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  |   Market Roundups


America’s Roundup: Dollar rallies on U.S. recovery hopes, Wall Street gains,Gold slips, Oil prices drop 4% as new lockdowns undermine hopes for economic recovery-March 26th,2021

Market Roundup

• US Jobless Claims 4-Week Avg   736.00K, 746.25K previous

• US Initial Jobless Claims 684K, 730K forecast, 770K previous

• US Continuing Jobless Claims 3,870K, 4,043K forecast, 4,124K previous

• US Core PCE Prices (Q4) 1.30%,1.40% forecast,1.40% previous

• US GDP Price Index (QoQ) (Q4) 1.9%, 2.0% forecast ,3.7% previous

• US GDP (QoQ) (Q4) 4.3%,4.1% forecast ,33.4% previous

• US PCE Prices (Q4) 1.5%, 1.5% forecast , 1.6% previous

• US Corporate Profits (QoQ) (Q4)   -3.3%, 27.0% previous

• US GDP Sales (Q4) 2.9%,3.0% forecast , 3.0% previous

• US Natural Gas Storage-36B,-25B forecast,-11B previous

• US March KC Fed Composite Index 26, 24 previous

• US KC Fed Manufacturing Index   23, 26 previous

Looking Ahead - Economic Data (GMT) 

•23:30 Japan March CPI Tokyo Ex Food and Energy (MoM)  0.1% previous

•23:30 Japan March Tokyo CPI (YoY)  -0.3% previous

•23:30 Japan March Tokyo Core CPI (YoY)  -0.2% forecast , -0.3% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro dipped against dollar on Thursday as as extended lockdowns and worries about the pace of vaccinations across Europe hobbled the common currency. European Union leaders meet on Thursday to discuss a coordinated path out of the COVID-19 pandemic as infections surge again in many of their countries, seeking agreement on how to ramp up supplies of vaccines after a feeble start to inoculation. Ahead of the summit, French President Emmanuel Macron spelt out the frustration over vaccine rollouts that are far behind those of Britain and the United States, acknowledging that European leaders had been too timid. Immediate resistance can be seen at 1.1800 (23.6%fib), an upside break can trigger rise towards 1.1846(5DMA).On the downside, immediate support is seen at 1.1758(Daily low), a break below could take the pair towards 1.1700(Psychological level).

GBP/USD: Sterling steadied against the dollar on Thursday after two consecutive days of losses prompted by fears that the European Union might ban vaccine exports to Britain, which relies on them for its inoculation campaign. The pound has lost over 1% against the dollar this week, as the EU, which has lagged Britain and the United States in rolling out vaccines, considers the measure. A rise in bond yields as well as some risk aversion in markets have also broadly benefited the dollar in recent weeks.  Immediate resistance can be seen at 1.3773(38.2%fib), an upside break can trigger rise towards 1.3835 (5DMA).On the downside, immediate support is seen at 1.3669(38.2 %fib), a break below could take the pair towards 1.3600(Psychological level).

 USD/CAD: The Canadian dollar fell to a two-week low against its broadly stronger U.S. counterpart on Thursday, as oil prices fell and Canada's long-term bond yields dropped further below those in the United States. Canada's 10-year yield was down 2.4 basis points at 1.451%, extending its pullback from a 14-month high last Thursday at 1.677%. The Canadian dollar was trading 0.3% lower at 1.2614 to the greenback, or 79.28 U.S. cents, having touched its weakest since March 10 at 1.2628..Immediate resistance can be seen at 1.2649 (5 DMA), an upside break can trigger rise towards 1.2666 (38.2% retracement level).On the downside, immediate support is seen at 1.2561 (9 EMA), a break below could take the pair towards 1.2490 (23.6%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday as investors looked past rising coronavirus cases in Europe and focused on signs that the U.S. economy was rebounding from the pandemic faster than anticipated. The dollar index hit its highest since November overnight, at 92.697, breaking its 200-day moving average.The dollar index rose 0.298%, with the euro down 0.4% to $1.1765.Strong resistance can be seen at 109.39 (23.6%fib), an upside break can trigger rise towards 110.00(Psychological level ).On the downside, immediate support is seen at 108.78(9 EMA), a break below could take the pair towards 108.47 (38.2%fib).

Equities Recap

European stocks ended lower on Thursday as fears over extended coronavirus restrictions in the eurozone sparked a flight from energy and financial stocks to firms seen as safer during heightened economic uncertainty.

UK's benchmark FTSE 100 closed down by. 0.57 percent, Germany's Dax ended up by 0.08 percent, France’s CAC finished the day up by 0.09 percent.

U.S. stocks rose   on Thursday as investors bought stocks likely to do well in the recovery and picked up beaten-down Apple and Tesla shares in anticipation that the U.S. economy grows at its fastest pace in decades this year.

Dow Jones closed up by 0.62 percent, S&P 500 ended up by 0.52 percent, Nasdaq finished the day up by 0.12 percent.

Treasuries Recap

Treasury yields jumped on Thursday after the Treasury Department saw tepid interest for an auction of seven-year notes for the second month in a row, though yields came off their highs as quarter-end rebalancing was seen as boosting demand for bonds.

Seven-year note yields got as high as 1.293%, before retracing to 1.217%. Benchmark 10-year note yields  rose to 1.642%, before falling back to 1.616%.

Commodities Recap

Gold prices eased on Thursday as a stronger U.S. dollar overshadowed support from lower bond yields and worries that lockdowns across Europe would take a toll on the pace of economic recovery.

Spot gold   was down 0.3% at $1,728.58 per ounce by 1156 GMT. U.S. gold futures were down 0.3% at $1,728.30 per ounce.

Oil prices fell 4% per barrel on Thursday, extending a string of market weakness on renewed lockdowns in Europe and Asia to head off a rising coronavirus infection rate.

Brent crude fell $2.46, or 3.8%, to settle at $61.95 a barrel. U.S. West Texas Intermediate (WTI) crude fell $2.62, or 4.3%, to settle at $58.56 a barrel.

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