New trading week finds global markets in a mixed mood
Markets have kicked off the new week in a mixed mood, as US Treasury yields remain depressed despite upbeat US data. Cryptocurrencies are attempting recovery after a weekend crash. Rising global covid cases and advancing vaccination efforts are eyed.
Cryptocurrencies have been attempting a recovery after collapsing over the weekend. Bitcoin is trading at around $57,000 after dipping below $52,000 on Sunday and nearing $65,000 last week.
EURUSD attempts recovery
EURUSD is trading below 1.20 as political uncertainty in Germany’s ruling CDU party persists while more shots are getting into arms. The European Central Bank’s rate decision is awaited on Thursday. Expect to see volatility in the markets from Wednesday as traders take positions on the outcome of a possible rate change.
Pound finally reacts to risk appetite
GBPUSD is clinging to gains around 1.3850 as nearly half the population has received at least one vaccination. The US reached 40% of its population with one jab, as all Americans are now offered the vaccine, but COVID-19 cases continue rising in several states. The reopening boosted economic activity as seen in March’s 9.8% leap in retail sales and a sharp drop in jobless claims to 576,000.
On the other hand, global coronavirus cases continue rising, hitting new records above five million per week. India is among the countries suffering a sharp increase.
Key focus this week:
Tuesday 11.45pm – NZD Consumer Price Index q/q expected to rise to 0.8%
Wednesday 11.30am – GBP Bank of England Governor Bailey speaks (usually bullish)
Wednesday 3pm – CAD Bank of Canada Monetary Policy Report and Rate Statement
Thursday 12.45pm – EUR Monetary Policy Statement and Refinancing Rate
Thursday 1.30pm – EUR ECB Press Conference
Thursday 1.30pm – USD Unemployment Claims expected to rise to 635k from 576k
Friday 8.15am onwards – EUR A host of Manufacturing and Services Indexes with forecasts expecting to drop due to new lockdown measures.