Posted at 12 April 2021 / Categories Market Roundups
Market Roundup
• French 12-Month BTF Auction -0.629%, -0.632% previous
• French 3-Month BTF Auction -0.630%,-0.625% previous
• French 6-Month BTF Auction -0.633%,-0.621% previous
• US 3-Month Bill Auction 0.376%, 0.355%% previous
• US 6-Month Bill Auction 0.040%, 0.035% previous
• US 10-Year Note Auction 1.680%,1.523% previous
Looking Ahead – Economic Data (GMT)
• 03:30 New Zealand NZIER QSBO Capacity Utilization (Q1) 95.1% previous
• 03:30 New Zealand NZIER Business Confidence (Q1) -6% previous
• 03:30 New Zealand Mar Electronic Card Retail Sales (YoY) -5.3% previous
• 03:30 New Zealand Mar Electronic Card Retail Sales (MoM) -2.5% previous
• 00:50 Japan M2 Money Stock (YoY) 9.6% previous
• 00:50 Japan Mar M3 Money Supply 1,952.5T previous
•05:30 Australia HIA New Home Sales (MoM) 22.9% previous
•05:30 Australia Mar NAB Business Confidence 16 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fx Beat
EUR/USD: The euro strengthened against dollar on Monday as stronger than expected Euro zone retail sales data supported euro. Euro zone retail sales were stronger than expected in February, data showed on Monday, as some countries eased their COVID-19 pandemic restrictions before tightening them again in March. The European Union's statistics office said retail sales in the 19 countries sharing the euro rose 3.0% month-on-month in February for a 2.9% year-on-year fall. 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 1.1835(9DMA).
GBP/USD: The pound rose on Monday as some UK lockdown measures were eased, recovering some of last week’s losses, but analysts cautioned that the boost to sterling from being ahead in the vaccine race could be shortlived as other countries catch up. England’s shops, pubs, gyms and hairdressers reopened after three months of lockdown. The UK’s vaccine rollout one of the fastest in the world - helped the pound have its best quarter since 2015 in the first three months of 2021.The pound was up around 0.4% against the dollar $1.3765. Immediate resistance can be seen at 1.3768 (38.2%fib), an upside break can trigger rise towards 1.3808 (21DMA ).On the downside, immediate support is seen at 1.3667 (50%fib), a break below could take the pair towards 1.3587 (61.8%fib).
USD/CAD: The Canadian dollar edged down against its U.S. counterpart on Monday, unwinding some of the gains logged in the previous session, but buoyant oil prices helped keep the currency near recent highs. The loonie had risen 0.3% on Friday after data showed Canada added far more jobs than expected in March, bringing employment to within 1.5% of pre-pandemic levels. At 9:52 a.m. EST (1352 GMT), the Canadian dollar was trading 0.2% lower at 1.2553 to the greenback. Immediate resistance can be seen at 1.2573(Daily high), an upside break can trigger rise towards 1.2601 (38.2%fib).On the downside, immediate support is seen at 1.2521 (61.8%fib), a break below could take the pair towards 1.2500(Psychological level).
USD/JPY: The dollar dipped against the Japanese yen on Monday as investors waited to see whether U.S. earnings would justify sky-high valuations, while a rally in bonds could be tested by what should be strong readings for U.S. inflation and retail sales this week. Over the weekend, Federal Reserve Chair Jerome Powell said the economy was about to start growing faster, though the coronavirus remained a threat. Data out this week are expected to show U.S. inflation jumped in March. Retail sales are seen surging, perhaps even with a double-digit gain. Treasury is also set to test demand with offers of $100 billion in debt this week. 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 109.05(50%fib), a break below could take the pair towards 108.69(25th March Low).
Equities Recap
European stocks fell on Monday from all-time highs as investors booked profits ahead of the quarterly corporate earnings season, while two French utility companies surged on news of a merger deal after months of wrangling.
UK's benchmark FTSE 100 closed down by 0.39 percent, Germany's Dax ended down by 0.13 percent, France’s CAC finished the day down by 0.13 percent.
The S&P 500 and the Dow Jones indexes retreated from record levels on Monday, as investors geared up for the start of the corporate reporting season and a key inflation report later this week.
Dow Jones closed down by 0.16% percent, S&P 500 closed up by 0.01% percent, Nasdaq settled down by 0.36% percent.
Treasuries Recap
Smooth auctions of three- and 10-year notes on Monday kept a move higher in U.S. Treasury yields in check as the market looked ahead to this week's 30-year bond offering and key data releases, including consumer price inflation.
The benchmark 10-year yield was last up nearly a basis point at 1.6746%, holding below a 14-month high of 1.776% reached on March 30. The three-year yield was last 1.9 basis points higher at 0.3549%.
Commodities Recap
Gold fell on Monday as an uptick in U.S. Treasury yields weighed on bullion's appeal, while investors awaited key U.S. inflation and retail sales data to gauge the health of the economy.
Spot gold fell 0.6 % to $1,732.14 per ounce by 1:57 p.m. EDT (1757 GMT). U.S. gold futures settled down 0.7% at $1,732.70.
Oil prices rose on Monday on optimism over the pace of coronavirus vaccinations in the United States and after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites.
Brent rose 33 cents to settle at $63.28 a barrel. U.S. West Texas Intermediate (WTI) rose 38 cents to settle at $59.70 a barrel.