Posted at 07 April 2021 / Categories Market Roundups
Market Roundup
•`Fed minutes say economy still far from reaching Fed goals
•`US Imports 258.30B, 260.20B previous
•US Exports 187.30B,191.90B previous
•US Trade Balance -71.10B, -70.50B forecast, -68.20B previous
•Canada Feb Imports 48.82B, 49.78B previous
•Canada Feb Exports 49.86B, 51.19B previous
•Canada Trade Feb Balance 1.04B, 1.00B forecast ,1.41B previous
• Canada Mar Ivey PMI n.s.a 67.3, 63.1 previous
• Canada Mar Ivey PMI 72.9, 60.5 forecast , 60.0 previous
• US Crude Oil Inventories -3.522M,-1.436M forecast , -0.876M previous
Looking Ahead – Economic Data (GMT)
•23:50 Japan Feb Current Account n.s.a. 1.966T forecast , 0.647T previous
•23:50 Japan Foreign Bonds Buying 200.7B previous
•23:50 Japan Foreign Investments in Japanese Stocks -852.4B previous
•23:50 Japan Adjusted Current Account 1.50T previous
• 04:00 Australia Mar AIG Services Index 55.8 previous
• 04:00 Australia Building Approvals (MoM) 21.6% forecast,-19.4% previous
• 07:00 China Mar CPI (YoY) 0.3% forecast, -0.2% previous
• 07:00 China Mar CPI (MoM )-0.4% forecast, 0.6% previous
• 07:00 China Mar PPI (YoY) 3.5% forecast, 1.7% previous
Looking Ahead – Economic events and other releases (GMT)
•No significant events
Fx Beat
EUR/USD: The euro strengthened against dollar on Wednesday as upbeat European data on Wednesday showing euro zone business activity bounced back to growth last month boosted euro. IHS Markit’s Services Purchasing Managers’ Index (PMI) rose to 49.6 in March from February’s 45.7, much higher than a flash estimate of 48.8 and only just shy of the 50 mark that separates growth from contraction. The euro was up 0.02% to $1.1872. Immediate resistance can be seen at 1.1901(Daily high), an upside break can trigger rise towards 1.1951 (50%fib).On the downside, immediate support is seen at 1.1840 (38.2%fib), a break below could take the pair towards 1.1807 (5DMA).
GBP/USD: Sterling sank against dollar on Wednesday as profit-taking by traders after a strong first quarter for the British currency pulled it to a week’s low against the dollar. The pound fell on Tuesday, losing 0.6% against the dollar and over 1% against the euro - its worst day against the single currency in five weeks as investors took cash off the table. By 18:15 GMT on Wednesday, the pound was down 0.6% against the dollar at 1.3734, having hit a one-week low of $1.3728. Immediate resistance can be seen at 1.3869 (38.2%fib), an upside break can trigger rise towards 1.3973(23.6%fib ).On the downside, immediate support is seen at 1.3728 (Daily low), a break below could take the pair towards 1.3680(61.8%fib).
USD/CAD: The Canadian dollar weakened to a one-week low against its U.S. counterpart on Wednesday as Canada deals with a variant-driven third wave of the coronavirus pandemic and domestic data showed the trade surplus narrowing in February. Canada’s trade surplus with the world narrowed in February to C$1 billion as a global shortage of semiconductor chips hit both imports and exports. The Canadian dollar was trading 0.4% lower at 1.2609 to the greenback , having touched its weakest intraday level since March 31 at 1.2623. Immediate resistance can be seen at 1.2637 (38.2%fib), an upside break can trigger rise towards 1.2688 (March 10th high).On the downside, immediate support is seen at 1.2571 (9 DMA), a break below could take the pair towards 1.2500(23.6%fib).
USD/JPY: The dollar edged against the Japanese yen on Wednesday after minutes of the Federal Reserve’s March meeting showed the central bank committed to extending monetary policy support until an economic rebound in the United States was more secure. Even as the U.S. economy gathered steam this year, Federal Reserve officials remained cautious about the continuing risks of the pandemic and committed to pouring on monetary policy support until a rebound was more secure, the minutes showed. Strong resistance can be seen at 110.14(5DMA), an upside break can trigger rise towards 110.82 (23.6%fib).On the downside, immediate support is seen at 109.54(38.2%fib), a break below could take the pair towards 109.00(Psychological level).
Equities Recap
European stocks were little changed and closed just short of record highs on Wednesday, with healthcare shares among top decliners, while optimism over speedy vaccination drives and a weaker pound helped UK equities outperform.
UK's benchmark FTSE 100 closed up by 0.91 percent, Germany's Dax ended down by 0.24 percent, France’s CAC finished the day down by 0.01 percent.
Major averages hovered near unchanged on Wednesday, with the S&P closing up slightly after the Federal Reserve released minutes from its most recent meeting that reinforced the U.S. central bank’s position to remain patient before raising rates.
Dow Jones closed up by 0.05% percent, S&P 500 closed down by 0.15% percent, Nasdaq settled down by 0.07% percent.
Treasuries Recap
U.S. Treasury yields were mostly lower on Wednesday in generally quiet trading, with the market in a period of consolidation following a heavy stretch in the last few weeks that saw yields on benchmark 10-year notes hit their highest in about 14 months.
The U.S. 10-year Treasury yield was little changed at 1.656%, from 1.657% on Tuesday.U.S. 30-year yields were up a bit at 2.33%, from Tuesday's 2.316%.
Commodities Recap
Gold prices fell on Wednesday a day after hitting a more than one-week peak, as strong economic data from the United States bolstered hopes of a swift recovery dimming the precious metal's appeal.
Spot gold fell 0.4% to $1,737.01 per ounce by 3:14 p.m. EDT (1914 GMT). U.S. gold futures settled 0.1% lower at $1,741.6.
Global benchmark Brent crude inched higher on Wednesday on improving global economic outlook, but U.S. crude fell on rising gasoline inventories amid fears that new coronavirus outbreaks will weaken a global recovery in fuel demand.
Brent crude futures were up 44 cents, or 0.7%, to $63.18 a barrel by 1:42 p.m. EDT (1742 GMT) while U.S. West Texas Intermediate crude fell 40 cents, or 0.7%, to $59.73.