Market Update: EURJPY Remains Pattern-Bound, Will We See a Continuation?

Today we’re returning to the EURJPY as the price continues to trade in its ascending triangle price pattern.

Looking at the daily we can see clearly that price: remains in an uptrend, and continues to trade in an ascending triangle price pattern.

In trends, these patterns are normally seen as continuation patterns. Price is seen to be charging diagonally before it finally pushes through resistance confirming a new move higher continuing the current trend. Over the last 2 months, EURJPY buyers turned resistance into support not once but twice thanks to the same pattern.

Last week we saw an attempt by buyers to breakout. This move was blocked by sellers and the price failed to hold and fell back inside the pattern. After that sellers made an attempt of their own but this was rejected maintaining the current level of support. Friday last week buyers returned with a strong session. This session maintained the pattern and got this idea back on track.

So far today sellers have been holding sway and the pattern top continues to hold in place. The story remains the same, we’re waiting to see if buyers can break out of the pattern and confirm a new continuation of the current main trend of the EURJPY price.

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Trading Week Ahead

Last week we saw flat to a mixed week from the majors to the USD. The EUR was an expectation as it rallied strongly mid-week after the ECB rates hold and rates statement. The ECB confirmed that risks remain and things remain clouded in the near term due to the continuing impact of COVID19. At this stage, the ECB advised it wasn’t a time to discuss tapering. Another positive for the EUR was Friday’s PMI data that showed French services increased for the first time since AUG20, and German manufacturing increased. Eurozone services and manufacturing PMI data beat expectations as did UK data, looser pandemic restrictions were seen to help drive the fastest private-sector growth since 2013.

Big News Affected the Markets

The Bank of Canada was another market mover last week when they met. The BOC sent the CAD to 10-month highs after news hit that they cut Q/E purchases to CAD 3 billion a week. The USDCAD was on a bit of a roll before the BOC meeting jumping to 1.2652, after the tapering update price dropped 1.24% from its high ending up back below 1.2500.

Australian retails sales data surprised climbing to 1.4% but this did little to drive the AUD. New Zealand CPI came in as expected at 0.8%. The NZD finished mainly flat to the JPY and had a decent week to the USD.

Stock indexes took a breather last week after several weeks of gains despite Dow was close to a new record. One of the new factors that came into the market was the new tax plan released by president Joe Biden.

President Biden will seek an increase in the tax on capital gains to 39.6% for those Americans earning more than $1 million, this raises taxes on millionaire investors to fund education and other spending priorities as part of an effort to overhaul the U.S. economy. The president is expected to release the proposal formally next week as a way to fund spending in the upcoming American Families Plan. – CNBC

This news looks to have shocked the equity market to a degree. Markets have been sitting very pretty since 2020 on one of the best runs in long while. Investors and traders will now be watching this development closely. If it does have an overly negative impact could this start to form cracks in the bull market?

Oil fell into the red after a decent start to the week. US stockpiles surprised coming in at 0.6M above estimates. OPEC is looking to gradually curb output cuts as demand concerns continue. Gold rallied for the third straight week of buyers retesting 1798.

Bitcoin – The Bigger it Comes, the Harder it Falls

Bitcoin returned to the spotlight last week but not from a record-breaking point of view. Price tumbled trading close to 24% lower at its lows as profit-taking and regulation worries emerged. Over 200 billion was wiped off the cryptocurrency market on Friday alone. Bitcoin traded below $50,000 USD for the first time since March. The market was dramatically overextended. The big question now will be, “Is this just a short-term correction or the start of something bigger?”

Looking Ahead

This week traders will be looking at Biden’s new tax plan and how that could impact equity markets and if momentum shifts how that could influence the USD. Bitcoin’s fall will be a factor this week.

News wise Thursday’s FOMC meeting looks to be the key event of the week. The fund’s rate is expected to remain unchanged but the meat will be in the statement. No changes of surprises in the current bond-buying? The BOJ outlook report and monetary policy are due on Tuesday. Interest remains around the BOJ ETF purchases.

Other points of interest will be OPEC meetings, Australian CPI, and US Advanced GDP which is expected to increase to 6%

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market

The S&P 500 and the Dow edged lower yesterday as a resurgence of COVID-19 cases globally sapped appetite for stocks, while market participants digested earnings from U.S airlines and AT&T, along with mixed readings on economic data. Investor sentiment gradually improved by early afternoon, with seven of the 11 main S&P 500 sectors rising. The S&P 500 healthcare sector hit a fresh record high, while industrials were the biggest gainers. Supporting the mood was data showing the number of Americans filing new claims for unemployment benefits last week dropped to a fresh one-year low. The Labor Department report suggested layoffs were subsiding and expectations were rising for another month of blockbuster job growth in April. Investors are now awaiting quarterly results from technology behemoths next week to provide markets with some direction. Shares of Apple Inc. rose 0.3%, helping the tech-heavy NASDAQ remain afloat.

Dow Jones Industrial Average

The Dow Jones Industrial Average declined 0.94%. The best performer of the session on the Dow Jones Industrial Average was Salesforce.com Inc., which rose 0.39% or 0.89 points to trade at 231.45 at the close. Meanwhile, McDonald’s Corporation added 0.34% or 0.78 points to end at 233.04 and Visa Inc. Class A was up 0.07% or 0.15 points to 227.60 in late trade. The worst performers of the session were Dow Inc., which fell 6.01% or 3.90 points to trade at 60.92 at the close. Walgreens Boots Alliance Inc. declined 2.72% or 1.47 points to end at 52.58 and JPMorgan Chase & Co was down 2.12% or 3.19 points to 147.35.

NASDAQ 100

The NASDAQ index lost 0.94%. The top performers on the NASDAQ Composite were Ocugen, Inc. which rose 42.77% to 9.2800, Codiak BioSciences Inc. which was up 35.41% to settle at 15.87, and Qualtrics International Inc. which gained 22.92% to close at 41.57. The worst performers were Evolus Inc. which was down 18.94% to 9.50 in late trade, Tiptree Inc. which lost 13.01% to settle at 12.37 and Sleep Number Corp which was down 11.92% to 110.04 at the close.

