Posted at 27 May 2021 / Categories Market Roundups
Market Roundup
• U.S. jobless claims drop, economic growth accelerates in Q1
•U.S. Q1 GDP growth rate rises
•US Apr Goods Orders Non Defense Ex Air (MoM) 2.3%,0.8%,1.0% previous
•US Corporate Profits (QoQ) (Q1) -0.8% ,27.0% previous
•US GDP Price Index (QoQ) (Q1) 4.3%, 4.1% forecast, 4.1% previous
•US Initial Jobless Claims 425K forecast, 444K previous
•US Continuing Jobless Claims 3,642K,3,680K forecast, 3,751K previous
•US Jobless Claims 4-Week Avg 406K,458.75K, 504.75K previous
•US Core PCE Prices (Q1) 2.50%,2.30% forecast,2.30% previous
•US Apr Durables Excluding Defense (MoM) 0.0%, 1.8% previous
•US PCE Prices (Q1) 3.7%, 3.5% previous
•US Durable Goods Orders (MoM) -1.3%, 0.7% forecast, 1.0% previous
•US GDP (QoQ) (Q1) 6.4%,6.5% forecast, 6.4% previous
•US Apr Core Durable Goods Orders (MoM) 0.8% forecast, 2.3% previous
•US Apr Pending Home Sales (MoM) -4.4%,0.8% forecast, 1.9% previous
•US Apr Pending Home Sales Index 106.2,111.3 previous
•US Natural Gas Storage 115B,104B forecast, 71B previous
•US May KC Fed Composite Index 32, 31 previous 40 previous
Looking Ahead - Economic Data (GMT)
•23:30 Japan Apr Jobs/applications ratio 1.10 forecast, 1.10 previous
•23:30 Japan Apr Unemployment Rate 2.7% forecast, 2.6% previous
•23:30 Japan May Tokyo Core CPI (YoY) -0.2% forecast, -0.2%
•23:30 Japan May CPI Tokyo Ex Food and Energy (MoM) -0.4% previous
•23:30 Japan May Tokyo CPI (YoY) -0.6% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency ummaries
EUR/USD: The euro was little changed against dollar on Thursday as investors sought guidance from various policy makers at the European Central Bank, who will speak later in the session. Focus is on new speakers on Thursday, which include board members Luis de Guindos and Isabel Schnabel, and Germany’s Jens Weidmann. With most speakers thus far giving dovish signals, Weidmann in particular, among the foremost hawkish, are watched closely for future policy decision. Immediate resistance can be seen at 1.2209(38.2%fib), an upside break can trigger rise towards 1.2280(23.6%fib).On the downside, immediate support is seen at 1.2179(5DMA), a break below could take the pair towards 1.2154 (38.2%fib)
GBP/USD: The pound rose against the dollar on Thursday after the Bank of England’s policy maker said that the central bank is likely to raise interest rates as early as next year, and pointed out that if the economy rebounds faster, interest rates may rise faster. Gertyan Vlige’s comments helped the pound rise to a positive territory, rising 0.4% throughout the day to $1.4203. In the afternoon, the pound still rose 0.36% to 1.4174 US dollars. Immediate resistance can be seen at 1.4220(23.6%fib), an upside break can trigger rise towards 1.4300 (Psychological level).On the downside, immediate support is seen at 1.4150 (5DMA), a break below could take the pair towards 1.4101 (38.2%fib).
USD/CAD: The Canadian dollar rose against the US dollar on Thursday as investors waited for Friday’s US inflation data, which may provide clues to the outlook for the Fed’s policy . Economists expect Friday's data to show that US.core PCE prices will rise in April. Fed officials downplayed concerns about inflation, but some admitted that the time to talk about policy changes is approaching.The Canadian dollar rose 0.4% to 1.2069 against the dollar, or 82.86 cents against the dollar. Last week it reached its highest level since May 2015 at 1.2013.Immediate resistance can be seen at 1.2087 (5DMA), an upside break can trigger rise towards 1.2141 (38.2%fib).On the downside, immediate support is seen at 1.2235 (23.6%fib), a break below could take the pair towards 1.2200(Psychological level).
USD/JPY: The dollar rose against the Japanese yen on Thursday after data showed that the number of new unemployment benefits fell more than expected. The number of new unemployment benefits submitted fell more than expected.Last week, as the number of layoffs decreased and companies urgently needed workers to meet the growing demand brought about by the fast-growing economic recovery. The greenback was up 0.14% against the yen at 108.89.Strong resistance can be seen at 109.52 (38.2%fib), an upside break can trigger rise towards 109.79 (Higher BB).On the downside, immediate support is seen at 109.02 (50%fib), a break below could take the pair towards 108.77(30DMA).
Equities Recap
European shares closed at a record high on Thursday boosted by Airbus after the planemaker hiked its jet output targets, while German shares weakened after shares in pharmaceuticals maker Bayer were hit by a court ruling.
UK's benchmark FTSE 100 closed down at 0.10 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the the day up at 0.69 percent.
Wall Street retreated on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties.
Dow Jones closed up by 0.41 percent, S&P 500 ended up by 0.12 percent, Nasdaq finished the day down by 0.01 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday, after New York Times reported that President Joe Biden will announce a $6 trillion budget for 2022 on Friday. This is the largest expenditure since World War II and has raised concerns.
In late afternoon trading, the U.S. 10-year Treasury yield rose to 1.607% from 1.574% late on Wednesday.
Commodities Recap
Gold prices steadied below the key $1,900 an ounce level on Thursday as the decline in U.S. Treasury yields offset the positive U.S. data showing a rebound in the world's largest economy.
Spot gold was little changed at $1,896.76 per ounce by 1:53 p.m. EDT (1753 GMT). U.S. gold futures settled down 0.3% at $1,898.5.
Oil prices rose by 1% on Thursday, boosted by strong EU economic data, alleviating investors' concerns about a possible increase in Iranian supplies.
The price of Brent crude oil rose 59 cents, or 0.9%, to $69.46 per barrel. Oil rose 64 cents, or 1%, to $66.85 per barrel.