America’s Roundup: Dollar index hits six-week low, Wall Street slips from record highs, Gold slips from 7-week top, Oil gains as dollar drops, gains capped by rise in Covid-19 cases-April 20th,2021

Posted at 19 April 2021 / Categories Market Roundups

Market Roundup

• French 12-Month BTF Auction -0.622%, -0.629% previous

• French 3-Month BTF Auction -0.630%, -0.630% previous

• French 6-Month BTF Auction -0.618% ,-0.633% previous

• US 3-Month Bill Auction 0.025%, 0.020% previous

• US 6-Month Bill Auction  0.040%,0.040% previous

Looking Ahead – Economic Data (GMT)

•01:30 China  PBoC Loan Prime Rate 3.85% forecast, 3.85% previous

•04:30 Japan Tertiary Industry Activity Index (MoM) -1.7% previous

Looking Ahead - Economic events and other releases (GMT)

•01:30 Australia RBA Meeting Minutes

Currrency Summaries 

EUR/USD: The euro rose against dollar on Monday as investors attention turned to ECB meeting. The European Central Bank meets on Thursday with internal divisions over the speed of bond purchasing, expanded COVID-19 lockdowns and likely deferrals to the EU recovery fund form the background. Markets are watching what the ECB says and does intently in the midst of indications of conflict among policymakers over the future pace of bond purchase particularly once a recovery grabs hold. The euro was last trading  at $1.2035, up 0.45% on the day and near its highest against the dollar since March 4. Immediate resistance can be seen at 1.2054(23.6%fib), an upside break can trigger rise towards 1.2100(Psychological level).On the downside, immediate support is seen at 1.1991 (38.2%fib), a break below could take the pair towards 1.1943(50%fib).

GBP/USD: Sterling rose to hit fourteen day high against the dollar on Monday ahead of many significant data which is expected to give more proof that Britain's economy is bouncing back from its most profound downturn in 300 years. The pound had a solid first quarter, helped by a quick carry out of COVID-19 vaccination across Britain and by lessening assumptions for negative interest rates. The pound versus a declining dollar, rose 0.1% to $1.3986 at 0835, it most elevated level since April 6. Immediate resistance can be seen at 1.3928 (Daily high), an upside break can trigger rise towards 1.3960 (23.6%fib ).On the downside, immediate support is seen at 1.3854  (50%fib), a break below could take the pair towards 1.3800 (5DMA).

USD/CAD: The Canadian dollar strengthened to a one-month high against its U.S. counterpart on Monday, as the greenback broadly declined and investor’s awaited Bank of Canada interest rate decision on Wednesday.  The U.S. dollar tumbled to its lowest level in almost seven weeks against major currencies as the Federal Reserve's view that any spike in inflation was probably going to be brief burden on Treasury yields. The Canadian dollar was trading 0.1% higher at 1.2492 to the greenback , having touched its highest intraday level since March 19 at 1.2471.Immediate resistance can be seen at 1.2542 (9DMA), an upside break can trigger rise towards 1.2597 (Ichimoku Cloud Base).On the downside, immediate support is seen at 1.2446 (23.6%fib),a break below could take the pair towards 1.2400 (Psychological level).

USD/JPY: The dollar declined against  Japanese yen on Monday as markets sorted out the dive in U.S. treasuries yields last week after the Federal Reserve repeated that any spike in inflation is probably going to be temporary. Improved risk sentiment shown by stocks to record highs also weighed on the greenback. The greenback's shortcoming was pronounced across the board on Monday, with the greenback hitting multi-week lows against significant companions in the G10 gathering of currencies, the Japanese yen, the Swiss franc, the Australian dollar and the New Zealand dollar, and the euro. Strong resistance can be seen at 108.57 (38.2%fib), an upside break can trigger rise towards 108.78 (5DMA).On the downside, immediate support is seen at 108.15(23.6%fib), a break below could take the pair towards 107.77(Lower BB).

Equities Recap

European stocks crept higher on Monday, extending their exceptional rally, as optimism about a strong beginning to the earning season counterbalanced a stressing resurgence in COVID-19 cases globally.

UK's benchmark FTSE 100 closed down by 0.28 percent, Germany's Dax ended down  by 0.59 percent, France’s CAC finished the day up by 0.15 percent.

U.S. stocks ended lower on Monday, slipping from a week ago's record levels, as investors anticipated direction from first-quarter earning to justify high valuations, while Tesla Inc shares fell after a deadly car crash..

Dow Jones closed down by  0.36% percent, S&P 500 closed down by 0.53% percent, Nasdaq settled down by 0.98%  percent.

Treasuries Recap

U.S. Treasury yields were higher on Monday even as stock markets slumped, as investors looked forward to a Wednesday bond auction.

The benchmark 10-year yield was up 3.2 basis points in afternoon trading at 1.6047% after reaching as high as 1.617% during the morning. The level was well above the multiweek low of 1.528% reached April 15.

Commodities Recap

Gold pulled back from an over seven-week top on Monday as U.S. Treasury yields gained, weighing on-yielding bullion's allure and countering support from a more vulnerable dollar.

Spot gold was down 0.3% at $1,770.97 per ounce by 1:41 p.m. EDT (1741 GMT) after touching $1,789.77, the highest since Feb. 25. U.S. gold futures settled down 0.5% at $1,770.60.

Oil edged higher on Monday, supported by a more fragile U.S. dollar however gains were capped by worries about the effect on demand from rising Covid cases in India.

Brent crude settled up 28 cents, or 0.4%, at $67.05 a barrel, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil ended the session up 25 cents, or 0.4%, at $63.38 a barrel, having gained 6.4% last week.

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