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Copper jumped to a record while iron ore futures surged more than…

Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation

Market Focus Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and …

20210511
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Market Focus

Technology shares led U.S. stocks lower as surging commodity prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally.

The tech-heavy Nasdaq 100 Index tumbled 2.6% amid the growing anxiety over inflation, which can threaten longer-horizon revenues typical of the sector. Tesla and Apple were among the biggest decliners. The ARK Innovation ETF resumed its slide. The Dow Jones Industrial Average briefly topped 35,000 for the first time. The benchmark S&P 500 fell from an all-time high. Treasury yields edged higher as traders brace for a busy week of auctions.

Copper jumped to a record while iron ore futures surged more than 10%, adding to concern about inflation. West Texas Intermediate fluctuated after a cyberattack forced the closure of a key U.S. pipeline, which operators hope to reopen by the end of the week.

The run-up in raw materials is intensifying debate ahead of a U.S. CPI report Wednesday that is forecast to show price pressures increased in April. The data will be closely watched by policymakers at the Federal Reserve trying to gauge the speed of the recovery after job growth significantly undershot forecasts.

Main Pairs Movement

The dollar pared losses as equities weakened and some commodities fell. The British pound jumped to its highest since late February against the greenback after the Scottish National Party’s election showing pushed back the risk of an imminent vote on independence.

Currency price action may be influenced by cross-border bond issuance including Canada announcing its first U.S. Dollar bond sale since pandemic and as China Railway Construction eyes debut euro bond.

GBP/USD rose as much as 1.2% to 1.4158, the highest since Feb. 25. The pound was also buoyed by corporate and options buying and interest from macro accounts to reestablish long sterling positions.

Commodity-linked currencies from Australia, Canada, and New Zealand pared intraday gains. AUD/USD was little changed after earlier advancing by as much as 0.6 to the highest since late February; AUD saw interest in 2-month 0.8025 call options. NZD/USD rose as much as 0.1% to 0.7272. USD/CAD slid by 0.3% to 1.21, the lowest since September 2017.

Technical Analysis

EURUSD (4 hour Chart)

Euro fiber once touched topped of the day at 1.2171 level before trims intraday gains, holding negative territory while close to the end of the day, trading below 1.215 level at 1.213 as of writing. At the same time, the greenback remains the weakest currency across the boarded-FX market. For the technical aspect, the RSI indicator shows 58 figures, which alleviates recent over-bought sentiment that pushes down to smooth thresholds. On average price view, 15-long SMA accelerating its ascending slope and 60-long SMA turned its slope to the teeny-tiny upside in day market.

We foresee the market is pretty optimistic for gain traction market seems to build upward momentum despite eurodollar correction it bull movement. On the down way, the first immediate support level is eye on 1.2105 level, 1.207 and 1.2 following. On the up way, we see 1.215 level will be the first tackle resistance as the market tamp down which formed by the price cluster area.

Resistance: 1.215, 1.22

Support: 1.2105, 1.207, 1.2

GBPUSD (4 Hour Chart)

Sterling has raised overall among the top performance on Monday, following last week’s elections. After touching its highest level since Feb at 1.415 around in early Amerian session, the pair holding a slightly move phase, trading at 1.4122 with a 1% rise. For the RSI side, the indicator has breached 78 figures which show the market is experiencing a torrid sentiment. On the other hand, 15 and 60-long SMAs indicator are accelerating their upward slope.

In the near term, the sterling is likely to eye on this week’s U.K. data releases and BoE governor speaking after the good news of the main party pushing for independence in Scotland failed to win. At the current stage, we believed the pound could challenge for the higher stack to toward the last peak at 1.42 around as the market is piling into a long position. However, BoE Governor will speak tomorrow to prospect the eco outlook that could drive wrong-foot fluctuation. For bull favor, the first immediate support is tracking psychologically spot on 1.4 level.

Resistance: 1.4155, 1.42

Support: 1.3959, 1.4

USDCAD (4 Hour Chart)

Loonie had another downside tractions which step down the 1.21 level as the greenback remains poor movement and broadly stronger commodities prices in the day market, trading day to day low at 1.2092 as of writing. Meantime, WTI crude oil traveling at bear step with a slight move in the day but industry material are edged higher stage as expectation of price inflation seems on the trajectory. For the RSI side, the indicator shows 22 figures which suggest an over sought sentiment, moreover, it consecutive for days long. For the moving average side, 15 and 60-long SMAs indicators are remaining in descending movement.