Oil

Oil futures finished with a slight gain yesterday, after falling to their lowest intraday levels in more than a week before reversing course, as traders tried to assess the impact on energy demand of the recent surge in COVID-19 cases in Asia in particular. Despite the pessimism seen this week, the overall oil demand remains robust in two of the largest oil markets, the U.S and China. Data Thursday showing new U.S jobless claims now at pandemic lows strengthens that optimism. Despite the rapidly rising cases in India, economic activity, road traffic, and energy consumption remain well above the levels seen last year. Economic activity and oil demand are not expected to decline to the levels seen last year, even though the COVID-19 cases are far greater. West Texas Intermediate crude for June delivery tacked on 8 cents, or 0.1%, to settle at $61.43 a barrel on the New York Mercantile Exchange after tapping a low at $60.61. For oil prices to build up again, it will take global signs of recovery, and such indications are now scarce in key Asian countries.

Precious and Base Metals

Gold slipped 1% yesterday, retreating from a two-month high, as an uptick in the dollar and U.S Treasury yields hurt the metal's appeal, while palladium lingered near an all-time high. Spot gold was 0.7% lower at $1,780.36 per ounce, after hitting its highest since Feb. 25 at $1,797.67. U.S. gold futures dipped 0.7% to $1,780.90. $1,800 was a bit of psychological resistance, so we've come back with tests. The dollar and the 10-year yields are both a little bit higher and that's pressuring gold as well. The dollar was up 0.1% versus a basket of other major currencies, with the 10- year yield rising as far as 1.587%. Gold has dropped 6% so far this year, mostly pressured by rising yields. The downside in gold is likely to be short-lived amid central bank buying and increasing demand for physical gold from China and India. Switzerland in March recorded its biggest monthly gold exports in ten months as shipments to India jumped. But clouding that outlook was a record COVID-19 surge in the country. Also, dimming bullion's appeal was data showing a drop in claims for unemployment benefits last week, strengthening expectations for another month of job growth in April. Meanwhile, palladium eased off a record high of $2,891.50 per ounce and was last down 1.7% at $2,827.20. Silver slipped 1.6% to $26.14 per ounce and platinum fell 0.7% to $1,205.89. Copper prices in London fell yesterday on subdued demand from physical buyers reluctant to purchase the metal after a 21% rally so far this year, although a softer dollar lent some support. Copper prices have more than doubled since March last year to near a decade high on strong macro and fundamental factors, diminishing appetite from some end-users, especially as an economic recovery in top consumer China slowed.

Traditional Agricultures

Corn, wheat, and soybean futures hit multi-year highs yesterday as concerns about tightening global grain supplies triggered short-covering and fund-driven buying. Wheat futures climbed on unfavorable weather in North America and the prospect of high corn prices boosting demand for wheat in livestock feed. This rally is because corn is in short supply and is likely to remain so in 2021-22.

S o u r c e: News & Quotes (Courtesy: Reuters)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Market Update: US30 Has Support But Can it Clear Resistance to Set New Records?

Hi traders, today we’re looking at the US30 daily chart as buyers have set support, but still have resistance to beat to get the trend back on track.

Looking at the current Dow D1 chart, we can see price remains on two trend lines. With the fast to med-term being the main trend at this point. Price has made a two-bar retracement back to the fast trend before yesterday’s fightback reconfirming current support seen at 33,800. This is why we have noted this point as it’s a repeat of the previous price action. You will notice this support came from previous resistance. This pattern was also seen in March. This can also be called a step.

Resistance becoming support is a good sign in a trend. It’s good to see it repeating as it shows price can respect the pattern. That’s not saying this will work on this occasion but it’s a good sign from a buyer point of view.

Dow price today has also started to test the minor downtrend line, but we still see supply and resistance remaining from 34,110 to 34,180. Buyers need to build on yesterday’s move and break this area of resistance to suggest that we may have a continuation in the process. The next step after that will be a test and break of the current all-time high.

If we see resistance hold and price moves back to support caution on the buy-side could be taken as the current retracement has widening bars which can be seen as a small warning unless US30 price breaks higher.

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Trading Week Ahead

A Mixed Week for Currencies

Last week, we saw some mixed results on the currency front as the USD pulled back as yields fell and profit takers set in. A few factors came into play, one being the IMF upgrading their global growth forecasts. Risk majors were far from unified as the AUD had a mixed week, while the EUR strengthened strongly and the GBP fell. After basically 3-months of gains to the JPY, the USDJPY finally succumb to decent seller pressure. Price was unable to get back to the previous week's highs, and I think that gravity looks to have finally caught up.

Staying on the Yen risk majors had a mixed week with the AUD and GBP falling while the all-conquering EUR moved higher.

The Fed Continues Its Support 

The Fed signaled that the central bank is nowhere near to reducing its support for the US economy. The Fed advised that an uptick in prices will most likely be temporary, and any uptick in COVID cases could slow the recovery. Inflation is also seen to be unlikely at this stage. Some of these points don’t do the USD any favors but are supportive of stocks.

Thursday’s unemployment claims came in higher than expected at 744K this was a touch surprising considering the stronger NFP data seen on the previous Friday.

Stocks Had a Stellar Week

Last week was an excellent week for stock indexes. The Dow and SP500 both hit new all-time highs. Tech stocks looked to have a better week as the Nasdaq outperformed the Dow. The S&P500 was a close second; this index does have a decent tech component, so this was a contributing factor in its gains.

Indexes in Europe moved higher, the FTSE and CAC were the better performers for the week. The DAX and Eurostoxx50 failed to find more momentum after amazing weeks prior.

Oil and Gold Highlights

Oil spent most of the week lower but did see some demand come back into the market on Friday. Crude stockpiles came in at -3.5M during the week, and the outlook remains positive on lower stockpiles and demand as economic growth picks up. One worry remains around the current third wave in Europe and what lockdown actions might do to demand.

Gold continues to remain rangebound, currently price trading between 1700 to the downside and 1758 to the upside. The weaker USD gave buyers some direction last week, but for now, price remains in a medium-term downtrend, and we need some direction to give us an idea of who really has control on the short term.

Looking Ahead

This week we have some significant data coming up, US CPI, which remains a bit of a hot topic and US retail sales data which I would think traders will be watching closely to gauge signs of the current US recovery. Back in Australia, we have unemployment data, and this is the first after the end of Jobkeeper in March. Another to watch out for will be the Chinese GDP which is expected to increase by 18.3%.

