Posted at 25 June 2021 / Categories Market Roundups
Market Roundup
• German Jul GfK Consumer Climate -0.3 , -4.0 forecast ,-7.0 previous
• Spanish PPI (YoY) 15.3%,12.8% previous
•EU Private Sector Loans (YoY) 3.9%,3.8% previous
•Italian Jun Consumer Confidence 115.1, 112.0 forecast ,110.6 previous
•Italian Jun Business Confidence 114.8, 112.0 forecast, 110.2 previous
•EU May M3 Money Supply (YoY) 8.4%, 8.5% forecast, 9.2% previous
•Italian May Trade Balance Non-EU 4.77B, 4.85B previous
•France Jobseekers Total 3,490.1K, 3,623.8K previous
•UK June CBI Distributive Trades Survey 25, 14 forecast, 18 previous
Looking Ahead - Economic Data (GMT)
•12:30 US May Personal Income (MoM) -2.5% forecast,-13.1% previous
•12:30 US May Core PCE Price Index (YoY) 3.4% forecast, 3.1% previous
•12:30 US May PCE Price index (YoY) 3.6 previous
•12:30 US May Personal Spending (MoM) 0.4% forecast, 0.5% previous
•12:30 US May Real Personal Consumption (MoM) -0.1% previous
•12:30 US May Core PCE Price Index (MoM) 0.6% forecast, 0.7% previous
•12:30 US May PCE price index (MoM) 0.6% previous
•14:00 US Jun Michigan Consumer Sentiment 86.4 forecast, 82.9 previous
•14:00 US Jun Michigan Consumer Expectations 83.8 forecast, 78.8 previous
•14:00 US Jun Michigan Inflation Expectations 4.0% forecast, 4.6% previous
•14:00 US Jun Michigan 5-Year Inflation Expectations 2.80% forecast,3.00% previous
•14:00 US Jun Michigan Current Conditions 90.7 forecast, 89.4 previous
•14:30 US May Dallas Fed PCE 2.40% previous
Looking Ahead - Economic events and other releases (GMT)
• Fxbeat
EUR/USD: The euro steadied against dollar on Friday ahead of U.S. inflation data which will give latest insight on price pressures as US economy bounce back from the coronavirus slump. With little data coming out of the single currency bloc, euro was steady against dollar in early Friday trade. The U.S. core personal consumption expenditure index reading is due at 1230 GMT, which economists expect to post its fastest rise in nearly three decades, with a year-on-year rise of 3.4%. Immediate resistance can be seen at 1.1956(38.2% fib), an upside break can trigger rise towards 1.2010 (50% fib).On the downside, immediate support is seen at 1.1914 (5DMA), a break below could take the pair towards 1.882 (23.6%fib).
GBP/USD: The British pound was lower on Friday, heading for its worst month against the dollar since September after the Bank of England left its policy unchanged. The Bank of England kept its stimulus package at the same level, leaving its key rate at a record low of 0.1% on Thursday. It also said that if the UK economy reopens, inflation would top 3% but rise above its 2% target would be temporary. Sterling fell 0.4% against the dollar to $1.3907.Immediate resistance can be seen at 1.3932 (38.2% fib), an upside break can trigger rise towards 1.3998 (50%fib).On the downside, immediate support is seen at 1.3888 (Daily low), a break below could take the pair towards 1.3836(23.6%fib).
USD/CHF: The dollar edged lower against the Swiss franc on Friday as the dollar weakened on uncertainty over the direction of the US Federal Reserve on rate hikes. A series of mixed signals from the Fed over the past two weeks has led investors to fear that rising inflation numbers in the US could force the Fed to clamp down on a loose monetary policy in 2022 instead of 2023 as previously expected. Immediate resistance can be seen at 0.9205 (38.2%fib), an upside break can trigger rise towards 0.9269 (23.%6fib).On the downside, immediate support is seen at 0.9154 (50%fib), a break below could take the pair towards 0.9127 (9DMA).
USD/JPY: The dollar dipped against Japanese yen on Friday as a US infrastructure spending deal fueled appetite for riskier currencies, but caution ahead of key US inflation data kept losses to a minimum. Friday’s inflation data will provide a clear indicator of how much pressure the Fed is exerting, and upcoming labour market data next week will provide a clear indicator that if the dollar returns to normal soon, traders will not be prepared to oversell the dollar. Strong resistance can be seen at 110.81 (38.2%fib), an upside break can trigger rise towards 111.38(23.6%fib).On the downside, immediate support is seen at 110.65 (5DMA), a break below could take the pair towards 110.35 (50%fib).
Equities Recap
European stocks held just below record highs on Friday as decline in healthcare stocks more than offset the momentum in the financial sector, although Credit Suisse rose after a Reuters report that it is considering a possible merger with UBS.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading up at 0.29 percent, Germany's Dax was down by 0.08 percent, France’s CAC finished was down by 0.08 percent.
Commodities Recap
Gold rose on Friday, heading for its first weekly gain in four as a tentative agreement on US infrastructure spending pushed the dollar back while investors waited for inflation data.
Spot gold gained 0.4% to $1,782.74 per ounce at 1106 GMT, and was up over 1% for the week. U.S. gold futures were 0.4% higher at $1,782.90.
Oil prices fell on Friday but stayed on track for the fifth straight weekly rise as demand growth was expected to outpace supply and OPEC + producers will be cautious to return more supply to the market from August onwards.
Brent was down 14 cents, or 0.2%, at $75.42 a barrel at 1142 GMT, but was heading for a 2.6% rise on the week.
U.S. West Texas Intermediate (WTI) crude fell 19 cents, or 0.3%, at $73.11 a barrel, but on track for a 2% weekly gain.