Posted at 18 May 2021 / Categories Market Roundups
Market Roundup
•US Apr Building Permits (MoM) 0.3%,2.3% previous
•US Apr Housing Starts (MoM) -9.5%, 19.4% previous
•US Apr Housing Starts 1.569M, 1.710M forecast, 1.739M previous
•US Apr Building Permits 1.760M, 1.770M forecast, 1.759M previous
•US Redbook (YoY) 12.6%,13.3% previous
Looking Ahead - Economic Data (GMT)
•04:15 New Zealand PPI Input (QoQ) (Q1) 0.6% previous
•04:15 New Zealand PPI Output (QoQ) (Q1) 0.4% previous
•07:00 Australia Wage Price Index (QoQ) (Q1) 0.5%,0.6% previous
•07:00 Australia Wage Price Index (YoY) (Q1) 1.4%,1.4% previous
•10:00 Japan Mar Industrial Production (MoM) 2.2% previous
•10:00 Japan Mar Capacity Utilization (MoM) -2.8% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro rose 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 against dollar on Tuesday as sterling was boosted after data showed that Britain’s unemployment fell between January and March. Britain’s unemployment rate unexpectedly fell again to 4.8% between January and March, a period which the country spent under a tight COVID lockdown, and hiring rose further in April.The data reinforced market expectations that Britain would see a strong economic recovery from the pandemic, helped by its fast pace of vaccine rollout and plans to ease lockdown measures. 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/CAD: The Canadian dollar climbed to a 6-year high against its U.S. counterpart on Tuesday as the greenback broadly declined and investors awaited inflation data on Wednesday that could offer clues on the Bank of Canada policy outlook. The currency has been on a tear since the Bank of Canada in April shifted to more hawkish guidance on its interest rate outlook and cut the pace of bond purchases. It has also been supported by soaring prices for many of the commodities that Canada produces. The loonie was trading 0.3% higher at 1.2028 to the greenback, having touched its strongest level since May 2015 at 1.2013. Immediate resistance can be seen at 1.2109 (38.2%fib), an upside break can trigger rise towards 1.2138 (11DMA).On the downside, immediate support is seen at 1.2025(23.6%fib), a break below could take the pair towards 1.2000(Psychological level)
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 rose on Tuesday, with Germany’s equity index hitting a record high on optimism around several countries easing economic restrictions, falling unemployment rate in the United Kingdom and strong earnings reports from companies.
UK's benchmark FTSE 100 closed up by 0.02 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day down by 0.22 percent.
The S&P 500 declined slightly on Tuesday after major retailers including Walmart and Home Depot posted better-than-expected earnings alongside a sharp decline in telecom stocks and weak housing starts data.
At( GMT 19:17 ),Dow Jones was last trading down by 0.31 percent, S&P 500 was last down by 0.35 percent, Nasdaq was down by 0.03 % percent.
Treasuries Recap
U.S. Treasury yields remained little changed on Tuesday as strong consumer demand as seen in Walmart and Home Depot results was insufficient to push market participants into the camp that disavows the Federal Reserve's views on inflation.
The yield on 10-year Treasury notes was up 0.5 basis point to 1.654% as the longer-dated government debt edged slightly higher but the short end remained mostly unchanged.
Commodities Recap
Gold hit nearly a four-month peak on Tuesday before easing slightly as yields on U.S. Treasuries inched higher, with a weaker dollar and inflation fears maintaining a floor under bullion prices.
Spot gold was up 0.1% to $1,868.57 per ounce by 1:47 p.m. EDT (1747 GMT) after hitting its highest level since Jan. 29 earlier in the session. U.S. gold futures settled at $1,868, largely unchanged from Monday.
Oil slid nearly 2% on Tuesday, tumbling from a two-month high, after media reports said the United States and Iran have made progress on reviving a deal restricting Iran's nuclear weapons development, that could release more barrels into the market.
After falling more than $2, Brent crude was down $1.07, or 1.5%, at $68.39 a barrel by 1:19 p.m. EDT (1719 GMT). U.S. West Texas Intermediate (WTI) crude fell $1.12 cents, or 1.7%, to $65.43.