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

FOREX-Pulse of the Market

The biggest news yesterday turned out to be concerned about Johnson & Johnson vaccine and not the U.S inflation report. The country’s two health agencies (FDA and CDC) recommended halting the use of the one-shot vaccine after 6 cases of a rare but deadly blood clot disorder. Six cases is small when measured against the nearly 7 million Americans that have received the Johnson & Johnson vaccine but coming off the heels of similar concerns related to AstraZeneca’s shot, regulators are being very cautious as the disorder may appear up to 2 weeks from vaccination. Even if the FDA and CDC deem the vaccine safe after an investigation period, this revelation will increase vaccine skepticism/resistance, dealing a blow to the government’s accelerated vaccination plans. This is bad news for stocks, which ended the day lower, and the U.S. dollar which gave up earlier gains. U.S consumer prices rose 0.6 percent in the month of March with core prices rising 0.3 percent. While these increases were more than expected, investors worried about a much larger upside surprise. The more modest increase made it easier for everyone to heed the Federal Reserve’s guidance and look past the rise. Thursday’s retail sales report is the most important piece of U.S data on this week’s calendar. With a sharp increase in spending expected, the dollar’s decline may be limited. The Fed’s Beige Book report will also be released on Wednesday and optimism is widely anticipated. After the J&J news, the euro reversed its slide to end the day higher against the greenback. German investor confidence fell more than expected in April. Widespread lockdowns and slow vaccine rollout caused the country’s ZEW survey of investor sentiment to fall to 70.7 from 76.6. Not only was this the first drop since November but economists were looking for an increase. The Eurozone ZEW index also dropped from 74 to 66.3. Euro outperformed sterling because U.K GDP expanded less than expected in the month of February. The economy grew 0.4% against 0.6% forecast. Industrial production increased but the trade balance deteriorated significantly. Still, with the outlook brighter for the U.K than the Eurozone, we expect this outperformance to be short-lived. The Canadian and Australian dollars failed to rally despite higher oil prices. AUD was set back by weaker business confidence.

Euro

The single currency stood near three weeks high against the Greenback after a larger-than-expected uptick in a U.S consumer price gauge did not spark wider fears about accelerating inflation and the Federal Reserve's tapering. Still, many investors are wary of risk of further acceleration in the U.S economy as vaccination rollouts have moved fast. Overall, the EUR/USD traded with a low of 1.1865 and a high of 1.1918 before closing the day around 1.1899 in the New York session.

Yen

The Japanese Yen gained yesterday as the dollar fell as the U.S consumer price index jumped 0.6% in March versus the previous month, the largest gain since August 2012, and rose 2.6% from a year earlier, both 0.1 percentage point above market expectations. Inflation has been expected to accelerate in the April-June quarter. Overall, the USD/JPY traded with a low of 109.19 and a high of 109.94 before closing the day around 109.64 in the U.S session.

British Pound

The British Pound rose for a second day against the dollar and the euro yesterday, as analysts said Britain’s vaccination drive had not been derailed by its curbing of the use of AstraZeneca’s COVID-19 vaccine. The pound lost 1% against the dollar last week as Britain advised alternatives to the Oxford-AstraZeneca vaccine to vaccinate under-30s. Overall, the GBP/USD traded with a low of 1.3668 and a high of 1.3748 before closing the day at 1.3702 in the New York session.

Canadian Dollar

The Canadian Dollar was little changed against its U.S counterpart yesterday as oil rose and U.S data showed a tamer-than-expected increase in U.S underlying inflation, with the loonie rebounding from an earlier six-day low. Business sentiment in Canada continues to improve and many firms consider the impacts of the COVID-19 pandemic behind them. Overall, USD/CAD traded with a low of 1.2522 and a high of 1.2608 before closing the day at 1.2530 in the New York session.

Australian Dollar

The Australian Dollar has found itself undermined by vaccine rollout concerns in Australia and a mixed business confidence index from the country. National Australia Bank’s (NAB) Business Confidence edged down to 15 in March missing forecasts of 18. Despite the hawkish comments from the bank, Australia’s economic recovery seems to be dependent on the coronavirus vaccine rollout. Overall, AUD/USD traded with a low of 0.7584 and a high of 0.7646 before closing the day at 0.7638 in the New York session.

Euro-Yen

EUR/JPY is trading above 14, 50, and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The Relative Strength Index is above 58 and lies above the neutral zone. In general, the pair has gained 0.25%.

Sterling-Yen

Currently, GBP/JPY is trading above 14, 50, and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 46 reading and lies above the neutral zone. On the whole, the pair has gained 0.15%.

Aussie-Yen

Currently, the cross is trading above 14, 50, and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 50 reading and lies above the neutral region. In general, the pair has lost 0.09%.

Euro-Sterling

This cross is currently trading below 14, 50, and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 62 and lies below the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss

This cross is trading below 14, 50, and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 42 and lies above the neutral region. In general, the pair has lost 0.20%.

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market

The S&P 500 closed at another record high yesterday and the NASDAQ composite index jumped, as investors shook off concerns about the halt in Johnson & Johnson’s COVID-19 vaccine rollout and strong U.S inflation. The drug maker’s shares hit a one-month low before recovering some losses to close down 1.3%, as calls for pausing the use of its COVID-19 vaccine after six women developed rare blood clots dealt a fresh setback to efforts to tackle the pandemic. The news came as U.S data showed the consumer price index (CPI) in March rose by the most in more than 8-1/2 years, kicking off what the majority of economists expect will be a brief period of higher inflation. U.S futures initially dropped on the J&J news, but pared losses after the CPI data. Solid demand for yesterday’s U.S Treasuries issue pushed down yields further, highlighting investors’ lack of concern about any imminent bump in interest rates. The Dow Jones Industrial Average fell 68.13 points or 0.2%; the S&P 500 gained 13.6 points or 0.33% and the NASDAQ added 146.10 points or 1.05%.

Dow Jones Industrial Average The Dow Jones Industrial Average declined 0.20%. The best performers of the session on the Dow Jones Industrial Average were Apple Inc., which rose 2.41% or 3.16 points to trade at 134.40 at the close. Meanwhile, Boeing Co added 1.45% or 3.62 points to end at 253.14 and Salesforce.com Inc. was up 1.40% or 3.21 points to 231.97 in late trade. The worst performers of the session were International Business Machines, which fell 2.50% or 3.37 points to trade at 131.22 at the close. Nike Inc. declined 2.28% or 3.12 points to end at 133.52 and Johnson & Johnson was down 1.32% or 2.13 points to 159.51.

