Posted at 09 March 2021 / Categories Market Roundups
Market Roundup
•Vaccinations fan hopes of faster U.S. economic recovery
•US Redbook (MoM) -18.1% ,-0.3% previous
• US Redbook (YoY) 8.0%, 4.6% previous
Looking Ahead Economic Data(GMT)
•21:45 New Zealand Feb Electronic Card Retail Sales (YoY) 1.9% previous
•21:45 New Zealand Feb Electronic Card Retail Sales (MoM ) -0.4% previous
•23:00 Australia Mar Westpac Consumer Sentiment 1.9% previous
•00:30 Australia Mar Building Approvals (MoM) -19.4% previous
•01:30 China Feb PPI (YoY) 1.5%forecast, 0.3% previous
•01:30 China Feb CPI (MoM) 0.4% forecast, 1.0% previous
•01:30 China Feb CPI CPI (YoY) -0.4% forecast, -0.3% previous
Looking Ahead - Events, Other Releases (GMT)
•22:00 Australia RBA Governor Lowe Speaks
•23:05 US FOMC Member Kaplan Speaks
Currency Summaries
EUR/USD: The euro edged higher against dollar on Tuesday as dollar retreated as yields stabilised from recent high. U.S. 10-year Treasury yields fell as low as 1.5350% , down for a second day.Traders are wary yields could rise further this week as the market will have to digest a $120 billion auction of 3-, 10-, and 30-year Treasuries, especially after last week's soft auction and a 7-year note sale that saw a spike in yields. The euro traded 0.3% higher at $1.18845. Immediate resistance can be seen at 1.1913 (50%fib), an upside break can trigger rise towards 1.1983 (61.8%fib).On the downside, immediate support is seen at 1.1837 (38.2%fib), a break below could take the pair towards 1.1740 (23.6%fib).
GBP/USD: Sterling strengthened against dollar on Tuesday as sterling was supported by progress in Britain's speedy vaccination programme . With more than 22 million people having received the first dose of a COVID-19 vaccine in the UK, traders expect the swift inoculation programme to help the economy rebound from its biggest contraction in 300 years. After suffering Europe's highest COVID death toll, in the first step back towards normality, schools in England reopened this week as part of the UK's lockdown-easing plan.At 18:38 GMT, the pound was last trading 0.6% versus the greenback at $1.3894. Immediate resistance can be seen at 1.3912 ( 23.6%fib), an upside break can trigger rise towards 1.4017 (March 4th high).On the downside, immediate support is seen at 1.3803 (38.2%fib), a break below could take the pair towards 1.3706(50%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as a decline in bond yields bolstered risk appetite, while investors awaited an interest rate decision by the Bank of Canada on Wednesday. U.S. crude oil futures consolidated recent gains, dipping 0.1% to $64.98 a barrel. On Monday, oil touched its highest since October 2018, bolstered by tighter supply due to extended OPEC+ output curbs and growing hopes of a recovery in demand. The Canadian dollar was trading 0.3% higher at 1.2621 to the greenback,having traded in a range of 1.2590 to 1.2685.Immediate resistance can be seen at 1.32656(38.25FIB), an upside break can trigger rise towards 1.2715(50%fib).Immediate support is seen at 1.2579 (23.6%fib), a break below could take the pair towards 1.2500(Psychological level).
USD/JPY: The dollar retreated from nine-month high against the Japanese yen on Tuesday as appetite for dollar decreased after U.S. bond yields retreated. U.S. 10-year Treasury bond yields eased to 1.54%, 6 basis points lower than its highest level this year. Longer-dated yields have jumped over the last month as investors price in faster-than-expected economic rebound and higher inflation.Signs that a $1.9 trillion coronavirus relief packaged was closing in on final approval sparked a spike in yields on Monday, pushing dollar higher. Strong resistance can be seen at 109.28 (23.6% fib), an upside break can trigger rise towards 109.84 (5th June).On the downside, immediate support is seen at 108.26 (Daily low), a break below could take the pair towards 108.00 (38.2fib).
Equities Recap
European stocks ended Tuesday decidedly higher after extending gains from their best session in four months a day earlier, as a rise in shares of oil and utility companies helped counter losses in miners.
UK's benchmark FTSE 100 closed up by 0.17percent, Germany's Dax ended up by 0.40 percent, France’s CAC finished the day up by 0.37 percent.
U.S. stocks advanced on Tuesday, with the Nasdaq jumping over 3% to recoup its losses in the previous session as U.S. bond yields retreated and investors picked up battered technology stocks..
At GMT 18:48, Dow Jones was last up by 0.86 percent, S&P 500 was last up by 2.13 percent, Nasdaq was last up by 4.19 % percent.
Treasuries Recap
U.S. Treasury yields slid on Tuesday, pulling back from a recent 13-month high on the benchmark note, as investors bought back bonds in a sell-off that market participants have deemed overextended.
The rally in Treasuries came ahead of an auction of U.S. 10-year and 30-year debt on Wednesday and Thursday, with investors seeking to cover massive shorts on both maturities. The U.S. Treasury will also auction $58 billion in 3-year notes
Commodities Recap
Gold surged over 2% on Tuesday, staging a strong recovery from a nine-month low hit the previous session, powered by a retreat in U.S. Treasury yields and the dollar.
Spot gold rose 2.1% to $1,716.11 per ounce by 10:15 am ET (1515 GMT), having slipped to its lowest since June 5 at $1,676.10 on Monday.
Oil fell to around $68 a barrel on Tuesday in a choppy session, as easing concerns of a supply disruption in Saudi Arabia and a pause in the U.S. dollar’s recent rally countered the prospects for tighter supply due to OPEC+ output curbs.
Brent crude was down 62 cents, or 0.9%, at $67.63 by 12:59 p.m. EST (1759 GMT), pulling back after trading as high as $69.33. It reached $71.38 on Monday, the highest price since Jan. 8, 2020.
U.S. West Texas Intermediate (WTI) fell 91 cents to $64.14, after hitting its highest price since October 2018 on Monday.