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America’s Roundup: Dollar on back foot as market optimism lifts riskier currencies, Gold eases, Oil up on Middle East tensions-February 16th,2021

Market Roundup

• Canada Dec Manufacturing Sales (MoM)  0.6%forecast, -0.6% previous

• French 12-Month BTF Auction -0.637% , -0.642% previous

• French 3-Month BTF Auction -0.642%, -0.643% previous

• French 6-Month BTF Auction -0.635% ,-0.635% previous

Looking Ahead - Economic Data (GMT)

•21:45 New Zealand Dec Permanent/Long-Term Migration  672 previous

•21:45 New Zealand Dec External Migration & Visitors    -98.60% previous

Looking Ahead - Economic events and other releases (GMT)

• No significant events

EUR/USD: The euro edged higher against dollar on Monday as brighter world growth prospects and optimism over the coronavirus vaccine rollout supported euro. Trading volumes were thin on Monday with markets in China, Hong Kong and the United States shut for local holidays. Market participants   awaited minutes of the U.S. Federal Reserve’s Federal Open Market Committee meeting at the end of January, due on Wednesday. Immediate resistance can be seen at 1.2137(50%), an upside break can trigger rise towards 1.2209 (61.8%fib).On the downside, immediate support is seen at 1.2065 (38.2%fib), a break below could take the pair towards 1.2000 (Psychological level).

GBP/USD: The British pound climbed above $1.39 on Monday as hopes for the end of a third national lockdown boosted sterling. COVID-19 vaccination programme in the United Kingdom raised hopes that its economy will be able to recover more swiftly than its European peers.British Prime Minister Boris Johnson will judge this week how fast England can exit its COVID-19 lockdown after vaccinating 15 million of its most vulnerable people. Immediate resistance can be seen at 1.3909(23.6%fib), an upside break can trigger rise towards 1.4000(Psychological level).On the downside, immediate support is seen at 1.3843 (Daily low), a break below could take the pair towards 1.3895 (38.2%fib).

USD/CAD: The Canadian dollar rose against its U.S. counterpart on Monday, as higher oil prices and hopes of new fiscal aid from Washington boosted Canadian dollar. Unprecedented amounts of stimulus since the pandemic began have spurred bets of a global economic recovery, with U.S. President Joe Biden’s progress in passing a $1.9 trillion aid package further renewing interest commodity linked currency. The Canadian dollar was last trading up 0.4% at 1.2638 to the greenback .Immediate resistance can be seen at 1.2638 (5DMA), an upside break can trigger rise towards 1.2757 (Icimoku Cloud base).On the downside, immediate support is seen at 1.2630(23.6%fib), a break below could take the pair towards 1.2600(Psychological level).

USD/JPY: The dollar strengthened against the Japanese yen on Monday as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package strengthened dollar. Many financial markets in Asia remained closed on Monday for Lunar New Year, while U.S. stock markets will be shut for Presidents Day. Later in the week, all eyes will be on the release of minutes from the U.S. Federal Reserve's January meeting, where policymakers decided to leave rates unchanged, for hints to the likely direction of monetary policy. Strong resistance can be seen at 105.42 (23.6%fib), an upside break can trigger rise towards 106.00(Psychological level ).On the downside, immediate support is seen at 104.87 (38.2%fib), a break below could take the pair towards 104.40 (50%fib).

Equities Recap

European shares scaled one-year highs on Monday and mining stocks tracked a jump in copper prices as bets of more U.S. stimulus fuelled optimism around a faster global economic recovery this year.

UK's benchmark FTSE 100 closed up by  0.30 percent, Germany's Dax ended up by 2.84 percent, France’s CAC finished the day up by 1.45 percent.

U.S. stock markets were closed Monday for the Presidents Day holiday.

Commodities Recap

Platinum prices climbed to their highest level in over six years on Monday, buoyed by expectations of a wider supply-demand deficit for the industrial metal as investors bet on a swift global economic rebound.

Platinum, rose 3.6% to $1,298.02 an ounce by 1521 GMT, having touched $1,304.00, its highest since September 2014.

Spot gold fell 0.3% to $1,817.41 per ounce pressured by U.S. Treasury yields topping a near 11-month peak on Friday, and as global shares scaled a fresh record peak.U.S. gold futures eased 0.3% to $1,818.20.

 Oil prices rose higher, reaching its highest level since January 2020 on hopes U.S. stimulus will boost the economy and fuel demand and after a Saudi-led coalition fighting in Yemen said it intercepted an explosive-laden drone fired by the Iran-aligned Houthi group.

Brent crude rose 1.2% to $63.15 a barrel. U.S. crude oil gained 1.2% to $60.21, just off earlier highs.


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