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America’s Roundup: Dollar climbs as risk appetite fades, Gold falls from 2-mth high, Oil rises on U.S. and European demand growth optimism-May 5th,2021

Posted at 04 May 2021 / Categories Market Roundups


Market Roundup

•Canada March Imports 51.76B, 48.82B previous

•Canada Exports  50.62B, 49.86B previous

 •US Redbook (YoY) 14.2%, 13.9% previous

• US Aril ISM-New York Index  804.5 previous

• US April US ISM NY Business Conditions  37.2% previous

•US April IBD/TIPP Economic Optimism 54.4 ,56.4 previous

•US Mar Factory Orders (MoM) 1.7% ,1.1% ,1.3% forecast, -0.8% previous

•US Mar Factory orders ex transportation (MoM) 1.7%, -0.6% previous

Looking Ahead - Economic Data (GMT)

•22:30 Australia Apr AiG Performance of Construction Index 61.8 previous

•22:45 New Zealand Participation Rate(Q1) 70.3 % forecast, 70.2 % previous

•22:45 New Zealand Labour Cost Index (QoQ)(Q1) 0.3 %,0.5 % previous

 •22:45 New Zealand Labour Cost Index (YoY)(Q1)  1.5 %,1.5 % previous

•22:45 New Zealand Employment Change(Q1) 0.2 %, 0.6 % previous

•01:30   Australia March Building Permits (YoY ) 20.1 % previous

•01:30 Australia March Building Permits (MoM) 3 %, 21.6 % previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

EUR/USD: The euro declined against dollar on Tuesday as investors weighed chances that interest rates will be forced higher by a roaring U.S. economic recovery and awaited upcoming data and policy speeches for clues. Tuesday's recovery reversed losses suffered on Monday after a weaker than expected U.S. manufacturing survey report. Despite the fact that April's survey numbers were lower than March, yet the U.S. economic recovery remained steady with price pressures rising Immediate resistance can be seen at 1.2168 (16th Feb high), an upside break can trigger rise towards 1.2197 (61.8%fib).On the downside, immediate support is seen at 1.2123 (38.2%fib), a break below could take the pair towards 1.2046(38.2%fib).

GBP/USD: Sterling dipped against the dollar on Tuesday with potential volatility expected   ahead of Thursday’s Bank of England meeting and the Scottish parliamentary elections. The BoE is expected to announce tapering, or a reduction in the pace of its bond purchases at its meeting. Meanwhile, the Scottish National Party (SNP) is expected to win a majority in Scottish parliament, which some see as a risk for Britain. Sterling was 0.35% lower to the dollar by 11:40 GMT at $1.3858 . Against the euro it rose 0.2% to 86.58 pence. Immediate resistance can be seen at 1.3922 (23.6%fib), an upside break can trigger rise towards 1.4005(Lower BB).On the downside, immediate support is seen at 1.3808 (38.2%fib), a break below could take the pair towards 1.3761 (100DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as the greenback broadly climbed and data showed Canada's trade balance swinging to a surprise deficit in March, with the loonie pulling back from a recent 3-year high. Canada’s trade deficit was C$1.1 billion in March, Statistics Canada said. Analysts had predicted a surplus of C$700 million after a revised C$1.4 billion surplus in February. Separate data showed that the value of Canadian building permits rose by 5.7% in March from February. The Canadian dollar was trading 0.3% lower at 1.2316 to the greenback by 5.7% in March from February.   Immediate resistance can be seen at 1.2361(9 DMA), an upside break can trigger rise towards 1.2436 (38.2%fib).On the downside, immediate support is seen at 1.2265(23.6%fib), a break below could take the pair towards 1.2200 (Psychological level).

USD/JPY: The dollar strenthened against the yen on Tuesday as the dollar rebounded from a fall in the previous session triggered by weaker-than-expected U.S. economic data. The dollar drifted higher, pausing a month long decline as investors consider whether a roaring U.S. economic recovery may force interest rates higher, looking to upcoming economic data and policy speeches for clues. Japan and mainland China’s markets remained closed on Tuesday for holidays dampening trading volumes across the region. Strong resistance can be seen at 109.43 (38.2%fib), an upside break can trigger rise towards 109.81(Higher BB).On the downside, immediate support is seen at 108.86 (50%fib), a break below could take the pair towards 108.78 (20DMA).

Equities Recap

European shares ended lower on Tuesday, with the technology sector having their worst day since late-October after a sudden drop in big U.S. tech stocks.

UK's benchmark FTSE 100 closed down by  3.62 percent, Germany's Dax ended down by 2.49% percent, France’s CAC finished the day down by -0.67% percent.                           

The S&P Dow Jones Indices launched new cryptocurrency indexes, it said on Tuesday, further mainstreaming digital currencies including bitcoin and ethereum by bringing them to the trading floors of Wall Street.

Dow Jones was last down by 0.17% percent, S&P 500 was trading  0,86 percent, Nasdaq settled down   by 2.20% percent.

US Treasuries Recap

U.S. Treasury yields headed lower and the yield curve flattened on Tuesday as investors ditched riskier assets for a safer haven in government debt.

The benchmark 10-year yield was last down 28 basis points at 1.5641%, holding below a 14-month high of 1.776% reached on March 30.

Commodities Recap

Gold prices fell from a more than two-month high on Tuesday, as a rebound in the dollar dented the metal’s safe-haven appeal, while investors speculated that a swifter than expected U.S. economic recovery might prompt an interest rate hike.

Spot gold was down 0.4% at $1,786.10 per ounce by 0702 GMT, after hitting its highest since Feb. 25 at $1,797.75 on Monday.

Oil prices rose on Tuesday after more U.S. states eased lockdowns and the European Union sought to attract travellers, though soaring COVID-19 cases in India capped gains.

Brent crude futures were up $1.01, or 1.48%, at $68.50 a barrel by 2:00 p.m. (1700 GMT) after climbing by 1.2% on Monday.

U.S. West Texas Intermediate (WTI) crude futures rose by 89 cents, or 1.38%, to $65.39 after a 1.4% jump on Monday.


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