NASDAQ 100 The NASDAQ index climbed 1.05%. The top performers on the NASDAQ Composite were Mackinac Financial Corporation which rose 59.53% to 21.01, Novocure Ltd which was up 49.66% to settle at 197.37, and vTv Therapeutics Inc. which gained 33.07% to close at 3.420. The worst performers were Avenue Therapeutics Inc. which was down 23.91% to 5.41 in late trade, Adapthealth Corp which lost 19.57% to settle at 29.75, and Lucira Health Inc. which was down 18.70% to 8.87 at the close.

Oil

Oil prices settled higher in yesterday’s trading session on strong Chinese import data, but the rally was capped by concerns that pauses on the Johnson & Johnson vaccine could delay economic recovery and limit oil demand growth. U.S crude oil futures gained 48 cents, or 0.8%, to $60.18 a barrel. We’ve been trading in a range, and need clear demand data and direction on U.S inventories to break out of this trough. China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery, as global demand picked up amid progress in COVID-19 vaccinations. Import growth surged to the highest in four years. Crude oil imports into China jumped 21% in March from a low base a year earlier as refiners ramped up operations. The Organization of the Petroleum Exporting Countries in its monthly report raised its forecast for 2021 oil demand growth by 70,000 barrels per day from its previous forecast to 5.95 million BPD, or 6.6%.

Precious and Base Metals

Gold prices rebounded yesterday from their lowest levels in more than a week after data showing a sharp rise in U.S inflation bolstered bullion's appeal as an inflation hedge and weighed on the dollar. Spot gold was 0.7% higher at $1,744.33 per ounce after earlier dipping to $1,722.67, its lowest mark since April 5. U.S gold futures rose 0.7% to $1,743.90. We needed to see some inflation to get gold moving and we saw it this morning with that CPI number. U.S consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation. The U.S dollar slipped to three-week lows after the data, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also drifted lower. Further supporting safe-haven gold were concerns raised by U.S. health officials' decision to recommend a pause in the use of Johnson & Johnson's COVID-19 vaccine. At the moment, we need to see a decisive breakout above $1,765 in order to spark another wave of buying up to $1,800. The $1,750 level has been a strong resistance, so we're getting up near that level. Adding that geopolitical risk tied to news of Iran stepping up its nuclear enrichment had also sparked a lot of buying of gold and silver. Silver rose 2.1% to $25.36 per ounce, while palladium gained 0.5% to $2,689.67 after climbing to its highest level since March 18 at $2,710. Platinum fell 1.1% to $1,157.31 per ounce, having earlier dipped to its lowest price in about two weeks at $1,155. Copper’s turbo-charged rally has stalled over the last few weeks as funds have taken profits and physical buyers have refused to chase prices higher. Yet there is real tightness in the copper market. It’s just that it’s playing out upstream in the opaque raw materials segment of the supply chain.

Traditional Agricultures

Corn and soybean futures rose in yesterday’s trading session, bouncing back from two days of declines on bargain buying by investment funds and concerns about tight supplies of both commodities. Wheat futures also firmed, with concerns about dry soils limiting U.S and European production underpinning prices. Corn and soybean futures found support at key technical points overnight.

Source: - News & Quotes (Courtesy: Reuters)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

FOREX-Pulse of the Market

The greenback extended lower against all of the major currencies with sterling leading the gains. Aside from CPI and retail sales, the Empire State and Philadelphia Fed surveys are scheduled for release. A number of Federal Reserve officials will also speak. On Sunday, Fed Chairman Powell said the U.S is at an inflection point, the outlook brightened significantly and with America going back to work, the economy will start growing more quickly. He also cautioned against reopening too quickly and stressed the importance of taking steps to avoid flare-ups in virus cases that could set back the recovery. Euro kicked off this busy trading week with modest gains against the U.S dollar. Despite continued lockdowns in some of the region’s biggest economies, slow vaccine rollout and lower growth forecasts from France and Spain, the single currency has been extraordinarily resilient. It quietly moved higher since the beginning of the month rallying from 1.17 to 1.19. Better than expected retail sales data helped extend the pair’s gains yesterday. Consumer spending rose 3% in the Eurozone in February, double the market’s expectations. Spending in January was also revised up to -5.2% from -5.9%. This follows last week’s upwardly revised German PMIs and the strongest German business confidence since June 2019. So while the near term outlook is grim, the recovery is delayed not threatened and that prospect keeps economic activity going. The question now is how much longer can the rally continue with U.S inflation and retail sales numbers scheduled for release this week. Vaccinations and stimulus checks should drive strong spending in March. Economists are looking for 5.7% rise but the numbers could easily beat expectations. Inflation is also on the rise and between these two reports, we could see renewed demand for the greenback. Add to that the possibility of Germany lowering its growth forecasts and there’s a good chance the rally could fizzle quickly this week once U.S CPI numbers are released. Before that, the German ZEW survey is due and it will be interesting to see if investor confidence is finally dented by recent lockdowns. Sterling traded sharply higher ahead of today’s industrial production, monthly GDP and trade balance reports.

Euro

The single currency posted slight gains in yesterday’s trading session. The euro has been on a steady decline since mid-February, but reversed directions and gained 1.19% last week, its best weekly performance since mid-December. If the upward trend continues, the euro could pressure the symbolic 1.20 line as early as this week. Overall, the EUR/USD traded with a low of 1.1865 and a high of 1.1918 before closing the day around 1.1899 in the New York session.

Yen

The Japanese Yen gained yesterday as the dollar slipped yesterday towards a three-week low as Treasury yields traded near recent lows and traders awaited crucial U.S inflation and retail sales data in coming days. The dollar’s performance has been tied to U.S Treasury yields for most of 2021, after concern about rising inflation in the United States. Overall, the USD/JPY traded with a low of 109.19 and a high of 109.94 before closing the day around 109.64 in the U.S session.

British Pound

The British Pound rose yesterday, recovering partly after a weekly loss. The UK’s vaccine rollout - one of the fastest in the world - helped the pound have its best quarter since 2015 in the first three months of 2021. With vaccinations now fading as a driver of GBP, investor attention should turn to the sustainability of economic growth. Overall, the GBP/USD traded with a low of 1.3668 and a high of 1.3748 before closing the day at 1.3702 in the New York session.

