Markets pause, equities and dollar mixed
Investors are taking a pause from the recent market volatility. Asian Equity markets are lower on the back of comments by China’s top banking regulator that he’s “very worried” about risks from bubbles in the financial markets. Europe stocks fared much better, mostly in the green, and the S&P 500 in opening slightly lower. The US dollar is broadly stronger and holding near recent highs. Global bond yields edged higher, as have gold and oil prices. Traders await this week’s heavy slate of economic releases, Fed speeches, and Thursday’s OPEC meeting.
“It’s better to burn out, than to fade away.”
March 2, 2021
EUR/USD 1.2040 GBP/USD 1.3925 USD/CAD 1.2648 AUD/USD 0.7806 USD/JPY 106.79 USD/CNH 6.4722 USD/ILS 3.2970 USD/MXN 20.6750 USD/CHF 0.9167 USD/INR 73.3675 USD/BRL 5.7038 USD/SGD 1.3316 USD/DKK 6.1760 USD/SEK 8.4255 USD/NOK 8.5292
The dollar is broadly higher and holding near recent highs. Trading is relatively light as markets await more news to fuel direction. Friday’s US employment data will help provide valuable information about the nation’s labor market recovery. Tomorrow, the Fed publishes its Beige Book, which reports information on current economic conditions by each of the 12 Federal Reserve Bank districts.GBP
The UK pound is little changed, as traders await to hear from Chancellor of the Exchequer Rishi Sunak, who announces the UK’s tax and spending plans. It will be closely watched due to the significant impact from the pandemic.EUR
The euro traded lower for the third day, and briefly breaching $1.20 for the first time since early February. ECB Executive Board member Fabio Panetta said the recent rise in bond yields is “unwelcome and must be resisted.”CAD
The loonie held steady overnight despite a modest increase in commodity prices. This morning’s release of GDP figures for Canada showed lower growth in December (+0.1% MoM) and Q4 (+9.6%) than previous periods, but were marginally better than expectations.ASIA/PACIFIC
Asian equity markets were lower, as were most Asian currencies following comments by China’s top banking regulator that he’s “very worried” about risks from bubbles in the financial markets.
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