Posted at 01 July 2021 / Categories Market Roundups
Market Roundup
• German May Retail Sales (YoY) -2.4%,4.4%previous
• German May Retail Sales (MoM) 4.2%, 5.0%forecast, -5.5% previous
• Switzerland May Retail Sales (YoY) 2.8%,35.7% previous
•Italian June Manufacturing PMI 62.2, 62.2 forecast, 62.3 previous
• French June Manufacturing PMI 59.0, 58.6 forecast, 59.4 previous
• German June Manufacturing PMI 65.1, 64.9forecast, 64.4 previous
• UK June Manufacturing PMI 63.9,64.2forecast, 64.2 previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Initial Jobless Claims 390Kforecast, 411K previous
• 12:30 US Jobless Claims 4-Week Avg 397.75K previous
• 12:30 US Continuing Jobless Claims3,382K, 3,390K previous
• 13:45 US Jun Manufacturing PMI 62.6 previous
• 14:00 US Jun ISM Manufacturing PMI 61.0 forecast, 61.2 previous
• 14:00 US Jun ISM Manufacturing Employment 50.9 previous
• 14:00 US Jun ISM Manufacturing Prices 86.5, 88.0 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged lower against dollar on Thursday as greenback crept higher ahead of U.S. labour data. Fears over the spread of the highly infectious Delta variant are denting sentiment at a time markets are on edge after the Fed shocked traders with a hawkish tilt earlier this month. Investors are also looking at U.S. consumer confidence data later on Tuesday as well as the Institute for Supply Management’s manufacturing index on Thursday for clues as to where interest rates are headed. Immediate resistance can be seen at 1.1900 (5DMA), an upside break can trigger rise towards 1.1917 (38.2%fib).On the downside, immediate support is seen at 1.1837(23.6%fib), a break below could take the pair towards 1.1760(Lower BB).
GBP/USD: Sterling fell on Thursday after Bank of England Governor Andrew Bailey warned against over-reaction to rising inflation in Britain.Bailey said on Thursday in his annual Mansion House speech that it was important to ensure that the recovery was not undermined by a premature tightening in monetary conditions, as a rise in inflation was likely to be temporary. The pound edged 0.2% lower to $1.3796 versus the dollar at 0835 GMT. It slipped 0.1% against the euro to 85.85 pence, after gaining almost 5% versus the euro in the first half of the year. Immediate resistance can be seen at 1.3786 (5DMA), an upside break can trigger rise towards 1.3866(38.2%fib).On the downside, immediate support is seen at 1.3754 (23.6%fib), a break below could take the pair towards 1.3715 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as dollar was on firm footing ahead of a U.S. jobs report that could offer clues on when the Federal Reserve will start to pare back stimulus. Traders are looking to Friday's U.S. nonfarm payrolls report for confirmation of that outlook, with economists polled by Reuters expecting a gain of 700,000 jobs last month, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month.At ( GMT 10:30),greenback edged higher 0.01% versus the Swiss franc to 0.9250.Immediate resistance can be seen at 0.9277 (23.6%fib).an upside break can trigger rise towards 0.9314(Higher BB).On the downside, immediate support is seen at 0.9212(38.2%fib), a break below could take the pair towards 0.9164 (50%fib).
USD/JPY: The dollar gained against yen as risk appetite improved as investors waited for jobs data on Friday to bring clarity. Following the Fed’s surprise hawkish shift at its June meeting, investors are waiting for two key U.S. data releases,ISM manufacturing data later in the day and payrolls data on Friday. Federal Reserve Bank of Dallas President Robert Kaplan said Wednesday he would like the Fed to start reducing its support for the economy before the end of the year, in part to make an abrupt policy tightening less likely later on. The U.S. currency rose as high as 111.50 yen for the first time since March 25, 2020, up 0.3% on the day. Strong resistance can be seen at 111.60(Higher BB), an upside break can trigger rise towards 111.72 (23.6%fib).On the downside, immediate support is seen at 111.19(38.2%fib), a break below could take the pair towards 110.87 (5DMA).
Equities Recap
European shares neared a record high on Thursday as a slate of upbeat corporate results helped investors shake off concerns around a jump in inflation as well as the global spread of the Delta variant of the novel coronavirus.
At (GMT 10:30),UK's benchmark FTSE 100 was last trading higher at 0.69 percent, Germany's Dax was up by 0.31 percent, France’s CAC was trading up by 0.36 percent.
Commodities Recap
Gold gained on Thursday aided by rising concerns over the spread of the Delta coronavirus variant, while investors awaited the U.S. nonfarm payrolls report for more monetary policy clues.
Spot gold rose 0.3% to $1,774.39 per ounce by 0850 GMT, moving further away from a more than two-month low hit on Tuesday. U.S. gold futures climbed 0.2% to $1,774.90 per ounce.
Oil prices rose on Thursday, supported by lower U.S. inventories and the prospect of strengthening demand, while investors awaited a decision from OPEC+ producers on whether they would maintain or reduce supply cuts in the second half of the year.
Brent crude gained 94 cents, or 1.3%, to $75.56 a barrel by 0910 GMT. U.S. West Texas Intermediate crude was up 93 cents, or 1.3%, at $74.40.