Canadian Dollar

The Canadian Dollar edged down against its U.S counterpart in yesterday’s trading session, unwinding some of the gains logged in the previous session, but buoyant oil prices helped keep the currency near recent highs. Investors' expectation for a continued rise in U.S Treasury yields has been supportive of the greenback. Overall, USD/CAD traded with a low of 1.2522 and a high of 1.2608 before closing the day at 1.2530 in the New York session.

Australian Dollar

The Australian Dollar opened the week slightly lower as investor mood soured following setbacks in the country’s vaccination program, while the New Zealand dollar was little changed. Australia has abandoned a goal to vaccinate nearly all of its 26 million population by the end of 2021 following advice that people under the age of 50 take Pfizer’s COVID-19 vaccine rather than AstraZeneca’s shot. Overall, AUD/USD traded with a low of 0.7649 and a high of 0.7659 before closing the day at 0.7616 in the New York session.

Euro-Yen

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The Relative Strength Index is above 59 and lies above the neutral zone. In general, the pair has gained 0.25%.

Sterling-Yen

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 48 reading and lies above the neutral zone. On the whole, the pair has gained 0.15%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 48 reading and lies above the neutral region. In general, the pair has lost 0.09%.

Euro-Sterling

This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 60 and lies below the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 40 and lies above the neutral region. In general, the pair has lost 0.20%.

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market

The S&P 500 and the Dow Jones indexes retreated from record levels yesterday, as investors geared up for the start of the corporate reporting season and a key inflation report later this week. A pullback in the benchmark 10-year bond yield from 14-month highs in April eased worries about higher borrowing costs, helping richly valued technology stocks gain ground and drive the S&P 500 and the Dow to record levels. Among the 11 major S&P 500 sectors, technology and communication services shares were the top decliners. U.S. consumer price data for March and $271 billion of U.S Treasury auction this week could end a recent lull in the bond market, reigniting a rise in yields that worried investors in the first quarter. Federal Reserve Chair Jerome Powell on Sunday said the U.S economy is at an “inflection point” with expectations that growth will pick up speed in the months ahead, but also risks if a hasty reopening leads to a continued increase in coronavirus cases.

Dow Jones Industrial Average 

The Dow Jones Industrial Average lost 0.16%. The biggest gainers of the session on the Dow Jones Industrial Average were Dow Inc., which rose 1.05% or 0.66 points to trade at 63.80 at the close. Walgreens Boots Alliance Inc. added 0.96% or 0.52 points to end at 54.70 and Nike Inc. was up 0.89% or 1.21 points to 136.66 in late trade. The biggest losers included Intel Corporation, which lost 4.18% or 2.85 points to trade at 65.41 in late trade. Apple Inc. declined 1.30% or 1.74 points to end at 131.26 and Boeing Co shed 1.13% or 2.86 points to 249.50.

NASDAQ 100

 The NASDAQ index declined 0.36%. The top performers on the NASDAQ Composite were Wilhelmina which rose 35.74% to 7.13, Celcuity LLC which was up 29.17% to settle at 27.90, and Lucira Health Inc. which gained 26.54% to close at 10.87. The worst performers were Tian Ruixiang Holdings Ltd which was down 79.58% to 17.90 in late trade, iRhythm Technologies Inc. which lost 39.56% to settle at 80.24, and Canaan Inc. which was down 29.89% to 13.09 at the close.

Oil

Oil prices climbed as data from China showed the world’s second-largest oil consumer’s import growth surging and on tensions in the Middle East after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites. U.S crude oil futures gained 28 cents, or 0.5%, to $59.98 a barrel. China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccinations, while import growth surged to the highest in four years. Crude oil imports into China also jumped 21% in March from a low base of comparison a year earlier as refiners ramped up operation amid robust fuel demand as the COVID-19 pandemic eased. Also supporting prices, U.S crude oil stockpiles were expected to have dropped last week for a third straight week, a preliminary Reuters poll showed. Still, U.S oil output from seven major shale formations is expected to rise for a third straight month, climbing by about 13,000 BPD in May to 7.61 million BPD, the U.S Energy Information Administration said yesterday.

Precious and Base Metals

Gold fell yesterday as an uptick in U.S Treasury yields dimmed bullion's appeal, while investors awaited key U.S inflation and retail sales data for cues on economic health. Spot gold was 0.5% down at $1,734.31 an ounce. U.S gold futures eased 0.6% to $1,734.60. The bond yields have stabilized right now, but they (elevated yields) are still an underlying negative for the metals markets that produce no dividend or yield. The bulls lost a little bit of momentum and that is prompting shorter-term technical traders to press the sell side, putting prices under pressure. Benchmark U.S Treasury yields edged higher yesterday before the Treasury Department's sale of $96 billion in new three-year and 10-year notes, and ahead of key data releases this week, including consumer price inflation. Retail sales data is also expected on Thursday. Higher yields have threatened gold's appeal as an inflation hedge as they increase the opportunity cost of holding bullion, which pays no interest. Federal Reserve Chair Jerome Powell, in comments that aired on Sunday night, said the U.S. economy was at an "inflection point," with hopes of more growth and hiring in the coming months, but he also cited risks of a spike in COVID-19 cases if there is a hasty reopening. A new Fed framework builds in allowances for inflation to run above the central bank's 2% target for a time without the Fed intervening to rein it in. Gold is likely to benefit if inflation rises much higher than the target. If we do start seeing inflation accelerating and people start thinking interest rates are going to go up again, then gold might struggle a bit. Among other precious metals, silver fell 1.6% to $24.84 per ounce, palladium was up 0.4% at $2,650.98 and platinum slipped 2.1% to $1,173.87.

Traditional Agricultures

Corn futures gained 0.7% yesterday, rising for a fourth session in five and trading near an eight-year top, underpinned by strong demand and expectations of lower supplies. Wheat lost ground on forecasts of higher production in the world’s biggest exporter Russia. U.S. corn supplies will shrink by more than previously forecast due to rising demand from the ethanol, livestock feed, and export sectors, the U.S Agriculture Department said on Friday.

