News

Dollar Extends Losses as Yields Remain Soft; Equities Recover

USD

The dollar index, which measures the performance of the United States dollar against a basket of the world's major currencies, fell further to a four-week low of 91.53 as Treasury yields remained under pressure. The 30-year US bond auction sent a message of improving appetite to the US debt market, which weighed on yields. The Federal Reserve Chairman Jerome Powell had nothing new to say at the Economic Club of Washington. He reiterated that the economic activity is rebounding significantly, but the Federal Reserve will remain at the current policy stance until achieving the needed goals. Market participants are looking forward to a series of US economic indicators later today among them US jobless claims and Retail Sales.

Equities

Major US stock index futures recovered during the Asian session after some noticeable profit-taking yesterday. Investors are looking forward to the earnings reports. Some of the US top banks announced their numbers yesterday, with Goldman Sachs beating estimates significantly. The Dow Jones Industrial Average futures rallied to 33760, the S&P500 futures rose to 4136, and Nasdaq futures rebounded to 13894.

Metals

Precious metals prices surged during the past hours as the dollar fell, with yields dipping to the bottom of the latest range. The price of a gold ounce rose to $1748, the price of a silver ounce hovered near $25.60, and palladium extended gains to a four-week high of $2726.

Oil

Oil prices soared as inventories dropped and OPEC adjusted demand forecast. The US Energy Information Administration reported a drop of 5.889 million barrels in US crude inventories. Meanwhile, top oil producers raised their oil-demand recovery forecast, they are now seeing oil demand rise by 5.95 million barrels per day in 2021. The West Texas Intermediate crude May contract rose to $63.45, and the Brent blend June contract rallied to $66.91.

Major Economic Events

GMT Country Event Expectation Previous

12:30

US

 Initial Jobless Claims

700

744

12:30

US

 Retail Sales (MoM) (Mar)

5.9%

-3.0%

13:15

US

 Industrial Production (MoM) (Mar)

2.8%

-2.2%

14:00

US

 Business Inventories (MoM) (Feb)

0.5%

0.3%

 

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