Posted at 18 May 2021 / Categories Market Roundups
Market Roundup
•Finnish Mar GDP (YoY) 1.1%, -1.4% previous
• Finnish GDP (QoQ) (Q1) 0.4%, 0.4% forecast, 0.4% previous
• UK Mar Average Earnings ex Bonus 4.6%,4.6% forecast, 4.4% previous
• UK Mar Average Earnings Index +Bonus 4.0%,4.5% forecast,4.5% previous
• UK Apr Claimant Count Change -15.1K, 10.1K previous
• UK Mar Unemployment Rate 4.8%, 4.9% forecast,4.9% previous
• UK Mar Employment Change 3M/3M (MoM) 84K, 50K forecast, -73K previous
•Italian Mar Trade Balance EU 0.38B, 0.61B previous
•EU Employment Change (QoQ) -0.3%,0.3% previous
•EU GDP (QoQ) (Q1) -0.6%,-0.6% forecast, -0.6% previous
•EU Mar Trade Balance 15.8B, 17.7B previous
•EU Employment Overall (Q1) 157,440.7K, 157,947.8K previous
•EU GDP (YoY) (Q1) -1.8%, -1.8% forecast, -1.8% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Apr Building Permits (MoM) 2.3% previous
•12:30 US Apr Housing Starts (MoM) 19.4% previous
•12:30 US Apr Housing Starts 1.710M forecast, 1.739M previous
•12:30 US Apr Building Permits 1.770M forecast, 1.759M previous
•12:30 US Redbook (YoY) 13.3% previous
•15:30 New Zealand GlobalDairyTrade Price Index -0.7% previous
Looking Ahead - Economic events and other releases (GMT)
•16:30 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro edged higher on Tuesday as greenback dipped as bets that U.S. interest rates would remain low helped investors look past any short-term damage stemming from increased COVID-19 infections in Asia. Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year, helping to reassure markets that the Fed will not tighten early.But markets are waiting on Wednesday’s release of the minutes from the Federal Reserve’s policy meeting last month, which could shed more light on the policymakers’ outlook on inflation and an economic rebound. The dollar traded at $1.2208 against the euro, its weakest since Feb. 25. Immediate resistance can be seen at 1.2234(23.6%fib), an upside break can trigger rise towards 1.2300(Psychological level).On the downside, immediate support is seen at 1.2165 (38.2%fib), a break below could take the pair towards 1.2132(5DMA).
GBP/USD: Sterling rose on Tuesday as dollar weakness saw the British pound rise to a three-month high, briefly strengthening above $1.42, with sentiment also lifted by news that UK unemployment fell in the first quarter. The dollar index was at a three-month low after Dallas Federal Reserve President Robert Kaplan reiterated his view that he did not expect interest rates to rise until next year. Expectations that U.S. interest rates would remain low helped offset concerns over rising COVID-19 infections in Asia. The pound rose above $1.42 for the first time since February in early London trading, reaching as high as $1.422. At 1132 GMT it was up around 0.4% on the day at $1.41945. Immediate resistance can be seen at 1.4220 (23.6%fib), an upside break can trigger rise towards 1.4244 (Higher BB).On the downside, immediate support is seen at 1.4129 (Daily low), a break below could take the pair towards 1.4101 (38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as renewed expectations that the United States will not hike interest rates anytime soon weakened dollar. Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year, fuelling a further decline in bets that inflationary pressure could force the Fed to act sooner. This week a host of Fed policymakers are scheduled to speak, and the U.S. central bank will also release minutes from its most recent meeting, which may give indications about where monetary policy is headed this year.At (GMT 11:40), greenback dipped 0.18% versus the Swiss franc to 0.9033. Immediate resistance can be seen at 0.9035 (5DMA), an upside break can trigger rise towards 0.9051 (38.2%fib).On the downside, immediate support is seen at 0.8967(23.6%fib), a break below could take the pair towards 0.8944(Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as greenback dipped after a Fed policymaker on Monday again reiterated that the central bank does not expect interest rates to rise until next year. This week a host of Fed policymakers are scheduled to speak, and the U.S. central bank will also release minutes from its most recent meeting, which may give indications about where monetary policy is headed. The growing market consensus is that the Fed will tolerate what it sees as a temporary acceleration in inflation, which will keep the dollar lower against most major currencies. Strong resistance can be seen at 109.24 (38.2%fib), an upside break can trigger rise towards 109.70(23.6%fib).On the downside, immediate support is seen at 108.82 (50%fib), a break below could take the pair towards 108.40(61.8%fib).
Equities Recap
European stocks neared record highs on Tuesday on optimism around several countries easing economic restrictions, falling unemployment rate in the United Kingdom and strong earnings reports from companies.
At (GMT 11:50),UK's benchmark FTSE 100 was last trading up at 0.29 percent, Germany's Dax was up by 0.08 percent, France’s CAC was last up by 0.06 percent.
Commodities Recap
Gold prices firmed on Tuesday after hitting their highest in nearly four months, helped by a weaker U.S. dollar and as investors used the non-yielding bullion as a hedge against rising inflation.
Spot gold was up 0.2% at $1,868.30 per ounce by 0854 GMT, after hitting its highest since Jan. 29 earlier in the session. U.S. gold futures rose 0.1% to $1,869.60.
Oil rose on Tuesday to hit $70 a barrel for the first time since March, as expectations of demand recovery following reopenings of the European and U.S. economies offset concern over spreading coronavirus cases in Asia.
Brent crude was up 24 cents, or 0.4%, at $69.70 by 1125 GMT, and earlier topped $70 for the first time since March 15. U.S. West