Forex news for North American trading on April 8, 2021
- Major indices close higher. New record for the S&P.
- US crude oil futures settle at $59.60
- CNN is reporting that the US is considering sending warships to Black Sea
- Feds Kashkari: Fed won't raise rates preemptively
- Gold climbs to the highest since March 1
- Fed's Powell. Vaccinations, monetary policy and fiscal policy creates brighter outlook
- European shares end the session mostly higher
- Feds Bullard: No end to the pandemic yet
- US treasury announces auction calendar for next week
- IMF communiqu: Global economy recovering faster than expectations
- Weekly US initial jobless claims 744K vs 680K expected
- The JPY is the strongest and the USD is the weakest as NA traders enter for the day
In other markets:
- Spot gold is trading up $18.64 or 1.07% at $1756.36. The high price of $1758.77 is the highest since March 1. Lower rates/lower USD helped to support the price of gold (and silver) today.
- Spot silver is up $0.33 or 1.32% at $25.47
- WTI crude oil futures are up $0.10 or 0.17% $59.87. That is just off the high price of $59.92. The low price came in at $58.82. Overall the price action today in the oil complex was fairly narrow
- bitcoin is trading up $1447 or 2.57% of $57,668.32. It's high price reached $58,152. The low price extended to $55,700
US initial jobless claims came in weaker than expected for the second week in a row. The rising claims to 744K from 728K last week (est. 680K) was a head scratcher compared to other employment data including the nonfarm payroll from last week, and the recent JOLTS job openings data.
The weaker data and continued pounding by Fed officials including Fed Chair Powell, Minneapolis Fed Pres. Kashkari and St. Louis Fed President Bullard that risks remain, that inflation may rise but that it is temporary, that the Fed will keep policy accommodative until full employment and through the expected tick up in inflation, helped to continue the push lower in rates. The 10 year yield is down over five basis points at 1.6227%. The low yield reached 1.6156% today (the lowest since March 25). The high yield for the year reached 1.774%. It is still well up from the end of year level of 0.92%.