Source: - News & Quotes (Courtesy: Reuters)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

FOREX-Pulse of the Market

The dollar rose against a basket of currencies on Friday, paring some of the week’s losses, as a stronger-than-expected rise in the U.S and China’s inflation gauges drove up bond yields. The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.156% higher at 92.218. We’re seeing a consolidation in the broad U.S dollar today after a week of losses as inflation data from China and the U.S sparks the U.S treasury curve back into life. Data on Friday showed U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 years, fitting in with expectations for higher inflation as the economy reopens amid an improved public health environment and massive government funding. Inflation is expected to heat up this year, driven by pent-up demand and as the weak readings, last spring drop out of the calculation. Prices tumbled early in the pandemic amid mandatory closures of non-essential businesses across many states to slow the first wave of COVID-19 infections. Most economists and Federal Reserve officials believe higher inflation will be transitory because of labor market slack. Earlier on Friday, data showed China’s factory-gate prices beat analyst expectations and rose at their fastest annual pace since July 2018 in March, the latest sign that a recovery in the world’s second-largest economy is gathering momentum. The dollar was also helped by data showing a second straight monthly drop in industrial production in Germany, further boosting the likelihood of Europe’s biggest economy has contracted in the first quarter. Still, the dollar’s rally this year appears to have run out of steam. Despite Friday’s gains, the dollar index was on pace to finish the week down 0.8%, it's worst weekly showing this year. In short, the energy has gone out of the dollar’s first-quarter rebound, just as it has gone out of the bond sell-off. Sterling steadied on Friday, having touched a two-month low against the dollar in early London trading, and was set for its biggest weekly drop against the euro so far this year, hurt by profit-taking after a strong first quarter. The pound had its best quarter against the euro since 2015 in the first three months of 2021, boosted by the UK’s vaccine rollout, one of the fastest in the world, as well as a fading of negative interest rate expectations. Analysts also attributed its strengthening against the euro to an expectation that economic recovery in Britain would outpace that in the eurozone. Britain has surged ahead of the rest of Europe in the race to vaccinate its population, with almost half of its citizens receiving the first dose. But supply issues surrounding its main Oxford-AstraZeneca shot have slowed progress in recent days while Germany’s inoculation campaign has sped up.

Euro

The single currency rose in Friday’s trading session amid doubts about the ECB’s efforts to keep nominal interest rates low. The latest ECB minutes did not suggest a firm conviction that the central bank needs to suppress rates at all costs. The hawks are stretching their wings by making this the price of their support. Overall, the EUR/USD traded with a low of 1.1865 and a high of 1.1918 before closing the day around 1.1899 in the New York session.

Yen

The Japanese Yen poised for its largest weekly percentage gains in five months, while the dollar index, which has fallen 0.9% last week. The dollar had its softest week of the year as surprisingly weak U.S jobs figures and a determinedly accommodative Federal Reserve have prompted investors to trim bets on the greenback. Overall, the USD/JPY traded with a low of 109.19 and a high of 109.94 before closing the day around 109.64 in the U.S session.

British Pound

The British Pound steadied on Friday, having touched a two-month low against the dollar in early trading, and was set for its biggest weekly drop against the euro so far this year, hurt by profit-taking after a strong first quarter. The pound had its best quarter against the euro since 2015 in the first three months of 2021. Overall, the GBP/USD traded with a low of 1.3668 and a high of 1.3748 before closing the day at 1.3702 in the New York session.

Canadian Dollar

The Canadian Dollar advanced against its broadly stronger U.S counterpart on Friday as data showing the economy added far more jobs than expected in March offset lower oil prices, with the loonie also gaining for the week. Canada added 303,100 jobs in March, triple analyst Expectations. The Canadian economy keeps beating expectations. Overall, USD/CAD traded with a low of 1.2522 and a high of 1.2608 before closing the day at 1.2530 in the New York session.

Australian Dollar

The Australian Dollar fell in Friday’s trading session due to worries about a slowdown in Australia’s coronavirus vaccine rollout. Australia has restricted the use of the AstraZeneca COVID-19 vaccine - on which it had largely based its vaccination program due to risks of blood clots. For the week, the Aussie gained 0.3%, its first increase since the week of March 12. Overall, AUD/USD traded with a low of 0.7598 and a high of 0.7675 before closing the day at 0.7612 in the New York session.

Euro-Yen

EUR/JPY is trading above 14, 50, and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The Relative Strength Index is above 62 and lies above the neutral zone. In general, the pair has gained 0.25%.

Sterling-Yen

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 51 reading and lies above the neutral zone. On the whole, the pair has gained 0.15%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 52 reading and lies above the neutral region. In general, the pair has lost 0.09%.

Euro-Sterling

This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 58 and lies below the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 48 and lies above the neutral region. In general, the pair has lost 0.20%.

Daily Market View-U.S Stock Market

The S&P 500 and the Dow rose on Friday to close at record highs, posting a third straight weekly rise partly on a lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week. Growth names have found their footing over the past two weeks after being outperformed by value stocks for most of the year. A pullback in the 10-year U.S Treasury yield from a 14-month high hit in late March encouraged buying in growth. Data showed U.S producer prices increased more than expected in March, bringing the largest annual gain in 9-1/2 years. Many investors now expect higher inflation as vaccine rollouts help the U.S economy rebound from coronavirus-fueled lockdowns, yet stocks showed little concern as the Federal Reserve has maintained it will allow inflation to overshoot its target. This is why all week long Powell was jawboning, he made sure everyone understood they were expecting a spike and they are ready for it, it wasn’t a surprise.

Dow Jones Industrial Average 

The Dow Jones Industrial Average rose 0.89% to hit a new all-time high. The biggest gainers of the session on the Dow Jones Industrial Average were Honeywell International Inc., which rose 3.24% or 7.13 points to trade at 226.99 at the close. UnitedHealth Group Incorporated added 3.12% or 11.40 points to end at 376.29 and Salesforce.com Inc. was up 3.00% or 6.73 points to 231.18 in late trade. The biggest losers included Walgreens Boots Alliance Inc., which lost 1.13% or 0.62 points to trade at 54.17 in late trade. Johnson & Johnson declined 1.12% or 1.82 points to end at 161.15 and Boeing Co shed 1.05% or 2.68 points to 252.27.

NASDAQ 100

 The NASDAQ index gained 0.51%. The top performers on the NASDAQ Composite were Celcuity LLC which rose 51.15% to 21.63, Affimed NV which was up 23.32% to settle at 9.73 and NCS Multistage Holdings Inc. which gained 19.68% to close at 29.550. The worst performers were Novo Integrated Sciences Inc. which was down 24.38% to 2.730 in late trade, Franklin Wireless Corp which lost 23.54% to settle at 13.2 and Iterum Therapeutics PLC which was down 19.25% to 1.30 at the close.

