Posted at 17 May 2021 / Categories Market Roundups
Market Roundup
• Italian Apr HICP (MoM) 0.9%, 0.9% forecast, 1.8% previous
• Italian Apr CPI (MoM) 0.4%, 0.4% forecast, 0.3% previous
• Italian Apr CPI (YoY) 1.1%,1.1% forecast, 0.8% previous
• Italian Apr HICP (YoY) 1.0%, 1.0% forecast, 0.6% previous
• Italian Apr CPI Ex Tobacco (MoM) 1.2%, 0.7% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Mar Foreign Securities Purchases by Canadians 10.54B previous
•12:30 Canada Mar Foreign Securities Purchases 8.52B previous
•12:30 US May NY Empire State Manufacturing Index 23.90 forecast, 26.30 previous
•13:00 French 6-Month BTF Auction -0.638% previous
•13:00 French 3-Month BTF Auction -0.636% previous
•13:00 French 12-Month BTF Auction -0.628% previous
•14:00 US May NAHB Housing Market Index 83 forecast,83 previous
•15:30 US 6-Month Bill Auction 0.015% previous
•15:30 US 3-Month Bill Auction 0.035% previous
Looking Ahead - Economic events and other releases (GMT)
•`14:05 US FOMC Member Clarida Speaks
•`14:15 UK MPC Member Tenreyro Speaks
•`14:25 US FOMC Member Bostic Speaks
•`14:25 US FOMC Member Clarida Speaks
Fx Beat
EUR/USD: The euro gained against dollar on Monday as renewed worries about coronavirus restrictions in Asia reduced demand for greenback. A dollar bounce that followed higher-than-expected inflation data last week has faded as traders figure the U.S. Federal Reserve will keep rates low. Fed minutes, from an April meeting that predated the data surprise on inflation last week, are due on Wednesday and are the next market focus for clues on the central bank's thinking. Immediate resistance can be seen at 1.2186 (23.6%fib), an upside break can trigger rise towards 1.2208 (Higher BB).On the downside, immediate support is seen at 1.2110 (5DMA), a break below could take the pair towards 1.2087 (38.2%fib).
GBP/USD: Sterling held on to recent gains against the dollar on Monday as Britain took a big step towards reopening its economy, lifting a number of social restrictions imposed to combat the COVID-19 outbreak. Cafes, bars and restaurants will reopen for indoor service and a ban on international travel has also been lifted, among other easing measures. Sterling has gained against the dollar for two weeks straight, and on Monday, consolidated near the $1.41 mark. It traded flat in early US deals, at $1.4088. Immediate resistance can be seen at 1.4127 (23.6%fib), an upside break can trigger rise towards 1.4175 (11th May high).On the downside, immediate support is seen at 1.4032(9DMA), a break below could take the pair towards 1.4005(38.2%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Monday as surging COVID-19 cases in some Asian countries and inflation pressures kept investors cautious. Markets have been skittish in recent weeks as bumper supplies of central bank stimulus and rising prices in the United States and other countries fuel concerns some economies could overheat, requiring policymakers to tap on the brakes. At 11:20 GMT, the dollar was 0.01 percent higher versus the Swiss franc at 0.9012 .Immediate resistance can be seen at 0.9041(5DMA), an upside break can trigger rise towards 0.9078 (38.2%fib).On the downside, immediate support is seen at 0.8996 (23.6%fib), a break below could take the pair towards 0.8956 (Lower BB).
USD/JPY: The dollar declined against the yen on Monday as fears of a new wave of COVID-19 infections in Asia dampened demand for greenback. New virus outbreaks triggered some lockdown restrictions in Singapore and Taiwan, and increased bids for the safe-haven yen, as well as for gold, with investors awaiting more details on the impact of the new wave. The dollar was trading down 0.13% on the yen at 109.19. Strong resistance can be seen at 109.46(38.2%fib), an upside break can trigger rise towards 109.90 (23.6%fib).On the downside, immediate support is seen at 109.04 (50%fib), a break below could take the pair towards 108.60 (61.8%fib).
Equities Recap
European stocks inched higher on Monday after a sharp recovery late last week, as optimism about European economic reopening offset gloom from underwhelming China data.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading down at 0.55 percent, Germany's Dax was down by 0.28 percent, France’s CAC finished was down by 0.44 percent.
Commodities Recap
Gold prices hit a 3-1/2 month high on Monday as a dip in U.S. Treasury yields and persistent inflation worries in the bullion market burnished the appeal of the non-yielding metal.
Spot gold was up 0.5% at $1,850 per ounce by 0930 GMT, after hitting its highest since Feb. 2 earlier in the session. U.S. gold futures jumped 0.7% to $1,851.10.