News

America’s Roundup: Greenback hits 4-week low on retreating US Treasury yields, Wall Street ends higher, Gold gains, Oil dips but posts weekly gain on recovery hopes-April 17th,2021

Posted at 16 April 2021 / Categories Market Roundups


Market Roundup

•Canada Feb Wholesale Sales (MoM) -0.7%, -0.4%forecast,4.0% previous

•US March Building Permits (MoM)  2.7%,-8.8% previous

•US March Housing Starts 1.739M, 1.613M forecast, 1.421M previous

•US March Building Permits  1.766M,1.750M forecast, 1.720M previous

•US March Housing Starts (MoM) 19.4%,-10.3% previous

•Canada Feb Foreign Securities Purchases 8.52B               ,1.27B previous

 •Canada Feb Foreign Securities Purchases by Canadians  10.54B, 3.54B previous

•US April Michigan 5-Year Inflation Expectations 3.7%, 2.70% previous

•US April Michigan Consumer Expectations 79.7, 83.6 forecast, 79.7 previous

•US April Michigan Current Conditions 97.2, 96.3 forecast, 93.0 previous

•US April Michigan Consumer Sentiment 86.5,  89.6 forecast, 89.6 previous

•Russia March PPI (MoM) 16.0%, 3.5% previous

•Russia March PPI (YoY)  3.6%,10.7% previous

Looking Ahead – Economic Data (GMT)

•No economic data ahead

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Fxbeat

EUR/USD: The euro strengthened on Friday as the dollar fell broadly   as   retreat in Treasury yields burdened greenback. U.S. Treasury yields dipped to one-month lows on Thursday as a potential safe-haven bid related to  U.S.- Russia strains, alongside Japanese buying, helped overshadow   better-than-anticipated US economic data.The euro was up 0.17% to $1.1985.  Immediate resistance can be seen at 1.2000 (Psychological level), an upside break can trigger rise towards 1.2020(23.6%fib).On the downside, immediate support is seen at 1.1957(38.2%fib), a break below could take the pair towards 1.1910(50%fib).

GBP/USD: Sterling rose against the dollar on Friday, as traders were optimistic that re-opening of Britain’s economy would boost economic recovery. Sterling was also helped by a speedy roll-out of COVID-19 vaccinations across Britain and reduced expectations of negative interest rates in UK. As England re-opened retail shops, beauticians, gyms and bars on Monday, analyst anticipate the economy in the United Kingdom to recuperate quicker than in the European Union. Immediate resistance can be seen at 1.3811 (38.2%fib), an upside break can trigger rise towards 1.3915(23.6%fib).On the downside, immediate support is seen at 1.3712 (50%fib), a break below could take the pair towards 1.3670 (April 12th low ).

USD/CAD: The Canadian dollar reinforced against its U.S. partner on Friday, as higher oil prices and weaker dollar boosted Canadian dollar. The U.S. dollar was set to post a second week stretch of   retreat in US Treasury yields. Oil, one of Canada's significant export, was on track for a weekly gain as strong demand outlook and optimism of economic recovery in China and the United States offset rising COVID-19 cases.the Canadian dollar was trading 0.4% higher at 1.2497 to the greenback, or 80.02 U.S. cents. Immediate resistance can be seen at 1.3991 (50%fib), an upside break can trigger rise towards 1.4068 (Daily high).On the downside, immediate support is seen at 1.3814 (38.2%fib), a break below could take the pair towards 1.3754(18th March low).

USD/JPY: The dollar dipped against the Japanese yen on Friday amid an extended retreat in Treasury yields, as investors increasingly bought into the Federal Reserve's insistence it would keep an accommodative policy stance for a while longer. The benchmark 10-year U.S. Treasury yield dipped to a one-month low of 1.528% overnight, moving further away from March's 1.776%, it highest in more than a year, even in the face of Thursday's stronger-than-expected retail sales and employment data. Strong resistance can be seen at 108.91(50%fib), an upside break can trigger rise towards 109.26 (9DMA).On the downside, immediate support is seen at 108.46(38.2%fib), a break below could take the pair towards 108.18(Lower BB).

Equities Recap

European stocks finished at a record high on Friday as solid U.S. data increased optimism of faster global economic recovery, while positive outcomes from Germany's Daimler helped carmakers.

UK's benchmark FTSE 100 closed up by 0.52 percent, Germany's Dax ended down  by 1.34 percent, France’s CAC finished the day up by 0.85 percent.

The S&P 500 and the Dow posted new highs on Friday as investors pushed the benchmark indexes towards one week  gains on back of solid US economic data.

Dow Jones closed down by  0.48% percent, S&P 500 closed up by 0.34% percent, Nasdaq settled up by 0.10%  percent.

Commodities Recap

Gold hit a seven-week high on Friday reinforced by a gentler dollar and a sharp pullback back in U.S. yields .

Spot gold was 0.8% higher at $1,778.04 per ounce by 1:53 p.m. EDT (1753 GMT), having earlier hit its highest since Feb. 25 at $1,783.55. It is up 2% so far this week.U.S. gold futures settled 0.8% higher at $1,780.20.

Oil settled lower on Friday but posted weekly gain on stronger demand outlook and indications of economic recovery in China and the United States that counterbalanced worries about rising COVID-19 cases in other significant economies.

Brent crude settled down 17 cents, or 0.3%, at $66.77 a barrel. The global benchmark finished up 6% on the week after rising in the past four sessions.


Simply the best forex trading platform. Mobile platform also available.

download mt4

Start trading forex in 5 minutes. Get 20% deposit bonus.

Open Live Account

Free $10000 forex virtual trading account. Practice makes perfect.

Open Demo Account