Posted at 22 June 2021 / Categories Market Roundups
Market Roundup
• US Redbook (YoY) 17.6%, 16.4% previous
• US Existing May Home Sales (MoM) -0.9% -2.7% previous
• EU Jun Consumer Confidence -3.3, -3.0 forecast, -5.1 previous
• US May Existing Home Sales 5.80M, 5.72M forecast, 5.85M previous
• US Jun Richmond Services Index 25,29 previous
• US Jun Richmond Manufacturing Index 22,18 previous
• US Jun Richmond Manufacturing Shipments 8, 12 previous
Looking Ahead - Economic Data (GMT)
•23:00 Australia Manufacturing PMI 60.4 previous
•23:00 Australia Services PMI 58.0 previous
•00:30 Japan Jun Manufacturing PMI 53.0 previous
•00:30 Japan Jun Services PMI 46.5 previous
•05:00 Japan Leading Index 102.8 previous
•05:00 Japan May Coincident Indicator (MoM) 2.6% previous
Looking Ahead - Economic events and other releases (GMT)
• 23:50 Japan Monetary Policy Meeting Minutes
• 03:15 Australia RBA Assist Gov Ellis Speaks
Currencies Recap
EUR/USD: The euro strengthened on Tuesday as dollar declined after Fed Chairman Jerome Powell reiterated that the Fed intends to promote a broad and inclusive labor recovery rather than raising interest rates too quickly out of fear of inflation. The dollar had surged after the Fed announced last Wednesday that policymakers were forecasting two rate hikes in 2023, prompting investors to reassess their bets that the Fed would let inflation rise longer before raising rates .The dollar index fell 0.20% to 91.733. It is holding below a two-month high of 92.408 reached on Friday. The euro gained 0.19% to $1.1940. 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 reversed course from earlier losses against dollar on Tuesday after Fed Chairman Jerome Powell reiterated to Congress that the Fed will not raise interest rates until there are signs of "broad and widespread recovery in the job market and economic recovery. Last week the Fed signaled a potentially tougher stance on inflation and changed forecasts for its first two rate hikes through 2023, boosting the dollar. At (GMT 20:44 ),the pound was up 0.10 percent against the dollar at $1.3947. Immediate resistance can be seen at 1.3956(50% fib), an upside break can trigger rise towards 1.4027 (61.8%fib).On the downside, immediate support is seen at 1.3883 (38.2%fib), a break below could take the pair towards 1.3795(23.6%fib).
USD/CAD: The loonie rose for second day against its much weaker US counterpart on Tuesday as investor sentiment strengthened after it was weakened by a major change in Federal Reserve guidelines last week. The loonie was trading 0.4% higher at 1.2310 to the greenback . On Monday, it touched its weakest level since April 26 at 1.2485 before recovering to end up 0.8%, its biggest gain in nearly seven weeks. Immediate resistance can be seen at 1.2360(38.2%fib), an upside break can trigger rise towards 1.24309 (23.6%fib).On the downside, immediate support is seen at 1.2300 (50%fib), a break below could take the pair towards 1.2245 (61.8%fib).
USD/JPY: The dollar retreated slightly against the yen on Tuesday after US central Bank affirmed that the Fed intends to promote a "broad and inclusive" recovery in the labor market, rather than raising interest rates too quickly just because of fear of imminent inflation. The dollar was last trading at 0.24 percent higher against the Japanese yen at 110.66 yen. Strong resistance can be seen at 110.83 (23.6%fib), an upside break can trigger rise towards 111.00(Psychological level).On the downside, immediate support is seen at 110.38(5DMA), a break below could take the pair towards 110.26(38.2%fib).
Equities Recap
European shares settled higher on Tuesday as mining and energy stocks benefited from stable commodity prices
UK's benchmark FTSE 100 closed up by 0.39 percent, Germany's Dax ended up by 0.21 percent, France’s CAC finished the day up by 0.14 percent.
Wall Street rebounded Tuesday as Federal Reserve Chairman Jerome Powell vowed not to raise rates too quickly as the dollar and oil gave up earlier gains.
Dow Jones closed up by 0.20 percent, S&P 500 ended up by 0.51 percent, Nasdaq finished the up by 0.79 percent.
Treasuries Recap
Benchmark 10-year Treasuries yields inched lower on Tuesday as Federal Reserve Chairman Jerome Powell reiterated to Congress that the central bank will not raise interest rates until there are signs of a "broad and inclusive" recovery in the job market and economy.
The 10-year yield eked down to 1.47% after touching 1.509% earlier in the day. Two-year yields, which are more sensitive to interest rate changes, dropped to 0.2362% while long duration 30-year bond yields edged down to 2.0967%.
Commodities Recap
Gold dipped on Tuesday after Federal Reserve Chair Jerome Powell reaffirmed the U.S. central bank’s intent to encourage a “broad and inclusive” recovery of the job market, and not to raise interest rates too quickly based only on the fear of coming inflation.
Spot gold fell 0.3% to $1,777.91 per ounce by 1:35 pm EDT (1735 GMT), while U.S. gold futures for August settled down 0.3% at 1,777.4.
Oil prices settled slightly lower on Tuesday after Brent rose above $75 a barrel for the first time in over two years, as OPEC+ discussed raising oil production.
Brent crude futures settled down 9 cents to $74.81 a barrel after hitting a session high of $75.30 a barrel, the strongest since April 25, 2019.
U.S. West Texas Intermediate (WTI) crude fell 60 cents, or 0.8%, to $73.06 a barrel.