News

Europe Roundup: Sterling dips from 3-year high as new COVID variant fears weighs European shares rise,Gold hits near 5-month high, Brent hits highest since March on demand prospects-June 1st,2021

Posted at 01 June 2021 / Categories Market Roundups


Market Roundup

•UK Nationwide May HPI (MoM)  1.8%,0.8% forecast, 2.1% previous

•UK Nationwide May  HPI (YoY)  10.9%,9.2% forecast, 7.1% previous

•Swiss Apr Retail Sales (YoY)  35.7%, 22.6% previous

•Swiss Apr GDP (YoY) (Q1) -0.5%,-0.2% forecast, -1.6% previous

•Italian May Manufacturing PMI  62.3, 62.0 forecast, 60.7 previous

•French May Manufacturing PMI  59.4, 59.2 forecast, 59.2 previous

•German May Unemployment n.s.a.  2.687M, 2.771M previous

•German May Unemployment Rate  6.0%,6.0% forecast,6.0% previous

•German May Manufacturing PMI  64.4, 64.0 forecast, 66.2 previous

•German May Unemployment Change  -15K, -9K forecast, 9K previous

•UK May Manufacturing PMI  65.6, 66.1 forecast, 66.1 previous

•UK Apr Unemployment Rate  8.0%, 8.1% forecast, 8.1% previous

•EU May CPI (YoY)  2.0%, 1.9% forecast, 1.6% previous

•EU May Core CPI (YoY)  0.9% forecast, 0.7% previous

•EU May CPI (MoM) 0.3%,0.6% previous

•Canada GDP (QoQ) (Q1) 1.4%,2.3% previous

•Canada GDP Annualized (QoQ) (Q1) 5.6%,6.7% forecast,9.6% previous

•Canada GDP (MoM) 1.1%,  1.0% forecast, 0.4% previous

Looking Ahead - Economic Data (GMT)

•13:30 Canada May Manufacturing PMI  57.2 previous

•14:00 US ISM May Manufacturing New Orders Index  64.3 previous

•14:00 US ISM May ISM Manufacturing Prices   89.8 forecast, 89.6 previous

•14:00 US ISM May Manufacturing PMI  60.9, 60.7 previous

•14:00 US Apr Construction Spending (MoM)  0.5% forecast, 0.2% previous

•14:00 US ISM May Manufacturing Employment  61.5     forecast, 55.1 previous

•14:00 US IBD/TIPP Economic Optimism 54.4 previous

•14:30 US Dallas May Fed Mfg Business Index 37.3 previous

•15:30  US 3-Month Bill Auction 0.015% previous

• 15:30  US 6-Month Bill Auction 0.030%

• New Zealand GlobalDairyTrade Price Index- 0.2%

Looking Ahead - Economic events and other releases (GMT)

• 14:00US FOMC Member Quarles Speaks

•15:00 UK BoE Gov Bailey Speaks

Fxbeat

EUR/USD: The euro edged higher against dollar on Tuesday after data showed Euro zone manufacturing activity expanded in May. The bloc's economy has been ravaged by the coronavirus pandemic over the past year, with governments forcing much of the region's dominant service industry to close. But factories largely remained open, and restrictions in various countries have gradually been eased. IHS Markit's final Manufacturing Purchasing Managers' Index (PMI) rose to 63.1 in May from April's 62.9, above an initial 62.8  flash estimate and the highest reading since the survey began in June 1997.Immediate resistance can be seen at 1.2242 (23.6% fib), an upside break can trigger rise towards 1.2283 (Higher BB).On the downside, immediate support is seen at 1.2185 (38.2% fib), a break below could take the pair towards 1.2135(50%fib).

GBP/USD: The pound edged lower on Tuesday after touching a fresh three-year high versus the dollar as investors took some profit off the table and turned more cautious amid fears around the spread of COVID variants in Britain. Sterling hit its highest level since April 2018 of $1.4250 during the Asian session against the dollar, with analysts attributing it to positive global investor sentiment towards the UK economic recovery. Well into the London session after a long weekend, sterling reversed its course to edge 0.2% lower at $1.4182 versus the dollar at 1225 GMT Immediate resistance can be seen at 1.4221 (23.6%fib),an upside break can trigger rise towards 1.4283 (Higher BB).On the downside, immediate support is seen at 1.4159 (11DMA), a break below could take the pair towards 1.4101(38.2%fib).

USD/CHF: The dollar was edged lower against the Swiss franc on Tuesday as investors waited for economic data to indicate the future direction for major currencies. The dollar index was back below 90 in early European trading, having hit as high as 90.447 on Friday, when a measure of U.S. inflation closely watched by the Fed posted its biggest annual rise since 1992. The U.S. ISM manufacturing survey is due at 1400 GMT, while the U.S. jobs report for May is due on Friday. Immediate resistance can be seen at 0.9032 (38.2%fib), an upside break can trigger rise towards 0.9054 (30DMA).On the downside, immediate support is seen at 0.8941 (23.6%fib), a break below could take the pair towards 0.8917 (Lower BB).

USD/JPY: The dollar strengthened against yen on Tuesday as investors looked ahead to U.S. data later in the US session to offer a major clue to the health of the world’s biggest economy. Data showed last week U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target. Investors focus will   be on U.S. ISM manufacturing survey is due at 1400 GMT, including non-farm payrolls data on Friday. Strong resistance can be seen at 109.73 (38.2%fib), an upside break can trigger rise towards 109.95 (Higher BB).On the downside, immediate support is seen at 109.23 (50%fib), a break below could take the pair towards 108.92(30DMA).

Equities Recap

European stocks hit fresh record highs on Tuesday, as strong metal and oil prices boosted shares of big commodity companies, while data showed euro zone manufacturing activity expanded at a record pace in May.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.25 percent, Germany's Dax was down by 1.64 percent, France’s CAC   was last up by 1.09 percent.

Gold scaled a near five-month peak on Tuesday on support from a weaker dollar and growing concerns over inflation, with investors awaiting key U.S. data due later this week to gauge the extent of economic recovery.

Spot gold rose 0.2% to $1,911.02 per ounce by 0917 GMT, having earlier touched its highest since Jan.8 at $1,916.4.

Oil prices rose on Tuesday, with Brent hitting $71 and trading at its highest since March, on expectations for growing fuel demand during the summer driving season in the United States.

Brent crude futures for August gained $1.76, or 2.5%, to $71.08 a barrel by 1228 GMT. U.S. West Texas Intermediate crude for July was at $68.55.


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