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America’s Roundup: Dollar drops to three-week lows after inflation data,Wall Street ends mixed, Gold gains, Oil rises 1% after robust China data but J&J vaccine pause weighs-April 14th,2021

Posted at 13 April 2021 / Categories Market Roundups


Market Roundup

• US March NFIB Small Business Optimism  98.2 , 95.8previous

• US March CPI Index, s.a  264.79, 263.16 previous

• US March CPI, n.s.a (MoM)  0.71%,0.55% previous

• US March Core CPI Index  271.21,270.30 previous

• US March Core CPI (MoM)  0.3%,0.2% forecast , 0.1% previous

• US March CPI (YoY ) 2.6%,2.5% forecast , 1.7% previous

• US March CPI Index, n.s.a.  264.88,  264.69 forecast , 263.01 previous

• US March Core CPI (YoY) 1.6%, 1.5% forecast , 1.3% previous

• US March CPI (MoM)  0.6%,0.5% forecast , 0.4% previous

• US Mar Cleveland CPI (MoM)  0.2%,0.2% previous

Looking Ahead – Economic Data (GMT)

•22:45 New Zealand February Permanent/Long-Term Migration  631 previous

•22:45 New Zealand February External Migration & Visitors  -98.70% previous

•23:50 Japan Feb Core Machinery Orders (YoY)  2.3%forecast, 1.5% previous

•23:50 Japan Feb Core Machinery Orders (MoM)  2.8% forecast, -4.5% previous

•05:30 Australia HIA New Home Sales (MoM) 22.9% previous

•06:00 Australia April Westpac Consumer Sentiment 2.6% previous

•07:30 New Zealand RBNZ Interest Rate Decision 0.25% forecast, 0.25% previous

Looking Ahead - Economic events and other releases (GMT)

•07:30 New Zealand RBNZ Rate Statement

•11:45 Japan BoJ Governor Kuroda Speaks

Currencies Summaries

EUR/USD: The euro rose on Tuesday as the dollar weakened on the back of U.S. inflation data that suggested the Federal Reserve's accommodative policy stance would remain intact. The consumer price index jumped 0.6% last month, the largest gain since August 2012, after rising 0.4% in February, the Labor Department said on Tuesday. Excluding the volatile food and energy components, the CPI rose 0.3%. The so-called core CPI nudged up 0.1% in February The dollar index fell as low as 91.85, the lowest level since March 23.The euro gained 0.28% to $1.1945. Immediate resistance can be seen at 1.1963(50DMA), an upside break can trigger rise towards 1.1972(38.2%fib).On the downside, immediate support is seen at 1.1855 (23.6%fib), a break below could take the pair towards 1.1818(14DMA).

GBP/USD: Sterling rose against dollar on Tuesday after data showed Britain’s economy grew in February. Official data showed Britain’s economy grew by 0.4% in February from January, while the fall in gross domestic product in January was not as severe as previously estimated, down by 2.2% compared with the initial reading of a 2.9% drop. Growth in February was helped by a first rise in factory output since November, led by car manufacturing after two months of contraction when the industry struggled with a global shortage of microchips. Immediate resistance can be seen at 1.3772 (38.2%fib), an upside break can trigger rise towards 1.3797 (21DMA ).On the downside, immediate support is seen at 1.3690  (50%fib), a break below could take the pair towards 1.3600 (61.8%fib).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday as oil rose and U.S. data showed a tamer-than-expected increase in U.S. underlying inflation, with the loonie rebounding from an earlier six-day low. The U.S. dollar fell against a basket of major currencies after data showed that U.S. consumer prices increased by the most in more than 8-1/2 years in March but that the core measure was up by just 0.1%, short of analyst estimates of 0.2%. The Canadian dollar        was trading nearly unchanged at 1.2564 to the greenback, or 79.59 U.S. cents, having touched its weakest since last Wednesday at 1.2628.Immediate resistance can be seen at 1.2607 (50DMA), an upside break can trigger rise towards 1.2656 (38.2%fib).On the downside, immediate support is seen at 1.2500 (23.6%fib), a break below could take the pair towards 1.2456 (March 19th low).

USD/JPY: The dollar declined against the Japanese yen on Tuesday after U.S. consumer price data for March showed the pace of inflation was not rising wildly. The consumer price index rose 0.6%, the biggest gain since August 2012, as increased vaccinations and fiscal stimulus unleashed pent-up demand. But the data is unlikely to change Federal Reserve Chair Jerome Powell’s view that higher inflation in coming months will be transitory. The dollar index fell 0.228% . The Japanese yen strengthened 0.26% versus the greenback at 109.04 per dollar. Strong resistance can be seen at 109.38(5DMA), an upside break can trigger rise towards 109.82(23.6%fib).On the downside, immediate support is seen at 108.80(38.2%fib), a break below could take the pair towards 108.01 (50%fib).

Equities Recap

European shares hovered just below all-time highs on Tuesday as investors awaited data that is expected to show a pickup in U.S. inflation on the back of a swift global economic recovery.

UK's benchmark FTSE 100 closed up by  0.13 percent, Germany's Dax ended up by 0.02 percent, France’s CAC finished the day up by 0.36 percent.                

The S&P 500 closed at another record high on Tuesday and the Nasdaq composite index jumped, as investors shook off concerns about the halt in Johnson & Johnson’s COVID-19 vaccine rollout and strong U.S. inflation.

Dow Jones closed down by 0.20 %percent, S&P 500 closed up by 0.29% percent, Nasdaq settled up  by  1.05 % percent.

Treasuries Recap

U.S. Treasury yields fell further and the yield curve flattened more on Tuesday as the last of this week's coupon auctions was met with solid demand.

The benchmark 10-year yield was last down 4.9 basis points at 1.6269% and the 30-year yield was 4.1 basis points lower at 2.3069%.

Commodities Recap

Gold prices bounced off a more than one-week low on Tuesday after data showing a sharp rise in U.S. inflation bolstered bullion's appeal as an inflation hedge and weighed on the dollar.

  Spot gold  climbed 0.8% to $1,745.94 per ounce by 1:42 p.m. EDT (1742 GMT), after earlier dipping to $1,722.67, its lowest mark since April 5. U.S. gold futures settled up 0.9% at $1,747.6.

Oil prices rose about 1% on Tuesday on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth.

Brent crude oil futures were up 69 cents, or 1%, at $63.97 a barrel by 12:10 p.m. ET (1610 GMT), while U.S. crude oil futures gained 70 cents, or 1.2%, to $60.39 a barrel. Both contracts have recorded changes of less than 1% for four straight sessions.

 


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