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China Yuan Loan Data Due On Monday

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China will on Monday see March figures for new yuan loans, highlighting a modest day for Asia-Pacific economic activity. Loans are forecast at CNY2.50 trillion, up from CNY1.360 trillion in February.

Japan will release March numbers for bank lending and producer prices. In February, bank lending was up 6.2 percent on year, while producer prices rose 0.4 percent on month and fell 0.7 percent on year.

Indonesia will provide February figures for retail sales; in January, sales were down 16.4 percent on year.

The material has been provided by InstaForex Company – www.instaforex.com

Dollar Rebounds From Recent Losses, Posts Gains Against Peers

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The U.S. dollar traded firm against most of its major counterparts on Friday, rebounding well after recent losses.

A surge in bond yields following a bigger than expected increase in consumer prices in the U.S. and China pushed up the dollar.

Producer prices in the U.S. jumped by much more than expected in the month of March, according to a report released by the Labor Department on Friday.

The Labor Department said its producer price index for final demand surged up by 1% in March after climbing by 0.5% in February. Economists had expected another 0.5% increase.

The bigger than expected advance in producer prices reflected another spike in energy prices, which soared by 5.9% in March after skyrocketing by 6% in February.

The dollar index advanced to 92.41 earlier in the day but pared a substantial portion of its gains as the session progressed. The index was last seen at 92.16, up 0.11% from previous close.

Against the Euro, the dollar firmed up to $1.1868 before easing to $1.1903, but still stayed positive, netting a gain of about 0.13%.

The Pound Sterling was weaker against the dollar, fetching $1.3706 a unit, about 0.22% less than Thursday’s close of $1.3736.

The Yen weakened to 109.66 a dollar, sliding from 109.27.

The Aussie was down more than 0.4% against the dollar, with the AUD-USD moving to 0.7621 from 0.7663.

The Swiss franc was little changed against the dollar at 0.9244. Switzerland’s jobless rate decreased in March, data from the State Secretariat for Economic Affairs showed. The jobless rate fell a seasonally to 3.4% in March from 3.6% in February. Economists had expected a rate of 3.6%.

Against the Loonie, the dollar was weaker, fetching C$1.2531 a unit, as against C$1.2562 on Thursday. Data released by Statistics Canada showed employment in Canada increased by 303,100 in March. The unemployment rate dropped to 7.5%, after coming in at 8.2% a month earlier. Economists had expected the unemployment rate to be 8% in March.

The material has been provided by InstaForex Company – www.instaforex.com

Crude Oil Futures Settle Lower On Demand Concerns

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Crude oil prices drifted lower on Friday as worries about outlook for energy demand amid continued surge in coronavirus cases and lockdown restrictions weighed on the commodity.

West Texas Intermediate Crude oil futures for May ended lower by $0.28 or about 0.5% at $59.32 a barrel.

WTI Crude oil futures shed more than 3% in the week.

Brent Crude futures were down $0.23 or 0.36% at $62.97 a barrel a little while ago.

The decision of the Organization of the Petroleum Exporting Countries and allied producers to gradually increase their output by 2 million barrels per day between May and July, raised concerns about possible excess supply in the market if lockdown restrictions remain in place for a longer duration.

In India, refiners are reportedly holding back crude runs as demand slows, with headwinds ahead in the near term, including high fuel prices and localized lockdowns due to rising cases of covid-19 in several states.

Efforts to resolve a nuclear standoff between the U.S. and Iran as well as recent data showing a surge in U.S. gasoline stocks also weighed on oil prices.

Baker Hughes today reported that the number of oil and gas rigs in the United States increased by 2 this week, bringing the total rig count to 432.

The oil rig count remains the same as last week, at 337 this week. The number of gas rigs increased by 2 to 93.

The material has been provided by InstaForex Company – www.instaforex.com

Treasuries Climb Off Early Lows But Still Close In The Red

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After trending higher over the past few sessions, treasuries gave back some ground during the trading day on Friday.

Treasuries rebounded after an initial drop but remained firmly in negative territory throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.4 basis points to 1.666 percent.

