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America’s Roundup: Dollar eases off of two-week high ahead of jobs report as mega cap , Wall Street rises , Gold firms, Oil ends little changed, U.S. oil inventories fall-May 6th,2021

Posted at 05 May 2021 / Categories Market Roundups


Market Roundup

•Brazil April Markit Composite PMI 42.9 ,45.1 previous

•Brazil April Markit Services PMI 44.5, 44.1 previous

•US Apr ISM-New York Index  804.5 previous

•US Apr ISM NY Business Conditions 37.2% previous

•US Apr Markit Composite PMI 63., 62.2 previous

•US Apr Services PMI 64.7, 63.1 previous

•US Apr ISM Non-Manufacturing Business Activity 62.7,69.5 forecast, 69.4 previous

•US Apr ISM Non-Manufacturing PMI  62.7,64.3 forecast, 63.7 previous

•US Apr ISM Non-Manufacturing New Orders 63.2,67.2 previous             

•US Apr ISM Non-Manufacturing Employment  58.8,57.2 previous

•US Gasoline Inventories 0.737M,-0.652M forecast, 0.092M previous

•US Crude Oil Inventories-7.990M, -2.346M, 0.090M previous

Looking Ahead - Economic Data(GMT)

•22:45 New Zealand March Building Consents (MoM)    -18.2% previous

•23:40 Japan Foreign Bonds Buying 132.8B previous

•23:30 Japan Foreign Investments in Japanese Stocks 492.2B previous

•01:00 New Zealand ANZ Business Confidence -2.0 previous

•China Apr Caixin Services PMI   54.3 previous

•China Apr Chinese Composite PMI 53.8 previous

Looking Ahead - Economic events and other releases (GMT)

•23:30 Japan Monetary Policy Meeting Minutes

Currencies Summaries

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: Pound edged higher against the dollar on Wednesday as a survey showed Scotland's pro -independence party was probably not going to win an out and out lion's share in Thursday's political race, undermining its expectations for referendum on separating from Britain. The Scottish National Party (SNP) needs a majority share in the parliament to request another referendum, albeit British Prime Minister Boris Johnson emphasized that he won't concede one. Policymakers at the Bank of England meet on Thursday when it will publish its May Monetary Policy Report. Analysts however believe it is probably too early in the economic recovery cycle for the BoE to announce a reduction of its bond-buying scheme, let alone raise interest rates. 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/CAD :The Canadian dollar strengthened to its highest level in more than three years against its U.S. counterpart on Wednesday, supported by improved investor sentiment and the Bank of Canada's recent shift to more hawkish guidance. Last month, the Bank of Canada cut the pace of its bond purchases and signaled it could hike interest rates in late 2022.Further clues to the central bank's policy outlook could come from Canada's April employment report, due for release on Friday. The Canadian dollar was trading 0.2% higher at 1.2280 to the greenback, having touched its strongest intraday level since February 2018 at 1.2252.Immediate resistance can be seen at 1.2352(38.2%fib), an upside break can trigger rise towards 1.2444 (21DMA).On the downside, immediate support is seen at 1.2219 (Lower BB), a break below could take the pair towards 1.3141 (23.6%fib).

USD/JPY: The dollar   eased against the yen on Wednesday as U.S. economic data came in a bit softer than expected and traders awaited a key jobs report at the end of the week.U.S. private payrolls rose by the most in seven months in April, ADP data showed on Wednesday, as companies boosted production to meet a surge in demand amid massive government spending and rising COVID-19 vaccinations. But the 742,000 private jobs created fell short of the 800,000 jobs expected by economists. The dollar index, which measures the greenback against a basket of peer currencies, was last at 91.319 after rising as high as 91.436 earlier in the session, its highest since April 19. 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 marked their best day in nearly two months on Wednesday, recovering from a sharp sell-off in the previous session as resource stocks hit a 10-year high, while data showed euro zone business activity picked up in April.

UK's benchmark FTSE 100 closed up by   1.68% percent, Germany's Dax ended up by  2.12% percent, France’s CAC finished the day up by 1.40  percent.                        .                              

Wall Street’s main indexes and the Dow hit a record high on Wednesday, as growth stocks bounced from a steep selloff in the previous session and a survey showed private jobs rose in April.

Dow Jones was closed upby 0.29% percent, S&P 500 closed up at  0.07% percent, Nasdaq settled down   by 0.37% percent.

Treasuries Recap

U.S. Treasury yields drifted lower on Wednesday as inflation expectations leaped to multi-year highs even as Federal Reserve officials downplayed the risk of a big and sustained rise in inflation.

The breakeven rate on 10-year Treasury Inflation-Protected Securities (TIPS) topped 2.47%, its highest level since April 2013, indicating the markets sees inflation averaging closer to 2.5% a year for the next decade.

Comedies Recap

Gold firmed on Wednesday as the dollar and U.S. Treasury yields eased, while palladium held near record highs propped up by supply constraints.

Spot gold   rose 0.3% to $1,784.23 per ounce by 1:50 p.m. EDT (1750 GMT), after falling about 0.8% on Tuesday. U.S. gold futures   settled up 0.5% at $1,784.30.

Oil ended little changed on Wednesday after two days of gains despite a sharp drawdown in U.S. crude stocks, as the market weighs the outlook for demand with coronavirus infections still surging worldwide.

Brent crude settled at $68.96 a barrel, up 8 cents. U.S. West Texas Intermediate (WTI) crude settled at $65.63 a barrel, down 6 cents.

 


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