Posted at 25 May 2021 / Categories Market Roundups
Market Roundup
•German May Current Assessment 95.7, 95.5 forecast, 94.1 previous
•German May Ifo Business Climate Index 99.2, 98.2 forecast, 96.8 previous
•German May Business Expectations 102.9, 101.4 forecast, 99.5 previous
•UK May CBI Distributive Trades Survey 18, 30 forecast, 20 previous
•Canada Manufacturing Sales (MoM) -1.1%,3.5% previous
•Canada Corporate Profits (QoQ) 18.1%,7.9% previous
•US Redbook (YoY) 13.6%,12.6% previous
•Belgium May NBB Business Climate 6.5 ,4.4 previous
•US Mar US S&P/CS HPI Composite - 20 s.a. (MoM) 1.6%, 1.2% previous
•US House Mar Price Index 324.9,319.7 previous
•US House Mar House Price Index (MoM) 1.4%, 0.9% previous
•US House Mar Price Index (YoY) 13.9%,12.2% previous
•US Mar S&P/CS HPI Composite - 20 n.s.a. (MoM) 2.2%, 1.2% previous
•US S&P/CS HPI Composite - 20 n.s.a. (YoY) 13.3%, 12.3% forecast, 11.9% previous
Looking Ahead - Economic Data (GMT)
•14:00 US Apr New Home Sales (MoM) 20.7% previous
•14:00 US May CB Consumer Confidence 119.2 forecast, 121.7 previous
•14:00 US Apr New Home Sales 970K forecast, 1,021K previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 US FOMC Member Quarles Speaks
Fxbeat
EUR/USD: The euro rose against dollar on Tuesday after data showed Germany's Ifo business climate survey rose in May. German business morale brightened to hit a two-year high in May as COVID-19 curbs were eased and infections fell, heralding a swift summer recovery after the economy shrank more than expected in the first quarter. With many firms reporting a build-up of supply bottlenecks, Tuesday's Ifo business climate index readout showed a jump to 99.2, up from April's revised 96.6 and beating the 98.2 forecast. The European Central Bank’s chief economist, Philip Lane, speaks at 1400 GMT, his comments scrutinised for any concerns about the level of the euro or for hints on tapering. Immediate resistance can be seen at 1.2274 (23.6%fib), an upside break can trigger rise towards 1.2294 (Higher BB).On the downside, immediate support is seen at 1.2211(38.2%fib), a break below could take the pair towards 1.2136(14DMA).
GBP/USD: Britain’s pound strengthened against greenback on Tuesday, boosted by expectations of further relaxation of social restrictions linked to the COVID-19 pandemic by the end of June. Recent gains have seen sterling close in on a nearly three-year high of $1.4240, a level last reached in February.The pound’s performance this year has been second only to the commodity-driven Canadian dollar among G10 currencies, buoyed by Britain’s fast rollout of vaccines that sparked hopes of its economy reopening. Sterling was 0.06% higher on the day at $1.4164. Immediate resistance can be seen at 1.4212 (23.6%fib), an upside break can trigger rise towards 1.4257 (Higher BB).On the downside, immediate support is seen at 1.4100 (38.2% fib), a break below could take the pair towards 1.4040(20 DMA).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as insistence from the U.S. Central bank that strategy would remain pat quieted fears about inflation forcing rates higher. Investors are shorting dollars in the belief that low U.S. rates will drive cash abroad as the world recovers from the pandemic. The dollar index softened as much as 0.3% to 89.533 in Europe, adding to its 0.2% overnight loss to take it to its lowest since Jan. 7. Immediate resistance can be seen at 0.8981 (5 DMA), an upside break can trigger rise towards 0.9021 (38.2% fib).On the downside, immediate support is seen at 0.8932 (23.6% fib), a break below could take the pair towards 0.8900(Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen Tuesday, underpinned by reassurances from Federal Reserve officials that monetary stimulus will remain in place during the pandemic. The U.S. national activity index reading of 0.24 against expectations above 1, as well as dovish comments from Fed speakers provided some backing for the view that any policy tightening is not happening any time soon.. 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 hit record highs on Tuesday, as a billion-dollar deal combining two of Germany’s biggest property developers and a rally in technology shares after soothing comments on inflation lifted investor sentiment.
At (GMT 12:50 ), UK's benchmark FTSE 100 was last trading down at 0.08 percent, Germany's Dax was up by 0.59 percent, France’s CAC was last up by 0.09 percent.
Commodities Recap
Gold reversed course on Tuesday, climbing towards last week’s 4-1/2-month peak, supported by a weaker dollar and bond yields after Federal Reserve officials affirmed their support to keep monetary policy accommodative for some time.
Spot gold was up 0.2% to $1,885.47 per ounce by 0724 GMT, after falling as much as 0.5% earlier in the session.
Oil prices slipped on Tuesday, but were near one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.
Brent crude futures were down 20 cents, or 0.3%, at $68.26 a barrel by 1223 GMT, having jumped 3% on Monday. U.S. West Texas Intermediate futures were off 29 cents, or 0.4%, at $65.76 a barrel, after gaining 3.9% the previous session.