Posted at 14 April 2021 / Categories Market Roundups
Market Roundup
•Spanish Mar CPI (MoM) 1.0%, 1.0% forecast, 1.0% previous
•Spanish Mar HICP (MoM) 1.9%, 1.9% forecast, -0.6% previous
•Spanish Mar CPI (YoY) 1.3%, 1.3% forecast, 1.3% previous
•Sweden Mar CPI (YoY) 1.7%, 1.7% forecast, 1.4% previous
•Sweden Mar CPI (MoM) 0.2%,0.1% forecast, 0.3% previous
•EU Feb Industrial Production (YoY) -1.6%,-0.9% forecast, 0.1% previous
•EU Feb Industrial Production (MoM) -1.0%,-1.1% forecast, 0.8% previous
•US MBA 30-Year Mortgage Rate 3.36% previous
•US MBA Mortgage Applications (WoW) -5.1% previous
•US MBA MBA Purchase Index 283.6 previous
Looking Ahead – Economic Data (GMT)
•US March Import Price Index (MoM) 1.0% forecast, 1.3% previous
•US March Export Price Index (MoM) 1.0% forecast, 1.6% previous
•US Export Price Index (YoY) 5.2% previous
•US Import Price Index (YoY) 3.0% previous
•14:30 US Gasoline Inventories 0.786M forecast, 4.044M previous
•14:30 US Crude Oil Inventories- 2.889M forecast, -3.522M previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 ECB President Lagarde Speaks
•14:30 UK MPC Member Haskel Speaks
•16:00 US Fed Chair Powell Speaks
•17:00 ECB's Schnabel Speaks
•18:00 US FOMC Member Williams Speaks
•19:45 US FOMC Member Clarida Speaks
•20:00 US FOMC Member Bostic Speaks
•22:05 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday as sharp rise in U.S. inflation decreased demand for greenback. The U.S. consumer price index rose 0.6% in March, the biggest increase since August 2012, as rising vaccinations and fiscal stimulus unleashed pent-up demand, data showed on Tuesday. Economists polled had forecast the CPI would rise 0.5%. However, euro gains were capped after Johnson & Johnson said it would delay rolling out its COVID-19 vaccine to Europe, after U.S. health agencies recommended pausing its use in the country after six women developed rare blood clots. Immediate resistance can be seen at 1.1974 (Daily high), an upside break can trigger rise towards 1.2021 (50%fib).On the downside, immediate support is seen at 1.1935 (38.2%fib), a break below could take the pair towards 1.1877(9DMA).
GBP/USD: Sterling hit a one-week high against the dollar on Wednesday, recovering some ground after a brief dip the previous day following news the Bank of England’s chief economist resigned.The pound dipped on Tuesday afternoon, hitting a six-week low against the euro and extending losses against the dollar after the announcement of Andrew Haldane’s resignation. Haldane was widely seen as one of the more hawkish figures at the central bank, and had been the most upbeat member of the BoE’s Monetary Policy Committee.By 11:30 GMT, the pound was 0.2% higher on the day at $1.3760, having hit a one-week high of $1.38 against the dollar. Immediate resistance can be seen at 1.3775(9DMA), an upside break can trigger rise towards 1.3814 (38.2%fib).On the downside, immediate support is seen at 1.3728 (50%fib), a break below could take the pair towards 1.3700(Psychological level).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as greenback regained some lost ground versus swiss franc as U.S. inflation data failed to stoke fears of immediate policy tightening. The U.S. consumer price index rose 0.6% in March, the biggest increase since August 2012, as rising vaccinations and fiscal stimulus unleashed pent-up demand, data showed on Tuesday. Economists polled had forecast the CPI would rise 0.5%. At (GMT 12:16), greenback gained 0.22% versus the Swiss franc to 0.9225. Immediate resistance can be seen at 0.9858 (Daily high), an upside break can trigger rise towards 0.9904 (61.8%fib).On the downside, immediate support is seen at 0.9176(38.2%fib), a break below could take the pair towards 0. 9114 (23.6%fib).
USD/JPY: The dollar declined against the Japanese yen on Wednesday as strong demand at a U.S. bond auction fuelled a widespread drop in Treasury yields, reducing the interest rate advantage the greenback held over other major currencies. The dollar edged 0.1% lower versus a basket of its rivals USD to 91.75, its lowest level since March. 19. Federal Reserve Chair Jerome Powell is scheduled to speak later on Wednesday at the Economic Club of Washington, his comments on inflation will be keenly watched as he had previously said higher pressures in the coming months would be transitory.Strong resistance can be seen at 104.08 (Daily high), an upside break can trigger rise towards 104.27 (38.2%fib).On the downside, immediate support is seen at 108.62 (38.2%fib), a break below could take the pair towards 108.17 (Lower BB).
Equities Recap
European stocks inched up on Wednesday, as upbeat earnings from German software firm SAP and French luxury goods maker LVMH offset concerns about a potential setback to the continent’s COVID-19 vaccination programme.
At (GMT 12:10),UK's benchmark FTSE 100 was last trading up at 0.38 percent, Germany's Dax was down by 0.02 percent, France’s CAC finished was up by 0.46 percent.
Commodities Recap
Gold prices inched lower on Wednesday as a record rally in global equity markets offset support for bullion from a softer dollar and data showing a jump in U.S. inflation.
Spot gold was down 0.1% at $1,743 per ounce, as of 1013 GMT. U.S. gold futures fell 0.2% to $1,743.90.
Crude oil prices jumped on revised oil demand forecasts on Wednesday despite concerns over rising coronavirus cases and vaccine rollouts.
Brent crude futures rose $1, or 1.57%, to $64.67 a barrel by 0858 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 96 cents, or 1.6%, at $61.