Oil

Oil prices edged lower in range bound trade on Friday on rising supplies from major producers and concerns over a mixed picture on the COVID-19 pandemic’s impact on fuel demand. U.S WTI crude for May was at $59.38, down 22 cents. Downward pressure has been exerted by the decision of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to increase supplies by 2 million barrels per day between May and July. Favorable oil demand prospects are being largely offset by the expected increase in OPEC + production that could be approximately 2 million barrels per day by the end of July. Meanwhile, U.S. drillers kept the number of oil rigs unchanged this week, energy services firm Baker Hughes Co said on Friday, with analysts forecasting more rigs were needed to keep production steady. Renewed lockdowns in some parts of the world and problems with vaccination programs could threaten the oil demand picture.

Precious and Base Metals

Gold slipped more than 1% on Friday, weighed down by a jump in U.S Treasury yields and a rebound in the dollar, but bullion was still on course for its first weekly gain in three weeks. Spot gold fell 0.7% to $1,743.73 per ounce, after declining as much as 1.4%, having hit its highest price since March 1 at $1,758.45 on Thursday. For the week, however, prices were up about 0.9%. U.S. gold futures slipped 0.8% to $1,744.20. While overall, gold market is bullish short-term, with expectations of a break higher through $1,760-65, caution about fresh 10 and 30-year (Treasury) auctions and the CPI report next week are keeping yields supported, keeping gold's advance in check. Yields are driving most markets at moment, directly impacting USD and stocks, and all three matter to gold with varying impact. The dollar and benchmark U.S. yields rebounded from two-week lows, reducing gold's appeal. U.S. producer prices increased more than expected in March, resulting in the largest annual gain in 9-1/2 years, fitting with expectations for higher inflation as the economy reopens. This type of potentially inflationary environment is generally viewed as supportive for gold. In a potential fillip to gold's safe-haven appeal, U.S Federal Reserve Chair Jerome Powell on Thursday signaled the central bank is nowhere near reducing its economic support, and warned an uptick in COVID-19 cases could slow the recovery. Gold's retreat from last year's peak is a mini-correction in a long bull market. Silver slipped 0.8% to $25.23, while platinum shed 2.8% to $1,195.16. Palladium rose 0.5% to $2,637.00 but was on track for its biggest weekly fall since the week ending Feb. 26. Copper prices were on track for a weekly rise on Friday, as the dollar was headed for its worst week of the year, making greenback-priced metals cheaper for holders of other currencies. The dollar was pressured by unexpectedly strong economic data in Europe and downbeat U.S jobs figures.

Traditional Agricultures

Corn futures climbed on Thursday on export optimism and positioning ahead of the U.S Agriculture Department’s monthly supply and demand report, out on Friday. Wheat gained as frigid temperatures across Europe and the Black Sea region threatened crops.

Source: - News & Quotes (Courtesy: Reuters)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

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FOREX-Pulse of the Market

The U.S dollar hovered near a two-week low against a basket of currencies yesterday, as profit-taking and weakness in U.S. yields exerted pressure. Market participants were hesitant to place big directional bets ahead of the Federal Reserve’s meeting minutes later in the day, and the dollar traded little changed against most of the majors. The U.S Dollar Index, which measures the greenback against a basket of six currencies, was 0.101% lower at 92.213. The dollar has appreciated this year along with Treasury yields as investors bet the United States would recover more quickly from the COVID-19 pandemic than other developed nations. But the dollar index’s 2.5% gain in March, the biggest monthly increase since the end of 2016, prompted some traders to book profits. The weakness in Treasury yields after their rapid rally this year also added pressure on the dollar. All of this has left investors wondering if the dollar weakness, which sent the currency to a near 3-year low earlier this year, may be set to resume. Upbeat European data yesterday showing euro zone business activity bounced back to growth last month, also supported the common currency against the greenback. Investors will be scanning the minutes in search of any ‘discomfort’ among policymakers about rising inflation prospects and in parallel any hint that the discussion is migrating towards defining a timeline for tapering asset purchases. Euro zone business activity bounced back to growth last month, underpinned by a record expansion in manufacturing, according to a survey yesterday that also showed the service industry was coping better than expected with new lockdowns. Europe is battling a third wave of coronavirus infections and governments - also struggling with vaccine programs beset by delays - have re-imposed curbs on citizens and forced swathes of the dominant services industry to remain closed. But IHS Markit’s Services Purchasing Managers’ Index (PMI) rose to 49.6 in March from February’s 45.7, much higher than a flash estimate of 48.8 and only just shy of the 50 mark that separates growth from contraction. Despite the health situation remaining fragile and some restrictions being extended, optimism about the vaccine campaigns sends some hopes for the services sector outlook. A composite PMI, combining manufacturing and services and seen as a good gauge of economic health, rose to 53.2 from 48.8, above the 52.5 preliminary estimate. The Canadian dollar fell yesterday, hurt by a third wave of the COVID-19 pandemic in the country.

Euro

The single currency traded higher yesterday as Euro zone business activity bounced back to growth last month, underpinned by a record expansion in manufacturing, according to a survey that also showed the service industry was coping better than expected with new lockdowns. IHS Markit’s Services Purchasing Managers’ Index (PMI) rose to 49.6 in March. Overall, the EUR/USD traded with a low of 1.1859 and a high of 1.1913 before closing the day around 1.1865 in the New York session.

Yen

The Japanese Yen traded higher as profit-taking in the U.S Dollar and weakness in U.S yields exerted pressure. Market participants were hesitant to place big directional bets ahead of the Federal Reserve’s meeting minutes later in the day, and the dollar traded little-changed against most of the majors. Overall, the USD/JPY traded with a low of 109.55 and a high of 109.92 before closing the day around 109.82 in the U.S session.

British Pound

The British Pound sank as profit-taking by traders after a strong first quarter for the British currency pulled it to its lowest in over four weeks against the euro and a week’s low against the dollar. Expectations of an economic rebound in Britain, spurred by rapid COVID-19 vaccinations, helped sterling to record its best quarter since 2015 versus the euro. Overall, the GBP/USD traded with a low of 1.3722 and a high of 1.3837 before closing the day at 1.3735 in the New York session.

