Lower dollar, higher stocks amid upbeat US earnings & economic data
Better-than-expected earnings reports continue to buoy financial markets. This morning, Citigroup reported record quarterly profits, joining yesterday’s positive reports by Goldman and JPMorgan. Stocks were also boosted by economic data this morning all which exceeded expectations -- Empire Manufacturing, Initial Jobless Claims and Retail Sales. The dollar fell slightly, stocks are higher, and bond yields are dropping – the UST 10yr dropped below 1.60% for the first time in a month. Russian markets and the ruble fell significantly on news that the US government plans to sanction Russian sovereign debt. Gold gained $10 overnight to $1,747 per oz. and oil is flat at $62.80 per barrel.
April 15, 2021
EUR/USD 1.1976 GBP/USD 1.3785 USD/CAD 1.2511 AUD/USD 0.7751 USD/JPY 108.71 USD/CNH 6.5283 USD/ILS 3.2817 USD/MXN 19.9630 USD/CHF 0.9219 USD/INR 74.9275 USD/BRL 5.6275 USD/SGD 1.3345 USD/DKK 6.2103 USD/SEK 8.4496 USD/NOK 8.3792
The dollar is lower amid today’s ‘risk-on’ mood by investors, buoyed by strong bank earnings reports and upbeat US economic data. US jobless claims of 576K was a 13-month low and Retail Sales for March jumped 9.8%, expectations were 700K and 5.8%, respectively. The biggest losses for the dollar were against “commodity currencies” MXN, NZD, AUD, and CAD. The euro, UK pound and remaining G-10 currencies were left largely unchanged.GBP
The UK pound traded in a narrow range overnight, and is currently up small versus the dollar. Market chatter is focused on recent weaker-than-expected economic data releases for the UK, which is comparatively weaker than data from earlier in the year.EUR
The euro is flat overnight with little news in Europe to move markets. Recent economic data was not impressive, traders await tomorrow’s Eurozone CPI data for March.CAD
Along with other commodity currencies, the Canadian dollar was a top performing currency overnight. Having said that, gains were not overly impressive, the CAD is up only 0.20% vs. the US dollar. Recent economic data out of Canada has been upbeat, but today’s Manufacturing Sales for February dropped 1.6%, worse than expectations of -1% and January’s +3.1%. Tomorrow’s Housing Starts for March will be closely watched by economists.ASIA/PACIFIC
The Japanese yen posted small gains against the dollar for the fifth straight day. The USD/JPY fell further beneath 109, and seems likely to test key support at 108.40-50. Demand for the yen increased following yesterday’s comments by Bank of Japan Governor Kuroda that Japan’s economy is trending higher.
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