Posted at 15 March 2021 / Categories Market Roundups
Market Roundup
• Canada Feb Housing Starts 245.9K, 245.0K, 282.4K previous
• US March NY Empire State Manufacturing Index 17.40 ,14.50 forecast, 12.10 previous
• Canada Jan Manufacturing Sales (MoM) 3.1%,2.5% forecast, 0.9% previous
• French 12-Month BTF Auction -0.604% ,-0.610% previous
• French 3-Month BTF Auction--0.607% ,0.621% previous
• French 6-Month BTF Auction-0.619% previous
• US 6-Month Bill Auction 0.055% 0.060% previous
Looking Ahead Economic Data (GMT)
•00:30 Australia House Price Index (QoQ) (Q4) 2.0%forecast,0.8% previous
•00:30 New Zealand Credit Card Spending (YoY) -5.6% previous
•4:30 Japan Jan Capacity Utilization (MoM) 0.8% previous
Looking Ahead - Events, Other Releases (GMT)
•4:05 Japan BoJ Governor Kuroda Speaks
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as markets looked ahead to the U.S. Federal Reserve meeting on Wednesday. Rising bond yields have spooked markets so far in 2021, with market participants worried that an economic recovery from COVID-19, combined with fiscal stimulus, could cause a spike in inflation from pent-up consumer demand when lockdowns end.U.S. Treasury yields were close to a 13-month peak on Monday, pushed higher by bets that economic growth in the United States will accelerate after President Joe Biden’s $1.9 trillion stimulus bill got its final approval last week. 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 held above $1.39 on Monday after falling more than 1 cent versus the dollar on Friday as hopes for an economic recovery in Britain outweighed the impact of higher U.S. Treasury yields. The pound was down 0.06% at $1.3898, after falling almost 1% during Friday’s session to $1.3865.A sell off in Treasuries, which has pushed the yield on the benchmark note above 1.60% and strengthened the dollar, has added pressure on risk currencies like the pound. Immediate resistance can be seen at 1.4032( 23.6%fib), an upside break can trigger rise towards 1.4180 (Feb 25th high).On the downside, immediate support is seen at 1.3879(38.2%fib), a break below could take the pair towards 1.3786 (50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday as the greenback broadly climbed ahead of a Federal Reserve meeting this week and oil prices fell, with the loonie pulling back from an earlier three-year high. The loonie was trading nearly unchanged at 1.2466 to the greenback, having touched its strongest intraday level since February 2018 at 1.2442.The loonie was boosted on Friday by data showing that Canada added more jobs than expected in February. Immediate resistance can be seen at 1.2507(5DMA), an upside break can trigger rise towards 1.2582 (38.2%fib).On the downside, immediate support is seen at 1.2453(23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as traders cut their bearish bets on the greenback to four-month lows amid the recent rise in U.S. Treasury yields. The greenback rose 0.1% against the yen to 109.11 yen , drifting near its highest since June 2020. Focus this week will be on the U.S. Federal Reserve's two-day policy meeting although expectations are running low for the central bank to announce major policy changes. The Bank of Japan is also set to hold its policy meeting later in the week. Strong resistance can be seen at 109.26 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.83 (38.2%fib), a break below could take the pair towards 108.48 (23.6%fib).
Equities Recap
European stocks ended flat on Monday, with declines led by financial and mining stocks, while gains in betting firm Flutter Entertainment and optimism about a strong economic rebound helped limit losses.
UK's benchmark FTSE 100 closed up by 0.17 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the down by 0.18 percent.
The S&P 500 paused on Monday below an all-time high as investors awaited cues from the Federal Reserve’s meeting this week amid caution over rising borrowing costs spurred by massive fiscal stimulus.
Dow Jones closed up by 0.53% percent, S&P 500 closed up by 0.65% percent, Nasdaq settled down by 1.05% percent.
Treasuries Recap
Longer-term U.S. Treasury yields tumbled and the yield curve flattened on Monday as investors turned cautious ahead of this week's Federal Reserve meeting and upcoming economic data.
The benchmark 10-year yield, which reached 1.642% on Friday, its highest level since February 2020, was last down 2.8 basis points at 1.6073%.
Commodities Recap
Oil prices edged lower on Monday, pulling back from early gains fostered on strong Chinese economic news and ongoing supply restraint from major oil producers.
Brent crude futures for May settled at $68.88 a barrel, losing 34 cents. U.S. West Texas Intermediate crude for April settled at $65.39 a barrel, shedding 22 cents.
Gold edged higher on Monday on prospects of higher inflation following the approval of a $1.9 trillion U.S. stimulus bill, although elevated U.S. Treasury yields capped bullion's gains ahead of a Federal Reserve meeting.
Spot gold was up 0.2% at $1,729.61 per ounce by 1206 GMT. U.S. gold futures rose 0.5% to $1,728.70.