Posted at 24 May 2021 / Categories Market Roundups
Market Roundup
• US Apr Chicago Fed National Activity 0.24,1.71 previous
• US 3-Month Bill Auction 0.015%,0.015% previous
• US 6-Month Bill Auction 0.030% ,0.030% previous
• Russian Mar Real Wage Growth (YoY) 0.8% forecast,2.0% previous
• Russian Apr Unemployment Rate 5.4% forecast, 5.4% previous
Looking Ahead - Economic Data (GMT)
•0:5:00 Japan BoJ Core CPI (YoY) 0.0% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors anxiously awaited a key read on U.S. inflation this week for cues on monetary policy . The U.S. central bank has pledged to keep interest rates low until the economy reaches full employment, and inflation hits 2% and is on track to "moderately" exceed that level for some time. Data on Friday showed U.S. factory activity gathered speed in early May amid strong domestic demand. The euro was up a quarter of a percent above $1.22. The single currency has gained around 4% on the greenback over the past three months. Immediate resistance can be seen at 1.2231(23.6%fib), an upside break can trigger rise towards 1.2294 (Higher BB).On the downside, immediate support is seen at 1.2164(38.2%fib), a break below could take the pair towards 1.2136(14DMA).
GBP/USD: Britain’s pound held within recent ranges against greenback on Monday, trading just shy of $1.42 as investors set their eyes on an address by four policymakers from the Bank of England to a parliamentary sub-committee.Gains in recent weeks have brought the pound back within touching distance of a nearly three-year high of $1.4240 against the dollar, a level it hit in February this year. By 12:00 GMT, sterling was 0.08% lower on the day at $1.4128 and flat to the euro at 86.08 pence. Immediate resistance can be seen at 1.4170(Daily high), an upside break can trigger rise towards 1.4216 (23.6%fib).On the downside, immediate support is seen at 1.4100 (38.2% fib), a break below could take the pair towards 1.4042(20 DMA).
USD/CAD: The Canadian dollar edged lower its U.S. counterpart on Monday as investors eye upcoming U.S. inflation readings for guidance on monetary policy. Market participants were gearing up for U.S. personal consumption data - the Federal Reserve’s preferred inflation measure - on Thursday, and a potential tapering of asset purchases in the face of strong economic data Oil prices rose more than 3% on Monday as a demand bump fueled by COVID-19 vaccination drives gave traders optimism that the market can absorb any Iranian oil. The loonie was trading unchanged at 1.2046 to the greenback. Immediate resistance can be seen at 1.2077(5 DMA), an upside break can trigger rise towards 1.2106(38.2%fib).On the downside, immediate support is seen at 1.2016(23.6%fib), a break below could take the pair towards 1.1967 (Lower BB).
USD/JPY: The dollar edged higher against the Japanese yen Monday as bets on a robust global economic recovery continued to support currencies seen as riskier. The dollar index hovered around the 90 mark, down 0.2% on the day and close to a three-month low of 89.646 hit on Friday. Traders were watching for progress on a new stimulus package in the United States, after the White House pared down its infrastructure bill to $1.7 trillion on Friday but failed to gain Senate Republican backing.Strong resistance can be seen at 109.07 (38.2%fib), an upside break can trigger rise towards 107.29 (38.2% fib).On the downside, immediate support is seen at 108.57 (61.8% fib), a break below could take the pair towards 108.38 (Lower BB).
Equities Recap
European stocks held close to record highs on Monday with technology stocks leading the charge, as investors counted on strength in corporate earnings to keep the market momentum going.
UK's benchmark FTSE 100 closed up by 0.48 percent, Germany's Dax ended up by 0.44 percent, France’s CAC finished the day up by 0.35 percent.
U.S. stocks climbed on Monday, with both the S&P 500 and Nasdaq rallying more than 1% as a pullback in U.S. Treasury yields helped lift expensive stocks in sectors such as technology as investors attempt to gauge the path of inflation.
Dow Jones closed up by 0.54 percent, S&P 500 closed up by 0.99 percent, Nasdaq settled up by 1.41 % percent.
Treasuries Recap
U.S. Treasury prices rose, pushing yields lower on Monday in quiet trading, as investors grew nervous about volatility in risk assets such as stocks and cryptocurrencies.
U.S. 10-year yields dipped to one-week lows, while 20-year and 30-year yields slid to their lowest in two weeks.
Commodities Recap
Gold inched higher on Monday as a weaker dollar and lower U.S. Treasury yields bolstered its appeal, while investors awaited data due this week that should help them assess the pace of economic recovery in the United States.
Spot gold was up 0.1% at $1,882.83 per ounce at 1:42 p.m. EDT (1742 GMT). Last week it reached its highest since Jan. 8 at $1,889.75. U.S. gold futures settled up 0.4%, at $1,884.5.
Oil prices rose more than 3% on Monday as a demand bump fueled by COVID-19 vaccination drives gave traders optimism that the market can absorb any Iranian oil that would come on the market if Western talks with Tehran lead to the lifting of sanctions.
Brent crude oil futures settled up $2.02, or 3%, at $68.46 a barrel, while July U.S. West Texas Intermediate ended at $66.05 a barrel, up $2.47, or 3.9%.