ForexLive Americas FX news wrap: Early optimism fades at the end of the day

Forex news for New York trade on March 24, 2021:

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.

Forex news for New York trade on March 24, 2021:

Source

Leave a Reply

Your email address will not be published. Required fields are marked *