Posted at 10 May 2021 / Categories Market Roundups
Market Roundup
•UK Apr Halifax House Price Index (MoM) 1.4%,1.1% previous
•UK Apr Halifax House Price Index (YoY) 8.2%,6.5% previous
•EU May Sentix Investor Confidence 21.0, 14.0forecast, 13.1 previous
Looking Ahead - Economic Data (GMT)
•12:30 French 6-Month BTF Auction-0.627% previous
•12:30 French 3-Month BTF Auction -0.630% previous
•12:30 French 12-Month BTF Auction -0.619% previous
•13:45 US Apr ISM-New York Index 804.5 previous
•13:45 US Apr ISM NY Business Conditions 37.2% previous
•14:00 US Apr CB Employment Trends Index 102.40 previous
•15:30 US 6-Month Bill Auction 0.035% previous
•15:30 US 3-Month Bill Auction 0.015% previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 Chicago Fed President Evans Speaks
Fx Beat
EUR/USD: The euro edged higher against dollar on Monday as investors returned their focus to a brighter economic outlook and its implications for central bank policy following large swings following Friday’s U.S. non-farm payrolls data.ECB policymaker Martin Kazaks said on Friday the central bank could decide to reduce the pace of its emergency bond purchases in June if borrowing costs remain low.But the road to recovery from the coronavirus pandemic will be long, ECB Chief Economist Philip Lane told French newspaper Le Monde in an interview published Monday, highlighting divisions within the ECB’s Governing Council. The euro was last up 0.1% to $1.2163, earlier touching the highest since Feb. 26 at $1.2177. Immediate resistance can be seen at 1.2174 (23.6%fib), an upside break can trigger rise towards 1.2200(Psychological level).On the downside, immediate support is seen at 1.2123(38.2%fib), a break below could take the pair towards 1.2083 (50%fib).
GBP/USD: The pound rose above the $1.40 psychological level for the first time in more than two months on Monday, reaching as high as $1.4118 , despite a win for pro-independence parties in Scottish elections.Pro-independence parties won a majority in Scotland’s parliament on Saturday, paving the way for a high-stakes political, legal and constitutional battle with British Prime Minister Boris Johnson over the future of the United Kingdom.But the pound strengthened as market participants did not interpret this as a near-term risk. At 11:30 GMT, the pound was up 0.89% against the dollar at $1.4118. Immediate resistance can be seen at 1.4121(23.6%fib), an upside break can trigger rise towards 1.4182(25th Feb high).On the downside, immediate support is seen at 1.4005(38.2%fib), a break below could take the pair towards 1.3950(5DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as investors continued to assess the implications for monetary policy of a disappointing U.S. employment report, ahead of inflation data this week. The U.S. created only a little more than a quarter of the jobs that economists had forecast last month and the unemployment rate unexpectedly ticked higher, pouring cold water on speculation the pandemic recovery could spark faster inflation that the Federal Reserve anticipates. Immediate resistance can be seen at 0.9029 (38.2%fib), an upside break can trigger rise towards 0.9062(5DMA).On the downside, immediate support is seen at 0.8980(Lower BB), a break below could take the pair towards 0.8956(23.6%fib).
USD/JPY: The dollar gained against the yen on Monday after subdued U.S. jobs data supported hopes that interest rates would remain low for some time, bolstering risk appetite. The United States created a little more than a quarter of the jobs that economists had forecast last month and the unemployment rate unexpectedly ticked higher, pouring cold water on speculation about runaway inflation. The dollar was a shade firmer on the yen at 108.76, but faces resistance at 109.42. Strong resistance can be seen at 109.00 (5DMA), an upside break can trigger rise towards 109.42(23.6%fib).On the downside, immediate support is seen at 108.41 (38.2%fib), a break below could take the pair towards 107.66 (50%fib).
Equities Recap
European stocks inched to new highs on Monday as optimism about the reopening of economies and easy monetary policy lifted sectors that typically benefit from a recovery.
At (GMT 11:50),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was down by 0.06 percent, France’s CAC was last up by 0.12 percent.
Commodities Recap
Gold prices rose on Monday, hovering near a three-month peak, as a miss in the U.S. jobs numbers last week cemented expectations that interest rates will remain low for some time, denting the dollar and boosting non-yielding metal’s appeal.
Spot gold was up 0.4% to $1,836.80 per ounce by 1022 GMT, after hitting its highest since Feb. 11 at $1,842.91 on Friday. U.S. gold futures gained 0.4% to $1,838.10.
Oil rose on Monday after a cyberattack forced the shutdown of major fuel pipelines in the United States and raised concerns about supply disruption, outweighing rising coronavirus cases in Asia.
Brent crude was up by 69 cents, or 1%, at $68.97 a barrel by 1137 GMT. U.S. West Texas Intermediate (WTI) crude rose by 61 cents, or 0.9%, to $65.51. Both benchmarks rose more than 1% last week, their second consecutive weekly gain.