Currencies
Smaller gains were notched up by the euro (+1.16%), the Japanese yen (+0.94%), the Canadian dollar (+0.42%), the Australian dollar (+0.13%) and the New Zealand dollar (+0.01%). The gap hasn’t been that large since early 2017 when the dollar was much stronger against the euro: Back then, $1 bought about €0.94, whereas now it buys €0.84. Crude oil prices traded flat during the APAC morning session despite a broad pullback in equities and commodities as the US Dollar climbed amid souring sentiment.
less Gold prices went down on Monday after the better-than-expected increase in the U.S. producer price index (PPI) lifted the dollar and Treasury yields. With the dollar depreciating and the EURGBP cross in decline, the euro could even strengthen to 1.1905. Some officials are concerned it could be the start of a long-term bid to replace the dollar as the world’s reserve currency. UST yields are on the rise, so strength in the dollar could be ephemeral.
Technical indicators of the currency pair: The sterling declined on Friday amid correction of the US dollar. Among the majors, only the Swedish krona and Canadian dollar have been unable to turn higher on the day. If dollar strength is still temporary during Asia trading, the EURUSD pair will continue to trend sideways near 1.1882.
less Gold prices went down on Monday after the better-than-expected increase in the U.S. producer price index (PPI) lifted the dollar and Treasury yields. With the dollar depreciating and the EURGBP cross in decline, the euro could even strengthen to 1.1905. Some officials are concerned it could be the start of a long-term bid to replace the dollar as the world’s reserve currency. UST yields are on the rise, so strength in the dollar could be ephemeral.
Technical indicators of the currency pair: The sterling declined on Friday amid correction of the US dollar. Among the majors, only the Swedish krona and Canadian dollar have been unable to turn higher on the day. If dollar strength is still temporary during Asia trading, the EURUSD pair will continue to trend sideways near 1.1882.
Metals
For instance, the HUI Index to gold ratio, the XAU Index to gold ratio, and the GDXJ (junior mining stocks) to gold ratio. I think that seeing a breakout in the to gold ratio is not enough for one to say that the to gold ratio is breaking higher. Some might say that mining stocks are showing strength compared to gold as the GDX to gold ratio broke above its declining resistance line. The Gold Analyst offers quality technical and fundamental analysis of the price of gold to help educate readers in their investment decisions.
In the 11 months through February 2021, loans against gold grew about 70 per cent for banks to over ₹56,000 crore. Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 46,751 per 10 grams. The previous attempts for the XAU to gold ratio to rally above their 2020 high marked great shorting opportunities, which is very far from being a bullish implication. BEFORE THE BELL Futures for Canada’s main stock index fell, weighed by weakness in gold prices.
Gold rose to its highest level since late February last week (almost $1759) but pulled back ahead of the weekend and is lower today, straddling the $1740 area. Gold is correcting on the back of rising stock prices.
In the 11 months through February 2021, loans against gold grew about 70 per cent for banks to over ₹56,000 crore. Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 46,751 per 10 grams. The previous attempts for the XAU to gold ratio to rally above their 2020 high marked great shorting opportunities, which is very far from being a bullish implication. BEFORE THE BELL Futures for Canada’s main stock index fell, weighed by weakness in gold prices.
Gold rose to its highest level since late February last week (almost $1759) but pulled back ahead of the weekend and is lower today, straddling the $1740 area. Gold is correcting on the back of rising stock prices.
Oil
less Oil prices are snapping back on news of another Houthi attack on a Saudi oil facility during a weekend where geopolitical risk factors for oil are rising. There are also concerns among oil traders that oil demand could also be dented by President Joseph Biden’s green initiatives.Oil DailyMeanwhile, today’s rebound didn’t help drive momentum upward. India is the world’s third-largest oil importing country and it consumes nearly 10% of global crude oil exports.
2.86 mmbbl of oil loaded last week was showing China as its destination, while 1.91 mmbbl were moving to India. Still, there could be some upside as optimism over the recovery in the US economy and improving vaccination rates could soon lead oil prices higher. Crude oil imports into the Mediterranean (MED) recovered to 38.14 mmbbl, up from 32.2 mmbbl in the previous week. Ust-Luga loaded 2.76 mmbbl of oil, down from 2.9 mmbbl in the previous week. Norges Bank hiking the key rate later this year and higher oil prices ahead point in the direction of a somewhat stronger NOK on a trade weighted basis.
Somewhat higher oil prices and higher rates in Norway is why we hold our view for EURNOK coming below 10.00 by the summer.
The oil cartel is planning to add 2.25 million bpd of output over the next three months to meet increasing demand, a decision that surprised markets in early April.
