Posted at 22 March 2021 / Categories Market Roundups
Market Roundup
•EU Jan Current Account 30.5B, 36.7B previous
•EU Jan Current Account n.s.a. 5.8B, 34.3B forecast, 10:04 previous
Looking Ahead Economic Data (GMT)
•US Feb Chicago Fed National Activity 0.66 previous
•14:00 French 6-Month BTF Auction -0.604% previous
•14:00 French 3-Month BTF Auction -0.607% previous
•14:00 French 12-Month BTF Auction -0.605% previous
•US Feb Existing Home Sales (MoM) -3.0% forecast, 0.6% previous
•US Feb Existing Home Sales 6.50M forecast, 6.69M previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 US Fed Chair Powell Speaks
• 13:00 German Buba President Weidmann Speaks
•14:00 US Fed FOMC Member Barkin Speaks
•15:15 ECB's Schnabel Speaks
•17:00 US FOMC Member Daly Speaks
•17:00 US FOMC Member Quarles Speaks
•23:15 US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro strengthened on Monday as concerns that developments in Turkey would threaten other financial markets strengthened euro. Turkey’s President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor. Erdogan fired the central bank governor only two days after a sharp rate increase that was meant to head off inflation ofnearly 16% and support the lira.The new central bank governor will most likely lead to a reversal of the hawkish and orthodox steps taken to battle inflation Immediate resistance can be seen at 1.1934(38.2% fib), an upside break can trigger rise towards 1.1990(50% fib).On the downside, immediate support is seen at 1.1860 (23.6% fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: Sterling was flat against dollar on Monday as investors focused on broader currency market drivers and the European Union’s threat to impose a ban on vaccine imports to Britain. The EU’s leaders are due to discuss imposing a ban on vaccine exports to Britain at a summit on Thursday. Britain, which exited the EU’s orbit on Dec. 31, has repeatedly cautioned the EU that breaking contract law could have grave consequences, but it has not yet specified what those consequences would be. At 1214 GMT, the pound was little changed against the dollar, at $1.3852. Versus the euro it was down around 0.2%, at 86.05 pence per euro. Immediate resistance can be seen at 1.3899(5DMA), an upside break can trigger rise towards 1.3930 (23.6%fib).On the downside, immediate support is seen at 1.3814(38.2%fib), a break below could take the pair towards 1.3179 (50%fib).
USD/CHF: The dollar dipped against the Swiss franc on Monday after President Tayyip Erdogan shocked investors by replacing Turkey’s hawkish central bank governor with a critic of high interest rates. Investors are still struggling to deal with the recent surge in U.S. bond yields, which have left market volitile. A host of Fed officials speak this week, including three appearances by Chair Jerome Powell, providing plenty of opportunity for more volatility in markets. Immediate resistance can be seen at 0.9312(23.6%fib), an upside break can trigger rise towards 0.9380 (March 9th high).On the downside, immediate support is seen at 0.9254 (5 DMA), a break below could take the pair towards 0.9229(38.2%fib).
USD/JPY: The dollar held near recent high against the Japanese yen on Monday after Turkey’s President Tayyip Erdogan stunned investors over the weekend by replacing the hawkish central bank governor, pushing investors towards dolllar. Worries that events in Turkey will cause disruptions in other financial markets also supported the dollar. Against a basket of its rivals, the dollar was broadly steady at 92.022 and within sight of a near four-month high of 92.50 hit earlier this month. The dollar was little changed at 108.65 yen. Strong resistance can be seen at 108.84 (21 DMA), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.31 (50%fib), a break below could take the pair towards 107.84(61.8%fib).
Equities Recap
European stocks on Monday were weighed down by a slump in Turkey’s currency and worries about more restrictions due to rising coronavirus cases in the continent, but strength in automakers helped limit the losses.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.14 percent, Germany's Dax was up by 0.24 percent, France’s CAC finished was down by 0.29 percent.
Commodities Recap
Gold prices fell on Monday as investors chose the safety of the U.S. dollar and government bonds, spooked by Turkey's abrupt decision to replace its central bank head with a critic of high interest rates.
Spot gold was down 0.7% to $1,733 per ounce by 1216 GMT. U.S. gold futures slipped 0.5% to $1,733.50.
Oil prices resumed their decline on Monday, falling around 1% as worries about a drop in demand for fuel products in the wake of yet more European lockdowns dominated trading.
Brent crude was down 60 cents, or 0.9%, at $63.93 a barrel by 0136 GMT. U.S. oil was off by 68 cents, or 1.1%, at $60.74 a barrel. Both contracts fell by more than 6% last week.