Posted at 12 March 2021 / Categories Market Roundups
Market Roundup
• Canada Feb Part Time Employment Change 88.2K -225.4K previous
• Canada Feb Part Employment Change 259.2K, 75.0K forecast, -212.8K previous
• Canada Feb Capacity Utilization Rate (Q4) 79.2%, 78.0% forecast ,76.5% previous
• Canada Feb Unemployment Rate 8.2%, 9.2% forecast , 9.4% previous
• Canada Jan Wholesale Sales (MoM) 4.0%, 5.0% forecast , -1.3% previous
• US Feb PPI (MoM) 0.5%,0.5% forecast , 1.3% previous
• US Feb Core PPI (YoY) 2.5%, 2.6% forecast , 2.0% previous
• US Feb PPI (YoY) 2.8%, 2.7% forecast , 1.7% previous
• US March Michigan Inflation Expectations 3.1%, 3.3% previous
• US March Michigan Consumer Sentiment 83.0,78.5 forecast , 76.8 previous
• US March Michigan Consumer Expectations 77.5,74.0 forecast , 70.7 previous
Looking Ahead –Economic data ahead (GMT)
• No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro declined against dollar on Friday after the European Central Bank, as widely expected, said on Thursday it would accelerate its emergency bond purchases over the next quarter. Concerned that a rise in bond yields could derail a recovery across the 19 countries that share the euro, the ECB said it would use its 1.85 trillion Pandemic Emergency Purchase Programme (PEPP) more generously over the coming months to stop any unwarranted rise in debt financing costs. 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 1.1904 (38.2%fib), a break below could take the pair towards 1.1835 (March 9th low).
GBP/USD: The British pound fell against a stronger dollar on Friday as Treasury yields climbed, but the pound was still on track for weekly gains amid hopes for an economic recovery following Britain’s speedy vaccination programme. Sterling was down 0.5% against a stronger dollar at $1.3929 as U.S. Treasuries sold off, pushing the yield on the benchmark note above 1.60%. On the data front, Britain’s economy shrank 2.9% in January from December, a less severe decline than expected, as the country went back into a coronavirus lockdown. 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 rose against greenback on Friday, after a bigger-than-expected domestic jobs gain supported the view that the Bank of Canada would reduce quantitative easing purchases next month. Canada added 259,000 jobs in February, beating estimates of a 75,000 increase, driven by the reopening of businesses as COVID-19 lockdowns put in place in December and January were eased, data from Statistics Canada showed. The Canadian dollar was trading 0.5% higher at 1.2465 to the greenback, the biggest gain among G10 currencies .Immediate resistance can be seen at 1.2581(5DMA), an upside break can trigger rise towards 1.2612 (9DMA).On the downside, immediate support is seen at 1.2464 (Daily low), a break below could take the pair towards 1.2439(23.6%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as greenback drew support from calmer market sentiment. Investors feared the higher Treasury yields and a faster economic recovery in the United States could lead the Federal Reserve to cut short its quantitative easing program. But indications from the Federal Reserve that it would tolerate the bond spike, and slower price-growth, have calmed those fears. The Japanese yen weakened 0.49% versus the greenback at 109.04 per dollar. Strong resistance can be seen at 109.05 (38.2% fib), an upside break can trigger rise towards 109.70 (23.6%fib).On the downside, immediate support is seen at 108.48 (50%fib), a break below could take the pair towards 107.95 (61.8%fib).
Equities Recap
Rising bond yields dragged European stocks lower on Friday, although major bourses were set for weekly gains as stimulus and vaccination programmes spurred hopes of a solid economic recovery.
UK's benchmark FTSE 100 closed up by 0.36 percent, Germany's Dax ended down by 0.47 percent, France’s CAC finished the day up by 0.21 percent.
The blue-chip Dow powered to its fifth consecutive record high on Friday as investors bought shares that should benefit from a strong reopening of the U.S. economy, an outlook signaled by rising yields in the bond market.
Dow Jones closed down by 0.90 percent, S&P 500 closed down by 0.10% percent, Nasdaq settled down by 0.59% percent.
Commodities Recap
Gold prices edged higher on Friday and were on course for their best week in seven, as a slight pullback in the dollar and weakness in equity markets offset pressure from rising U.S. Treasury yields.
Spot gold was up 0.2% at $1,724.16 per ounce at 02:10 p.m. ET (1910 GMT), after falling as much as 1.4% earlier in the session. Gold is up 1.4% so far this week.U.S. gold futures settled down 0.2% at $1,719.80.
Oil settled near $70 a barrel on Friday, supported by production cuts by major oil producers and optimism about a demand recovery in the second half of the year.
Benchmark Brent settled down 41 cents, or 0.6%, to $69.22 a barrel. U.S. West Texas Intermediate crude also ended down 41 cents to $65.61 a barrel.