2.86 mmbbl of oil loaded last week was showing China as its destination, while 1.91 mmbbl were moving to India. Still, there could be some upside as optimism over the recovery in the US economy and improving vaccination rates could soon lead oil prices higher. Crude oil imports into the Mediterranean (MED) recovered to 38.14 mmbbl, up from 32.2 mmbbl in the previous week. Ust-Luga loaded 2.76 mmbbl of oil, down from 2.9 mmbbl in the previous week. Norges Bank hiking the key rate later this year and higher oil prices ahead point in the direction of a somewhat stronger NOK on a trade weighted basis.
Somewhat higher oil prices and higher rates in Norway is why we hold our view for EURNOK coming below 10.00 by the summer.
The oil cartel is planning to add 2.25 million bpd of output over the next three months to meet increasing demand, a decision that surprised markets in early April.
United States
In US stock markets, Wall Street indices climbed to another record on Friday as investors shrugged off concerns over inflation and focused on prospects for an economic rebound. less Video Length: 00:01:31 So last week, we got a dovish Fed Minutes communication, a dovish sounding Fed Chair, and overall solid economic data out of the US. BEFORE THE BELL Wall Street futures were in red, as investors awaited earnings as well as inflation and retail sales data.
Wall Street futures were in red, as investors awaited earnings as well as inflation and retail sales data. The strong rebound in the US will allow Fed to gradually hike rates, and we believe the first rate hike will already come in the second half of 2022. The US is at an inflection point as quick vaccination, ample fiscal stimulus, and expansive monetary policy will give a strong rebound in the not so distant future. If we were forced to lean in any direction, the USD could strengthen somewhat more than NOK due to the outperformance of the US economy.
Jerome Powell, Chair of the Federal Reserve, noted that the US economy is at an “inflection point” – on the verge of rapid growth. less Recently, Go-To-Market intelligence provider ZoomInfo (Nasdaq: ZI) reported its quarterly results that surpassed market expectations. The US Treasury will sell $96 bln in coupons today (a new three-year note and re-opening of the 10-year) and $111 bln of bills.
Wall Street futures were in red, as investors awaited earnings as well as inflation and retail sales data. The strong rebound in the US will allow Fed to gradually hike rates, and we believe the first rate hike will already come in the second half of 2022. The US is at an inflection point as quick vaccination, ample fiscal stimulus, and expansive monetary policy will give a strong rebound in the not so distant future. If we were forced to lean in any direction, the USD could strengthen somewhat more than NOK due to the outperformance of the US economy.
Jerome Powell, Chair of the Federal Reserve, noted that the US economy is at an “inflection point” – on the verge of rapid growth. less Recently, Go-To-Market intelligence provider ZoomInfo (Nasdaq: ZI) reported its quarterly results that surpassed market expectations. The US Treasury will sell $96 bln in coupons today (a new three-year note and re-opening of the 10-year) and $111 bln of bills.
China
Investors seem relieved that Beijing hasn’t done anything worse to China’s e-commerce champion after its dramatic fall from political favor. Suddenly, Bridgefy recorded tens of thousands of downloads from Hong Kong, prompting a cyber-attack from apparent Beijing sympathizers that forced the website offline for a day. The fact that Alibaba’s e-commerce platforms are popular among consumers probably counted in its favor with Beijing. Beijing has exported millions of vaccines and has thrown shade on the mRNA vaccines.
Europe
The latest vaccination data shows that the total number of doses administered per 100 people in their respective populations is much higher in the U.S. than in the EU. Some say the shift into economically-sensitive sectors went too far at a time when major economies like the European Union and India are grappling with fresh coronavirus outbreaks. Colder weather may have prompted a pause in violence, but frustrations around the Brexit accord may reignite riots on the streets of Belfast.
Most EU authorities agree that by the end of autumn, there would be enough vaccination to be hopeful of economic normalization. Line of duties | The European Union imposed provisional tariffs on imports of aluminum flat-rolled products originating in China in a bid to curb competition for EU-based producers. Hostile EU-UK Vaccine Spat Boosts Brexit Support Many believe being outside the EU helped U.K. s shot program to succeed. While the EU and the UK are reportedly nearing a settlement related to commerce in Northern Ireland, tensions remain elevated in the province.
Johnson & Johnson: The company began delivering its COVID-19 single-dose vaccine to EU countries, a European Union lawmaker said. Later in the day, we get the ZEW survey of major German and EU businesses. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
0 Most EU authorities agree that by the end of autumn, there would be enough vaccination to be hopeful of economic normalization. Line of duties | The European Union imposed provisional tariffs on imports of aluminum flat-rolled products originating in China in a bid to curb competition for EU-based producers. Hostile EU-UK Vaccine Spat Boosts Brexit Support Many believe being outside the EU helped U.K. s shot program to succeed. While the EU and the UK are reportedly nearing a settlement related to commerce in Northern Ireland, tensions remain elevated in the province.
Johnson & Johnson: The company began delivering its COVID-19 single-dose vaccine to EU countries, a European Union lawmaker said. Later in the day, we get the ZEW survey of major German and EU businesses. His feature articles have been published on: FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc.
