Posted at 30 June 2021 / Categories Market Roundups
Market Roundup
•US June ADP Nonfarm Employment Change 692K, 600K, 978K previous
•Canada May RMPI (YoY) 40.1%, 56.4% previous
•Canada May IPPI (MoM) 2.7%,1.6% previous
•Canada May RMPI (MoM) 3.2%,1.0% previous
•Canada Apr GDP (MoM) -0.3% , -0.8%forecast, 1.1% previous
•US June Chicago PMI 66.1, 70.0 forecast,75.2 previous
•US May Pending Home Sales Index 114.7,106.2 previous
•US May Pending Home Sales (MoM) 8.0%,-0.8%, -4.4% previous
•US Crude Oil Inventories -6.718M,-4.686M, -7.614M previous
•US Cushing Crude Oil Inventories -1.460M, -1.833M previous
Looking Ahead Economic Data (GMT)
•22:30 Australia Jun AIG Manufacturing Index 61.8 previous
•22:30 New Zealand May Building Consents (MoM) 4.8% previous
•22:30 Australia Manufacturing PMI 58.4 forecast, 60.4 previous
•23:50 Japan Tankan Large Manufacturers Index (Q2) 15, 5 previous
•23:50 Japan Tankan Large Non-Manufacturers Index (Q2) forecast 3, -1 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro fell against the U.S. dollar on Wednesday as the euro zone economic data showed mixed results, while Investors were waiting for US employment data that may affect Fed policy on Friday. Inflation in the 19 countries that share the euro fell from 2.0% in May to 1.9% in June, in line with forecasts and exactly on the ECB's target, but below but close to 2 %. Unemployment in June fell by a seasonally adjusted 38,000. Immediate resistance can be seen at 1.1893 ( 5 DMA), an upside break can trigger rise towards 1.1920 (38.2% fib).On the downside, immediate support is seen at 1.1840(23.6% fib), a break below could take the pair towards 1.1777 (Lower BB).
GBP/USD: The British pound edged higher on Wednesday as investors were optimistic that the UK and the European Union would agree to lift customs controls on shipments of chilled meats to Northern Ireland, which have strained relations. British Prime Minister Boris Johnson said on Tuesday that Britain expects to reach an agreement on extending the exemption soon. Cable had hit a two-year high of $1.425 at the start of the month, but since the Fed meeting, it has been mostly in the $1.38-$1.40 range.Cable had hit a two-year high of $1.425 at the start of the month, but since the Fed meeting, it has been mostly in the $1.38-$1.40 range. Immediate resistance can be seen at 1.3842 (5DMA), an upside break can trigger rise towards 1.3893(38.2%fib).On the downside, immediate support is seen at 1.3785 (23.6%fib), a break below could take the pair towards 1.3726(Lower BB).
USD/CAD: The Canadian dollar barely moved against its generally stronger US counterpart on Wednesday as data showed the Canadian economy contracted less-than-expected in April, but the currency posted its largest monthly decline since March last year. Canadian GDP declined 0.3% in April as companies closed during the COVID19 pandemic, beating analysts' projections for an 8% decline, according to data from Statistics Canada. The price of oil, one of Canada's top exports, rose after industry data suggested US crude oil stocks were shrinking. Immediate resistance can be seen at 1.2433 (23.6%fib), an upside break can trigger rise towards 1.2498 (Higher BB).On the downside, immediate support is seen at 1.2362 (38.2%fib), a break below could take the pair towards 1.2304 (50%fib).
USD/JPY: The dollar rose higher against the Japanese yen on Wednesday as greenback was aided by a surprisingly aggressive change in the Fed's interest rate outlook and concerns about the spread of the delta coronavirus variant. The dollar is up about 3% against a basket of currencies this month, in part due to the Fed's stance at a meeting earlier this month. Traders expect Friday's non-farm payroll report to confirm a change in monetary policy. Strong resistance can be seen at 111.17(23.6%fib), an upside break can trigger rise towards 111.40 (Higher BB).On the downside, immediate support is seen at 110.76 (5DMA), a break below could take the pair towards 110.60(38.2%fib).
Equities Recap
European stocks closed lower on Wednesday as investors returned a five-month winning streak and concerns about a possible spike in inflation and the delta variant of the coronavirus also took some money off the table.
UK's benchmark FTSE 100 closed down by 0.71 percent, Germany's Dax ended down by 1.02 percent, France’s CAC finished the day down by 0.1 percent.
The S&P 500 hit its fifth straight high-close record on Wednesday as investors ended the month and quarter largely ignoring positive economic data and looking at Friday's much-anticipated employment report.
Dow Jones closed up by 0.61% percent, S&P 500 closed up by 0.21 % percent, Nasdaq settled down by 0.17% percent.
US Treasuries
Yields on longer-dated U.S. Treasuries fell on Wednesday to their lowest levels in more than a week as the market wound down 2021's second quarter, while the amount of cash flooding into the Federal Reserve's reverse repurchase operation set a new record high as it neared $1 trillion.
The benchmark 10-year yield, which tumbled to its lowest level since June 21 at 1.438%, was last down 3.2 basis points at 1.4477%. The yield on 30-year bonds,
Commodities Recap
Gold rose on Wednesday but was heading for its biggest monthly decline since November 2016 as investors were cautious on upcoming US jobs data, which could heighten fears that the US Federal Reserve will cut prices.
Spot gold rose 0.4% to $1,768.78 per ounce by 1:52 pm EDT (1752 GMT) having touched its lowest since April 15 at $1,749.20 per ounce on Tuesday. U.S. gold futures settled up 0.5% at $1,771.60.
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after U.S. crude stockpiles fell for a sixth straight week and an OPEC report foresaw an undersupplied market this year.
The Brent crude contract for August , which expired on Wednesday, ended the session up 37 cents, or 0.5% at $75.13 a barrel. The September contract rose 34 cents to settle at $74.62 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 49 cents, or 0.7% at $73.47 a barrel.