Canadian Dollar

The Canadian Dollar weakened to a one-week low as commodity-linked currencies broadly lost ground and domestic data showed the trade surplus narrowing in February. Canada's trade surplus with the world narrowed in February to C$1 billion as a global shortage of semiconductor chips hit both imports and exports. Overall, USD/CAD traded with a low of 1.2560 and a high of 1.2632 before closing the day at 1.2606 in the New York session.

Australian Dollar

The Australian Dollar began yesterday's session under pressure after overnight activity and this theme has largely continued through the day as well. Both the Australian and New Zealand dollars fell about 0.7%, giving back some recent gains. Like Canada, Australia and New Zealand are major commodity exporters. Overall, AUD/USD traded with a low of 0.7598 and a high of 0.7675 before closing the day at 0.7612 in the New York session.

Euro-Yen

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The Relative Strength Index is above 60 and lies above the neutral zone. In general, the pair has gained 0.05%.

Sterling-Yen

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish tone and MACD is also indicating a bearish stance. The Relative Strength Index is above 50 reading and lies above the neutral zone. On the whole, the pair has lost 0.54%.

Aussie-Yen

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 51 reading and lies above the neutral region. In general, the pair has lost 0.57%.

Euro-Sterling

This cross is currently trading below 14, 50 and 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 56 and lies below the neutral region. Overall, the pair has gained 0.58%.

Sterling-Swiss

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish stance and MACD is also indicating a bullish tone. The Relative Strength Index is above 45 and lies above the neutral region. In general, the pair has lost 0.75%.

Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

Daily Market View-U.S Stock Market

Major averages hovered near unchanged yesterday, with the S&P closing up slightly after the Federal Reserve released minutes from its most recent meeting that reinforced the U.S central bank’s position to remain patient before raising rates. The major indexes held near unchanged for most of the day but the S&P 500 briefly climbed to a session high after the minutes, in which Fed officials said it would likely take “some time” for substantial further progress on goals of maximum employment and stable prices. But the gains were minor and short-lived, as many market participants question the ability to hold off on a rate hike for as long as the Fed has stated. The Fed has been more transparent all of this year about where they stand and they really are not budging from that stance. The yield on the benchmark 10-year U.S. Treasury note moved higher late in the session. Still, it remained below a 14-month high of 1.776% hit on March 30. The recent pullback in yields has helped growth names and lifted technology and communication services stocks on the day.

Dow Jones Industrial Average

 The Dow Jones Industrial Average gained 0.05%. The biggest gainers of the session on the Dow Jones Industrial Average were JPMorgan Chase & Co, which rose 1.57% or 2.39 points to trade at 154.93 at the close. Apple Inc. added 1.34% or 1.69 points to end at 127.90 and Intel Corporation was up 1.04% or 0.68 points to 66.24 in late trade. Biggest losers included Walt Disney Company, which lost 1.15% or 2.18 points to trade at 187.55 in late trade. Boeing Co declined 1.03% or 2.62 points to end at 252.55 and Dow Inc. shed 0.91% or 0.59 points to 64.01.

NASDAQ 100 

The NASDAQ index declined 0.07%. The top performers on the NASDAQ Composite were Bonso Electronics International Inc. which rose 45.06% to 9.945, Recon Technology Ltd which was up 19.11% to settle at 6.670 and Seelos Therapeutics Inc. which gained 17.78% to close at 5.830. The worst performers were FibroGen Inc. which was down 43.07% to 19.72 in late trade, Homology Medicines Inc. which lost 22.80% to settle at 7.18 and Kelly Services B Inc. which was down 15.67% to 32.89 at the close.

Oil

Crude prices fell today after official data showed a big increase in U.S gasoline stocks, sparking concerns about demand weakening in the world’s biggest oil consumer as crude supplies around the world rise. U.S oil fell 53 cents, or 0.9%, to $59.24 a barrel. While crude oil stocks in the United States fell more than forecast by analysts, gasoline inventories jumped sharply, also against expectations, the U.S Department of Energy said yesterday. Oil inventories dropped by 3.5 million barrels last week to nearly 502 million barrels, and gasoline stocks increased by 4 million barrels, against expectations of a decline, to just over 230 million barrels, as refiners ramped up production before the summer driving season. Refiners may want to pull back on the run rate a bit to keep gasoline storage from challenging the all-time record. At the same time, supply is rising across the world with Russian output increasing from average March levels in the first few days of April. Iran may see some sanctions lifted and add to global supplies.

Precious and Base Metals

Gold prices steadied after early falls today, as market participants weighed the U.S Federal Reserve's commitment to keep interest rates low for some time against likely higher inflation. Spot gold was flat at $1,737.89 per ounce. U.S gold futures fell 0.1% to $1,739.20 per ounce. Fed officials are committed to supporting the economy until its recovery is more secure, minutes of the U.S. central bank's most recent policy meeting released yesterday showed. The Fed was very assuring about its stand on interest rates, although investors are not convinced. Investors are expecting the Fed will have to hike interest rates as early as January 2022 as it becomes a huge task once inflation starts going out of control. Several policymakers at the Fed's March 16-17 meeting indicated they thought interest rates might need to increase sooner than anticipated by the bulk of their colleagues, and perhaps as soon as next year, the minutes showed. Non-yielding gold tends to fall out of favor when interest rates rise, as it increases the opportunity cost of holding bullion. Recent economic data have indicated a faster turnaround from the pandemic impacts and boosted risk assets. U.S stock futures nudged higher to hit a record today, weighing on gold's safe-haven appeal. In the near term, gold has support at $1,727 and $1,720 levels, followed by $1,705. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.35 tonne to 1,028.69 tonnes on Wednesday. Lending support to gold, the U.S dollar tracked Treasury yields lower and traded near a more than two-week low versus major peers today. Among other metals, silver fell 0.1% to $25.09 per ounce and palladium was down 0.3% to $2,614.98. Platinum rose 0.6% to $1,232.99.

Traditional Agricultures

Wheat futures gained yesterday, following the Minneapolis Grain Exchange’s hard red spring wheat higher on concerns that dryness across the U.S Great Plains could affect spring wheat plantings. Corn gained ahead of the U.S Department of Agriculture’s monthly supply and demand report on Friday, which is expected to show strong exports further drawing down corn stockpiles. Soybeans slid as the South American harvest progressed.

Source: - News & Quotes (Courtesy: Reuters)

Disclaimer

This information has been prepared for information only and does not constitute an offer or commitment. This information does not constitute investment advice as defined by the rules of the FCA.

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