MoM) 1.6%, 0.9% forecast, 2.5% previous

• US Feb Retail Sales (MoM) -3.0%,  -0.5% forecast, 5.3% previous

• US Feb Import Price Index (MoM) 1.3%,  1.2% forecast, 1.4% previous

• US Feb Retail Sales Ex Gas/Autos (MoM)  -3.3% ,6.1% previous

• US Redbook (MoM)  -17.9%, -18.1% previous

• US Redbook (YoY) 8.5%, 8.0% previous

• US Feb Manufacturing Production (MoM)  -3.1%,-0.1% forecast, 1.0% previous

• US Feb Industrial Production (YoY)  -4.25% ,-1.83% previous

• US Feb Industrial Production (MoM)  -2.2%,0.3%  forecast,  0.9% previous

• US Jan Business Inventories (MoM)  0.3%, 0.3% forecast, 0.6% previous

• US Mar NAHB Housing Market Index 82, 83 forecast, 84 previous

• New Zealand Global Dairy Trade Price Index  -3.8%,15.0% previous

Looking Ahead Economic Data (GMT)

•23:00 Japan March Reuters Tankan Index  3 previous

•23:30 Australia MI Leading Index (MoM) 0.3% previous

•23:50 Japan Feb Imports (YoY) 11.9% forecast, -9.5% previous

•23:50 Japan Feb Trade Balance  420.0B forecast, -325.4B previous

•23:50 Japan Feb Exports (YoY)  -0.8% forecast, 6.4%previous

•23:50 Japan Adjusted Trade Balance 0.39T previous

Looking Ahead - Events, Other Releases (GMT)

•Australia RBA Assist Gov Kent Speaks

Currency summaries

EUR/USD: The euro declined against dollar on Tuesday as investors awaited the Federal Reserve and other central banks meetings this week, where regulators will indicate if they will retain policies supporting a post-pandemic recovery. Wednesday’s Fed meeting is in focus amid expectations that economic growth and inflation will rebound after U.S. fiscal stimulus, which has pushed up government bond yields across the world in recent weeks. The Fed so far has been downplaying those concerns. Immediate resistance can be seen at 1.1962(38.2%fib), an upside break can trigger rise towards 1.1981(14DMA).On the downside, immediate support is seen at 1.1900 (Psychological level), a break below could take the pair towards  1.1839 (23.6%fib).

GBP/USD: Sterling erased some of its earlier losses against the dollar on Tuesday after Europe's medicines watchdog said there was no evidence AstraZeneca's COVID-19 vaccine was unsafe.The pound had earlier fallen 0.65% versus the dollar to a one-week low of $1.3809 but by 1628 GMT it was down 0.1% at $1.3885. Against the euro, it rose 0.3% to 85.59 pence, having earlier hit its lowest level of 86.40 pence since March 5. Immediate resistance can be seen at 1.3917 (23.6%fib), an upside break can trigger rise towards 1.3946 (21DMA).On the downside, immediate support is seen at 1.3802(38.2%fib), a break below could take the pair towards 1.3744(Lower BB).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors and corporations that routinely buy the currency scrambled to reduce some risk ahead of a Federal Reserve interest rate decision. Fed policymakers are expected on Wednesday to forecast that the U.S. economy will grow in 2021 at the fastest rate in decades.  The loonie  was trading 0.3% higher at 1.2436 to the greenback, or 80.41 U.S. cents, having touched its strongest since February 2018 at 1.2435. Immediate resistance can be seen at 1.2475 (5DMA), an upside break can trigger rise towards 1.2520(38.2%fib).On the downside, immediate support is seen at 1.2426 (23.6%fib), a break below could take the pair towards 1.2400 (Psychological level).

USD/JPY: The dollar was little changed against the Japanese yen on Tuesday as investors awaited comments from the U.S. central bank’s meeting later this week. Investors are focused on the U.S. Federal Reserve’s two-day policy meeting, which will conclude on Wednesday, as rising bond yields fuel concerns for a pickup in inflation. Fed policymakers are expected to forecast that the U.S. economy will grow in 2021 by the fastest rate in decades. Strong resistance can be seen at 109.43 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.78 (5DMA), a break below could take the pair towards 108.53(38.2%fib).

Equities Recap

European stocks rose on Tuesday as an upbeat forecast from German carmaker Volkswagen prompted a rally in the automobiles sector, while investors awaited the U.S. Federal Reserve’s views on a recent pickup in inflation.

UK's benchmark FTSE 100 closed up by 0.80 percent, Germany's Dax ended up by 0.66 percent, France’s CAC finished the day up by 0.32  percent.

The S&P 500 hit an all-time high on Tuesday while the Nasdaq jumped about 1% as technology stocks caught a bid ahead of the Federal Reserve’s two-day policy meeting.

 Dow Jones closed  down by 0.39 percent, S&P 500 closed lower by 0.16 percent, Nasdaq was settled  down by 0.09 percent.

Treasuries Recap

U.S. Treasury yields on the longer end of the curve rose on Tuesday despite strong demand for a 20-year bond auction, while uncertainty around the Federal Reserve's two-day policy meeting sidelined some participants.

The benchmark 10-year yield, which reached 1.642% on Friday, its highest level since February 2020, was last up 1.1 basis points at 1.6179%.

Commodities Recap

Gold edged lower on Tuesday, pressured by a stronger dollar, as investors awaited policy cues from a two-day U.S. Federal Reserve meeting.

 Spot gold  dropped 0.2% to $1,729.01 per ounce by 1:57 p.m. EDT (1757 GMT). U.S. gold futures settled up 0.1% at $1,730.90.

Oil prices fell for a third day on Tuesday, as Germany, France and other European states suspended the use of a major coronavirus vaccine, threatening the recovery of fuel demand.

Brent crude fell 49 cents to settle at $68.39 a barrel, while U.S. crude dropped 59 cents to end at $64.80 a barrel.


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