Posted at 03 May 2021 / Categories Market Roundups
Market Roundup
• US Apr Manufacturing PMI 60.5, 60.6 previous
•US March Construction Spending (MoM) 0.2% ,2.0%,-0.8% previous
•US ISM Apr ISM Manufacturing Employment 55.1,55.1,59.6 previous
•US ISM Apr Manufacturing Prices 89.6,86.0, 85.6 previous
• US Apr ISM Manufacturing PMI 65.0, 64.7 previous
• US Apr ISM Manufacturing New Orders Index 68.0
• US 6-Month Bill Auction 0.015%,0.035% previous
• US 3-Month Bill Auction 0.035%, 0.020% previous
Looking Ahead – Economic Data (GMT)
• 07:00 Mar Australia Imports (MoM) 5% previous
• 07:00 Mar Australia Exports (MoM) -1% previous
• 07:00 Mar Australia Trade Balance 8.000B forecast, 7.529B previous
• 07:00 Mar Australia Home Loans (MoM) -1.7% previous
• 07:00 May Australia RBA Interest Rate Decision
Looking Ahead - Economic events and other releases (GMT)
• 10:00 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday after data showed German retail sales posted an unexpected surge in March. German retail sales posted their biggest year-on-year increase in March since the start of the COVID-19 pandemic, data showed on Monday, as the relaxation of some lockdown measures boosted purchases of clothes and shoes. The Federal Statistics Office said retail sales jumped 11.0% compared to the same month a year earlier in real terms after an upwardly revised fall of 6.6% in February. Immediate resistance can be seen at 1.2076 (23.6%fib), an upside break can trigger rise towards 1.2155 (Higher BB).On the downside, immediate support is seen at 1.2006 (38.2%fib), a break below could take the pair towards 1.1948 (50%fib).
GBP/USD: The pound rose higher against dollar on Monday as investors were bullish about the global economic recovery looked ahead to a busy week for U.S. economic data that is expected to underline the strength of the rebound. A busy week for U.S. economic data is expected to show resounding strength, particularly for the ISM manufacturing survey and April payrolls. Forecasts are that 978,000 jobs were created in the month as consumers spent their stimulus money and the economy opened up more. Immediate resistance can be seen at 1.3921 (38.2%fib), an upside break can trigger rise towards 1.4012 (Higher BB ).On the downside, immediate support is seen at 1.3805 (14DMA), a break below could take the pair towards 1.3714 (50%fib ).
USD/CAD: The Canadian dollar was little changed against the greenback on Monday, holding near its strongest level in over three years ahead of domestic factory activity data and as optimism about global economic recovery bolstered investor sentiment.Global equity markets gained and the price of oil,one of Canada's major exports, rose 0.3% to $63.77 a barrel as investors bullish about the global economic recovery looked ahead to a busy week for U.S. economic data that is expected to underline the strength of the rebound .Immediate resistance can be seen at 1.2324 (5 DMA), an upside break can trigger rise towards 1.2383 (9DMA).On the downside, immediate support is seen at 1.2254(23.6%fib), a break below could take the pair towards 1.2200 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Monday as giving up earlier groundin the previous session, as Treasury yields retreated and lacklustre data weighed on the U.S. currency.U.S. manufacturing activity grew at a slower pace in April, likely constrained by shortages of inputs amid pent-up demand unleashed by rising vaccinations and massive fiscal stimulus. . Strong resistance can be seen at 109.49(50%fib), an upside break can trigger rise towards 110.04 (61.8%fib).On the downside, immediate support is seen at 109.02(50%fib), a break below could take the pair towards 108.41(23.6%fib).
Equities Recap
European stocks ended higher on Monday after the European Commission outlined plans to loosen COVID-19 restrictions on tourism, while strong factory and retails sales data and a robust corporate earnings season added to the optimism.
UK's benchmark FTSE 100 closed up by 0.12 percent, Germany's Dax ended up by 0.66 percent, France’s CAC finished the day up by 0.61 percent.
Wall Street’s main indexes opened higher on Monday after a week of largely upbeat earnings, with investors awaiting data to gauge the pace of the country’s economic recovery.
Dow Jones last up by 0.88% percent, S&P 500 was last up by 0.47% percent, Nasdaq was last down by 0.32% percent.
Treasuries Recap
U.S. Treasury yields tumbled on Monday after data showed manufacturing activity growth slowed in April amid supply challenges and rising demand fueled by the coronavirus vaccine rollout and fiscal stimulus.
The benchmark 10-year yield was last down 5.1 basis points at 1.5799%, holding well below a 14-month high of 1.776% reached on March 30.
Commodities Recap
Gold prices jumped more than 1% on Monday, with the rally spilling over into other precious metals as well, driven by a retreat in the dollar and U.S. Treasury yields.
Spot gold rose 1.3% to $1,791.26 per ounce by 1:42 p.m. EDT (1742 GMT), after hitting its highest since April 22 at $1,797.75. U.S. gold futures settled 1.4% higher at $1,791.80.
Oil rose more than 1% on Monday as Chinese economic figures and U.S. vaccination rate pointed to a strong rebound in demand in the world's two largest economies.
Brent crude rose 74 cents, or 1.1%, to $67.50 a barrel by 1:30 p.m. EDT (1730 GMT). U.S. West Texas Intermediate rose 80 cents, or 1.3%, to $64.38 a barrel.