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America’s Roundup: Dollar falls as yields grieve, Gold heads for third weekly gain, Oil edges higher as recovery support countered by Asia virus surge- April 24th, 2021

Market Roundup

•US April Services PMI  63.1 ,61.9 forecast, 60.4 previous           

•US April Markit Composite PMI  62.2 ,59.7 previous

•US April Manufacturing PMI  60.6 ,60.5 forecast, 59.1 previous

•US New Mar Home Sales  1,021K ,886K forecast, 775K previous

•US Mar New Home Sales (MoM) 20.7%,  12.0% forecast, -18.2% previous

•U.S. Baker Hughes Total Rig Count 343, 432 previous

Looking Ahead - Economic Data (GMT)

• No significant data ahead

Looking Ahead - Economic events and other releases (GMT)

•No significant events ahead

Currency Summaries

EUR/USD: The euro rose on Friday, edging back towards a seven-week high, having nursed losses after European Central Bank President Christine Lagarde squashed speculation that policymakers will start to consider a tapering of bond purchases.Flash purchasing managers' index numbers for April came in better than expected in the euro zone and supported the view that the region's economic recovery is accelerating. The euro climbed 0.7% to $1.2098, pushing through its earlier high for the week. Immediate resistance can be seen at 1.2107(23.6%fib), an upside break can trigger rise towards 1.2124 (Higher BB).On the downside, immediate support is seen at 1.2045(5DMA), a break below could take the pair towards  1.2012 (38.2%fib).

GBP/USD: Sterling rebounded on Friday from a sharp fall on Thursday after strong retail sales data and business surveys showed Britain’s economy might already be recovering from its worst annual contraction in 300 years.British retail sales rocketed last month as consumers prepared for a partial lifting of coronavirus lockdown restrictions. After having erased its gains this week on Thursday, the pound was once again set for a weekly gain on Friday, trading 0.3% higher on the day at $1.3878 by 1055 GMT.. Immediate resistance can be seen at 1.3908  (5DMA), an upside break can trigger rise towards 1.3931 (23.6%fib ).On the downside, immediate support is seen at 1.3821 (38.2%fib), a break below could take the pair towards 1.3735 (38.2%fib ).

USD/CAD The Canadian dollar strengthened against its U.S. counterpart on Friday, notching its fourth straight week of gains as the greenback broadly fell and after the Bank of Canada's hawkish shift supported the currency's yield advantage. The Canadian dollar  was trading 0.2% higher at 1.2475 to the greenback . It was also up 0.2% for the week, adding to slender gains in the prior three weeks. On Wednesday, the loonie touched its strongest level in one month at 1.2455 after the BoC signaled it could start hiking interest rates next year and cut the pace of bond purchases. Immediate resistance can be seen at 1.2527 (9DMA), an upside break can trigger rise towards 1.2617(38.2%fib).On the downside, immediate support is seen at 1.2450 (23.6%fib), a break below could take the pair towards 1.2359(18th March low).

USD/JPY: The dollar declined against the Japanese yen on Friday as concerns about a global rise in COVID-19 cases prompted moves towards safer assets.  Data on manufacturing and services activity from   the United States  are due later on Friday, which could support positive economic sentiment, but the dollar  is unlikely to move much as investors stick to the sidelines before next the Fed's meeting. The dollar stood at 107.90 yen, close to a seven-week low. Strong resistance can be seen at 107.99 (38.2%fib), an upside break can trigger rise towards 108.56 (38.2%fib).On the downside, immediate support is seen at 107.29(23.6%fib), a break below could take the pair towards 107.00(Psychological level).

Equities Recap

European stocks marked their first weekly loss in eight on Friday as a surge in global coronavirus cases offset optimism about a strong earnings season, while Madrid-based Allfunds jumped on its Amsterdam market debut.

UK's benchmark FTSE 100 closed up by  0.00 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day down by 0.15 percent.                 

The S&P 500 and the Nasdaq indexes edged higher on Friday after a rise in factory activity in April supported bets of swifter economic recovery, while a fall in shares of American Express and Honeywell kept the blue-chip Dow under check.

Dow Jones closed up by  0.67% percent, S&P 500 closed up by 1.09% percent, Nasdaq settled upby 1.44%  percent.

Treasuries Recap

Traders left U.S. Treasury yields in a narrow range on Friday as they weighed the political prospects of a new tax plan from President Joe Biden and the direction of Federal Reserve policy.

The benchmark 10-year yield was up 1.1 basis point at 1.5666% in afternoon trading, within the 1.528% to 1.646% range it has held since April 15.

Commodities Recap

Gold edged higher on Friday and was on track to register a third straight weekly gain supported by a weaker dollar and lower U.S. Treasury yields, while investors awaited a U.S. Federal Reserve policy meeting next week. 

 Spot gold  rose 0.4% to $1,790.65 per ounce by 1156 GMT, having jumped to its highest since Feb. 25 at $1,797.67 on Thursday, and has gained 0.8% so far this week.

Oil settled higher on Friday, supported by bullish economic data from U.S. and Europe, though a rise in coronavirus cases in India was still pressuring prices.

Brent crude  settled up 43 cents, 0.7%, to $65.83 a barrel. U.S. West Texas Intermediate (WTI) U.S. crude   gained 63 cents, or 1.1%, to $66.11 a barrel.

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