US Open Note – Stocks are strong around highs, yields get a boost, dollar on its feet

Stocks bullish as yields rise, risk remains somewhat subdued, GDP data is key

Stocks maintain a bullish tone with the S&P 500 Index winning the race, currently at the 4,214 level. The Dollar Index sold its latest gains to today’s high of 90.67, pulling slightly lower at 90.53. The fall in the greenback strengthened the euro to $ 1.2133, helped by an insult of positive data from the Eurozone, which outperforms the relatively subdued pound at $ 1.3944.

While markets are somewhat muted ahead of key first-quarter US GDP data, results should reflect reasonable growth in the first quarter of 2021. Investors are patiently sticking around for any hint of the numbers as to whether the US economy picks up a noticeable speed.

The Fed has bolstered confidence and certainty in the markets somewhat with accommodating and persistent behavior, while President Joe Biden remains a driving force that is clearly helping to improve economic sentiment and shift towards normalcy. It continues to approach the next steps with stimulus – infrastructure needs or the spending plan for American families – and echoes the growing progress that is taking place. Rising yields could continue to fuel positive economic scenarios and could help equities even higher.

The release of expected US GDP data seems relatively balanced, with Q / Q GDP slightly disappointing, standing at 6.4% versus 6.8%. The GDP price index q / q, however, beat the estimate by 2.6% to reach a result of 4.1%. In addition, jobless claims have risen somewhat, clawing at the slowly healing economic plague. Overall, the idea that the trajectory should only improve if firm progress on the front lines remains is a view that is hard to reverse.

Safe havens remain mixed. Gold lost its luster, rising from today’s previous high of $ 1,774 / ounce, while the yen failed to decisively extend gains above $ 109.00 per against the yen, pulling slightly lower. The swissie was largely unchanged at $ 0.9088 per Swiss franc.

The black liquid comes back in the spotlight, the loonie plunges

Oil continued to strengthen from yesterday, supported by expectations of a recovery in global oil demand due to accelerated inoculation campaigns and lockdowns becoming a thing of the past in Europe and others. savings. Although global radars were locked on the developments and challenges India faces with coronavirus infections, oil did not appear to be affected. Nonetheless, it could become a thorn in the oil side if a negative domino effect emerges from the area.

Antipode currencies restored some of the ground lost from their highs and WTI futures were one of the clear outperformers today, dropping from their Asian lows of $ 63.73 per barrel to 64 .86 $ per barrel, an improvement of 1.93%. The Canadian dollar continues to beat the dollar, remaining fueled by cuts to the BOC’s quantitative easing program, better retail sales figures and oil improvements, sending the loonie even lower to C $ 1.2280 compared to the greenback.

U.S. home sales are on hold at 2:00 p.m. GMT, while inflation and the Japanese unemployment rate are expected to be released at 11:30 p.m. GMT, followed by Japanese production data at around 11:50 p.m. GMT and 12:30 a.m. GMT.


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