Posted at 06 April 2021 / Categories Market Roundups
Market Roundup
•U.S. job openings increased more than expected in February
• US Redbook (MoM) -17.2%,-17.4% previous
• US Redbook (YoY) 10.6%, 9.8% previous
• French 6-Month BTF Auction -0.621%, -0.627% previous
• Brazil March Markit Services PMI 44.1 ,47.1 previous
• Brazil March Markit Composite PMI 45.1,49.6 previous
• US Feb JOLTs Job Openings 7.367M, 6.995M forecast, 6.917M previous
• US IBD/TIPP Economic Optimism56.4, 55.4 previous
• New Zealand GlobalDairyTrade Price Index0.3%,-3.8% previous
Looking Ahead – Economic Data (GMT)
•22:30 Australia March AIG Construction Index 57.4 previous
•23:00 Australia Services PMI 56.2, 53.4 previous
•23:50 Japan March Foreign Reserves (USD) 1,379.4B previous
•01:00 New Zealand ANZ Commodity Price Index (MoM) 3.3% previous
•05:00 Japan Feb Leading Index (MoM) 0.8% previous
•05:00 Japan Feb Coincident Indicator (MoM) 2.9% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency summaries
EUR/USD: The euro strengthened against dollar on Tuesday as a weaker dollar and a pullback in U.S. bond yields lifted demand for euro. The dollar dipped versus a basket of its peers, even as data showed a gauge of U.S. services activity hit a record high in March and Friday’s bumper jobs report opened a cautious door to questions as to how much further the greenback and U.S. yields can go. The euro was up 0.54% to $1.1874. Immediate resistance can be seen at 1.1877 (38.2%fib), an upside break can trigger rise towards 1.1909 (30DMA).On the downside, immediate support is seen at 1.1789 (5DMA), a break below could take the pair towards 1.1749 (23.6%fib).
GBP/USD: Sterling slipped against dollar on Tuesday as investors took some cash off the table after cable jumped to its highest in more than two weeks, while traders continued to bet on a speedy re-opening of the British economy.Bets on an economic recovery, spurred by a rapid COVID-19 vaccination programme, have supported sterling over the past few months.On Monday, the pound recorded its best day against a weakening dollar since Feb. 18, as U.S. Treasury yields held below recent highs, while low liquidity with many parts of the world off for the Easter break was also seen exaggerating moves. Immediate resistance can be seen at 1.3913 (23.6%fib), an upside break can trigger rise towards 1.4000(Psychological level ).On the downside, immediate support is seen at 1.3827 (5DMA), a break below could take the pair towards 1.3803 (38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as concern rose about Canada's third wave of the COVID-19 pandemic and investors awaited domestic economic data that could offer clues on the Bank of Canada's policy outlook. The loonie was trading 0.4% lower at 1.2573 to the greenback, or 79.54 U.S. cents, having pulled back from its strongest level since March 22 on Monday at 1.2497. Canada's trade report for February is due on Wednesday, while the March employment report is due on Friday. Immediate resistance can be seen at 1.2583 (Daily high), an upside break can trigger rise towards 1.2656 (Higher BB).On the downside, immediate support is seen at 1.2544 (21 DMA), a break below could take the pair towards 1.2508 (23.6%fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as traders booked profits after a strong March and as a fall in Treasury yields from recent peaks put pressure on the U.S. currency.The U.S. dollar currency index, which measures the greenback against a basket of six currencies, was 0.146% lower at 92.427, its lowest since March 24.The dollar has risen this year, along with Treasury yields, as investors bet the United States would recover more quickly from the pandemic than other developed nations, amid massive stimulus and aggressive vaccinations. Against the Japanese yen, the dollar slipped 0.28% to 109.87 yen, a one-week low. Strong resistance can be seen at 110.56(Daily high), an upside break can trigger rise towards 110.98 (23.6%fib).On the downside, immediate support is seen at 109.78(38.2%fib), a break below could take the pair towards 109.35 (9DMA).
Equities Recap
Europe’s benchmark equity index closed at a record high on Tuesday, recovering all of its pandemic-driven losses as investors bet on a speedy global economic recovery, spurred by bumper stimulus spending and COVID-19 vaccination programmes.
UK's benchmark FTSE 100 closed up by 1.28 percent, Germany's Dax ended up by 0.70 percent, France’s CAC finished the day up by 0.47 percent.
U.S. stock index futures fell on Tuesday as investors locked in some gains after the S&P 500 and the Dow closed at record highs on renewed recovery hopes.
Dow Jones closed down by 0.29 percent, S&P 500 closed down by 0.07percent, Nasdaq settled down by 0.05 % percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday, led by the so-called belly of the curve, on investor views that market pricing based on an earlier-than-expected tightening by the Federal Reserve was too aggressive.
U.S. 5-year notes led the decline in yields, falling seven basis points to 0.872% after hitting 14-month highs on Monday. Seven-year yields also fell, down seven basis points as well, at 1.332%.
U.S. 10-year and 30-year yields fell to more than one-week lows, while those on the 20-year dropped to a two-week trough.
Commodities Recap
Gold prices rose about 1% on Tuesday and hit the highest in more than a week, boosted by as a retreating dollar and lower U.S. Treasury yields.
Spot gold rose 0.8% to $1,743.04 per ounce by 2:11 p.m. EDT (1811 GMT), after hitting its highest level since March 25 at $1,745.15. U.S. gold futures settled 0.% higher at $1,743.
Strong economic data from China and the United States helped lift oil prices by more than 1% on Tuesday, recouping some of the previous session’s losses.
Brent gained 83 cents, or 1.3%, to $62.98 a barrel by 1:19 p.m. EDT (1719 GMT). U.S. West Texas Intermediate (WTI) crude rose 91 cents, or 1.6%, to $59.56 a barrel.