The initial weakness among treasuries came amid concerns about inflation after the Labor Department released a report showing producer prices in the U.S. jumped by much more than expected in the month of March.

The Labor Department said its producer price index for final demand surged up by 1.0 percent in March after climbing by 0.5 percent in February. Economists had expected another 0.5 percent increase.

Excluding prices for food, energy, and trade services, core producer prices still rose by 0.6 percent in March after edging up by 0.2 percent in February. Economists had expected another 0.2 percent uptick.

Meanwhile, the Labor Department said the annual rate of producer price growth spiked to 4.2 percent in March from 2.8 percent in February.

Core producer prices in March were up by 3.1 percent compared to a year ago, reflecting a significant acceleration from the 2.2 percent increase in the previous month.

“The fiscally stimulated revival of consumer demand and strong base effects will lead to faster annual inflation rates in the spring,” said Mahir Rasheed, Associate U.S. Economist at Oxford Economics.

He added, “However, these should be temporary dynamics, and we continue to expect the Fed to remain accommodative through mid-2023.”

Next week’s trading may be impacted by reaction to reports on consumer prices, retail sales, industrial production and housing stocks.

The Federal Reserve is also scheduled to release its Beige Book, a compilation of economic evidence from the twelve Fed districts.

Bond traders are also likely to keep an eye on the results of the Treasury Department’s auctions of three-year and ten-year notes and thirty-year bonds.

The material has been provided by InstaForex Company – www.instaforex.com

Gold Futures Settle Lower For The Session, Gains Nearly 1% In Week

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Gold futures settled lower on Friday, weighed down by a stronger U.S. dollar and rising bond yields.

The strength in stock markets amid continued optimism about economic growth weighed as well on the yellow metal.

The dollar index, rebounding from recent weakness, advanced to 92.41 in early New York session before paring some gains. It was last seen at 92.17, up 0.12% from previous close.

Gold futures for June ended down $13.40 or about 0.8% at $1,744.80 an ounce.

Despite closing the day on a weak note, gold futures gained nearly 1% this week.

Silver futures for May ended lower by $0.260 at $25.325 an ounce, while Copper futures for May settled at $4.0400 per pound, down $0.0545 from previous close.

Data from China showed consumer prices rose 0.4% year-on-year in March in that country, exceeding expectations for an increase of 0.3%. China’s National Buereo of Statistics also said that producer prices jumped an annual 4.4% in March – beating expectations for an increase of 3.5% and up sharply from the 1.7% gain a month earlier.

On the U.S. economic front, the Labor Department released a report showing producer prices jumped by much more than expected in the month of March.

The Labor Department said its producer price index for final demand surged up by 1% in March after climbing by 0.5% in February. Economists had expected another 0.5% increase.

The material has been provided by InstaForex Company – www.instaforex.com

U.S. Wholesale Inventories Rise Slightly More Than Expected In February

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Wholesale inventories in the U.S. increased by slightly more than anticipated in the month of February, the Commerce Department revealed in a report released on Friday.

The report said wholesale inventories climbed by 0.6 percent in February after spiking by an upwardly revised 1.4 percent in January.

Economists had expected wholesale inventories to rise by 0.5 percent compared to the 1.3 percent jump originally reported for the previous month.

The slightly bigger than expected increase in wholesale inventories came as inventories of non-durable goods surged up by 1.1 percent and inventories of durable goods rose by 0.3 percent.

Meanwhile, the report showed wholesales sales fell by 0.8 percent in February after soaring by 4.4 percent in January.

Sales of durable goods tumbled by 2.2 percent during the month, more than offsetting a 0.5 percent increase in sales of non-durable goods.

With inventories rising and sales slumping, the inventories/sales ratio for merchant wholesalers ticked up to 1.27 in February from 1.25 in January.

Next Thursday, the Commerce Department is scheduled to release a separate report on business inventories in the month of February. Business inventories are expected to rise by 0.4 percent.

The material has been provided by InstaForex Company – www.instaforex.com

Canadian Dollar Rallies After Robust Canada Jobs Data

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The Canadian dollar spiked higher against its major counterparts in the New York session on Friday, as Canada job growth beat forecasts in March and the jobless rate fell the most since February 2020.

