This is what you need to know to trade today Friday, March 19:
Markets are feeling more cautious as rising yields have been weighing on stocks and keeping the dollar strong. The BoJ’s decision shook Japanese stocks and Canadian retail sales stand out on today’s economic calendar. The Sino-US talks have led to disputes. European countries are resuming use of the AstraZeneca vaccine, while Britain is concerned about supply problems.
Yields on US Treasuries The ten-year highs peaked above 1.75% on Thursday, supporting the dollar and sending stocks, especially tech stocks, tumbling. The drop in these bond yields to around 1.70% on Friday only provides a temporary calm.
Meeting in Alaska: Another factor weighing on the markets is the high-level meeting between US and Chinese officials. Representatives of the world’s two largest economies criticized each other’s civil rights record, questioning a summit between US President Joe Biden and his Chinese counterpart Xi Jinping that Beijing had suggested.
The Bank of Japan expanded the range in which JGBs can float to ten years as previously leaked. While the yen is stable, the BoJ’s decision to focus its ETF purchases on stocks that trade on the Topix index sent it higher while other stocks tumbled.
The EUR/USD hovers around the 1.19 level, far from the weekly highs. The European Medicines Agency stated that AstraZeneca’s vaccine for COVID-19 is safe and effective, and several European countries will resume inoculations.
The GBP/USD it is trading at around 1.39 amid concerns that a slowdown in the supply of doses will halt the vaccination campaign. The Bank of England left rates unchanged on Thursday and acknowledged an improvement in conditions. However, it is waiting for “clear evidence” on inflation before acting.
See: BoE Quick Look: Bailey Hits British Pound With Fed-Style “I’ll Believe It When I See It” move, will it last?
The USD / CAD it is trading around 1.25, hit by the strength of the dollar and also by a drop in oil prices. WTI Crude Oil is trading around $ 60.00 as according to the news some OPC + members are concerned that prices could fall if production cuts are not extended into early April. Canadian retail sales figures will be released on Friday.
The cryptocurrencies They are off their highs, with Bitcoin trading around $ 58,000. The previous weekends have proven volatile for digital assets.
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