Highlights
EURUSD started the week by breaking the 1.20 level, quickly reaching 1.2048, remaining at the level close to1.2035 throughout the day. Throughout the European and American session, interest in the dollar was very low, since theinvestors are optimistic about the global economic recovery, especially now that the vaccination campaignin Europe it starts to pick up pace. This week the European Central Bank’s monetary policy committee meets. Although themarket does not wait for any news at this meeting, it will follow the speeches of the committee members, looking for anypossible change in relation to monetary stimuli.
Demand for the dollar also remained low in today’s session as the yield on the Treasury bill with10-year maturity, which reached the lowest observed in the last month, of 1.53% last week, was close to 1.61%,attracting a normal level of investors. Securities settlement has declined since the beginning of this month, despite economic databetter than expected for the US (home construction reached its highest 15-year high in March, salesretail sales grew strongly and claims for unemployment benefits reached the lowest level in the last 13 months). THEdisclosure of quarterly results by the North American Companies has confirmed the recovery of the private sectorthe country after the pandemic. S&P and Dow advanced 1.38% and 1.18%, respectively, last week, reaching the fourthconsecutive week of gains, while the Nasdaq Composite rose 1.4%, rising for the third consecutive week.
On the other hand, geopolitical tensions, with the US imposing a new series of sanctions on Russia, are of concern, as well as themaintaining control over US inflation by the Fed
DXY is being traded at 91.0 thousand points, the lowest level since March 3. The dollar lost 0.7% in the weekthe second consecutive weekly loss. The USDJPY is oscillating close to $ 108.1. The USDCHF of $ 0.9150. Gold isbeing traded at $ 1,770 an ounce, and silver at $ 25.8
Throughout this week, the main facts to be disclosed are:
Tuesday, 4/20
•Weekly retail sales in the USA (redbook) April 17, 2021•Crude oil stock on April 16, 2021
Wednesday, 21/4
•Weekly mortgage applications in the U.S., April 16, 2021
•$ 24 billion US Treasury bond auction maturing in 20 years
Thursday, 22/4
•European Union budget and debt to GDP
•Labor market in the USA, April 17, 2021
•ECB interest rate decision at the monetary policy meeting + Press conference
•European consumer confidence in April / 2021
•$ 18 billion US Treasury bond auction maturing in 5 years
Friday, 23/4
•Markit Manufacturing, Services and Composite PMI Flash for the European Union inapril / 2021
•Markit Manufacturing, Services and Composite PMI Flash for the USA in April / 2021
•ECB President Christine Lagarde speaks to the panel “A global tipping point: powerof global capital markets in the fight against climate change “, organized andreleased by Bloomberg
The main facts observed by investors at the moment are:
COVID-19
Reaching more than 141 million cases worldwide, with more than 3 million deaths, and avaccination campaign that has already distributed almost 895 million doses, COVID-19 is now victimizing the youngest,who have not received a vaccine and who are leading a less careful life.
MACROECONOMY:
Eurozone:
The production of the civil construction sector in the Euro Zone contracted 5.8% in February 2021 incompared to the previous year. It was the sixth consecutive month of fall in production in the sector and the largesthas fallen since May 2020. On a monthly basis, the production of the civil construction sector fell2.1% in February 2021, after a 0.8% gain in the previous month.
The Eurozone trade balance surplus decreased to EUR 13.3 billion in February2021, of EUR 14.1 billion in the same month of the previous year, as primary revenue registered adeficit of EUR 2.1 billion. Meanwhile, the service sector recorded a surplus of EUR 7.3billion, compared to a deficit of EUR 6.1 billion in the same period last year.
SHARES:
European stock markets remained close to their record highs in today’s session, after registeringseven consecutive weeks of earnings on the last Friday. The German DAX 30 ended the week at its highest valueof all time; the French CAC 40 at the highest value in the last two decades; the English FTSE 100 closed in valuehighest in the last 14 months; and the Spanish IBEX 35 closed at the highest level since March 2020. In the USA, theCoca-Cola showed results above market expectations, Tesla’s shares fell about 2% (afterthat two people died in Texas on Saturday night, in an accident with a car of the brand. The team ofemergency took about four hours and about 32,000 gallons of water to put out the fire that engulfed theelectric vehicle, as high voltage batteries like those used in Teslas can reignite after beingdamaged even after firefighters extinguished a fire).
OTHERS:
Ethanol futures rose to more than $ 2.0 per gallon for the first time since the end of 2014, due toto lower stocks, as demand for renewable fuels is growing thanks topolicies of the Biden administration.
Bitcoin was trading around $ 57,350 on Monday. The losses came after Bitcoinjumped to more than $ 64,000 last Wednesday due to enthusiasm for the debut of the stock exchangeCoinbase cryptocurrencies in the stock market
