Posted at 26 May 2021 / Categories Market Roundups
Market Roundup
•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
•US Apr New Home Sales (MoM) -5.9% ,20.7% previous
•US May CB Consumer Confidence 117.2 ,119.2 forecast, 121.7 previous
•US Apr New Home Sales 863K ,970K forecast, 1,021K previous
Looking Ahead - Economic Data (GMT)
•01:30 Australia Construction Work Done (QoQ) (Q1)
•02:00 New Zealand RBNZ Interest Rate Decision 0.25% forecast, 0.25% previous
•05:00 Japan Apr Leading Index (MoM) 0.6% previous
•05:00 Japan Apr Coincident Indicator (MoM) 3.2% previous
Looking Ahead - Economic events and other releases (GMT)
•01:30 Japan BoJ Board Member Suzuki Speaks
•02:00 New Zealand RBNZ Rate Statement
•03:00 New Zealand RBNZ Press Conference
Currency Summaries
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. 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: Sterling edged down against the dollar as a lack of positive drivers for the British currency put the focus elsewhere for currency traders. The pound’s performance this year had 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. But sterling ebbed down 0.03% to $1.4149 against the dollar by 1500 GMT, despite the dollar plumbing lows against other currencies as insistence from the U.S. Federal Reserve that policy would stay pat calmed fears about inflation forcing rates higher. 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/CAD: The Canadian dollar edged lower against its broadly weaker U.S. counterpart on Tuesday as domestic data showed a likely drop in manufacturing sales in April, with the currency remaining capped by last week's 6-year high. Canadian factory sales likely fell 1.1% in April from March, giving back some of the previous month's increase, a flash estimate from Statistics Canada showed. The loonie was trading 0.2% lower at 1.2060 to the greenback, or 82.92 U.S. cents, the biggest decline among G10 currencies. Last Tuesday, it touched its strongest level since May 2015 at 1.2013, bolstered by higher commodity prices this year and the Bank of Canada's more hawkish stance. Immediate resistance can be seen at 1.2111(38.2%fib), an upside break can trigger rise towards 1.2190(50%fib).On the downside, immediate support is seen at 1.2010(23.6% fib), a break below could take the pair towards 1.1966(Lower BB).
USD/JPY: The dollar was little changed against the Japanese yen Tuesday after Federal Reserve officials reaffirmed a dovish monetary policy stance that eased inflation concerns. Investors weighed the Fed's soothing words that put to rest tapering worries for the time being and helped to drive the dollar to four-and-a-half-month lows. On Monday, Fed Board Governor Lael Brainard assuaged inflation concerns, saying she expects that price spikes associated with supply bottlenecks and the reopening of the economy to "subside over time. James Bullard, president of the St. Louis Federal Reserve, also said on Monday that while still in the pandemic, it was not the time to talk more about changing the parameters of monetary policy. 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 closed flat on Tuesday, as a billion-dollar German property deal and a rally in technology shares were offset by losses in major mining stocks due to concerns over Chinese markets.
UK's benchmark FTSE 100 closed down by 0.31 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day downby 0.28 percent.
U.S. stocks closed slightly lower on Tuesday, and each of Wall Street’s main indexes failed to stray far from the unchanged mark following a rally in the prior session as investors continue to try and assess the route of inflation.
Dow Jones closed down by 0.24% percent, S&P 500 closed down by 0.21% percent, Nasdaq settled down by 0.03% percent.
Treasuries Recap
U.S. Treasury yields fell to fresh multi-week lows and the yield curve flattened on Tuesday as inflation concerns eased, with a strong auction of 2-year notes further driving strong gains in prices.
The benchmark 10-year Treasury yield fell to a two-week low of 1.56% and was last down 4 basis points at 1.562%.
Commodities Recap
Gold prices scaled a more than four-month peak on Tuesday, as the dollar and U.S. Treasury yields slipped amid expectations that the U.S. Federal Reserve will keep its monetary policy accommodative.
Spot gold rose 0.8% to $1,896.74 per ounce by 1:42 p.m. EDT (1742 GMT), having earlier hit its highest since Jan. 8 at $1,898.40. U.S. gold futures settled up 0.7% at $1,898..
Oil prices moved a shade higher on Tuesday as rising demand from the approach of the Northern Hemisphere's summer driving season and lifting of coronavirus restrictions mixed with worries that Iran's possible return to the market will cause a supply glut..
Brent futures rose 19 cents, or 0.3%, to settle at $68.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 2 cents to settle at $66.07.