Forex news for New York trade on March 24, 2021:
- US February prelim durable goods orders -1.1% vs +0.5% expected
- Markit US March prelim services 60.0 vs 60.1 expected
- OPEC+ likely to roll over production - report
- Efforts to un-jam Suez canal ship suspended until tomorrow
- Sen Manchin favors higher taxes to pay for infrastructure
- US sells 5-year notes at 0.850% vs 0.847% WI
- Fed's Daly: We will not be pre-emptively taking away the punch bowl
- Eurozone March flash consumer confidence -10.8 vs -14.5 expected
- Powell: We expect near-term upward pressure on prices
- Yellen: My views on US fiscal space have changed since 2017
- EIA weekly US oil inventories +1912K vs 1350K expected
- India delays big exports of AstraZeneca vaccine - report
- Fed's Barkin: Economy positioned for robust year
Markets:
- Gold up $7 to $1734
- US 10-year yields down 1.3 bps to 1.606%
- S&P 500 down 21 points to 3889
- WTI crude oil up $2.98 to $60.73
- CAD leads, AUD lags
The risk mood deteriorated throughout the day and particularly late in the day to reverse a slump in the US dollar. USD/JPY early in the day rose to 108.96 from 108.69 on early positive risk sentiment but it gave it all back late as the yen climbed on risk aversion.
More broadly, Europe continued to struggle on the slow vaccine rollout and rise in cases. The euro is flirting with an earlier double bottom at 1.1813 and threatening the lows of the day.
Cable is down 64 pips to 1.3688 after failing twice at 1.3731. It remains above the Asian low but didn't get much credit for better PMIs.
It was the same story everywhere with decent PMIs but waning enthusiasm for the reopening. Or maybe it's a factor of quarter/month end looming, along with the end of the Japanese fiscal year.
Oil almost made it all the way back from yesterday's rout in a yo-yo trade. It got all the way to $61.34 at the highs, which precisely matches yesterday's high. OPEC headlines and the jam in the Suez canal helped.
The broader looming question in commodities is surrounding the virus and global growth. Variants and new waves are threatening the rebound beyond Q1 and there may be some broader repricing ongoing.
