Posted at 14 May 2021 / Categories Market Roundups
Market Roundup
•Canada New Motor Vehicle Sales (MoM) 173.0%, 96.0% previous
•Canada March Manufacturing Sales (MoM) 3.5%, 3.5% forecast, -1.6% previous
•US Apr Retail Sales (YoY) 51.22%, 27.85% previous
•US Apr Import Price Index (MoM) 0.7%,0.6% forecast, 1.2% previous
•US Apr Export Price Index (MoM) 0.8%, 0.6% forecast, 2.1% previous
•US Apr Retail Sales (MoM) 0.0%,1.0%,9.7% previous
•US Apr Core Retail Sales (MoM) -0.8%, 0.7%,8.4% previous
•US Apr Retail Sales Ex Gas/Autos (MoM) -0.8%, 8.2% previous
•US Apr Manufacturing Production (MoM) 0.4% forecast, 2.7% previous
•US Industrial Apr Production (YoY) 16.49%, 1.02% previous
•US May Michigan Current Conditions 16.49%,99.6 forecast, 97.2 previous
•US May Michigan 5-Year Inflation Expectations 3.10%, 2.70% previous
•US May Michigan Consumer Sentiment 82.8, 90.4 forecast, 88.3 previous
•US Mar Retail Inventories Ex Auto 0.6%, 0.6% previous
•US May Michigan Consumer Expectations 77.6, 85.0 forecast, 82.7 previous
Looking Ahead - Economic Data (GMT)
•No economic data
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose higher on Friday as dollar was pressured by a recovery in risk appetite across markets after Federal Reserve officials helped calm concerns about a quick policy tightening in response to accelerating U.S. inflation. Fears of rising prices burst into the fore this week and spooked markets, and despite assurances from the Fed it does not expect to tighten policy anytime soon, some investors worry policymakers may be misjudging inflation risks .The euro was among the gainers against the dollar on the day, up 0.53% at $1.214. Immediate resistance can be seen at 1.2151(Daily high), an upside break can trigger rise towards 1.2177(23.6%fib).On the downside, immediate support is seen at 1.2101 (50%fib), a break below could take the pair towards 1.2065(21DMA).
GBP/USD: Sterling was on track for a second week of gains against the dollar on Friday, consolidating above $1.40 as the U.S. currency took a breather from a recent rally.The pound is up 1.8% against the dollar since the start of May, aided by a more hawkish Bank of England which has begun tapering asset purchases, as well as Britain's vaccination drive that has enabled a gradual reopening of the economy. Sterling was up 0.2% against the dollar at $1.4094, off a nearly three-month high of $1.4167 hit earlier this week. Against the euro, sterling was 0.2% lower at 86.15 pence. Immediate resistance can be seen at 1.4115 (23.6%fib), an upside break can trigger rise towards 1.4170 (11th may high).On the downside, immediate support is seen at 1.4001 (38.2%fib), a break below could take the pair towards 1.3965 (5DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday and was on track for its seventh straight weekly gain as oil prices rose and domestic data added to evidence of robust economic growth in the first quarter. Canadian factory sales rose 3.5% in March from February, led by the motor vehicle, petroleum and coal, and food product industries, while wholesale trade was up 2.8%, Statistics Canada said. The price of oil, one of Canada's major exports, reversed some of the previous day's sharp losses For the week, the loonie was on track to gain 0.3%. It has climbed more than 5% since the start of the year .Immediate resistance can be seen at 1.2093 (38.2%fib), an upside break can trigger rise towards 1.2217 (14 DMA).On the downside, immediate support is seen at 1.2079 (23.6%fib), a break below could take the pair towards 1.1926(Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Friday after data showed U.S. retail sales unexpectedly stalled in April. The Commerce Department said on Friday that retail sales were unchanged in April after a 10.7% surge in March, boosted by stimulus checks. But another acceleration in retail sales appears likely in the coming months as the U.S. economy reopens and Americans spend the savings they have been amassing. Friday's drop erased some of a two-day rally in the dollar after data on Wednesday showed U.S. consumer prices increased by the most in nearly 12 years. 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 109.29 (38.2%fib), a break below could take the pair towards 108.88 (50%fib).
Equities Recap
European stocks jumped on Friday, led by gains in energy and retail sectors after the Federal Reserve said there would be no imminent move to tighten monetary policy, easing fears of rising U.S. inflation that pushed the STOXX 600 index into negative territory for the week.
The UK's benchmark FTSE 100 closed up by1.15 percent, Germany's Dax ended up by 1.43 percent, and France’s CAC finished the up by 1.54 percent.
Wall Street closed higher in a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy squared off against mounting inflation jitters.
Dow Jones closed up by 1.06 percent, S&P 500 ended up 1.49 percent, Nasdaq finished the day up by 2.33 percent.
Treasuries Recap
Treasury yields slid on Friday after U.S. retail sales unexpectedly stalled in April as the boost from government stimulus checks faded and bond investors heeded the Federal Reserve's view that a jump in inflation will be temporary.
The yield on benchmark 10-year U.S. Treasury notes fell 2.4 basis points to 1.644%, roughly midpoint of a trading range its held after briefly spiking above 1.7% in mid-March.
Commodities Recap
Gold extended its gains on Friday, buoyed by a dip in the dollar and U.S. Treasury yields after data showed U.S. retail sales unexpectedly stalled in April.
Spot gold rose 0.6% to $1,838.05 per ounce by 1:44 p.m. EDT (1744 GMT), heading for a second week of gains. U.S. gold futures settled 0.8% higher at $1,838.1.
Oil prices rose on Friday, reversing some of the previous day's sharp losses as stock markets strengthened and the U.S. dollar slipped, though gains were capped by the coronavirus situation in major oil consumer India.
Brent crude oil futures were up $1.54, or 2.3%, at $68.60 a barrel by 12:58 p.m. ET (1658 GMT) and West Texas Intermediate (WTI) crude was up $1.45, or 2.3%, at $65.27.