Europe Roundup: Sterling holds above $1.39 against dollar, European shares rise, Gold rises, Brent crude hits $70 as China energy demand outlook brightens-March 15th,2021

Market Roundup

•Finnish Feb CPI (YoY) 0.9%, 0.9% previous

•Finnish Feb GDP (YoY) -3.7%, -1.8% previous

•German WPI (MoM) 1.4%,2.1% previous

•German Feb WPI (YoY) 2.3%, 0.0% previous

Looking Ahead Economic Data (GMT)

•12:15 Canada Feb Housing Starts 245.0K, 282.4K previous

•12:30 March US NY Empire State Manufacturing Index 14.50 forecast, 12.10 previous

• 12:30 Canada Jan Manufacturing Sales (MoM) 2.5% forecast, 0.9% previous

•14:00 French 12-Month BTF Auction -0.610% previous

•14:00 French 3-Month BTF Auction-0.621% previous

•14:00 French 6-Month BTF Auction-0.619% previous

•15:30 US 6-Month Bill Auction 0.060% previous

Looking Ahead – Events, Other Releases (GMT)


EUR/USD: The euro declined against dollar on Monday as markets looked ahead to the U.S. Federal Reserve meeting on Wednesday.Rising bond yields have spooked markets so far in 2021, with market participants worried that an economic recovery from COVID-19, combined with fiscal stimulus, could cause a spike in inflation from pent-up consumer demand when lockdowns end.U.S. Treasury yields were close to a 13-month peak on Monday, pushed higher by bets that economic growth in the United States will accelerate after President Joe Biden’s $1.9 trillion stimulus bill got its final approval last week. The euro slipped to $1.1947 from last week’s high of $1.1990. Immediate resistance can be seen at 1.1992 (50%fib), an upside break can trigger rise towards 1.2000 (Psychological level).On the downside, immediate support is seen at 1.1915 (38.2%fib), a break below could take the pair towards 1.1835 (March 9th low).

GBP/USD: Sterling held above $1.39 on Monday after falling more than 1 cent versus the dollar on Friday as hopes for an economic recovery in Britain outweighed the impact of higher U.S. Treasury yields. The pound was down 0.25% at $1.3935 at 12:00 GMT, after falling almost 1% during Friday’s session to $1.3865.A sell off in Treasuries, which has pushed the yield on the benchmark note above 1.60% and strengthened the dollar, has added pressure on risk currencies like the pound. Immediate resistance can be seen at 1.4032( 23.6%fib), an upside break can trigger rise towards 1.4180 (Feb 25th high).On the downside, immediate support is seen at 1.3879(38.2%fib), a break below could take the pair towards 1.3786 (50%fib).

USD/CHF: The dollar edged higher against the Swiss franc on Monday, as investors bet U.S. economic growth will accelerate after the $1.9 trillion stimulus bill President Joe Biden signed into law last week.A rollout of COVID-19 vaccinations in the United States and some other countries stoked a bullish mood on risk assets even as investors become wary of key central bank policy meets later in the week, including the U.S. Federal Reserve’s. Immediate resistance can be seen at 0.9317 (23.6%fib), an upside break can trigger rise towards 0.9372 (March 9th high).On the downside, immediate support is seen at 0.9259 (38.2% fib), a break below could take the pair towards 0.9214(50%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Monday as greenback was supported by a spike in benchmark Treasury yields to more-than-one-year highs as inflation fears continued to smoulder. The greenback rose 0.1% against the yen to 109.13 yen , drifting near its highest since June 2020. Focus this week will be on the U.S. Federal Reserve’s two-day policy meeting although expectations are running low for the central bank to announce major policy changes. The Bank of Japan is also set to hold its policy meeting later in the week. Strong resistance can be seen at 109.26 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.83 (38.2%fib), a break below could take the pair towards 108.48 (23.6%fib).

Equities Recap

European stocks rose on Monday, helped by gains in French food company Danone and betting firm Flutter Entertainment, with optimism about a strong economic rebound calming concerns about quickening inflation.

At (GMT 12:00),UK’s benchmark FTSE 100 was last trading up at 0.26 percent, Germany’s Dax was up by 0.12 percent, France’s CAC was last up by 0.27 percent.

Commodities Recap

Gold prices gained on Monday as the passage of a U.S. stimulus bill stoked inflation risks, although a resultant bounce in Treasury yields kept gains in check.

Spot gold rose 0.3% to $1,732.02 per ounce by 0134 GMT, while U.S. gold futures for April delivery rose 0.7% to $1,730.90 per ounce.

Oil prices rose on Monday, with Brent reaching $70 a barrel, as data showed China’s economic recovery accelerated at the start of 2021, boosting the energy demand outlook at the world’s largest oil importer.

Brent crude futures for May was up 10 cents, or 0.1%, at $69.32 a barrel by 0947 GMT while U.S. West Texas Intermediate crude for April was at $65.73 a barrel, up 12 cents, or 0.2%.

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