Posted at 23 March 2021 / Categories Market Roundups
Market Roundup
• UK Feb Claimant Count Change 86.6K, -20.0K previous
• UK Jan Average Earnings ex Bonus 4.2%, 4.4%forecast, 4.1% previous
• UK Jan Unemployment Rate 5.0%,5.2% forecast, 5.1% previous
• UK Jan Employment Change 3M/3M (MoM) -147K, -167K forecast, -114K previous
• Italian Jan Industrial New Orders (YoY) 3.2%, 7.0% previous
•Italian Jan Industrial Sales (MoM) 2.50%, 1.00% previous
•Italian Jan Industrial New Orders (MoM) 1.4%, 1.7% previous
• Italian Jan Industrial Sales (YoY) -1.60%, -0.50% previous
• UK CBI Mar Industrial Trends Orders -20 forecast , -24 previous
Looking Ahead - Economic Data (GMT)
•12:30 US Current Account (Q4) -189.9B forecast , -178.5B previous
•12:55 US Redbook (MoM) -17.9% previous
•12:55 US Redbook (YoY) 8.5% previous
•14:00 US March Richmond Services Index -6 previous
•14:00 US Feb New Home Sales 875K forecast, 923K previous
•14:00 US Mar Richmond Manufacturing Index 14 previous
•14:00 US Mar Richmond Manufacturing Shipments 12 previous
•14:00 US Feb New Home Sales (MoM) -6.5% forecast, 4.3% previous
Looking Ahead - Economic events and other releases (GMT)
•13:00 US FOMC Member Bullard Speaks
•14:00 US Fed Chair Powell Testifies
•14:10 US FOMC Member Bostic Speaks
•15:00 US FOMC Member Barkin Speaks
•17:15 Canada BoC Deputy Governor Gravelle Speaks
•17:25 US FOMC Member Brainard Speaks
•18:45 US FOMC Member Williams Speaks
•19:45 US FOMC Member Brainard Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday as a wave of coronavirus infections, a fresh lockdown in Germany weighed on euro. Chancellor Angela Merkel on Tuesday decided to extend lockdown until April 18 and called on citizens to stay at home for five days over the Easter holidays. Germany’s new infections rose by 7,485 on Tuesday to 2.674 million, while another 250 deaths took its toll to 74,964. The number of cases per 100,000 in the last seven days rose to 108 from 107 on Monday. The euro was down 0.3% against the dollar at $1.1902.Immediate resistance can be seen at 1.1942(Daily high), an upside break can trigger rise towards 1.1978 (38.2%fib).On the downside, immediate support is seen at 1.1871 (23.6%fib), a break below could take the pair towards 1.1833 (9 DMA).
GBP/USD: Sterling fell to a two-week low against the dollar on Tuesday amid talk of the European Union banning vaccine exports to Britain, which relies heavily on imports for its COVID-19 vaccination drive.After falling far behind post-Brexit Britain and the United States in rolling out vaccines, EU leaders are due to discuss a possible ban on vaccine exports to Britain at a summit on Thursday. Sterling was down 0.5% against the dollar at $1.3802, its lowest since March 9, by 0900 GMT. Against the euro, it traded flat at 86.12 pence. Immediate resistance can be seen at 1.3843 (38.2%fib), an upside break can trigger rise towards 1.3894 (9DMA).On the downside, immediate support is seen at 1.3748 (50 %fib), a break below could take the pair towards 1.3650(61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as markets awaited a testimony from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen. Market participants will be listening to a Congressional testimony by U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day for any hints about their tolerance for rising yields, which could determine the future direction for the dollar. Immediate resistance can be seen at 0.9320 (23.6%fib), an upside break can trigger rise towards 0.9373 (9th March high).On the downside, immediate support is seen at 0.9259 (9DMA), a break below could take the pair towards 0.9231(38.2%fib).
USD/JPY: The dollar declined against the Japanese yen on Tuesday, as demand for safe haven yen increased after western countries imposed sanctions China over Xinjiang abuses. The United States, the European Union, Britain and Canada sanctioned Chinese officials on Monday over human rights abuses in Xinjiang, and Beijing hit back with punitive measures against European lawmakers, diplomats, institutes and families.Also contributing to market caution was a third wave of the COVID-19 pandemic in Europe. Germany is extending its lockdown and urging citizens to stay at home for five days over the Easter holidays. Strong resistance can be seen at 108.85 (23.6%fib), an upside break can trigger rise towards 109.32 (18th March ).On the downside, immediate support is seen at 108.48(Daily low), a break below could take the pair towards 108.26 (38.2%fib).
Equities Recap
European stocks eased from a one-year peak on Tuesday, as a new wave of coronavirus infection and fresh lockdown in Germany raised fears of a slow economic recovery from the pandemic shock.
At (GMT 11:20),UK's benchmark FTSE 100 was last trading down at 0.23 percent, Germany's Dax was down by 0.04 percent, France’s CAC finished was down by 0.37 percent.
Commodities Recap
Gold prices fell on Tuesday, dragged down by gains in equity markets and the dollar, although concerns around fresh coronavirus cases across Europe limited losses.
Spot gold fell 0.3% to $1,733.69 per ounce by 0119 GMT. U.S. gold futures were down 0.1% to $1,736.20 per ounce.
Oil prices fell more than 3% on Tuesday, hit by concerns that new pandemic curbs and slow vaccine rollouts in Europe will hold back a recovery in demand, while a stronger dollar also weighed.
Brent crude futures dropped by $2.20, or 3.4%, to $62.42 a barrel by 0948 GMT. U.S. West Texas Intermediate (WTI) crude futures fell by $2.10, or %3.4, to $59.46 a barrel.