News Written by Juliana Calil 04/13/2021 at 17:00
Highlights
The EURUSD market fluctuated today close to 1.19 pending data on US inflation, and after the news soaredto the level of 1.1950 as investors absorb the idea that the entire currency injection in the economy aiming atthe US recovery will be absorbed and will not generate inflation. The annual inflation rate measured in the USA was 2.6% in March2021, practically in line with the market projections of 2.5%, but the highest in more than two years. The mainresponsible for the increase were: energy (13.2%), gasoline (22.5%), gas (9.8%) and used cars and trucks (9.4%). For anotherOn the one hand, the price of clothing decreased (-2.5%). The jump in commodity prices, in addition to supply constraints, are pushingprices up
The result in the markets was an increase in risk appetite, which weakened the dollar. Technology actions led thegains today, leading the stock market to new record highs. In addition, the yield on the US Treasury bond with10-year maturity dropped to 1.63% this afternoon, after a solid 30-year bond auction, ruling out the possibility ofa new high wave in Treasury yields
EURUSD reached 1.1956 today. DXY is being traded at the level of 91.8 thousand points. The USDJPY is oscillating close to$ 109.0. The USDCHF of $ 0.9206. Gold is trading at $ 1,745 an ounce, and silver at $ 25.4 an ounce.
Tomorrow, the market will follow the events attended by high-ranking members of the main political institutionsMonetary of the world: ECB and EDF. In the morning, Luis de Guindos, of the ECB, presents the 2020 ECB Annual Report to the CommissionEuropean Parliament ECON and Christine Lagarde chatted at a Reuters Newsmaker event. The marketexpects any optimistic comments regarding the vaccination campaign against COVID-19 in the Eurozone that couldstrengthen the local currency. Powell speaks to the Economic Club of Washington at 1pm (eastern time). At 3pm (eastern time) the Vice Chairof the EDF, Richard H. Clarida will talk about The Federal Reserve’s New Framework and Outcome-Based Forward Guidance to the Market
Committee Meeting. Any dovish commentary on the US inflation data could cause the US dollarskid.T
omorrow, too, investors are monitoring the first wave of quarterly earnings disclosure, with major bankspublishing their balance sheets.
The main facts observed by investors at the moment are
COVID-19
The US Food and Drug Administration has recommended states to pause the use of the Johnson vaccine& Johnson. The agency is examining data involving six cases of a rare and severe type of clotsblood. Six women suffered a type of brain blood clot similar to that reported as arare side effect of the AstraZeneca vaccine. 6.8 million doses of the J&J vaccine have already been administered inU.S. Biden said on Twitter that this decision will not affect the pace of the vaccination campaign andthat by May all adult Americans will be vaccinated. Johnson & Johnson decided to postpone the launchvaccine in Europe.
The UK vaccinated its entire population over 50, three days ahead of schedule.o India has overtaken Brazil as the second country with the most diagnosed cases in the world.
MACROECONOMY:
Eurozone: The ZEW Economic Sentiment Indicator for Germany fell 5.9 points from the monthprevious year to 70.7 in April 2021, below market expectations of 79.0. It was the first timesince November that the indicator fell, as fears of a stricter blockade led to adrop in expectations for private consumption. Even so, the prospects for exportsproved to be better than the previous month. About 76% of analysts interviewed predictedan improvement in economic activity in the next six months, while 5% expected adeterioration and 19% saw no change.
The ZEW Economic Sentiment Indicator for the Eurozone decreased 7.7 points to 66.3 inApril 2021, the lowest reading since January. In April, 6.2% of analysts surveyed expecteddeterioration in economic activity, 21.3% did not expect changes, and 72.5% foresaw aimprovement. ZEW President Achim Wambach commented on the index, saying: ‘Expertsof the financial market are slightly less euphoric than in the previous month. The ZEW indicator forHowever, economic sentiment is still at a very high level and the current situation is assessedmuch more positively than in March.
OTHERS
China trade data, signaling that the country’s economic recovery is gaining momentum. the dataChina’s foreign trade signals signaled that the country’s economic recovery is gaining momentum, with theimports growing more in four years, reaching the highest level eve.
