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Market News 【TOP 1 Morning】 Gold price shrinks. Coinbase listing surges 31%

【TOP 1 Morning】 Gold price shrinks. Coinbase listing surges 31%

U.S. dollar hit its lowest in three weeks, and the yield of U.S. Treasury bonds remained below the recent high; USD hit its lowest in three weeks; the price of gold was sluggish; U.S. EIA oil reserves fell sharply for three consecutive times Weekly.

TOPONE Markets Analyst
2021-04-15
875

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Forex: USD hits three-week low

The U.S. dollar fell to its lowest level in three weeks on Wednesday as U.S. Treasury yields remained below recent highs, reducing the relative attractiveness of the U.S. dollar.


The U.S. dollar has risen so far this year, driven by rising U.S. Treasury yields, as expected faster economic growth and rising inflation. However, such trading has been suspended this month, and yields have stabilized below the one-year high reached last month.


Boris Schlossberg, managing director of the foreign exchange strategy department of BK Asset Management, said, "The entire trade in favor of the U.S. dollar is based on the rate of return. Given that the rate of return has fallen from a high level, the U.S. dollar is basically the same.


"Before the bond market is upset about inflation concerns again, I think long US dollar positions will still be hit," he said.


U.S. Treasury yields rose slightly on Wednesday, but still fell this week. The U.S. dollar index was as low as 91.57, the lowest since March 18, at 91.68 at the end of the session, down 0.11% during the day.


The euro rose 0.21% to $1.1971 against the dollar. The dollar fell 0.13% against the yen to 108.92 yen.


Gold: Gold price falls

The price of gold rose by 0.05% to US$1,737.30.


Fed Chairman Powell and the Fed's Beige Book both released dovish messages. The US dollar index was under pressure near a one-month low, but the price of gold has not ushered in this week's recovery. It can be seen from this that the announcement of the suspension of Johnson & Johnson’s new crown vaccine in the United States continues to ferment, coupled with the continuous heating up of the Sino-US geopolitical war, the US President Biden’s infrastructure plan to counter China’s goals has gradually become clear, and the prospect of gold price recovery continues to be suppressed.


Crude oil:  Oil prices rise

The U.S. Energy Information Administration (EIA) released data on Wednesday that crude oil inventories fell sharply last week by 5.89 million barrels to 492.4 million barrels, a decrease of 1.2%. On the previous trading day, in the latest monthly report, OPEC raised its 2021 global oil demand forecast by 100,000 barrels per day, and raised its forecast for global economic growth by 0.3 percentage points to 5.4%.


US WTI crude oil futures in May closed up 2.97 US dollars, or 4.93%, refreshing the high since March 18 to 63.15 US dollars per barrel; Brent June crude oil futures closed up 39 cents, or 0.61%, refreshing on March 18 The high since then to 66.34 US dollars / barrel.


Forexlive analyst Adam said that after EIA crude oil inventory data showed that inventories were tightening, U.S. oil prices broke through the price range at the end of March. US$62.27 is the key level. This is the high point at the end of March. If it breaks through this high point, it may mean the end of the consolidation period in the past three weeks.



US stocks: Bank stocks rise

Most US stocks closed lower on Wednesday. The Federal Reserve's economic Beige Book showed moderate economic growth in the spring, and the inflation outlook for 2021 rose slightly.


The decline in technology stocks offset the rise in bank stocks. Earlier, JP Morgan Chase, Wells Fargo and Goldman Sachs announced earnings reports that exceeded expectations. Energy stocks led the gains in 11 sectors of the S&P 500 Index.


On the same day, the market was still paying attention to the listing of the cryptocurrency exchange Coinbase.


The Dow Jones Industrial Average closed up 53.62 points, or 0.16%, to 33730.89 points.


The S&P 500 index closed down 16.93 points, or 0.41%, to 4,124.66 points. The Nasdaq Composite Index closed down 138.26 points, or 0.99%, to 13,857.84 points.


US S&P 500 index futures rose 0.13% to 4123.38 points; Dow Jones 30 index futures rose 0.15% to 33677.0 points; Nasdaq 100 index futures rose 0.12% to 13,815.38 points.


Today’s focus is on:

14:00 German Consumer Price Index Annual Rate Final Value (March)

16:30 Bank of England credit status survey

20:30 U.S. retail sales monthly rate (March)



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