Posted at 08 April 2021 / Categories Market Roundups
Market Roundup
•Fed’s Powell sees higher prices this year, but not inflation
•Worse-than-expected jobless claims pressures dollar
• US Continuing Jobless Claims 3,734K ,3,650K forecast, 3,794K previous
• US Jobless Claims 4-Week Avg 723.75K, 719.00K previous
• US Initial Jobless Claims 744K, 680K forecast, 719K previous
• Russia Central Bank reserves (USD) 574.8B,577.7B previous
• US Natural Gas Storage 20B, 21B forecast, 14B previous
Looking Ahead – Economic Data (GMT)
• 07:00 Australia Building Approvals (MoM) 21.6% forecast,-19.4% previous
•07:00 China March CPI (YoY) 0.3% forecast, -0.2% previous
•07:00 China March CPI (MoM) -0.4% forecast, 0.6% previous
•07:00 China March PPI (YoY) 3.5% forecast, 1.7% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summmaries
EUR/USD: The euro strengthened against dollar on Thursday as dovish signals from the Federal Reserve boosted euro. Euro was helped by a dip in the dollar and U.S. treasury yields, after minutes from the Federal Reserve's latest meeting showed the bank ready to maintain accommodative monetary policy in the foreseeable future. The euro was up 0.02% to $1.1913. Immediate resistance can be seen at 1.1925 (Daily high), an upside break can trigger rise towards 1.1951 (50%fib).On the downside, immediate support is seen at 1.1842 (38.2%fib), a break below could take the pair towards 1.1807 (5DMA).
GBP/USD: Sterling steadied against the dollar on Thursday, stanching its losses after a bruising bout of profit-taking, with traders optimistic for its near-term prospects after a strong start to the year. The pound racked up losses of 1.2% against the dollar between Tuesday and Wednesday as investors took cash off the table after a strong first quarter for the British currency. Sterling was flat against the dollar at $1.3762, away from its lowest this month, with the greenback on the back foot against major peers. Immediate resistance can be seen at 1.3803 (38.2%fib), an upside break can trigger rise towards 1.3915(23.6%fib ).On the downside, immediate support is seen at 1.3706 (50%fib), a break below could take the pair towards 1.3615(61.8%fib ).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, recovering from a one-week low the day before, as the level of oil prices bolstered the medium-term outlook for the currency and ahead of domestic jobs data on Friday. The Canadian dollar was trading 0.4% higher at 1.2560 to the greenback, or 79.62 U.S. cents. On Wednesday, it touched its weakest intraday level since March 31 at 1.2634. Immediate resistance can be seen at 1.2612 (50DMA), an upside break can trigger rise towards 1.2712 (38.2%fib).On the downside, immediate support is seen at 1.2553 (23.6%fib ), a break below could take the pair towards 1.2427(Lower BB)
USD/JPY: The dollar declined against the Japanese yen on Thursday after data showed a surprise rise in U.S. weekly jobless claims. While the increase likely understates rapidly improving labor market conditions as more parts of the U.S. economy reopen and fiscal stimulus kicks in, it was bad enough to knock down the greenback. The dollar index measuring the greenback against a basket of six currencies was 0.35% lower at 92.091, its lowest since March 23.Strong resistance can be seen at 109.90(38.2%fib), an upside break can trigger rise towards 110.55 (April 6thHigh).On the downside, immediate support is seen at 108.93(50%fib), a break below could take the pair towards 107.87(61.8%fib).
Equities Recap
European stocks hit record highs on Thursday as optimism grew around a global stimulus-fuelled economic rebound after the U.S. Federal Reserve signalled it was in no hurry to tighten its monetary policy.
The UK's benchmark FTSE 100 closed up by 0.83 percent, Germany's Dax ended up by 0.17 percent, and France’s CAC finished the day up by 0.57 percent.
The S&P 500 hit a record high on Thursday, as Treasury yields fell following softer-than-anticipated labor market data and helped lift technology and other growth stocks.
Dow Jones closed up at 0.17 percent, S&P 500 ended up 0.42 percent, Nasdaq finished the day up by 1.03 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday, pressured by fresh dovish comments from Federal Reserve Chair Jerome Powell and weaker-than-expected initial jobless claims that highlighted the economy’s bumpy recovery from the pandemic.
The U.S. 10-year Treasury yield was down at 1.633% from 1.654% on Wednesday.U.S. 30-year yields fell to 2.323% from Wednesday’s 2.336%.
Commodities Recap
Gold prices climbed to their highest level in more than a month on Thursday as the dollar and U.S. yields dropped and the Federal Reserve's reiteration of its dovish policy stance also lifted bullion's appeal.
Spot gold rose 1.11% to $1,756.56 per ounce by 1:43 p.m. EDT (1743 GMT), having earlier hit its highest since March 1 at $1,758.45. U.S. gold futures settled up about 1% at $1,758.2.
Oil prices were little changed on Thursday as a falling dollar and rising stock markets offset earlier declines caused by a big increase in U.S. gasoline stockpiles and subdued demand compared with pre-pandemic levels.
Brent futures remained unchanged at $63.16 a barrel by 2:00 p.m. EDT (1800 GMT), while U.S. West Texas Intermediate (WTI) crude fell 27 cents, or 0.5%, to $59.50.