We see price momentum seemingly gird around 1.21 level after it touched down in the day market. Therefore, we expect the market will eye on downside correction movement as it fell to the current stage.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

20210511
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The U.S. unemployment rate edged up to 6.1% and payrolls increased by…

The U.S. unemployment rate edged up to 6.1% and payrolls increased by just 266,000

20210510
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Market Focus

Stocks climbed to a record after surprisingly weak jobs data eased fears about higher inflation and a cutback in the stimulus. The dollar slumped, while Treasuries were little changed.

All major groups in the S&P 500 rose, with energy, real-estate, and industrial shares leading the charge. Earlier in the day, technology-led equity gains as softer economic data drove investors into the perceived safety of pandemic darlings – mega-caps flush with cash and stay-at-home stocks. A gauge of giant growth companies such as Apple Inc. and Amazon.com Inc. pared most of its advance.

The long-awaited employment data rattled markets, with payrolls up only 266,000 in April, trailing the projected 1 million surges. For several analysts, the figures may give a boost to President Joe Biden’s $6 trillion economic agenda and another reason for the Federal Reserve to keep its accommodative stance. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while retaining her expectation of a return to full employment next year.

Federal Reserve Bank of Minneapolis President Neel Kashkari told Bloomberg Television he has “zero sympathies” for critics on Wall Street, who slam the central bank’s aggressive support of the U.S. economy while millions of Americans remain out of work.

“We need to rebuild this labor market and put them back to work. Then there will be plenty of time to normalize monetary policy,” he said.

Main Pairs Movement

A gauge of the dollar slumped to a 10-week low after U.S. job growth missed all estimates and as stocks rose on easing inflation concerns. The euro advanced to the highest in more than two months amid short-covering.

Dollar Spot Index slid as much as 0.665%, the most since December after data showed the U.S. unemployment rate edged up to 6.1% and payrolls increased by just 266,000 after a downwardly revised 770,000 March increase, well short of projections. The dollar also came under pressure as the offshore yuan posts its biggest advance in four months.

The euro climbs as much as 0.8% to $1.2165 amid short-covering and after ECB governing council member, Martins Kazaks said that a June decision to slow down bond-buying is possible if the economy doesn’t deteriorate. EUR/USD implied are higher across the curve with 1-year climbing to as high as 6.4350, the highest level since March 24.

On the week, commodity currencies led gains against the dollar, as prices of raw materials continued to soar. GBP/USD gained as much as 0.8% to 1.4, falling just short of the 1.4009 level last seen on April 20. USD/JPY was down 0.4% to 108.71 after earlier sliding as much as 0.7% to 108.34, the lowest since April 27.

Technical Analysis

EURUSD (4 hour Chart)

Euro fiber extended its yesterday upward momentum to approached a 2-month high on 1.216 level after U.S. unveiled an extremely disappointed NFP data that miss 1 million job gain versus 266 K actually, trading at 1.2164 as of writing. For the technical aspect, the RSI indicator shows 76 figures, suggesting an over-bought sentiment at least for the short term. On average price view, 15-long SMA accelerating its ascending slope and 60-long SMA turned it slope to the teeny-tiny upside in day market.

We foresee the market it pretty optimistic for gain traction as it edged higher than the last peak. Meanwhile, the market seems to try toward to next psychological level at 1.22. Therefore, we expect the first immediately downside support level will be the peak of last time at 1.2151 and 1.2106 following.

Resistance: 1.22

Support: 1.207, 1.2105, 1.215

XAUUSD (4 Hour Chart)

Gold consecutive it bull movement once breached to 3 months peak at 1843 and had a correction for it gain traction aftermarket digest the poor US NFP data, trading at 1832. Meantime, U.S. 10 years Treasuries yield has fallen to 1.5% stage which is testing the neckline of the 2-month-long double top pattern. For the RSI side, the indicator shows 73 figures which show the market is experiencing a torrid sentiment. On the other hand, 15 and 60-long SMAs indicator are accelerating their upward slope.

At the current stage, it seems market pricing for bullish trade while gold market without any cap pressure. However, we verdict that soared up rapidly in short term market could motivate take profit momentum. Therefore, for bull favor, first, immediately downside support at 1812.8 and psychological level at 1800 will follow. On up way, we expect there has another take profit level on 1850.

Resistance: 1850

Support: 1812.8, 1800, 1760

USDCAD (4 Hour Chart)

Loonie had a fluctuating movement in the day market and toward another day to day low level, trading at 1.2137 as of writing, while market reacted mix of upsetting US job data and Canada’s unemployment rate also miss the 7.8% expectation that figure show 8.1% of actual. Meantime, WTI crude turns negative territory to the positive area after the U.S. session, and copper was edging up to a record-setting level. For the RSI side, the indicator shows 22 figures which shows the market is on an over-bought sentiment recently. For the moving average side, 15 and 60-long SMAs indicators are remaining in descending movement.