Data from Statistics Canada showed that Canadian economy added much more jobs than expected in the month of March.

Employment increased by 303,100 jobs in March, after a rise of 259,200 jobs in the previous month.

Economists had expected employment to increase by about 101,500 jobs.

The unemployment rate fell to 7.5 percent in March from 8.2 percent in February. The unemployment rate was expected to fall to 8.0 percent. It also marked the lowest level since February 2020.

Oil prices fell slightly as investors weighed rising supplies from major producers and the impact of Covid-19 lockdowns on fuel demand.

The loonie firmed to a 3-day high of 87.58 against the yen, after falling to 86.76 at 2:45 am ET. The loonie is seen finding resistance around the 88.00 mark.

The loonie approached a 3-day high of 1.2541 against the greenback, up from yesterday’s close of 1.2560. Next key resistance for the loonie is likely seen around the 1.21 level.

The loonie jumped to a 3-day high of 1.4895 against the euro, after a 2-day drop to 1.4999 at 3:00 am ET. Immediate resistance for the currency is likely located around the 1.47 level.

Data from Destatis showed that German industrial production decreased unexpectedly in February.

Industrial output dropped 1.6 percent month-on-month in February, while economists had forecast an increase of 1.5 percent. Production had decreased 2 percent in January.

Extending the previous session’s rally, the loonie reached a 3-day high of 0.9555 against the Aussie. The pair had closed yesterday’s deals at 0.9611. If the currency rises further, 0.94 is possibly seen as its next resistance level.

The latest survey from the Australian Industry Group showed that Australia’s services sector continued to expand in March, and at a faster rate, with a seasonally adjusted Performance of Services Index score of 58.7.

That’s up from 55.8 in February and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. It also marked the highest reading for the index since June 2018.

The material has been provided by InstaForex Company – www.instaforex.com

*U.S. Wholesale Inventories Rise 0.6% In February

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U.S. Wholesale Inventories Rise 0.6% In February

The material has been provided by InstaForex Company – www.instaforex.com

U.S. Producer Prices Jump Much More Than Expected In March

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Producer prices in the U.S. jumped by much more than expected in the month of March, according to a report released by the Labor Department on Friday.

The Labor Department said its producer price index for final demand surged up by 1.0 percent in March after climbing by 0.5 percent in February. Economists had expected another 0.5 percent increase.

The bigger than expected advance in producer prices reflected another spike in energy prices, which soared by 5.9 percent in March after skyrocketing by 6.0 percent in February.

Excluding prices for food, energy, and trade services, core producer prices rose by 0.6 percent in March after edging up by 0.2 percent in February. Economists had expected another 0.2 percent uptick.

The report showed prices for final demand services climbed by 0.7 percent in March after inching up by 0.1 percent in February.

Prices for transportation and warehousing services shot up by 1.5 percent, while prices for trade services jumped by 1.0 percent and prices for other services rose by 0.4 percent.

Meanwhile, the Labor Department said the annual rate of producer price growth spiked to 4.2 percent in March from 2.8 percent in February.

Core producer prices in March were up by 3.1 percent compared to a year ago, reflecting a significant acceleration from the 2.2 percent increase in the previous month.

“The fiscally stimulated revival of consumer demand and strong base effects will lead to faster annual inflation rates in the spring,” said Mahir Rasheed, Associate U.S. Economist at Oxford Economics.

He added, “However, these should be temporary dynamics, and we continue to expect the Fed to remain accommodative through mid-2023.”

Next Tuesday, the Labor Department is scheduled to release a separate report on consumer price inflation in the month of March.

Consumer prices are expected to climb by 0.5 percent in March after rising by 0.4 percent in February. Core consumer prices are expected to edge up by 0.2 percent.

The material has been provided by InstaForex Company – www.instaforex.com

*U.S. Producer Prices Jump 1.0% In March, Core Prices Climb 0.6%

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U.S. Producer Prices Jump 1.0% In March, Core Prices Climb 0.6%

The material has been provided by InstaForex Company – www.instaforex.com

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