Highlights
EURUSD opened today at 1.1813, accumulating a 0.6% devaluation since the beginning of this week, on 22March. While investors digest the economic recovery plan designed by the Fed for the US, the difficulty inof the coronavirus vaccination campaign in Europe and its consequent lengthening of the lockdowns, in addition topolitical tensions in Asia, the market is slightly detached from fundamentals. Everything indicates that EURUSD should seek thelevel of 1.2000, but the pair continues to fall day after day, as both currencies are attracting little interest,demonstrating how unstable the investor’s mood is. With scaling bears and bulls, there is a greater chance than todaycontinue to be a day of volatility, with no likely destination.
As with every Thursday, the release of data on the US labor market moves the market. THE730,000 people are expected to have applied for unemployment insurance last week. In the early afternoon the marketmonitors the $ 62 billion US Treasury bond auction maturing in 7 years as it obtained little demandin the last auction, initiating the hikes in interest rates that have moved the entire financial market in recent weeks. Youauctions held in the last two days, for securities maturing in 2 and 5 years, were a success, that is, greater demandthan offer.
DXY is being traded at 92.6 thousand points. The USDJPY is oscillating close to 109.0. The USDCHF of $ 0.9353. THEgold is trading at $ 1,730 an ounce, and silver at $ 24.8.
COVID-19
Although Germany is struggling to control the pandemic in its territory, the state of Saarland has decided tonot joining the national lockdown next month, opting to allow everything from social gatherings to gamesand visits to the theater, but only for people with a negative test for COVID-19. Changes inChancellor Angela Merkel’s speech has raised concerns that she has lost control overthe crisis. The daily number of deaths has fallen since the beginning of the year in Germany, when vaccinations have not yethad started, but ICU admissions are increasing weekly, as is the number ofdiagnostics.
Bloomberg’s Covid Resilience Ranking shows that Israel is the nation with the best vaccination campaignagainst COVID-19.o In the USA, Louisiana, Idaho and Utah have joined the growing list of states that allow anyoneover 16 years of age or older, get the vaccine in the next few weeks (starting March 29)
MACROECONOMY
The number of Americans who applied for unemployment insurance last week was 684,000, the levellowest since the pandemic hit the labor market in March 2020 and below expectations730 thousand, showing signs of a gradual recovery in employment. It is likely that this numbercontinue to fall in the coming weeks amid the rapid rate of vaccinations, the easing of restrictions oncirculation of people and goods, and the distribution of money through the R $ 1.9 trillion package.
IHS Markit US Composite PMI recorded 59.1 in March 2021, the second fastest recovery in the industryprivate in six years. Although the pressures resulting from the extensive shortage of raw materials have restrictedgrowth in manufacturing production, goods producers reported the sharpest increase innew orders since June 2014. Service providers recorded the largest increase in new ordersbusiness in almost three years. Entrepreneur confidence increased in March, reaching a level that is seldomexceeded in the last seven years.
The industrial climate indicator in France was unchanged in March 2021, in line with forecasts. Youmanagers improved their opinion on the production carried out and on the general outlook for the industry. THEbusiness climate indicator is above the long-term level in almost all branches of the industrial sector,except for the manufacture of transport equipment.
The consumer climate indicator GfK in Germany increased in April 2021, to the highest level infive months. The survey was carried out between March 3 and 15, before the extension of the German blockade until 18Of april. The income expectations sub-index increased by 15.8, while the economic outlook indicatorrose 9.7 points, the willingness to buy indicator increased 4.9 points and the consumer climate increased2.8 points.
The consumer confidence indicator in the Eurozone rose 4 points in March 2021, above themarket expectations. It was the highest reading since February 2020. Considering the European Union asoverall, consumer sentiment increased by 3.6 points
SHARES
The shares of Chinese companies traded in both China and the USA, including Alibaba and Baidu, are infall after the SEC adopted the Holding Foreign Companies Accountable Act . The measure would remove companiesAmerican stock exchanges if they failed to meet US audit standards for threeconsecutive years. The rules also require companies to prove to the SEC that they do not belong or are not controlledby an entity of a foreign government.
