【TOP1 Morning】USD/GBP fell to three-year low, gold regained 1,800, S&P, Dow reversed decline

Forex: U.S. dollar fell to three-year low against British pound

The Australian dollar is trading near a three-year high against the US dollar. Rising metal and energy prices are generally good for the Australian dollar; the pound rose to 1.4120 against the dollar, the highest since April 2018; the outlook for the pound is brighter, as the UK’s rapid vaccination and plans to relax restrictions on economic activities make investors feel Inspire.

The US dollar was quoted at 1.2153 US dollars against the euro, close to a six-week low; the US dollar was steady at 105.29 yen against the yen.

The U.S. dollar fell to a three-year low against the British pound on Wednesday, and it consolidated its decline against commodity currencies. Investors bet that the global economic recovery will boost higher-risk assets.

The results of the New Zealand Central Bank policy meeting will be announced soon, and the New Zealand dollar has become the focus. If policy officials make optimistic comments on the economy, it is expected to boost the New Zealand dollar.

FED Chairman Powell reiterated on Tuesday that interest rates will remain low and the Federal Reserve will continue to purchase debt to support the US economy. Many traders believe that this is a long-term negative factor for the US dollar.

Gold: The price of gold continued to rise and regained its position at $1,800.

Gold prices fell slightly in shocks on Tuesday, as the US dollar regained lost ground after Fed Chairman Powell gave a speech. Powell said that the economic recovery is "unbalanced and far from complete."

In the US market last night, spot gold closed at 1,805.58 US dollars per ounce, down 3.94 US dollars or 0.22%, the highest intraday hit 1816.36 US dollars per ounce, and the lowest hit 1797.32 US dollars per ounce.

COMEX April gold futures closed down 0.1%, at 1,805.90 US dollars per ounce.

Fed Chairman Powell said on Tuesday that inflation and employment rates are still far below the Fed’s targets, which means that loose monetary policy may remain unchanged.

Powell said that although U.S. bond yields have risen sharply this year and inflation concerns have intensified, price pressures are basically still relatively moderate, and the economic outlook remains "highly uncertain."

Crude oil: stable oil prices

Oil prices closed near a one-year high, and there are signs that countries around the world are relaxing restrictions on the epidemic, although concerns about the pace of the US economic recovery and the recovery of Texas oil production have suppressed the increase.

Brent crude oil futures rose 0.13 US dollars, or 0.2%, to close at 65.37 US dollars a barrel. US crude oil futures fell 0.03 US dollars to close at 61.67 US dollars per barrel, still close to the highest level since January 2020. Both of these two major contracts rose more than $1 earlier and then fell back.

Shale oil producers and refiners in the southern United States are slowly resuming production. The winter storm last week resulted in the closure of 2 million barrels per day of oil production and nearly 20% of refining capacity.

Goldman Sachs predicts that the price of Brent crude oil will rise to US$70 per barrel in the second quarter, higher than the previous forecast of US$60; in the third quarter, it will rise to US$75, higher than the previous forecast of US$65.

US stocks: Nasdaq closed lower

The Dow Jones Industrial Average rose 15.66 points, or 0.05%, to 31,537.35 points; the S&P 500 index rose 4.87 points, or 0.13%, to 3,881.37 points; the Nasdaq Index fell 67.85 points, or 0.5%, to 13,465.20 points.

Among the 11 major stocks in the S&P 500 index, seven major stocks closed higher, but consumer discretionary stocks and technology stocks had the largest percentage declines.

Auto maker Tesla fell 2.2%, and its stock price has fallen below its level at the end of last year, dragged down by the sell-off of technology stocks and the decline of Bitcoin. Bitcoin plummeted by 12%, and Tesla recently invested $1.5 billion in this cryptocurrency.

Dennis Dick, head of market structure at Bright Trading LLC, said: "People are buying stocks that have fallen deep, and they have paid off in the one-sided market over the past few months. It is hard to bearish, it is really hard. The only worry is the fear of missing out. Rally."

Focus on today:

23:00 Fed Chairman Powell gives testimony on the semi-annual currency report