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Europe Roundup: Euro dips against dollar in wake of US rates talk , European stocks rebound, Gold eases, Oil nears $70 as easing Western lockdowns boost summer demand outlook-May 5th,2021

Posted at 05 May 2021 / Categories Market Roundups


Market Roundup

•Swiss Apr CPI (YoY) 0.3%,0.3% forecast, -0.2% previous

•Swiss Apr CPI (MoM) 0.2%,0.2% forecast, 0.3% previous

•Spanish Unemployment Change-39.0K forecast, -59.1K previous

•Spanish Apr Services PMI  54.6, 50.0 forecast,  48.1 previous

•Sweden Industrial Production (MoM) 1.1%,1.0% previous

•Sweden Mar Industrial New Orders (YoY)  10.0%,5.3% previous

•Italian Apr Composite PMI  51.2, 51.9 previous

• Italian Apr Services PMI  47.3, 49.8 forecast, 48.6 previous

•French Apr Markit Composite PMI  51.6, 51.7 forecast, 50.0 previous

•French Apr  Services PMI  50.3, 50.4 forecast, 48.2 previous

•German Apr Composite PMI  55.8, 56.0 forecast, 57.3 previous

•German Apr Services PMI  49.9, 50.1 forecast, 51.5 previous

• EU Apr Services PMI  50.5, 50.3 forecast, 49.6  previous

• EU Apr Markit Composite PMI  53.8, 53.7 forecast, 53.2 previous

• EU March PPI (YoY) 4.3%,4.2%                forecast, 1.5% previous

•US Mortgage Refinance Index 3,188.7, 3,185.3 previous

•US Mortgage Market Index 700.4, 706.6 previous          

 •US MBA 30-Year Mortgage Rate 3.18%,3.17% previous

Looking Ahead - Economic Data (GMT)

•12:30 Brazil April Markit Composite PMI  45.1 previous

•12:30 Brazil April Markit Services PMI  44.1 previous

•13:45 US Apr ISM-New York Index  804.5 previous

•13:45 US Apr ISM NY Business Conditions 37.2% previous

•13:45 US Apr Markit Composite PMI  62.2 previous

•13:45 US Apr Services PMI  63.1 previous

•14:30 US Apr ISM Non-Manufacturing Business Activity 69.5 forecast, 69.4 previous

•14:30 US Apr ISM Non-Manufacturing PMI  64.3 forecast, 63.7 previous              

•14:30 US Apr ISM Non-Manufacturing New Orders 67.2 previous           

•14:00 US Apr ISM Non-Manufacturing Employment  57.2 previous

•14:30 US Gasoline Inventories -0.652M forecast, 0.092M previous

•14:30 US Crude Oil Inventories -2.346M, 0.090M previous

Looking Ahead - Economic events and other releases (GMT)

•15:00 US FOMC Member Rosengren Speaks

•16:00 US FOMC Member Mester Speaks

•17:00 US Chicago Fed President Evans Speaks

Fx Beat 

EUR/USD: The euro declined against dollar on Wednesday as hints of the potential for higher U.S. interest rates boosted greenback. The greenbacks against versus euro was sparked by comments from U.S. Treasury Secretary Janet Yellen that rate hikes may be needed to stop the economy overheating .The dollar's bounce on Tuesday put pressure on the euro, which dropped once again below the $1.20 mark on Wednesday, hitting its lowest against the buck in over two weeks. Immediate resistance can be seen at 1.2044 (23.6%fib), an upside break can trigger rise towards 1.2059(11DMA).On the downside, immediate support is seen at 1.1980(38.2%fib), a break below could take the pair towards 1.1930(50%fib).

GBP/USD: Sterling was unchanged against the dollar on Wednesday as a poll showing Scotland’s main pro-independence party was unlikely to win an outright majority in Thursday’s election, kept investors cautious. Investors are zeroing on the close term risk of a more hawkish Bank of England than on the long-term risk of Scottish autonomy. Policymakers of the Bank of England meet on Thursday when the central bank will publish its May Monetary Policy Report. At 12:30 GMT, sterling was up just 0.2% at $1.3910. Immediate resistance can be seen at 1.3924(23.6%fib), an upside break can trigger rise towards 1.4005(Higher BB).On the downside, immediate support is seen at 1.3849 (21DMA), a break below could take the pair towards 1.3812 (38.2%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as talk of rising U.S. interest rates boosted greenback. Treasury Secretary Janet Yellen said on Tuesday that rates need to go up higher at some point of time. Yellen on Tuesday said she saw no inflation problem brewing, downplaying earlier comments that rate increases may be needed to stop the economy overheating as U.S. President Joe Biden’s spending plans boost growth. Meanwhile, investors await U.S. services data on Wednesday and April payrolls on Friday for cues on the health of the U.S. economy. Immediate resistance can be seen at 0.9171(38.2%fib), an upside break can trigger rise towards 0.9200 (Psychological level).On the downside, immediate support is seen at 0.9104 (23.6%fib), a break below could take the pair towards 0.9063(Lower BB).

USD/JPY: The dollar gained against the yen on Wednesday as the chance of higher U.S. interest rates boosted the greenback. Dollars gain was supported by comments from U.S. Treasury Secretary Janet Yellen that rate hikes may be required to stop the economy overheating. Yellen later downplayed their importance, but even the slightest mention of U.S. tightening has an outsized impact in markets that have become so dependent on monetary stimulus. The dollar was a shade firmer on the yen at 109.36, but faces resistance at 109.61.Strong resistance can be seen at 109.78 (23.6%fib), an upside break can trigger rise towards 110.00(Psychological level).On the downside, immediate support is seen at 109.02 (38.2%fib), a break below could take the pair towards 108.66 (11DMA).

Equities Recap

European stocks bounced back on Wednesday after a sharp selloff in the previous session, as surging commodity prices lifted mining stocks, while the earnings season kept its positive momentum, brightening the mood in the markets.

At (GMT 12:50),UK's benchmark FTSE 100 was last trading upat 1.21 percent, Germany's Dax was up by 1.81 percent, France’s CAC was last up by 1.14 percent.

Commodities Recap

Gold prices edged lower on Wednesday as the possibility of higher U.S. interest rates supported the dollar, while palladium held near record highs hit in the previous session amid supply worries.

Spot gold was down 0.1% at $1,776.61 per ounce by 1223 GMT, after falling about 0.8% in the previous session. U.S. gold futures were steady at $1,776.20.

Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of COVID-19 infections in India and Japan.

Brent crude rose 75 cents, or 1.1%, to $69.63 a barrel at 1155 GMT. U.S. West Texas Intermediate (WTI) crude was up 67 cents, or 1%, to $66.36 a barrel.


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