Posted at 18 March 2021 / Categories Market Roundups
Market Roundup
•Swiss Feb Trade Balance 3.699B, 5.054B previous
•Swiss Feb PPI (YoY) -1.1%,-2.1% previous
•Swiss Feb PPI (MoM) 0.0%, 0.3% previous
•Sweden Feb Unemployment Rate 9.7%, 9.3% previous
•Italian Jan Trade Balance 1.587B, 6.844B previous
•Italian Jan Trade Balance EU -0.19B, -1.20B previous
•EU Jan Trade Balance 6.3B, 25.3B forecast, 29.2B previous
•EU Wages in euro zone (YoY) (Q4) 3.50%,2.20% previous
•UK March BoE Interest Rate Decision 0.10% , 0.10% forecast, 0.10% previous
•US Continuing Jobless Claims 4,124K, 4,070K forecast, 4,144K previous
•US Jobless Claims 4-Week Avg 746.25K, 759.00K previous
•US Initial Jobless Claims 770K,700K forecast, 712K previous
•Canada Feb New Housing Price Index (MoM) 1.9%,0.7% previous
•Canada ADP Nonfarm Employment Change -100.8K,-231.2K previous
•US March Philadelphia Fed Manufacturing Index 51.8, 23.0 previous , 23.1 previous
•US March Philly Fed Employment 30.1, 25.3 previous
•US March Philly Fed New Orders 50.9, 23.4 previous
•US March Philly Fed CAPEX Index 25.20 previous
•US March Philly Fed Prices Paid 35.90, 54.40 previous
Looking Ahead Economic Data (GMT)
•14:00 US Feb Leading Index (MoM) 0.3% forecast ,0.5% previous
Looking Ahead - Events, Other Releases (GMT)
•13:10 ECB's De Guindos Speaks
•14:30 German Buba Mauderer Speaks
Fxbeat
EUR/USD: The euro initially gained against dollar on U.S. Federal Reserve dovish stance but gave up some ground as rising U.S. Treasury yields saw the dollar regain traction. U.S. yields picked up as European markets opened, with the 10-year Treasury yield rising above 1.74% for the first time since January 2020, amid uncertainty about the impact of the Fed’s new framework of allowing inflation to overshoot. The euro eased to $1.19505, off a one-week high of $1.19900 hit after rallying 0.6% on Wednesday. Immediate resistance can be seen at 1.1992 (50%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1915 (38.2%fib), a break below could take the pair towards 1.1835 (March 9th low).
GBP/USD: Sterling edged higher against the dollar on Thursday, shrugging off COVID-19 vaccine concerns. The pound was 0.01% higher versus the dollar at 1.3941 at 1200 GMT, after falling to its lowest level since March 5 on Tuesday as a number of European Union countries suspended their rollout of the AstraZeneca vaccine over safety concerns. Britain’s swift vaccine roll-out and declining numbers of COVID-19 infections has been one of the key drivers supporting sterling this year. Immediate resistance can be seen at 1.4000( Psychological level), an upside break can trigger rise towards 1.4059 (23.6%fib).On the downside, immediate support is seen at 1.3915 (38.2%fib), a break below could take the pair towards 1.3847 (17th March low).
USD/CHF: The dollar rose against the Swiss franc on Thursday as spiking U.S. bond yields boosted the dollar. U.S. 10-year Treasury yields hit their highest levels in 13-months in morning deals in London, climbing above 1.70% for the first time since Jan. 24, 2020. Dollar index, which measures the greenback against a basket of peers, rose as much as 0.4% to 91.671, off a two-week low of 91.300 hit after Wednesday's Fed meeting. Immediate resistance can be seen at 0.9292(23.6%fib), an upside break can trigger rise towards 0.9325(12th March).On the downside, immediate support is seen at 0.9256 (9DMA), a break below could take the pair towards 0.9204 (38.2% fib).
USD/JPY: The dollar strengthened against the Japanese yen Thursday as U.S. bond yields spike supported dollar. The 10-year Treasury bond yield rose above 1.74% for the first time since January 2020. Market participants were uncertain about the impact of the Fed's new framework of allowing inflation to overshoot. Although the bond market reaction after the Fed's press conference was mixed, U.S. yields picked up as European markets opened. Strong resistance can be seen at 109.37 (23.6%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.79 (9DMA), a break below could take the pair towards 108.54(38.2% fib).
Equities Recap
Automakers lifted the German DAX to a record high on Thursday, while broader European stocks inched towards all-time highs after the U.S. Federal Reserve vowed to keep interest rates low despite forecasting a surge in economic growth.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.21 percent, Germany's Dax was up by 0.90 percent, France’s CAC finished was up by 0.01 percent.
Commodities Recap
Gold prices rose to a more than two-week high on Thursday after the U.S. Federal Reserve pledged to keep near-zero interest rates until 2023, although the safe-haven metal's gains were capped by the central bank's forecast of a strong economic rebound.
Spot gold rose 0.4% to $1,750.82 per ounce by 0542 GMT, having touched its highest since March 1 at $1,755.25. U.S. gold futures jumped 1.3% to $1,749.80.
Oil prices fell for a fifth day running on Thursday after official data showed a further increase in U.S. crude and fuel inventories while the ever-present COVID-19 pandemic clouded the prospects for demand recovery.
Brent crude fell 50 cents, or 0.74%, to $67.50 a barrel by 1150 GMT after dropping 0.82% on Wednesday. U.S. oil was down 53 cents, or 0.82%, at $64.07 after shedding 0.3% in the previous session.