Commodities

Ahead of PMI and other heavy data!

Author: Trade Pro Skills

Thursday, 01 April 2021 Number of words: 444 Study time: 3 Minutes Views: 312

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Biden boosted the Markets

By: Ahura Chalki

Market analyst – IFC Markets

Today is a big day in terms of economic data. On the other hand, last nights' Biden speech boosted the stock market, as investors learned more about the details of a $2 trillion U.S. government spending plan ahead of the NFP data's optimism.

Yesterday was also the last day of the first quarter, which was the weakest quarter in a year after the economic recovery started. But thanks to higher yields, the U.S. dollar Index stood just shy of a 5 months peak at 93.27.

On top of a $1.9 trillion pandemic relief package, Biden, last night in his speech, told that he is planning to spend almost 2 trillion on roads, railways, broadband, clean energy, and semiconductor manufacture.

Besides Biden's economic recovery package's optimism, earlier we had some critical financial data from Japan, Australia, and Europe, which generally used to help the Asian stock markets but failed in E.Z.

Nikkie 225 closed 0.7% higher, while Hang Seng gaining 1.4%, and Shanghai rose by 0.7%. But in Europe, GB100 lowered by 0.9%, FR40 losing 0.35%, and DE30 is flat.

In Japan, the Tankan All Big Industry CAPEX (Q1) rose by 3.0%, much better than expected, same as Australian Retail Sales. Still, Germany's Retail Sales rose by 1.2% MoM (9.0% YoY) in February, much lower than +2.0% expected and -4.5% last month. Later today, we will have PMI data from European countries as well as U.K. and U.S.

EUR/USD is still swimming around 1.17 and a bit heavier after German's data. Yesterday and after Christine Lagarde, President of the European Central Bank's speech, it seems like the market is somehow priced in the ECB bond-buying scheme. It held the current downtrend of pairing, counting on the continued upward trend of the dollar.

USD Index recovering after Wednesday's drop and regains the 93.30 area, as the U.S. yields a bit softer, but still remains above 1.72%.

XAUUSD: Regain, after free fall of past two days, continuing away, towards R1 at $1722. As mentioned in previous Gold's analysis, regaining above the $1690 area can help the bulls to keep the way towards the first critical level at $1,728.

Oil: Recovery in the Stock Markets, especially in the Asian market, helped the Oil demand, after almost 4% falling of day before, to gain 1.2% so far by now, to pass the P.P. at $59.70. R1 at 60.70 is the next target.


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