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America’s Roundup: Dollar stabilizes after Powell remarks, S&P 500 closes higher, Gold slid, Oil settles mixed amid post-storm uncertainty, Oil settles mixed amid post-storm uncertainty-February 24th,2021

Market Roundup

• US Redbook (MoM) -0.8%, -0.9% previous

• US Redbook (YoY) 2.9%, 4.0% previous

• US Dec House Price Index (MoM) 1.1%, 1.0% previous

• US Dec House Price Index 313.5, 310.1 previous

• US Dec S&P/CS HPI Composite - 20 s.a. (MoM)  1.3%,1.3% forecast, 1.4% previous

• US Dec S&P/CS HPI Composite - 20 n.s.a. (YoY) 10.1%, 9.9% forecast,9.1% previous

• US Feb Richmond Manufacturing Shipments 14, 10 previous

• US Feb CB Consumer Confidence   91.3 ,90.0 forecast, 89.3 previous

• US Feb Dallas Fed Services Revenues 2.6 , 0.8 previous

• US Feb Texas Services Sector Outlook  5.0, -1.2 previous

Looking Ahead - Economic Data (GMT)

•06:00 Australia Wage Price Index (QoQ) (Q4) 0.3% forecast, 0.1% previous

•06:00 Australia Wage Price Index (YoY) (Q4) 1.1%1.4%,1.4% previous

•06:00 Australia Construction Work Done (QoQ) (Q4) 1.0% forecast, -2.6% previous

•06:30   New Zealand RBNZ Interest Rate Decision 0.25% forecast,  0.25% previous

Looking Ahead - Economic events and other releases (GMT)

•06:30 New Zealand RBNZ Monetary Policy Statement

•06:30 New Zealand RBNZ Rate Statement

•06:30 New Zealand RBNZ Press Conference

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined against dollar on Tuesday as investors dumped euro, though remarks by Federal Reserve Chair Jerome Powell limited declined . In his testimony to the Senate Banking Committee, Powellpushed back on suggestions that the U.S. central bank's support for the economy risked inflating a dangerous asset bubble. Fears of a potential spike in inflation from a raft of stimulus measures and a rise in bond yields have triggered  selloff In euro. Immediate resistance can be seen at 1.2172(50%fib), an upside break can trigger rise towards 1.223 (61.8%fib).On the downside, immediate support is seen at 1.2112(38.2%fib), a break below could take the pair towards 1.2029 (23.6%fib).

GBP/USD: Sterling edged higher against   dollar on Tuesday   after Prime Minister Boris Johnson set out a schedule for easing lockdown, while British finance minister Rishi Sunak added that more job support would be unveiled next week. The pound has strengthened almost 3% in February against the dollar as traders expect that Britain’s speedy vaccine roll out will help its economy rebound from the biggest contraction in 300 years. Sterling rose to $1.4098 versus the dollar, its highest level since April 2018. It was up last up 0.2% at $1.4082. Immediate resistance can be seen at 1.4075 (23.6%fib), an upside break can trigger rise towards 1.4100(Psychological level).On the downside, immediate support is seen at 1.4024(38.2%fib), a break below could take the pair towards 1.3980 (23.6%fib).

USD/CAD: The Canadian dollar was little changed against the greenback on Tuesday, holding near its strongest level in nearly three years as investors weighed prospects of higher inflation and the Bank of Canada said the rollout of vaccines would boost the economy. The Canadian dollar was trading nearly unchanged at 1.2606 to the greenback, or 79.33 U.S. cents, having traded in a range of 1.2585 to 1.2647. On Monday, the loonie touched its strongest intraday level since April last year at 1.2576. Immediate resistance can be seen at 1.3437(Daily high), an upside break can trigger rise towards 1.3467 (Feb 28th high).On the downside, immediate support is seen at 1.3386 (5 DMA), a break below could take the pair towards 1.3332 (11 DMA).

USD/JPY: The dollar strengthened against the yen on Tuesday after U.S. Federal Reserve chair Jerome Powell pushed back on suggestions that loose monetary policy risked unleashing inflation. The growing likelihood that Congress will pass President Joe Biden’s $1.9 trillion stimulus plan has stoked fears about a possible spike in inflation. As those expectations have risen, so has the popularity of the so-called reflation trade, which this month has pulled the dollar lower.But in testimony before the U.S. Senate Banking Committee, Powell said the central bank would keep its policies in place as it focused attention on getting Americans back to work. Strong resistance can be seen at 105.25 (38.2%fib), an upside break can trigger rise towards 105.68(23.6%fib).On the downside, immediate support is seen at 104.90 (Daily low), a break below could take the pair towards 104.80 (61.8%fib).

Equities Recap

European shares ended lower on Tuesday as high sovereign bond yields pressured heavyweight sectors such as technology, while a batch of mixed corporate earnings cast doubt over the pace of a post-COVID-19 recovery.

UK's benchmark FTSE 100 closed up by 0.21% percent, Germany's Dax ended down by 0.61%percent, France’s CAC finished the day up by 0.22%percent.

Wall Street reversed its losses late Tuesday, with the S&P 500 and the Dow reclaiming positive territory by the close in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy.

 Dow Jones was closed up by 0.05 percent, S&P 500 closed up by 0.13 percent, Nasdaq closed down by 0.50% percent.

Treasuries Recap

The benchmark 10-year U.S. Treasury yield fell on Tuesday after Federal Reserve Chairman Jerome Powell said the economy still needed central bank support.

The 10-year note was down 1.4 basis point at 1.3551% in afternoon trading. It touched a high of 1.389% early Tuesday before Powell testified at a U.S. Senate Banking Committee hearing in Washington.

Commodities Recap

Gold slid as the dollar rebounded from six-week lows, with other precious metals joining the slide. But a degree of angst was reflected in Cboe’s market volatility index, up 6.9% and touching multi-week highs.

Oil prices settled near year-long highs on Tuesday on signs that global coronavirus restrictions were being eased, although concerns about the pace of a U.S. economic recovery and the return of Texas oil production kept gains in check.

U.S. crude settled down 3 cents to $61.67 a barrel, still close to its highest levels since January 2020. Brent crude settled up 13 cents, or 0.2%, to $65.37 a barrel.

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