Posted at 22 June 2021 / Categories Market Roundups
Market Roundup
•Powell testimony before Congress due at 1800 GMT
• UK May Public Sector Net Borrowing 23.61B, 30.96B previous
• UK May Public Sector Net Cash Requirement 21.710B, 33.564B previous
• Italian Apr Industrial Sales (MoM) 3.30%, 1.60% previous
•Italian Apr Industrial Sales (YoY) 105.10%, 38.10% previous
• UK Jun CBI Industrial Trends Orders 19, 18 forecast, 17 previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 16.4%16.4%
•14:00 US Existing May Home Sales (MoM) -2.7% previous
•14:00 EU Jun Consumer Confidence -3.0, -5.1 previous
•14:00 US May Existing Home Sales 5.72M forecast, 5.85M previous
•14:00 US Jun Richmond Services Index 29 previous
•14:00 US Jun Richmond Manufacturing Index 18 previous
•14:00 US Jun Richmond Manufacturing Shipments 12 previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 US FOMC Member Daly Speaks
•14:00 ECB's Lane Speaks
•17:30 ECB's Schnabel Speaks
•18:00 US Fed Chair Powell Testifies
Fxbeat
EUR/USD: The euro declined on Tuesday as dollar advanced as investors looked to more monetary policy hints from the United States. Federal Reserve Chairman Jerome Powell's speech in Congress on Tuesday will be the focus of market attention. His prepared speech said that the US economy continues to show "sustainable improvement", but inflation is worrying. The single currency fell 0.17 percent against the dollar to $1.1895.Immediate resistance can be seen at 1.1921(5DMA), an upside break can trigger rise towards 1.1956 (38.2%fib).On the downside, immediate support is seen at 1.1845 (23.6%fib), a break below could take the pair towards 1.1788 (April 6th low).
GBP/USD: The British pound fell below $ 1.39 on Tuesday as the dollar rebounded, but the British currency was still above the two-month lows it hit on Monday after the Fed's sweeping change. The US Federal Reserve surprised some market participants last week by hinting that it would hike rates and stop buying emergency bonds sooner than expected, resulting in the dollar gaining against most of the major pairs. At (GMT 12:30 )the pound was down 0.26 percent against the dollar at $1.3897. Immediate resistance can be seen at 1.3937(50% fib), an upside break can trigger rise towards 1.3998(61.8%fib).On the downside, immediate support is seen at 1.3873 (38.2%fib), a break below could take the pair towards 1.3795(23.6%fib).
USD/CHF: The dollar rose against the Swiss franc on Tuesday as the greenback strengthened before U.S. Federal Reserve Chair Jerome Powell's testimony before Congress. After the Fed’s unexpected move last week to boost the U.S. dollar and smash emerging market assets, investors will study Powell’s remarks to find clues about the prospects of US monetary policy. Immediate resistance can be seen at 0.9207(38.2%fib), an upside break can trigger rise towards 0.9268(23.6% fib).On the downside, immediate support is seen at 0.9156 (38.2%fib), a break below could take the pair towards 0.9100 (50%fib).
USD/JPY: The dollar rose against the yen on Tuesday as traders awaited the testimony of Federal Reserve Chairman Jerome Powell for further guidance on the recent surprise change in the central bank's policy outlook. The dollar had risen sharply since the Fed signaled a earlier-than-expected rise in interest rates last week. The dollar was last trading at 0.24 percent higher against the Japanese yen at 110.55 yen. Strong resistance can be seen at 110.54 (Daily high), an upside break can trigger rise towards 110.83(23.6%fib).On the downside, immediate support is seen at 110.27(38.2%fib), a break below could take the pair towards 109.99(11DMA).
Equities Recap
European stocks gave up their earlier gains on Tuesday, with growth-linked tech and healthcare stocks leading the declines as signs of rising inflation fueled fears of a faster-than-expected tightening of global monetary policy.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading down at 0.40 percent, Germany's Dax was up by 0.06 percent, France’s CAC finished was up by 0.06 percent.
Commodities Recap
Gold prices barely changed in troubled trading on Tuesday, with gains controlled by a firm dollar, as investors turned to Federal Reserve Chairman Jerome Powell for guidance on monetary policy.
Spot gold held around $1,783.31 per ounce by 1134 GMT.U.S. gold futures were up 0.1% to $1,784.6 per ounce.
Oil prices soared on Tuesday, and Brent crude oil hit US$75 a barrel for the first time since April 2019, as investors remain optimistic about the rapid recovery of global oil demand and concerns eased about the imminent return of Iranian oil.
Brent crude futures for August climbed 26 cents, or 0.4%, to $75.16 a barrel by 0400 GMT.U.S. West Texas Intermediate (WTI) crude for July was at $73.70 a barrel, up 4 cents, or 0.1%. WTI for August climbed 11 cents, or 0.2%, to $73.23 a barrel.