America’s Roundup: U.S. dollar advances to two-month peak, Wall Street ends lower,Gold slips over 2%, Oil falls from multi-year high on stronger dollar-June 18th,2021

Posted at 17 June 2021 / Categories Market Roundups

Market Roundup

•Canada Apr Foreign Securities Purchases by Canadians  18.63B ,21.22B previous

•Canada Apr Foreign Securities Purchases  9.95B ,3.25B previous

•US June Philly Fed Business Conditions  69.2 ,52.7 previous

•US June Philly Fed New Orders 22.2,  32.5 previous

•US June Philadelphia Fed Manufacturing Index 30.7, 31.0forecast, 31.5 previous

•US June Philly Fed Prices Paid  80.70,76.80 previous

•US June Philly Fed Employment  30.7,19.3 previous

•US June Philly Fed CAPEX Index  40.40 ,37.40 previous

•Canada ADP Nonfarm Employment Change 101.6K ,351.3K previous

•US Initial Jobless Claims 412K, 359K forecast, 376K previous

•US Continuing Jobless Claims 3,518K,3,430K forecast, 3,499K previous

•US Jobless Claims 4-Week Avg  395.00K ,402.50K previous

•Russia Central Bank reserves (USD) 604.8B,605.2B previous

•US May Leading Index (MoM)  1.3% ,1.3% forecast, 1.6% previous

•US Natural Gas Storage 16B ,72B, 98B previous

Looking Ahead - Economic Data (GMT) 

•23:30 Japan  May CPI, n.s.a (MoM)  -0.3% previous

•23:30 Japan May National Core CPI (YoY)  0.1% forecast, -0.1% previous

•23:30 Japan May National CPI (YoY)  -0.4% previous

•23:30 Japan May National CPI (MoM) -0.4% previous

Looking Ahead - Economic events and other releases (GMT)

•03:00 Japan BoJ Monetary Policy Statement

•03:00 Japan BoJ Press Conference

Currency Summaries

EUR/USD: The euro declined on Thursday as dollar continued to advance , hitting its highest level in more than two months after the Federal Reserve surprised markets by signaling that it would hike rates and stop buying bonds sooner than expected. After posting its biggest daily gain since March 2020 on Wednesday, the dollar held steady during Thursday's Asian session and then added gains as European markets opened. The euro dropped versus the dollar, with euro-dollar changing hands at a two-month low of $1.1929. Immediate resistance can be seen at 1.1992(200DMA), an upside break can trigger rise towards 1.2051 (50%fib).On the downside, immediate support is seen at 1.1888 (Daily low), a break below could take the pair towards 1.1845 (23.6% fib).

GBP/USD: The pound fell below $1.40 against the U.S. dollar on Thursday as the market reacted to an unexpectedly aggressive move by the Federal Reserve, which boosted the U.S. dollar against other major currencies. Federal Reserve officials said on Wednesday that they will raise interest rates early and stop buying emergency bonds. This led to a rise in US Treasuries and a fall in the equities. The pound was down 0.01% against the dollar, at $1.3922 at 21:40 GMT.Immediate resistance can be seen at 1.3932 (38.2% fib), an upside break can trigger rise towards 1.3985(50%fib).On the downside, immediate support is seen at 1.3894(Daily low), a break below could take the pair towards 1.3868 (23.6%fib).

 USD/CAD: The loonie fell to a seven-week low on Thursday against its stronger US counterpart after hawkish shift in Federal Reserve guidance surprised investors. The dollar surged against a basket of major currencies to its highest level in more than two months after the Federal Reserve announced it would hike interest rates and end its emergency bond purchases earlier than expected. The loonie traded 0.4% lower at 1.2326 versus the greenback, adding to the Tuesday and Wednesday declines. It reached its weakest point since May 4 at 1.2346 .Immediate resistance can be seen at 1.2381 (Daily high), an upside break can trigger rise towards 1.2406 (23.6%fib).On the downside, immediate support is seen at 1.2341 (38.2%fib), a break below could take the pair towards 1.2300 (50%fib).

USD/JPY: The dollar gave up ground against the yen on Thursday as investors awaited   BOJ meeting. The Bank of Japan is expected to maintain its stimulus and may extend the deadline for Friday's pandemic plan, indicating that the fragile economy and moderate inflation will prevent any deviation in its ultralight policy. The decision would come in the wake of hawkish signals from the U.S. Federal Reserve on Wednesday that heightened prospects of an earlier-than-expected interest rate hike. At 21:35 GMT, the dollar was 0.06 percent up versus the Japanese yen at 110.23 .Strong resistance can be seen at 110.82 (Daily high), an upside break can trigger rise towards 111.07 (April 6th high).On the downside, immediate support is seen at 110.48(38.2%fib), a break below could take the pair towards 110.01 (38.2% fib).

Equities Recap

European stocks closed slightly lower on Thursday as hawkish  signals from the US Federal Reserve raised concerns about early monetary policy tightening, and mining stocks continued to decline on falling commodity prices.

UK's benchmark FTSE 100 closed down by  0.47 percent, Germany's Dax ended up by 0.03 percent, France’s CAC finished the day down by 0.08 percent.                 

Tech stocks weakness dragged Wall Street down on Thursday after the Federal Reserve signaled it might cut stimulus measures earlier than expected, adding pressure to a sector believed to be vulnerable to higher interest rates.

Dow Jones closed down  by  0.77% percent, S&P 500 closed down by 0.54 % percent, Nasdaq settled down  by 0.87%     percent.

Treasuries Recap

Long-term yields fell on Thursday, and the yield curve flattened, as some investors seemed to be surprised by the Fed’s remarks that the Fed is not eager to  pare bond purchases and   raise interest rates in 2023.

Benchmark 10-year yields were last 1.511%, after reaching 1.594% on Wednesday. Five-year yields were 0.881%, after rising to a two-month high of 0.913% on Wednesday.

Commodities Recap

Gold fell more than 2% on Thursday, triggering a sell-off in precious metals and palladium, which was the worst day in more than a year as the US dollar gained traction after the U.S. Federal Reserve struck a hawkish tone on monetary policy .

Spot gold fell 2% to $1,776.10 per ounce by 1:44 pm EDT (1744 GMT), having earlier touched its lowest since May 3 at $1,766.29.U.S. gold futures settled down 4.7% at $1,774.80.

Crude oil prices fell nearly 2% on Thursday from their highest level in years as the dollar strengthened after the US Federal Reserve hinted it could hike rates as early as 2023.

Brent futures fell $ 1.31, or 1.8%, to $ 73.08 a barrel, while U.West Texas Intermediate (WTI) Crude Oil fell $ 1.11, or 1.5%, to settle at $ 71.04 .

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