Posted at 06 May 2021 / Categories Market Roundups
•US Unit Labor Costs (QoQ) (Q1) -0.3%, -0.8% forecast, 6.0% previous
•US Nonfarm Productivity (QoQ) (Q1) 5.4% ,4.3% forecast, -4.2% previous
• US Initial Jobless Claims 498K ,540K forecast, 553K previous
•US Continuing Jobless Claims 3,690K, 3,620K forecast, 3,660K previous
• US Jobless Claims 4-Week Avg 560.00K ,611.75K previous
• Russia Central Bank reserves (USD) 590.5B,589.5B previous
• US Natural Gas Storage 60B,64B forecast, 15B previous
• US 4-Week Bill Auction 0.010%,0.000% previous
• US 8-Week Bill Auction 0.010%, 0.010% previous
Looking Ahead - Economic Data (GMT)
•22:30 Australia Apr AIG Services Index 58.7 previous
•23:50 Japan March Overall wage income of employees -0.4% previous
•23:50 Japan March Overtime Pay (YoY) -9.10% previous
•23:50 Japan Average Cash Earnings (YoY) -0.2% previous
•00:30 Japan Apr Services PMI 48.3 previous
•01:45 China Apr Caixin Services PMI 54.3 previous
•01:45 China Apr Trade Balance (USD) 28.10B forecast, 13.80B previous
•01:45 China Apr Imports (YoY) 42.5% forecast, 38.1% previous
•01:45 China Apr Exports (YoY) 24.1% forecast, 30.6% previous
Looking Ahead - Economic events and other releases (GMT)
•01:30 Australia RBA Monetary Policy Statement
EUR/USD: The euro rose against dollar on Thursday after data showed Euro zone retail sales beat expectations. Euro zone retail sales rose by more than expected in March, data showed on Thursday, pointing to pent-up consumer demand as pandemic lockdowns ease. The European Union’s statistics office Eurostat said on Thursday that retail sales in the 19 countries sharing the euro jumped 2.7% month-on-month in March for a 12.0% year-on-year surge. Immediate resistance can be seen at 1.2072 (38.2%fib), an upside break can trigger rise towards 1.2100 (Psychological level).On the downside, immediate support is seen at 1.2017 (50%fib), a break below could take the pair towards 1.1957(61.8%fib).
GBP/USD: The British pound fell briefly on Thursday after the Bank of England kept the scale of its stimulus programme unchanged before recouping those losses to touch the day’s high against the dollar.It held interest rates and the bond-buying programme unchanged even as Britain’s economy shows signs of recovery from its coronavirus slump. Sterling, unchanged against the dollar before the policy announcement, dropped as much as 0.4% to $1.3858 before rising to $1.3890, up 0.2% on the day. Immediate resistance can be seen at 1.3919(23.6%fib), an upside break can trigger rise towards 1.3978(29th Apr high).On the downside, immediate support is seen at 1.3882 (5DMA), a break below could take the pair towards 1.3808 (38.2%fib).
USD/CAD: The Canadian dollar rose on Thursday to its highest level against its U.S. counterpart in more than three and a half years as the greenback broadly fell, ahead of domestic jobs data that could offer clues on the Bank of Canada policy outlook. The loonie was trading 0.4% higher at 1.2210 to the greenback, or 81.90 U.S. cents, having touched its strongest intraday level since September 2017 at 1.2196.The currency has been on a tear since the Bank of Canada last month signaled it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases. Immediate resistance can be seen at 1.2264(5DMA), an upside break can trigger rise towards 1.2307 (38.2%fib).On the downside, immediate support is seen at 1.2158 (Daily low), a break below could take the pair towards 1.2112(23.6%fib).
USD/JPY: The dollar dipped against the yen on Thursday as as global market risk appetite improved and traders looked forward to the April jobs report due on Friday for direction. Investors were looking forward to the closely watched non-farm payrolls report on Friday, with estimates of between 700,000 and more than 2 million jobs having been created in April. The U.S. dollar, which is regarded as a safehaven asset, declined against a basket of peer currencies and was last down 0.34% at 90.948. Strong resistance can be seen at 109.43 (38.2%fib), an upside break can trigger rise towards 109.97(61.8%fb).On the downside, immediate support is seen at 108.94 (38.2%fib), a break below could take the pair towards 108.78 (11DMA).
European stocks edged lower on Thursday, with the travel sector leading declines on weak results from Britain’s Trainline, while food and beverage stocks hit a 14-month high on a batch of strong earnings.
UK's benchmark FTSE 100 closed up by 0.52 percent, Germany's Dax ended down by 0.17 percent, France’s CAC finished the day up by 0.28percent.
The Dow Jones Industrial Average closed at a record high on Thursday, bolstered by an upbeat weekly jobless claims report, while vaccine makers dipped after U.S. President Joe Biden backed plans to waive patents on COVID-19 shots.
Dow Jones closed up by 0.93 percent, S&P 500 closed up by 0.82 percent, Nasdaq closed up by 0.37 percent.
U.S. Treasury yields weakened on Thursday in a choppy session, moving within narrow ranges, as investors largely shrugged off better-than-expected initial jobless claims data and instead looked ahead to Friday's key non-farm payrolls report.
The U.S. 10-year Treasury yield fell to 1.56%, from 1.584% late on Wednesday. U.S. 30-year yields were down at 2.235% from Wednesday's 2.256%.
Gold jumped over 1% on Thursday with a weaker dollar and easing Treasury yields propelling it over the key $1,800 psychological level.
Spot gold rose 1.6% to $1,814.50 per ounce by 2:00 p.m. EDT (1800 GMT). During the session it hit $1,817.90, its highest since Feb. 16. U.S. gold futures settled 1.8% higher at $1,815.7.
Oil prices settled lower on Thursday, reversing early gains under pressure from rising COVID-19 infections in India and elsewhere although prices retained some support from a report a day earlier that U.S. crude inventories fell more sharply than expected.
Brent crude oil settled lower by 87 cents, or 1.3%, at $68.09 a barrel. West Texas Intermediate (WTI) U.S. crude futures dropped 92 cents, or 1.4%, to $64.71.