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America’s Roundup: Dollar at three-week lows as Treasury yields subdued, Wall Street ends mixed, Gold falls, Oil climbs nearly 5% on signs of increasing crude demand-April 15th,2021

Posted at 14 April 2021 / Categories Market Roundups


Market Roundup

•US March Import Price Index (MoM) 1.2%, 1.0% forecast, 1.3% previous

•US March Export Price Index (MoM)  2.1%,1.0% forecast, 1.6% previous

•US Export Price Index (YoY) 9.1%,5.2% previous

•US Import Price Index (YoY)  6.9%,3.0% previous

•14:30 US Gasoline Inventories 0.309M,0.786M forecast, 4.044M previous

•14:30 US Crude Oil Inventories- -5.889M, 2.889M forecast, -3.522M previous

Looking Ahead – Economic Data (GMT)

•22:45 New Zealand March FPI (MoM)  -0.9% previous

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

•23:50 Japan Foreign Bonds Buying 377.0B previous

•23:50 Japan Foreign Investments in Japanese Stocks 978.4B previous

•04:00 New Zealand Mar Business NZ PMI  53.4 previous

•23:50 Japan Apr Reuters Tankan Index  6 previous

•07:00 Chinese Unemployment Rate 5.5% previous

•07:00 Chinese March  Industrial Production YTD (YoY)   35.1% previous

•07:00 Chinese China Thomson Reuters IPSOS PCSI 72.69 previous

•07:00 China  GDP (YoY) (Q1) 18.9% forecast, 6.5% previous

•07:30 China March Industrial Production (YoY)  17.2%forecast, 35.1% previous

 Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro strengthened against dollar on Wednesday as sharp rise in U.S. inflation decreased demand for greenback. The U.S. consumer price index rose 0.6% in March, the biggest increase since August 2012, as rising vaccinations and fiscal stimulus unleashed pent-up demand, data showed on Tuesday. Economists polled had forecast the CPI would rise 0.5%. However, euro gains were capped after Johnson & Johnson said it would delay rolling out its COVID-19 vaccine to Europe, after U.S. health agencies recommended pausing its use in the country after six women developed rare blood clots. Immediate resistance can be seen at 1.1978 (Daily high), an upside break can trigger rise towards 1.2021 (50%fib).On the downside, immediate support is seen at 1.1935 (38.2%fib), a break below could take the pair towards 1.1877(9DMA).

GBP/USD: Sterling hit a one-week high against the dollar on Wednesday, recovering some ground after a brief dip the previous day following news the Bank of England’s chief economist resigned.The pound dipped on Tuesday afternoon, hitting a six-week low against the euro and extending losses against the dollar after the announcement of Andrew Haldane’s resignation. Haldane was widely seen as one of the more hawkish figures at the central bank, and had been the most upbeat member of the BoE’s Monetary Policy Committee. Immediate resistance can be seen at 1.3814 (38.2%fib), an upside break can trigger rise towards 1.3857 (50DMA).On the downside, immediate support is seen at 1.3728 (50%fib), a break below could take the pair towards 1.3700(Psychological level).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday as oil, one of Canada's major exports, rallied and ahead of a Bank of Canada policy meeting next week that could see the central bank cut its bond purchases. Oil surged after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand. U.S. crude oil futures settled 4.9% higher at $63.15 a barrel.  The loonie was up 0.1% at 1.2517 to the greenback, notching its second straight day of gains. It traded in a range of 1.2500 to 1.2575. Immediate resistance can be seen at 1.2553 (9DMA), an upside break can trigger rise towards 1.2589 (38.2%fib).On the downside, immediate support is seen at 1.2486 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Wednesday as Treasury yields held below recent highs, reducing the relative attractiveness of the U.S. currency. The dollar has gained this year as Treasury yields rose on expectations of faster growth and higher inflation. That trade has paused this month, however, with yields stabilizing below one-year highs reached last month. The dollar index fell to as low as 91.57, the lowest since March 18, and was last at 91.68, down 0.11% on the day.The greenback fell 0.13% to 108.92 Japanese yen. Strong resistance can be seen at 109.26 (30DMA), an upside break can trigger rise towards 109.59(23.6%fib).On the downside, immediate support is seen at 108.58 (38.2%fib), a break below could take the pair towards 108.17 (Lower BB).

Equities Recap

European stocks rose on Wednesday on upbeat earnings from software firm SAP and French luxury goods maker LVMH, while German shares lagged after sources said the country’s economic institutes cut 2021 GDP forecast.

UK's benchmark FTSE 100 closed up by 0.71 percent, Germany's Dax ended down  by 0.17 percent, France’s CAC finished the day up by 0.40 percent

The S&P 500 dipped after hitting a record high for the fourth session in five and the Dow Industrials rose on Wednesday, as Wall Street banks kicked off earnings season with first-quarter numbers that lifted hopes for a strong corporate rebound.
Dow Jones closed up by  0.16% percent, S&P 500 closed down by 0.34% percent, Nasdaq settled down by 0.99%  percent.

Treasuries Recap

U.S. Treasury yields edged higher and the yield curve steepened on Wednesday as the market awaited Thursday's release of weekly jobless claims and March retail sales data for further clues on the economy's recovery from the coronavirus pandemic.

The benchmark 10-year yield was last up 1.3 basis points at 1.6359%, holding below a 14-month high of 1.776% reached on March 30.

Gold fell on Wednesday as an uptick in U.S. Treasury yields weighed on the non-yielding bullion's appeal, eclipsing support from a softer dollar.

 Spot gold  fell 0.5% to $1,736.02 per ounce by 2:20 p.m EDT (1820 GMT). U.S. gold futures settled down 0.6% at $1,736.30.

Oil prices surged almost 5% on Wednesday, after a report from the International Energy Agency, followed by U.S. inventory data boosted optimism about returning demand after the coronavirus lockdowns last year crushed fuel consumption.

Brent crude futures rose $2.91, or 4.6%, to settle at $66.58 a barrel. U.S. West Texas Intermediate (WTI) crude ended $2.97, or 4.9%, higher at $63.15 a barrel.


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