News

America’s Roundup: Dollar hits three-month highs as Fed’s Powell sticks to script, Wall Street slumps, Gold falls, Oil scales 1-year peak as OPEC+ rolls over output for April-March 5th,2021

Market Roundup:

• Russia Central Bank reserves (USD) 589.6B,585.7B previous

• US Continuing Jobless Claims 4,295K,4,300K forecast, 4,419K previous

• US Jobless Claims 4-Week Avg 790.75K, 807.75K previous

• US Initial Jobless Claims745K, 750K forecast, 730K previous

• US Nonfarm Productivity (QoQ) (Q4) -4.2%,-4.7% forecast,-4.8% previous

• Canada Labor Productivity (QoQ) (Q4) -2.0% ,-10.3% previous

• US Unit Labor Costs (QoQ) (Q4) 6.0%,6.6% forecast, 6.8% previous

• US Jan Factory Orders (MoM) 2.6%, 2.1%, 1.1% previous

• US Factory Jan orders ex transportation (MoM) 1.7%,1.4% previous

Looking Ahead – Economic data (GMT)

•21:30 Australia Feb AIG Services Index 54.3 previous

•23:50 Japan Feb Foreign Reserves (USD) 1,392.1B previous

Looking Ahead – Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined on Thursday after the Federal Reserve reiterated an easy monetary policy. Fed Chair Jerome Powell reiterated his pledge to keep policy loose and tolerate spikes in inflation. Meanwhile, data showed the number of Americans filing for jobless benefits rose last week. The number of Americans filing for jobless benefits rose last week, likely boosted by brutal winter storms in the densely populated South, though the labor market outlook is improving amid declining new COVID-19 cases. crucial monthly payrolls report is expected on Friday. Immediate resistance can be seen at 1.2065 (Daily high), an upside break can trigger rise towards 1.2107 (Psychological level).On the downside, immediate support is seen at 1.2023 (38.2%fib), a break below could take the pair towards 1.1989 (2nd March low).

GBP/USD: Sterling declined the dollar on Thursday as the strengthening U.S. dollar put a brake on gains that had taken the pound above 1.40 level in European session. The pound has so far been the best performing G10 currency in 2021, up 1.65% against the dollar, although its lead over other currencies is diminishing. By 2121 GMT, sterling was down 0.40 at $1.3893, earlier hitting daily high of $1.4019. Immediate resistance can be seen at 1.3970( 38.2%fib), an upside break can trigger rise towards 1.4082 (23.6%fib).On the downside, immediate support is seen at 1.3875 (50%fib), a break below could take the pair towards 1.3800 (Psychological level).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as dollar gained after U.S. Federal Reserve Chair Jerome Powell repeated his pledge to keep credit loose and flowing until Americans are back to work. The Canadian dollar was last trading 0.2% higher at 1.4066 to the greenback. U.S. crude prices were up 1.9% to $62.45 a barrel as OPEC and its allies met to discuss whether to ease production cuts. The loonie was 0.11% lower at 1.2667to the greenback having traded in a range of 1.2573 to 1.2691. Immediate resistance can be seen at 1.2697 (30DMA), an upside break can trigger rise towards 1.2780 (38.2%fib).On the downside, immediate support is seen at 1.2641(5 DMA), a break below could take the pair towards 1.2573 (Daily low).

USD/JPY: The dollar rose against the Japanese yen on Thursday after Federal Reserve Chairman Jerome Powell failed to express concern about a recent sell-off in U.S. Treasuries as some traders had expected, resulting in higher demand for the greenback. Powell set aside concern that a recent move up in U.S. Treasury yields might spell trouble for the Fed as investors push up borrowing costs the central bank wants to keep low. The dollar index was last up 0.53% at 91.561, after getting as high as 91.663, the highest since Dec. 1.Strong resistance can be seen at 108.00 (Psychological level), an upside break can trigger rise towards 108.75 (23.6%fib).On the downside, immediate support is seen at 107.45 (50%fib), a break below could take the pair towards 106.88 (61.8%fib).

Equities Recap

European stocks closed lower on Thursday as a renewed rise in U.S. bond yields and expectations of a jump in inflation hit risk appetite, with heavyweight miners and technology stocks leading losses.

UK’s benchmark FTSE 100 closed down by 0.37 percent, Germany’s Dax ended down by 0.17 percent, France’s CAC finished the day up by 0.01 percent.

Wall Street slumped on Thursday and global stock markets declined after U.S. Federal Reserve Chair Jerome Powell repeated his pledge to keep credit flowing until Americans are back to work, pushing back at investors who have doubted if he can hold that promise after the pandemic.

Dow Jones closed down by 1.11% percent, S&P 500 closed down by 1.34 % percent, Nasdaq settled up by 2.11% percent.

Commodities Recap

Gold slumped to a near nine-month low on Thursday pressured by gains in the dollar and U.S. Treasury yields after Federal Reserve Chair Jerome Powell signalled no immediate move to address the surge in bond yields.

Spot gold fell 0.9% to $1,695.26 per ounce by 2:33 p.m. EST (1933 GMT), falling below the $1,700 level for the first time since June 2020. U.S. gold futures settled down 0.9% at $1,700.7.

Oil rallied more than 4% on Thursday, hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged into April, reasoning that the demand recovery from the coronavirus pandemic was still fragile.

Brent crude rose $2.67, or 4.2%, to settle at $66.74 a barrel, after rising to $67.75, its highest since January 2020.

U.S. crude futures ended $2.55, or 4.2%, higher at $63.83, having also scaled a January 2020 peak, at $64.86.


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