Stocks firm, dollar lower ahead of bank earnings reports
In modest risk-on trading, stock markets remain firm and near all-time highs, as traders await earnings reports by several big US banks, including JPMorgan, Wells Fargo and Goldman Sachs. In Europe, there were positive earnings reports from two major companies, LVMN and SAP SE. The US dollar index is broadly lower, US Treasury 10Yr yields edged higher to 1.63%, oil firmed to $61 per barrel and gold fell slightly to $1744 per oz. Bitcoin soared to an all-time high ahead of today’s listing of Coinbase on NASDAQ. The Fed Beige Book is published and Fed Chair Powell and several other Fed members speak today.
April 14, 2021
EUR/USD 1.1957 GBP/USD 1.3778 USD/CAD 1.256 AUD/USD 0.7695 USD/JPY 109.05 USD/CNH 6.5335 USD/ILS 3.2857 USD/MXN 20.0499 USD/CHF 0.9225 USD/INR 75.0550 USD/BRL 5.6795 USD/SGD 1.3364 USD/DKK 6.2197 USD/SEK 8.4685 USD/NOK 8.4221
Today’s releases of bank earnings dominated market attention. Goldman and JPMorgan both beat expectations, and results from Wells Fargo were mixed. The dollar is slightly lower, its biggest losses against the New Zealand and Australian dollars, but edging higher against the Canadian dollar and Swiss franc. Traders await a slew of Fed speakers today, including Fed Chair Powell. The Fed releases its Beige Book today, which is a summary of economic activity reported by the 12 Fed districts. Traders will be looking for signs of tightness in the US labor markets.GBP
The UK pound barely moved overnight with little local news to affect markets. The economic outlook for the UK remains positive due to the success of their vaccination program.EUR
The euro is basically unchanged overnight with little news to affect trading. Eurozone bond yields edged higher, the German bund yield trades at -28 bps. The Euro Stoxx 50 equity index moved higher following strong earnings from two major European companies, LVMN and SAP SE.CAD
The CAD edged higher, but lagged behind the other G-10 currencies in gains versus today’s weaker USD, despite higher oil prices. There is no major economic data for Canada today.ASIA/PACIFIC
Asian currencies were unchanged overnight with little regional news to impact markets.
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