Posted at 09 April 2021 / Categories Market Roundups
Market Roundup:
• Brazilian Mar IPCA Inflation Index SA (MoM) 0.89%,0.88% previous
• Brazilian Mar CPI (YoY) 6.10%,6.20% forecast , 5.20% previous
• Brazilian Mar CPI (MoM) 0.93%, 1.03% forecast , 0.86% previous
• Canada March Full Employment Change 175.4K, 88.2K previous
• US March PPI (MoM) 1.0%, 0.5% forecast , 0.5% previous
• Canada March Part Time Employment Change 127.8K, 171.0K previous
• US March PPI (YoY) 4.2%,3.8% forecast,2.8% previous
• US Mar Core PPI (YoY) 3.1%, 2.7% forecast, 2.5% previous
• US Mar Core PPI (MoM) 0.7%, 0.2% forecast, 0.2% previous
• Canada Mar Unemployment Rate 7.5%, 8.0% forecast, 8.2% previous
• Canada Mar Participation Rate65.2%, 64.7% previous
• Canada Mar Employment Change 303.1K,100.0K forecast, 259.2K previous
• Russia Feb Trade Balance 8.32B,9.80B forecast,8.93B previous
• US Feb Wholesale Trade Sales (MoM) -0.8%, 1.4% forecast, 4.6% previous
• US Wholesale Inventories (MoM) 0.6%, 0.5% previous
Looking Ahead – Economic Data (GMT)
•No Economic data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged lower against dollar on Friday after mixed economic data from Germany, showing a rise in exports in February but a surprise fall in industrial output in separate releases. German exports rose in February, boosted by surging trade with China. Seasonally adjusted exports increased by 0.9% on the month after an upwardly revised rise of 1.6% in January, the Federal Statistics Office said on Friday. Imports rose 3.6% after falling 3.5% in the prior month. Separate data released on Friday showed industrial output in February fell by 1.6%. Immediate resistance can be seen at 1.1930 (8th April high), an upside break can trigger rise towards 1.1950(38.2%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 fell on Friday, touching a two-month low against the dollar, and was set for its biggest weekly drop so far this year, hit by concerns about vaccinations and profit-taking after a strong first quarter. The pound had its best quarter against the euro since 2015 in the first three months of 2021, boosted by the UK’s vaccine rollout, which is one of the fastest in the world, as well as a fading of negative rates expectations for the country. The pound versus the dollar,was down 0.3% at $1.3703, set for its biggest weekly fall since December 2020. Immediate resistance can be seen at 1.3765 (38.2%fib), an upside break can trigger rise towards 1.3808 (21DMA ).On the downside, immediate support is seen at 1.3664 (50%fib), a break below could take the pair towards 1.3587 (61.8%fib).
USD/CAD: The Canadian dollar advanced against its broadly stronger U.S. counterpart on Friday as data showing the economy added far more jobs than expected in March offset lower oil prices, with the loonie also gaining for the week. Canada added 303,100 jobs in March, triple analyst expectations, driven by the recovery across sectors hit by shutdowns in December and January to curb the new coronavirus. The Canadian dollar was trading 0.3% higher at 1.2530 to the greenback, or 79.81 U.S. cents, the biggest gain among G10 currencies. For the week, it was also up 0.3%. Immediate resistance can be seen at 1.1926 (38.2%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1868 (5 DMA), a break below could take the pair towards 1.833 (23.6%fib).
USD/JPY: The dollar gained against the Japanese yen on Friday as solid U.S. inflation data and an uptick in Treasury yields supported dollar. Labor Department report showed producer prices rose last month at twice the speed of February’s growth, reviving some inflation worries.U.S. Treasury yields rose in the wake of the PPI report, which provided further evidence that the world’s largest economy was on a stable road to recovery from the pandemic. The dollar inched higher against a basket of world currencies as inflation data lifted bond yields. Strong resistance can be seen at 109.76 (5DMA), an upside break can trigger rise towards 110.15 (23.6%fib).On the downside, immediate support is seen at 109.15(38.2%fib), a break below could take the pair towards 108.25(50%fib).
Equities Recap
European stocks were subdued on Friday, but marked their longest weekly winning streak since November 2019 as hopes of a rapid recovery in economic growth offset doubts over the euro zone’s COVID-19 vaccination programme.
UK's benchmark FTSE 100 closed down by 0.38 percent, Germany's Dax ended up by 0.21 percent, France’s CAC finished the day up by 0.06 percent.
The S&P 500 and the Dow rose on Friday to close at record highs, posting a third straight weekly rise partly on lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week.
Dow Jones closed up by 0.89% percent, S&P 500 closed up by 0.77 % percent, Nasdaq settled down by 0.51% percent.
Treasuries Recap
U.S. Treasury yields rose on Friday after higher-than-expected producer prices data for March that showed inflation perked up, in line with other upbeat reports that suggested the world's largest economy was on a stable path to recovery from the pandemic.
The U.S. 10-year Treasury yield rose to 1.662% from 1.632% on Thursday. U.S. 20-year yields defied Friday's trend, falling to 2.223%, from 2.224% on Thursday.
Commodities Recap
Gold prices fell more than 1% on Friday, weighed down by a jump in U.S. Treasury yields and a rebound in the dollar, but bullion was still on course for its first weekly gain in three weeks.
Spot gold was 0.7% lower at $1,744.07 per ounce by 1:44 p.m. EDT (1744 GMT), having hit its highest price since March 1 at $1,758.45 on Thursday. For the week, however, prices were up about 0.9%.
Oil prices settled lower on Friday and fell around 2% this week as production increases and renewed COVID-19 lockdowns in some countries offset optimism about a recovery in fuel demand.
Brent crude futures for June settled down 22 cents, or 0.4%, to $62.95. U.S. West Texas Intermediate (WTI) crude for May ended 28 cents, or 0.5%, lower at $59.32.