HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

USD & Yields softer, CAD even weaker


7 April 2021

US Equities closed flat, USD (2-week lows) and 10-yr yields cool further. JPY sees new financial year bid, EUR, GBP also flat – CAD & AUD crosses weaker. USOil remains under $60.00, Gold holds at $1735. EU unemployment rose unsurprisingly & US JOLTS (job moves and openings) are at 2 yr highs. EU-US disparity continues. Overnight – Asian markets touch 3-week highs – Nikkei also closed flat – Samsung Q1 profits up 45%. European FUTs also flat. India reported record 115,000 virus cases, AZ pause testing vaccine on children and EU talk of 60% of popn. offered vaccine by June.

Week Ahead – RBA (6th) UK, EU & US PMIs & FOMC Minutes (7th), ECB Minutes, Weekly Claims & Powell speech (8th), CAD Jobs & US PPI (9th).

The Dollar has posted fresh lows, which put the USDIndex at a 15-day low at 92.23. The forex market appears to have been somewhat wrong-footed by a pronounced decline in Treasury yields. Inflation worries have been fading a bit, at least for now, as Fed policymakers continue to stress they do not see any problem with price pressures for the foreseeable future. The Fed has also assured it will not hike rates pre-emptively, needing to see real evidence that their goals are being met before acting. At the same time there has been a sputtering phase in US stock markets after the bellwether US indices scaled to record highs on Monday, which has induced a safe haven bid for Treasuries. Investors are digesting prospects for higher corporate taxes linked to President Biden’s $2 bln infrastructure plan, which analysts at GS reckon would trim 9% of earnings per share for companies listed in the S&P 500. The 10-year Treasury yield has pressed below 1.640%, down by around 8 bp from yesterday’s high.

This backdrop has fostered a reversal of recent themes in the currency market, aside from the correction in the Dollar, with the Yen and Euro, currencies that have lately been found in the underperforming lane more often than not, having rebounded notably over the last couple of days. 

EURUSD has pegged a 15-day high at 1.1883, setting up the pair for what might be its second down week out of the last seven. USDJPY has dropped to a nine-day low at 109.58, setting up what could be the pair’s second down week out of the last six.

The biggest movers out of the main currencies we monitor have been EURCAD and CADJPY. The Canadian Dollar, which has been amongst the strongest currencies on the year so far, being a principal winner in the reflation trade due to its correlation with oil prices, had been looking due for a correction, with the oil price rally having lost traction in recent weeks. This has lifted USDCAD to eight-day highs above 1.2600, despite the prevailing broader weakness in the Greenback. The Pound has also found itself in the underperforming lane, with EURGBP, most notably, having rebounded quite sharply after the cross printed a 14-month low on Monday. Despite the prevailing losses, the UK currency still remains one of the strongest performing currencies when measured from the start of the year.

Today – EZ, UK & US final services & composite PMIs, ECB asset purchases & bi-monthly PEPP summary, DoEs, FOMC minutes, Fed’s Evans, Kaplan, Barkin.

Biggest (FX) Mover @ (07:30 GMT) USDCAD (+0.36%) rallied from test of 1.2500 on Monday to close at 1.2580 yesterday and breach 1.2600 and R2 now. R3 1.2635. MAs remain aligned higher, RSI 71 and in OB zone but still rising, MACD histogram & signal line aligned higher and over 0 line from midday yesterday. Stochs in OB zone but also still rising. H1 ATR 0.0014, Daily ATR 0.0070.

#source

Share: Tweet this or Share on Facebook


Related

Yen stabilizes as Japan ramps up intervention warning
Yen stabilizes as Japan ramps up intervention warning

Threats of FX intervention help yen to stabilize near three-decade lows. Dollar and stocks take a step back, Bitcoin jumps in anticipation of halving. Shortage of liquidity could be an important market theme this week.

26 Mar 2024

Stocks at fresh records even as dollar bounces back
Stocks at fresh records even as dollar bounces back

Wall Street leads rally in equity markets, fuelled by rate cut optimism. US dollar stages surprise rebound amid US exceptionalism. Pound slides on BoE's dovish tilt, yen steadies, PBOC loosens grip on yuan.

22 Mar 2024

Dollar rises as Fed enters spotlight, yen plummets
Dollar rises as Fed enters spotlight, yen plummets

US dollar gains as traders brace for hawkish Fed. Yen tumbles despite BoJ's historic decision. Loonie slides on cooler than expected Canadian inflation. Wall Street gains ahead of Fed, oil extends advance.

20 Mar 2024

BoJ hikes, scraps yield curve control, but yen slumps

BoJ ends negative rates and yield curve control in historic move, but yen can't catch a break as Ueda signals ongoing accommodative stance.

19 Mar 2024

Dollar recovers, equities stall after US data releases
Dollar recovers, equities stall after US data releases

Dollar stages comeback as US data fuels speculation of fewer Fed cuts. Stocks and Bitcoin take a step back, oil climbs after Ukraine drone attacks. Yen traders play the guessing game ahead of next week's rate decision.

15 Mar 2024

US PPI and retail sales data enter the limelight
US PPI and retail sales data enter the limelight

After hot CPI inflation, dollar awaits PPI and retail sales data. Yen on the back foot as BoJ March hike bets decrease - S&P 500 and Nasdaq pull back, gold rebounds

14 Mar 2024


Forex Forecasts

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.