News

Europe Roundup: Sterling steadies after strong retail sales data ,European shares gain, Gold gains, Oil set for weekly loss on Iran nuclear talks-May 21st ,2021

Posted at 21 May 2021 / Categories Market Roundups


Market Roundup

•UK Apr Retail Sales (YoY)  42.4%,36.8% forecast, 7.2% previous

•UK Apr Core Retail Sales (YoY)  37.7%,31.7% forecast, 7.9% previous

•UK Apr Core Retail Sales (MoM)  9.0%,4.2% forecast, 4.9% previous

•UK Apr Retail Sales (MoM)  9.2%,4.5% forecast, 5.4% previous

•French May Manufacturing PMI  59.2, 58.5 forecast, 58.9 previous

•French May Markit Composite PMI  57.0, 53.7 forecast, 51.6 previous

•French May Services PMI  56.6, 53.0 forecast, 50.3 previous

•German May Services PMI  52.8, 52.0 forecast, 49.9 previous

•German May Manufacturing PMI  64.0, 65.9 forecast, 66.2 previous

•German May Composite PMI  56.2, 57.1 forecast, 55.8 previous

•EU May Markit Composite PMI  56.9, 55.1 forecast, 53.8 previous

•EU May Services PMI  55.1, 52.3 forecast, 50.5 previous

•UK May Composite PMI  62.0, 60.0 forecast, 60.0 previous

•UK May Services PMI  61.8, 60.1 forecast, 60.1 previous

•UK May Manufacturing PMI 66.1, 60.7 forecast, 60.7 previous

•Canada March Core Retail Sales (MoM) 4.3%, 2.2% forecast, 4.8% previous

•Canada March Retail Sales (MoM) 3.6%, 2.3% forecast, 4.8% previous

Looking Ahead - Economic Data (GMT)

•13:45 US May Services PMI  64.5 forecast, 64.7 previous

•13:45 US May Markit Composite PMI  63.5 previous

•13:45 US May Manufacturing PMI  60.2 forecast, 60.5 previous

•14:00 US May Existing Home Sales (MoM)  2.0% forecast, -3.7% previous

•14:00 US Apr Existing Home Sales 6.09M forecast, 6.01M previous

•14:00 EU May Consumer Confidence  -6.8 forecast, -8.1 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fx Beat 

EUR/USD: The euro edged higher against dollar on Friday after data showed Euro zone business growth hits three-year high. Euro zone business growth accelerated at its fastest pace in over three years in May, as a strong resurgence in the bloc’s reopening service industry added to the impetus from an already-booming manufacturing sector, a survey showed on Friday. Immediate resistance can be seen at 1.2232 (23.6%fib), an upside break can trigger rise towards 1.2300 (Psychological level).On the downside, immediate support is seen at 1.2192 (5DMA), a break below could take the pair towards 1.2159(38.2%fib).

GBP/USD: Sterling held on to recent gains against the dollar on Friday after better-than-expected retail sales data kept investors upbeat about the prospects for the United Kingdom’s economic recovery. British retail sales surged in April, with sales volumes jumping by 9.2% month-on-month - twice the average forecast  of economists. The data surprise saw sterling jump to as high as $1.4231, although the move was not sustained. Immediate resistance can be seen at 1.4224(23.6%fib), an upside break can trigger rise towards 1.4250 (Higher BB).On the downside, immediate support is seen at 1.4159(5DMA), a break below could take the pair towards 1.4097(38.2%fib).

USD/CHF: The dollar edged higher against the Swiss franc on Friday as concerns at taper talk in Federal Reserve minutes faded. U.S. inflation worries have spooked markets, and Fed minutes on Wednesday suggested some policymakers were ready to talk about reducing stimulus by tapering bond purchases.But that inflation concern eased on Thursday after the Philadelphia Federal Reserve Bank said its business activity index fell to 31.5 in May from 50.2 in April, casting doubt on the pace of economic recovery.Immediate resistance can be seen at 0.9000(5DMA), an upside break can trigger rise towards 0.9034(38.2%fib).On the downside, immediate support is seen at 0.8949 (23.6%fib), a break below could take the pair towards 0.8922 (Lower BB).

USD/JPY: The dollar edged lower against the yen on Friday as lingering doubts about the Fed as well as worry about new COVID-19 outbreaks weighed on greenback. The dollar has given back a bounce it made after a mention of possible future tapering discussions, in minutes from the Fed's April meeting, prompted fears of early rate rises. The dollar was trading down 0.05% on the yen at 108.70. Strong resistance can be seen at 108.92(50%fib), an upside break can trigger rise towards 109.10 (50DMA).On the downside, immediate support is seen at 108.49(61.8%fib), a break below could take the pair towards 108.22 (Lower BB).

Equities Recap

European stocks held steady on Friday as Swiss luxury goods maker Richemont jumped after its results, but a slide in London-listed shares and worries about inflation dampened early enthusiasm.

At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 0.01percent, Germany's Dax was up by 0.32 percent, France’s CAC  was last up by 0.54 percent.

Commodities Recap

 Gold edged up on Friday en route to a third straight weekly gain, supported by a subdued U.S. dollar and Treasury yields as concern receded over tapering by the U.S. Federal Reserve.

 Spot gold ticked 0.1% higher to $1,877.70 per ounce by 1158 GMT and was up 1.9% on the week. U.S. gold futures fell 0.2% to $1,878.90.

Oil prices rose on Friday after three days of losses, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.

Brent crude futures rose 87 cents, or 1.3%, to $65.98 a barrel by 1235 GMT, while U.S. West Texas Intermediate was at $62.90 a barrel, up 96 cents, or 1.6%.


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