Posted at 16 June 2021 / Categories Market Roundups
Market Roundup
• UK May CPI (MoM) 0.6%, 0.3% forecast, 0.6% previous
• UK May CPI, n.s.a 110.80, 110.10 previous
• UK May Core RPI (YoY) 3.4%,3.2% previous
• UK May Core CPI (YoY) 2.0%, 1.5% forecast, 1.3% previous
• UK May PPI Output (MoM) 0.5%,0.4% forecast, 0.4% previous
• UK May Core CPI MoM (MoM) 0.8%,0.3% forecast, 0.3% previous
• UK May CPI (YoY) 2.1%,1.8% forecast, 1.5% previous
• UK May Core RPI (MoM) 0.3%,1.5% previous
• UK May Core PPI Output (MoM) 0.4% , 0.5% previous
• UK May Core PPI Output (YoY) 2.7%, 2.5% previous
• UK May PPI Input (YoY) 10.7%,10.6% forecast, 9.9% previous
• UK May PPI Output (YoY) 4.6%,4.5% forecast, 3.9% previous
• UK May PPI Input (MoM) 1.1%,1.1% forecast, 1.2% previous
•EU Labor Cost Index (YoY) (Q1) 1.50%,2.80% previous
•EU Wages in euro zone (YoY) (Q1) 2.20%,3.50% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Trimmed CPI (YoY) 2.3% previous
•12:30 Canada Median CPI (YoY) 2.3% previous
•12:30 Canada Common CPI (YoY) 1.5% previous
•12:30 US Import Price Index (YoY) 10.6% previous
•12:30 US Export Price Index (YoY) 14.4% previous
•12:30 US Apr Wholesale Sales (MoM) -0.9% forecast, 2.8% previous
•12:30 US May Building Permits 1.730M forecast, 1.733M previous
•12:30 US May Building Permits (MoM) -1.3% previous
•12:30 US May Housing Starts 1.630M forecast, 1.569M previous
•12:30 Canada May Core CPI (YoY) 2.4% forecast, 2.3% previous
• 12:30 Canada CPI (MoM) 0.4% forecast, 0.5% previous
•12:30 US May Housing Starts (MoM) -9.5% previous
•12:30 Canada May Core CPI (MoM) 0.4%,0.5% previous
•12:30 US May Export Price Index (MoM) 0.8% forecast, 0.8% previous
•12:30 US May Import Price Index (MoM) 0.8% forecast, 0.7% previous
•14:30 US Gasoline Inventories -0.614M forecast, 7.046M previous
•14:30 US Crude Oil Inventories -3.290M forecast, -5.241M previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US Fed Interest Rate Decision
•18:00 US FOMC Meeting Minutes
•18:30 US FOMC Statement
Fxbeat
EUR/USD: The euro dipped on Wednesday as investors awaited the outcome of the U.S. Federal Reserve’s policy meeting. Fed officials are expected to at least flag the pending start of talks on tapering its bond purchases, while attention will also be on new interest rate and economic projections to show how much policymakers’ views have changed since March. The euro was last down 0.01 percent at $1.2124. Immediate resistance can be seen at 1.2134 (38.2%fib), an upside break can trigger rise towards 1.2181 (21DMA).On the downside, immediate support is seen at 1.2101 (50DMA), a break below could take the pair towards 1.2053(23.6% fib).
GBP/USD: The British pound appreciated against dollar on Wednesday after data showed that UK inflation unexpectedly jumped above the Bank of England's 2% target in May, raising some concerns that policymakers may start to rethink in policy shift if prices continue to skyrocket. Inflation hit 2.1% in May, beating projections and appears to continue to rise as the country reopens its economy after the coronavirus lockdown. The pound was up 0.30% against the dollar, at $1.4121 at 12:10 GMT.Immediate resistance can be seen at 1.4128 (50% fib), an upside break can trigger rise towards 1.4177(61.8%fib).On the downside, immediate support is seen at 1.4074 (38.2%fib), a break below could take the pair towards 1.4013 (23.6%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Wednesday as markets awaited the end of the U.S. Federal Reserve's two-day meeting which could offer a clearer timeline for a shift from its ultra-loose policy Indications of when the Fed will start tapering its bond-buying programme and raise interest rates will be key for investors , as well as its comments about quickening inflation which the Fed has called transitory. Immediate resistance can be seen at 0.9020(38.2%fib), an upside break can trigger rise towards 0.9092 (50% fib).On the downside, immediate support is seen at 0.8972 (5DMA), a break below could take the pair towards 0.8932 (23.6%fib).
USD/JPY: The dollar edged lower against the yen on Wednesday as market was generally calm before the Federal Reserve meeting. Investors will be looking for signs of responding to the spike in U.S. inflation. The Fed will end its policy meeting later in the day and release new economic forecasts and policy statements at 14:00 Eastern Time (18:00 GMT). At 12:25 GMT, the dollar was 0.16 percent lower versus the Japanese yen at 109.83.Strong resistance can be seen at 110.33 (23.6% fib), an upside break can trigger rise towards 110.57 (April 6th high).On the downside, immediate support is seen at 109.75(38.2%fib), a break below could take the pair towards 109.28 (50% fib).
Equities Recap
The rebound in financial and industrial stocks pushed European stocks higher on Wednesday, but the major stock indexes hit a record high due to concerns that the Fed might fail later in the day when it plans to increase stimulus measures.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.05 percent, Germany's Dax was down by 0.18 percent, France’s CAC finished was up by 0.06 percent.
Commodities Recap
Gold prices steadied in a narrow range on Wednesday as investors awaited for any signs of early tapering from the U.S. Federal Reserve meeting.
Spot gold was steady at $1,859.00 per ounce by 0902 GMT. It fell to its lowest since May 17 at $1,843.99 on Monday.U.S. gold futures rose 0.3% to $1,860.90.