Posted at 28 May 2021 / Categories Market Roundups
Market Roundup
• U.S. consumer inflation surges in April
•US Wholesale Inventories (MoM) 0.8% ,1.3% previous
•US Apr Personal Income (MoM) -13.1%, -14.1% forecast, 21.1% previous
•US Apr Goods Trade Balance -85.23B, -90.60B previous
•US Apr Retail Inventories Ex Auto 0.5%, 0.6% previous
•US Apr Core PCE Price Index (YoY) 3.1%,2.9% forecast, 1.8% previous
•US Apr Personal Spending (MoM) 0.5%, 0.5% forecast, 4.2% previous
•US Apr Core PCE Price Index (MoM) 0.7%, 0.6% forecast, 0.4% previous
•US Apr PCE price index (MoM) 3.6, 2.3 previous
•US Apr Real Personal Consumption (MoM) -0.1%, 3.6% 3.6% previous
•US May Michigan 5-Year Inflation Expectations 3.00%, 3.10% forecast, 2.70% previous
•US May Michigan Consumer Expectations 78.8, 77.6 forecast, 82.7 previous
•US Michigan Consumer Sentiment 82.9, 82.8 forecast, 88.3 previous
•Canada Mar Budget Balance (YoY) -314.00B,-282.56B previous
•Canada Mar Budget Balance -31.44B,-14.37B previous
•US Apr Dallas Fed PCE 2.40%,2.00% previous
Looking Ahead – Economic data (GMT)
• No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro initially declined on Friday but recovered most of the ground as U.S. dollar retreated as new data affirmed concerns of a surging inflation. U.S. Commerce Department report showed on Friday that consumer prices accelerated 3.1% in the year to April, blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992. The euro was up a bare 0.05% at $1.22 on Friday afternoon, compared with a four-month high of $1.2266 earlier in the week. Immediate resistance can be seen at 1.2214(May 28th high), an upside break can trigger rise towards 1.2257(23.6%fib).On the downside, immediate support is seen at 1.2191(38.2%fib), a break below could take the pair towards 1.2130 (50%fib)
GBP/USD: The British pound held firm near a three-month high against the dollar on Friday on rising expectations of an earlier than expected rate hike by the Bank of England. Sterling has found support this week in the comments from the BoE policymaker Gertjan Vlieghe.Vlieghe said on Thursday the central bank was likely to raise rates only well into next year, while noting an increase could come earlier in 2022 if the economy rebounds more quickly than expected. Immediate resistance can be seen at 1.4225(23.6%fib), an upside break can trigger rise towards 1.4278(Higher BB).On the downside, immediate support is seen at 1.4152 (5DMA), a break below could take the pair towards 1.4099 (38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday as oil prices fell and data showed U.S. consumer inflation heating up in April, with the loonie ending its longest streak of weekly gains since 2016. U.S. consumer prices accelerated in the year to April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target. The loonie was trading 0.1% lower at 1.2078 to the greenback , having traded in a range of 1.2063 to 1.2120. It was also down 0.1% for the week, after having climbed for eight straight weeks. Immediate resistance can be seen at 1.2146(38.2%fib), an upside break can trigger rise towards 1.2215(30DMA).On the downside, immediate support is seen at 1.2031(23.6%fib), a break below could take the pair towards 1.1972 (Lower BB).
USD/JPY: The dollar gave up gains against the Japanese yen on Friday as investors reduced bullish bets on greenback after seeing new economic data confirm expectations about U.S. inflation . The euro was up a bare 0.05% at $1.22 on Friday afternoon, compared with a four-month high of $1.2266 earlier in the week. The strong inflation readings reported by the Commerce Department on Friday had been widely anticipated as the pandemic's grip eases, thanks to vaccinations, and will have no impact on monetary policy.Strong resistance can be seen at 110.21 (23.6%fib), an upside break can trigger rise towards 111.00 (Higher BB).On the downside, immediate support is seen at 109.68 (38.2%fib), a break below could take the pair towards 109.18(50%fib).
Equities Recap
Equities Recap
European shares rose to a record high on Friday as British-exposed financial stocks gained following a hawkish comment from a Bank of England official, with the prospects of increased U.S. fiscal spending boosting market sentiment.
UK's benchmark FTSE 100 closed up by 0.04 percent, Germany's Dax ended up by 0.74 percent, France’s CAC finished the day up by 0.74 percent.
Wall Street’s major averages rose on Friday as investors shrugged off data showing a jump in inflation, although recent worries about a spike in prices kept the S&P 500 on course for its smallest monthly gain since February.
Dow Jones closed up by 0.19 percent, S&P 500 ended up by 0.08 percent, Nasdaq settled up by 0.09 % percent.
Treasuries Recap
U.S. Treasury yields fell on Friday in a shortened trading session on month-end buying by portfolio managers, with the market largely shrugging off a rise in U.S. core inflation above the Federal Reserve's target.
In early afternoon trading, the U.S. 10-year Treasury yield fell to 1.582% from 1.61% late on Thursday.
U.S. 30-year yields dropped to 2.264% from Thursday's 2.29%..
Commodities Recap
Gold reversed course and turned positive on Friday, briefly popping above the key $1,900 level, after data showed rising U.S. consumer prices in April and boosted bullion’s appeal as an inflation hedge.
Spot gold rose 0.15% to $1,898.84 per ounce, having earlier dipped as much as 0.8%. It is on course for its fourth straight weekly gain, up 0.9%.
Oil prices inched higher on Friday, with Brent holding near $70 a barrel as strong U.S. economic data and expectations of a rebound in global demand outweighed concerns about more supply from Iran once sanctions are lifted.
Brent was up 33 cents, or 0.5%, at $69.79 a barrel, and U.S. West Texas Intermediate crude rose 11 cents, or 0.15%, to $66.95 a barrel.