|   Market Roundups


  |   Market Roundups


America’s Roundup: Dollar rises vs major currencies ahead of Fed meeting, Gold firms, Wall Street ends higher,Oil falls on India's COVID rise; OPEC+ limits drop-April 27th,2021

Market Roundup

• US Feb Average Hourly Earnings   (YoY) 3.0%,forecast, 3.1% previous

•   US Feb Average Hourly Earnings (MoM) 0.3%,0.3%forecast, 0.2% previous

•   US Feb Average Weekly Hours 34.4, 34.3 forecast, 34.3 previous

•   US Exports208.60B,209.60B previous

•   US Imports 253.90B,  258.50B previous

•   US Feb Manufacturing Payrolls15K, -3K forecast, -12K previous

•   US Feb Nonfarm Payrolls 273K,175K forecast, 225K previous 

•   US Feb Participation Rate63.4%, 63.4% previous

•   US Feb Private Nonfarm Payrolls 228K, 160K, 206K previous

•   US Feb U6 Unemployment Rate 7.0%,6.9% previous

•   US Jan Trade Balance-45.30B, -46.10B forecast, -48.90B previous

•   US Feb Unemployment Rate3.5%, 3.6% forecast, 3.6% previous

•   Canada Feb Employment Change 30.3K, 10.0K forecast, 34.5K previous           

• Canada Jan Exports 48.14B, 50.10B forecast, 49.32B previous                                                  

•   Canada Jan Trade Balance-1.47B, -0.83B forecast, -0.40B previous      

•   Canada Feb Ivey PMI 54.1, 57.3 previous

Looking Ahead - Economic Data (GMT) 

• No data ahead

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro roared past $1.13 on Friday, as a dramatic collapse in U.S. government bond yields sent the dollar on course for its worst week since 2016. The euro last stood at $1.1340, its strongest since August. Investors have slashed their expectations for U.S. interest rates following an emergency Federal Reserve 50 basis point cut this week. That is wiping away the yield advantage that had fuelled one of the popular carry trades globally borrowing at negative rates in the euro and yen to buy U.S. assets. Immediate resistance can be seen at 1.1340 (Daily high), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1199 (5 DMA), a break below could take the pair towards 1.1156 (300 DMA).

GBP/USD: Sterling rose against dollar on Friday, as comments from the European Union’s Brexit chief negotiator that a trade deal between Britain and the bloc was still possible this year boosted British pound.EU negotiator Michel Barnier said the two had “very serious” differences about their future relationship, but a deal remained possible. Sterling against the dollar was on course for its best week since mid-December. Sterling was last trading up 0.3% at $1.3048.Imediate resistance can be seen at 1.3080 (Higher BB), an upside break can trigger rise towards 1.3100 (Psychological level).On the downside,strong support is seen at 1.2927 (21 DMA), a break below could take the pair towards 1.2883 (9 DMA).

USD/CAD: The Canadian dollar weakened on Friday against its U.S. counterpart, while government bond yields tumbled as concerns about the economic impact of the spreading coronavirus grew, even after data showed Canada’s employers added more jobs in February than expected. Data showed Canada’s economy gained a net 30,300 jobs in February, entirely in full-time work, Statistics Canada said on Friday. The jobless rate edged up to 5.6%.U.S. employers added 273,000 jobs in the month with the jobless rate falling back to near a 50-year low of 3.5%. Immediate resistance can be seen at 1.3445 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3382 (5 DMA), a break below could take the pair towards 1.3346 (11 DMA).

USD/JPY: The dollar declined against the Japanese yen on Friday as fear the coronavirus outbreak will slam the global economy drove investors to snap up risk-adverse assets, overshadowing data highlighting a strong U.S. labor market.  The number of people infected with the new coronavirus across the world surpassed 100,000 on Friday as its economic toll intensified, with business districts beginning to empty and companies bracing for slower sales.A U.S. jobs report showed employers maintained a robust pace of hiring in February, driving solid wage growth and the unemployment rate to fall back to near a 50-year low of 3.5%.  Strong resistance can be seen at 106.33 (Daily high), an upside break can trigger rise towards 106.89 (5 DMA).On the downside, immediate support is seen at 104.96 (Daily low), a break below could take the pair towards 104.41  (Aug 24th 2019 low).

Equities Recap

European shares plummeted on Friday amid widespread fears of the coronavirus hampering business activity, with oil and gas stocks bearing the brunt of losses after steep declines in crude prices..

UK's benchmark FTSE 100 closed up by  1.13 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day up by 0.44 percent.                        

U.S. stocks bounced back from recent losses on Monday, as the focus turned to assurances of central bank stimulus to counter the economic fallout from the coronavirus outbreak.

Dow Jones closed down  by  0.98% percent, S&P 500 closed down by 1.71% percent, Nasdaq settled down  by 1.87%  percent.

Treasuries Recap

Yields on long-dated U.S. Treasury bonds fell to record lows on Friday as concern that the coronavirus outbreak will hammer the world economy sent investors fleeing to assets seen as safe havens in turbulent times.

The 10-year Treasury yield fell to a record low of 0.695% and was last down 16 basis points (bps) on the day.

The 30-year Treasury yield dropped more than 20 bps to a record low of 1.28%. It was on course for its biggest daily fall since late 2011 during the depths of the euro zone sovereign debt crisis.

Commodities Recap

Gold prices swung more than 1% on Friday, sliding from a seven-year high as investors sold the precious metal to cover margin calls as the rapid spread of the coronavirus hammered equity markets.

Spot gold was up 0.1% at $1,671.24 per ounce by 1:58 p.m. EST (1858 GMT). U.S. gold futures  settled 0.3% higher $1,672.40.

Oil prices tanked over 8% on Friday and hit their lowest since mid-2017 after Russia balked at OPEC’s proposed steep production cuts to stabilize prices as the coronavirus outbreak slows the global economy and hurts energy demand.

Brent futures fell $4.08, or 8.2%, to $45.91 a barrel by 12:22 p.m. EST (1722 GMT), while U.S. West Texas Intermediate crude fell $3.80, or 8.3%, to $42.10 per barrel.

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