Posted at 13 May 2021 / Categories Market Roundups
Market roundup
• US Jobless Claims 4-Week Avg 534.00K,560.00K previous
• US Continuing Jobless Claims 3,655K,3,655K forecast, 3,690K previous
• US Initial Jobless Claims 473K,490K forecast, 498K previous
•US Core Apr PPI (YoY) 4.1%,3.7% forecast, 3.1% previous
• US Apr Core PPI (MoM) 0.7%, 0.4% forecast, 0.7% previous
• US Apr PPI (MoM) 0.6%,0.3%, 1.0% previous
• US Natural Gas Storage 71B, 76B forecast, 60B previous
• US 4-Week Bill Auction 0.000%,0.010% previous
•US 8-Week Bill Auction0.010%, 0.010% previous
Looking Ahead - Economic Data (GMT)
•22:30 New Zealand Apr Business NZ PMI 63.6 previous
•00:00Australia HIA New Home Sales (MoM) 90.3% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency summaries
EUR/USD: The euro edged lower on Thursday after data showed U.S. Labor Department reported higher producer prices in April, further evidence that inflation is rising in the United States. The producer price index rose 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.Thursday's report follows data on Wednesday showing consumer prices increased by the most in nearly 12 years in April. The euro was down 0.01 percent at $1.2078. Immediate resistance can be seen at 1.2102(38.2%fib), an upside break can trigger rise towards 1.2171(Higher BB).On the downside, immediate support is seen at 1.2036 (50%fib), a break below could take the pair towards 1.2009(30DMA).
GBP/USD: Sterling declined against the dollar on Thursday as stronger than expected U.S. inflation data pushed the dollar higher.UK GDP figures, which came in above expectations, had helped the pound stay strong on Wednesday, but it lost ground after the U.S. data showed that consumer prices had increased in April by the most in nearly 12 years, news which pushed the dollar higher as investors turned more cautious. By 18:00GMT, the pound was lower 0.1% lower against the dollar at $1.4046. Immediate resistance can be seen at 1.4080 (Daily high), an upside break can trigger rise towards 1.4188 (23.6%fib).On the downside, immediate support is seen at 1.3995 (38.2%fib), a break below could take the pair towards 1.3967 (11DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday, pulling back from a six-year high the day before, as oil tumbled and Bank of Canada Governor Tiff Macklem said further appreciation of the currency could weigh on the economy. The Canadian dollar fell 0.3% to 1.2164 to the greenback, or 82.21 U.S. cents, having traded in a range of 1.2104 to 1.2202. On Wednesday, it touched its strongest intraday level since May 2015 at 1.2042.The Canadian dollar was trading 0.25% lower at 1.2162 to the greenback , having traded in a range of 1.2104 to 1.2202. Immediate resistance can be seen at 1.2184 (38.2%fib), an upside break can trigger rise towards 1.2233 (14DMA).On the downside, immediate support is seen at 1.2120 (5 DMA), a break below could take the pair towards 1.2093 (23.6%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Thursday as surprisingly strong rise in U.S. consumer prices supported dollar against yen. Traders will now turn attention to U.S. weekly jobless claims due later on Thursday and retail sales numbers on Friday for guidance on whether upward pressure on prices will persist.The greenback is likely to extend its gains as some investors unwind bearish bets, and re-position in anticipation of sustained inflation pressures as more economies emerge from the coronavirus pandemic. Strong resistance can be seen at 109.82 (23.6%fib), an upside break can trigger rise towards 110.00(Psychological level).On the downside, immediate support is seen at 109.35(38.2%fib), a break below could take the pair towards 108.88 (50%fib).
Equities Recap
European stocks dipped on Thursday, weighed down by a fall in heavyweight miners after commodity prices tumbled, while a rapid rise in U.S. inflation kept risk sentiment at bay.
UK's benchmark FTSE 100 closed down by 0.59 percent, Germany's Dax ended up by 0.33 percent, France’s CAC finished the day up by 1.14 percent.
Technology stocks helped Wall Street's main indexes rebound on Thursday after three sessions of declines, as data showing fewer Americans filed for weekly jobless claims bolstered confidence in a U.S. economic recovery.
Dow Jones closed up by 1.29% percent, S&P 500 closed up by 1.22% percent, Nasdaq settled up 0.72% percent.
Treasuries Recap
U.S. Treasury yields were lower on Thursday, with longer-dated yields falling after four straight days of gains even as a reading on inflation came in higher than expected, while weekly initial jobless claims fell more than anticipated.
The yield on 10-year Treasury notes was down 3.2 basis points to 1.671% after climbing to a high of 1.707%, its highest since April 6.
Commodities Recap
Gold bounced off a one-week low hit earlier on Thursday as a dip in U.S. Treasury yields bolstered the metal's appeal as an inflation hedge.
Spot gold was up 0.5% to $1,824.89 per ounce by 2:14 p.m. EDT (1814 GMT), recovering from its lowest level since May 6 at $1,808.44. U.S. gold futures settled 0.1% higher at $1,824.
Oil prices fell about 3% on Thursday as India's coronavirus crisis deepened and a key U.S. fuel pipeline resumed operations, halting a rally that had lifted crude to an eight-week high after forecasts for a rebound in global demand later in the year.
Brent crude ended the session down $2.27, or 3.3%, at $67.05 a barrel, after rising 1% on Wednesday. West Texas Intermediate (WTI) settled$2.26, or 3.4%, lower at $63.82 a barrel, having risen 1.2% in the previous session.