Overall, we foresee the market will continue its downside movement as bearish momentum is still in favor of traction. On the slid way, we expect to sell position will incent strong take profit on the psychological level at 1.21.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

20210510
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China’s shares traded in New York briefly extended losses after the Biden…

China’s shares traded in New York briefly extended losses after the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation

20210507
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Market Focus

Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries, with investors awaiting Friday’s jobs report. The dollar retreated.

The S&P 500 closed near session highs, while the Dow Jones Industrial Average rose to a record. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation. In late trading, Beyond Meat Inc. slumped as the maker of plant-based protein products reported disappointing sales, and Peloton Interactive Inc. whipsawed as investors assessed its results.

Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor-market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity in the first quarter as the pace of output exceeded a pickup in hours worked. Economists predict the upcoming employment report will show the U.S. added about 1 million jobs in April.

Main Pairs Movement

The greenback weakened versus most Group-of-10 currency peers as U.S. 10-year yields remained steady ahead of data Friday forecast to show employment growth in America soared. The Canadian dollar climbed to the highest since 2017 as metals helped to boost an index of commodities to a fresh 2015 high. o Ten-year U.S. yields little changed at ~1.56%; NFP forecast for a gain of 1m.

USD/CAD -0.7% to 1.2184; touched 1.2181, lowest since Sep. 18, 2017; higher gold, silver helped to buoy loonie. Options in loonie remain active amid call interest. Overnight volatility in USD/CAD hit ~9.77%, highest since early January on a closing basis, ahead of the nation’s employment data, also scheduled for Friday, which is expected to show a loss of about 150k jobs in the month.

GBP/USD down 0.1% to 1.3891; BOE slowed its emergency bond-buying and signaled it’s on course to end that crisis support later this year. EUR/USD +0.5% to 1.2060; poised for the first gain in three sessions; shared currency supported by cross-related buying and interest in short-dated euro calls.

Technical Analysis

EURUSD (4 hour Chart)

Euro fiber retreated yesterday gloomy amid fueled by macroeconomic data from the E.U and the U.S. which boosted risk sentiment, helped euro dollar to advance, currently trading at 1.206 that wipe out yesterday fail. For further eco-data driven, the euro holding a bull expectation to an extension ahead of NFP. For the technical aspect, the RSI indicator shows 58 figures, suggesting a bullish momentum at least for the short term. On average price view, 15-long SMA turned ascending slope and 60-long SMA turned it slope to the teeny-tiny upside in day market.

We foresee the market will continue whipsaw or choppy in a range between first support and resistance or even continue day gain traction further. On up way, if position breakthrough 1.207 level, we eye on next couple resistance of upside. Of course, the first immediately is on 1.199-1.2 around and 1.192 following.

Resistance: 1.207, 1.2105, 1.215

Support: 1.199, 1.19

XAUUSD (4 Hour Chart)

Gold rallied to a 2-month-long peak as seems bearish momentum had a correction to test the short position. Gold once ramp of to daily high at 1816 level then slightly resume position to nearly market close, trading at 1814.7. For the RSI side, the indicator shows 72.5 figures which suggest over-bought sentiment base on a 4-hour interval. On the other hand, 15 and 60-long SMAs indicator are shifting their sluggish movement to ascending momentum.

At the current stage, it seems market pricing for bullish trade while gold market without any cap pressure. However, we verdict that soared up rapidly in short term market could motivate take profit momentum. Therefore, for bull favor, first, immediately downside support at 1812.8 and psychological level at 1800 will follow.

Support: 1812.8, 1800, 1760

USDCAD (4 Hour Chart)

Loonie gains a downside victory intraday as it successively extended bearish momentum recently amid spectacular economic data trigger the risk-on mode to commodities-linked currencies, trading at 1.2158 which record-setting low in nearly 3 years. Meanwhile, an exceptional decrease in U.S. oil inventories didn’t pump up the price which holding beneath 65 levels where comfort at 64.88 as of writing. However, pan-industrial metal is constantly in gain traction. For the RSI side, the indicator shows 16 figures which represent the market is on an over-bought sentiment.

Overall, we foresee the market will continue its downside movement as bearish momentum is still in favor of traction. On the slid way, we expect to sell position will incent strong take profit on the psychological level at 1.21.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

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