Here is what you need to know Monday, Friday 26:
- Markets were higher on Wall Street due to stronger Gross Domestic Product revisions and strengthening bond yields after a weak 7-year Treasury auction. The weakness suggests demand in the long-end is still somewhat fragile. However, concerns about weaker demand amid renewed lockdowns are likely to continue to weigh on risk sentiment.
- That being said, there was good news from the White House. US President Joe Biden on Thursday pledged 200 million COVID-19 vaccinations within the first 100 days in office. The administration achieved its initial goal of 100 million shots on Friday, which was the 59th day of Biden’s term, according to CNBC. Spirits are high amongst US investors in anticipation of a faster economic recovery in the nation.
- US Initial jobless claims fell nearly 100,000 to 684,000, well below expected numbers. However, they remain high relative to normal. Continuing claims now stand at 3.8 million having fallen quite sharply in the latest weekly data. US GDP figures for Q4 2020 were revised up to 4.3%, from 4.1%.
- The greenback rallied to four-month highs as the euro dropped. Investors focussed on rising coronavirus cases in Europe and on signs that the US economy was rebounding from the pandemic faster than anticipated. The dollar index hit its highest since November overnight, at 92.697, breaking its 200-day moving average. DXY rose 0.298%, with the euro EURUSD down 0.4% to $1.1765.
- Oil prices sank after surging on Wednesday when a container ship became stuck in the Suez Canal. The ship may block the vital shipping lane for weeks. WTI spot was ending on Wall Street down 4% having fallen from a high of $60.84 to a low of $57.46.
- Q1 2021 is shaping up to be Bitcoin’s best quarter in eight years with gains of roughly 80%. However, BTC/USD sank on Thursday in a continuation of the downside slide since mid-March all-time highs of $61,781. On Thursday it printed a low of $50,360.
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