Youtrading UK
Português Español русский
Register Login
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
No Result
View All Result
Youtrading UK
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
No Result
View All Result
Youtrading UK
No Result
View All Result

Markets in a more upbeat mood heading into the weekend

by Joel Frank
26 March 2021
in Commodities, Forex, Index, Markets
0
Markets in a more upbeat mood heading into the weekend

Photo by Lloyd Blunk.

349
SHARES
8.6k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Market Update

Risk appetite is on a firmer footing on the final trading day of the week; European equity markets trade broadly in the green (Stoxx 600 +0.7%) and US equity index futures, aside from futures contracts for the tech heavy Nasdaq 100 (down 0.7%), also point to a positive open, with S&P 500 futures up 0.3%. Meanwhile, risk-sensitive commodities and currencies are performing well and bond yields are moving higher on both sides of the Atlantic – note, it is this rise in bond yields (the US 10-year yield is up over 6bps on the session to close to 1.68%) that is weighing on duration sensitive US tech stocks.

There is no specific fundamental reason as to why markets are in a more upbeat mood on the final trading day of the week. Consolidation/pre-quarter end positioning is the explanation being thrown around by some market commentators. Markets have for the most part shrugged off a continual flow of fresh bad news regarding the state of the pandemic in Europe and on geopolitics.

Starting with the former; commentary from European leaders regarding the bloc entering a third wave of the pandemic remains pessimistic. Most ominously, the leader of the German RKI said that there are clear signals that the current wave could be worse than the first while the German Health Minister is warning that the health system could hit capacity as soon as April. Another health official stated that there is a risk that new daily infections hit 100K. Pandemic related pessimism in Europe might be being offset by a very strong German IFO survey for the month of March, which showed the economy holding up significantly better than expected despite the recent rise in Covid-19 cases.

Turning to geopolitics, North Korea confirmed that it had test-fired a new tactical guided missile on Thursday, prompting condemnation from the US. This comes after fiery criticism of the North Korean regime on Thursday from President Biden. Meanwhile, in the Middle East, Thursday saw an Iranian missile fired at an Israeli ship and also multiple attempts by the Houthis in Yemen to launch attacks against military and Saudi Aramco facilities in Saudi Arabia – this news seems to be supporting crude oil prices, which in a way is likely helping stock markets as a result and perhaps contributing to the market’s better risk appetite.

G10 FX Markets

The US dollar is currently consolidating between the 92.70-92.90 levels as DXY bulls take a breather on the final trading day of the week, with positive flows into risk assets taking some of the wind out of the safe-haven USD’s recent upside momentum. The US dollar did not see too much by way of rection to a surprisingly weak February Core PCE inflation print; Core PCE came in at 1.4% YoY on the month, a little lower than expectations for a print of 1.5%. The YoY rate of inflation is expected to pick up significantly here on out given weak base effects from last year, so this slightly weaker than expected print is not a game changer.

JPY is the worst performing currency in the G10 this morning; the yen is receiving a double whammy from the market’s better risk tone and the move higher in US government bond yields, which has put upwards pressure on US/Japan rate differentials. USD/JPY has now advanced to fresh year-to-date highs in the 109.70s; bulls might now wait for a retracement back to support in the form of the prior year-to-date highs in the 109.30s to add to longs. A very slightly stronger than forecast Tokyo Core CPI reading for the month of March released last night has not come to the aid of the yen and showed that the Japanese economy remains in deflation with prices dropping 0.1% YoY.

At the other end of the G10 performance table, NZD and AUD are in the lead, both nursing a reasonable recovery rally after being battered earlier in the week (the kiwi was hit particularly hard). NZDUSD has still not quite managed to reclaim the 0.7000 handle but is at least off overnight lows in under 0.6950. AUDUSD, meanwhile, has recovered from yesterday’s lows in the 0.7560s back above the 0.7600 level, despite reports yesterday of China blocking hay imports from Australia and further escalating the two countries ongoing trade spat. The Aussie has also managed to shrug off a new dovish RBA call from Westpac bank (their predictions often move FX markets) that the bank will extend its QE programme in October.

Sitting in the middle of the G10 FX performance table is the likes of CAD, GBP and EUR, all benefitting from today’s slightly softer USD conditions with markets in a more upbeat mood. More specifically, the Loonie is enjoying the recovery rally in crude oil markets, the euro has been modestly enthused by today’s aforementioned strong German IFO survey for the month of March and sterling continues to seemingly garner encouragement from commentary from EU officials that they think they can work something out regarding the ongoing UK/EU vaccine spat. USDCAD is currently consolidating between the 1.2560s-80s, EURUSD has slipped back from a failed test of the 1.1800 level and trades closer to 1.1775, above yesterday’s 1.1760 lows and GBPUSD nearly managed to hit 1.3800 in earlier trade but is now consolidating just above 1.3750.

The Day Ahead

With US Core PCE data out of the way, the main focus of the session in terms of data will be on the preliminary University of Michigan Consumer Sentiment survey for the month of March, released at 1400GMT. At 1500GMT, Canadian Budget Balance data will be released for the month of January (Loonie traders ought to keep an eye). Budget data out of the US will then be released later in the evening. The final calendar event of note will be remarks from BoE’s Tenreyro, speaking at 1745GMT. Otherwise, the usual themes remain in focus; the path of the pandemic and vaccine rollouts, US fiscal stimulus, geopolitics and vaccine/trade wars.

Tags: AUDUSDCovid-19Crude oilEURUSDGBPUSDNASDAQNorth KoreaNZDUSDStoxx 600US DOLLAR INDEXUS TreasuryUSA500USDCADUSDJPY
Previous Post

Market Insights – The US dollar index bull and bear case

Next Post

Suez disruption supports energy prices

Next Post

Suez disruption supports energy prices

Please login to join discussion

CALL US

Categories
  • Commodities
  • Economy
  • Forex
  • Index
  • Insights
  • Markets
  • Opening of the Week
  • Sem categoria
  • Stocks
  • World

Site Map

  • Home
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
Português Español русский

A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!

Follow us on social media

Risk Warning

All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary.

All Rights Reserved - YouTrading UK 2020

Privacy Policy and Terms and Conditions
  • Home
  • My Academy
    • Register Now
    • Login
  • Markets
    • Opening of the Week
    • Stocks
    • Commodities
    • Forex
    • Index
  • Charts
  • Economic Calendar
  • Economy
  • World
  • Insights
  • About Us
No Result
View All Result

© 2020 YouTrading UK - Leaders in Trader Training.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
__cfduid1 monthThe cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information.
_wpfuuid11 yearsThis cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon.
cf_use_obThis cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires.
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-advertisement1 yearThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
YSCsessionThis cookies is set by Youtube and is used to track the views of embedded videos.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThis cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors.
_gid1 dayThis cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_fbp3 monthsThis cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website.
fr3 monthsThe cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin.
IDE1 year 24 daysUsed by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.
test_cookie15 minutesThis cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysThis cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
_gat_UA-42160853-21 minuteNo description
cf_ob_infoNo description
CONSENT16 years 8 months 3 days 6 hours 2 minutesNo description
SAVE & ACCEPT
Powered by CookieYes Logo