News

Europe Roundup: Euro gains after data points to stronger recovery, European shares dips, Gold gains, Oil steady as rising India COVID-19 cases weigh-April 23rd,2021

Posted at 23 April 2021 / Categories Market Roundups


 Market Roundup

•UK Mar Retail Sales (YoY)   7.2%,3.5%forecast, -3.7% previous

•UK Mar Core Retail Sales (YoY)  7.9%,4.5% forecast, -1.1% previous      

•UK Mar Core Retail Sales (MoM)  4.9%,1.9% forecast, 2.4% previous    

•UK Mar Public Sector Net Borrowing  27.27B,    18.41B previous

•UK  Public Mar Sector Net Cash Requirement 19.225B, 14.162B previous

•UK Mar Retail Sales (MoM) 5.4%,1.5% forecast, 2.1% previous

•French Apr Manufacturing PMI  59.2, 59.0 forecast, 59.3 previous

•French Apr Services PMI 50.4, 46.5 forecast,48.2 previous

•German Apr Manufacturing PMI  66.4, 65.8 forecast ,66.6 previous

•German Apr Services PMI  50.1, 50.8 forecast, 51.5 previous

•German Apr     Composite PMI  56.0, 56.8 forecast, 57.3 previous

•EU April Markit Composite PMI  53.7, 52.8 forecast, 53.2 previous

•EU April Services PMI  50.3, 49.1 forecast, 49.6 previous

•Russia Apr Interest Rate Decision  5.00%, 4.75% forecast, 4.50% previous           

Looking Ahead - Economic Data (GMT)

•13:45 US April Services PMI  61.9 forecast, 60.4 previous           

•13:45 US April Markit Composite PMI  59.7 previous

•13:45 US April Manufacturing PMI  60.5 forecast, 59.1 previous

•14:00 US New Mar Home Sales  886K forecast, 775K previous

•14:00 US Mar New Home Sales (MoM)  12.0% forecast, -18.2% previous

•17:00 U.S. Baker Hughes Total Rig Count 432 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events ahead

Fxbeat

EUR/USD: The euro rose on Friday, edging back towards a seven-week high, having nursed losses after European Central Bank President Christine Lagarde squashed speculation that policymakers will start to consider a tapering of bond purchases.Flash purchasing managers' index numbers for April came in better than expected in the euro zone and supported the view that the region's economic recovery is accelerating. Immediate resistance can be seen at 1.2080(23.6%fib), an upside break can trigger rise towards 1.2100 (Psychological level).On the downside, immediate support is seen at 1.2045(5DMA), a break below could take the pair towards  1.2012 (38.2%fib).

GBP/USD: Sterling rebounded on Friday from a sharp fall on Thursday after strong retail sales data and business surveys showed Britain’s economy might already be recovering from its worst annual contraction in 300 years.British retail sales rocketed last month as consumers prepared for a partial lifting of coronavirus lockdown restrictions. After having erased its gains this week on Thursday, the pound was once again set for a weekly gain on Friday, trading 0.3% higher on the day at $1.3878 by 1055 GMT.. Immediate resistance can be seen at 1.3908  (5DMA), an upside break can trigger rise towards 1.3931 (23.6%fib ).On the downside, immediate support is seen at 1.3821 (38.2%fib), a break below could take the pair towards 1.3735 (38.2%fib ).

 USD/CHF: The dollar edged lower against the Swiss franc on Friday as traders contemplate the next moves by major central banks ahead of a U.S. Federal Reserve meeting next week. The euro nursed losses after European Central Bank President Christine Lagarde squashed expectations that policymakers will start to consider a tapering of bond purchases due to an improving economic outlook. Fed Chairman Jerome Powell is likely to repeat Lagarde's message that talk of tapering is premature, which would put downward pressure on Treasury yields and cap the dollar's gains against most currencies.  Immediate resistance can be seen at 0.9161 (5DMA), an upside break can trigger rise towards 0.9192(38.2%fib).On the downside, immediate support is seen at 0.9123  (23.6%fib), a break below could take the pair towards 0.9100 (Psychological level ).

USD/JPY: The dollar declined against the Japanese yen on Friday as concerns about a global rise in COVID-19 cases prompted moves towards safer assets.  Data on manufacturing and services activity from   the United States  are due later on Friday, which could support positive economic sentiment, but the dollar  is unlikely to move much as investors stick to the sidelines before next the Fed's meeting. The dollar stood at 107.90 yen, close to a seven-week low. Strong resistance can be seen at 107.99 (38.2%fib), an upside break can trigger rise towards 108.56 (38.2%fib).On the downside, immediate support is seen at 107.29(23.6%fib), a break below could take the pair towards 107.00(Psychological level).

Equities Recap

European stocks were on track for their first weekly loss in eight on Friday as a surge in global coronavirus cases offset optimism about a strong earnings season, while Madrid-based Allfunds jumped in its Amsterdam market debut.

At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.63 percent, Germany's Dax was down by 0.92 percent, France’s CAC  was last down by 0.59 percent.

Commodities Recap

Gold edged higher on Friday and was on track to register a third straight weekly gain supported by a weaker dollar and lower U.S. Treasury yields, while investors awaited a U.S. Federal Reserve policy meeting next week. 

 Spot gold rose 0.4% to $1,790.65 per ounce by 1156 GMT, having jumped to its highest since Feb. 25 at $1,797.67 on Thursday, and has gained 0.8% so far this week.

Oil prices were broadly steady on Friday with support from a European economic recovery countered by concerns as coronavirus infections in India surged to record levels.

Brent crude dipped 4 cents, or 0.1%, to $65.36 a barrel at 1220 GMT, while U.S. West Texas Intermediate (WTI) U.S. crude gained 7 cents, or 0.1%, to $61.50 a barrel.


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