|   Market Roundups


  |   Market Roundups


America’s Roundup: U.S. dollar gives up earlier gains, Wall Street ends higher, Gold gains, Oil prices drop as India’s COVID-19 surge dents demand outlook-April 22nd,2021

Market Roundup

• Canada Trimmed CPI (YoY) 2.2%,1.9% previous

• Canada Median CPI (YoY) 2.1%,2.0% previous

• Canada Common CPI (YoY) 1.5%,1.3% previous

• Canada CPI Mar (MoM) 0.6,5%  0.6% forecast, 0.5% previous

• Canada   Mar Core CPI YoY 1.4%,1.2% previous

• Canada   Mar CPI (YoY) 2.2%, 2.3% forecast, 1.1% previous

• Canada  Mar Core CPI (MoM)  0.3%,0.3% previous

• Canada BoC Interest Rate Decision 0.25%, 0.25% forecast, 0.25% previous

• US Gasoline Inventories 0.086M,0.464M forecast, 0.309M previous

• US Cushing Crude Oil Inventories  -0.229M,0.346M previous

• US Crude Oil Inventories 0.594M,-2.975M forecast, -5.889M previous

Looking Ahead - Economic Data (GMT)

• 23:50 Japan Foreign Investments in Japanese Stocks 640.9B previous

• 23:50 Japan Foreign Bonds Buying 1,714.4B previous

•01:30 Australia NAB Quarterly Business Confidence 14 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events


EUR/USD: The euro declined against dollar on Wednesday as rising coronavirus cases dampened sentiment towards global economic growth. Recent optimism regarding rising vaccination rates in the United States, Britain and European Union is shifting to concern that record coronavirus infections in India and a reinforcement of travel restrictions can act as a brake on the world economy. Investor focus also turned to Thursday’s ECB meeting. The bank is largely expected to keep policy on hold, while investors are looking for clarity on how it will react to economic recovery in Europe,. Immediate resistance can be seen at 1.2040(38.2%fib), an upside break can trigger rise towards 1.2078(20th April high).On the downside, immediate support is seen at 1.1979 (50%fib), a break below could take the pair towards 1.1958(11DMA).

GBP/USD: Sterling held its ground against the dollar on Wednesday as traders assumed a rise in inflation in March would have little impact on monetary policy and waited for crucial activity and retail sales data due at the end of the week. Consumer price inflation rose to 0.7% in March after dipping to just 0.4% in February, as global oil prices rose and retailers scaled back their COVID-driven discounts. Immediate resistance can be seen at 1.3978 (38.2%fib), an upside break can trigger rise towards 1.4000 (Psychological level).On the downside, immediate support is seen at 1.3890(50%fib), a break below could take the pair towards 1.3819 (9DMA).

 USD/CAD :The Canadian dollar rose sharply on Wednesday to hit a one-month high against its U.S. counterpart  as domestic data showed higher underlying inflation and the Bank of Canada signaled it could hike interest rates as soon as next year. Canada's central bank kept its key interest rate on hold at a record low of 0.25% but sharply raised its outlook for the economy, saying it now expects slack to be absorbed in the second half of 2022, increasing the likelihood of a hike in borrowing costs next year. The Canadian dollar was trading 1% higher at 1.2480 to the greenback , its biggest advance since June last year.  hike in borrowing costs next year.  Immediate resistance can be seen at 1.2528 (38.2%fib), an upside break can trigger rise towards 1.2628 (50%fib).On the downside, immediate support is seen at 1.2467 (Lower BB), a break below could take the pair towards 1.2368(23.6% fib).

USD/JPY: The dollar dipped against Japanese yen on Wednesday a greenbacks recovery  was interrupted after Canada's central bank signaled an interest rate hike in 2022 and reduced the scope of its asset-buying program.The dollar index, which tracks the U.S. currency against six major peers, turned down after the announcement from the Bank of Canada and was off by 0.1% at noon (1600 GMT) in New York after having been up as much as 0.24% for the day. The Japanese yen, often seen as a safer refuge than the dollar, gained against the greenback to 107.86 but then drifted back to 108.06. Strong resistance can be seen at 108.47 (38.2%fib), an upside break can trigger rise towards 108.73 (9DMA).On the downside, immediate support is seen at 107.83(23.6%fib), a break below could take the pair towards 107.40(Lower BB).

Equities Recap

European stocks bounced back on Wednesday after their worst sell-off this year as optimism about a strong earnings season countered worries about a rapid rise in COVID-19 cases in some countries.

UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down  by 0.05 percent, France’s CAC finished the day down by 0.40 percent.

Wall Street rebounded on Wednesday after a two-day decline in a broad rally as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc’s sell-off after its disappointing results a day earlier.

Dow Jones closed up by  0.93 % percent, S&P 500 closed up by 0.93 % percent, Nasdaq settled up by 1.13%  percent.

Treasuries Recap

U.S. Treasury yields remained range-bound on Wednesday even after an auction of 20-year bonds showed strong demand, a pattern analysts expect to persist until next week's data releases and Federal Reserve meeting.

The two-year yield remained anchored, which also left the yield curve - as measured by the spread between two- and 10-year yields - at 141 basis points, roughly the same as Tuesday's close.

Commodities Recap

Gold prices rose on Wednesday, supported by falling U.S. Treasury yields and sagging global stocks as surging coronavirus cases revived fears about the global economy.

Spot gold climbed 0.5% to $1,786.06 per ounce at 1247 GMT. U.S. gold futures        gained 0.5% to $1,788 per ounce.

Oil prices on Wednesday fell for a second day to their lowest in a weekon asurprise build in U.S. crude inventories and concerns surging COVID-19 cases in India will drive down fuel demand in the world's third-biggest oil importer.

Brent futures fell $1.30, or 2.0%, to $65.27 a barrel by 1:54 p.m. EDT (1754 GMT), while U.S. West Texas Intermediate (WTI) crude for June fell $1.44, or 2.3%, to $61.23

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