Posted at 02 July 2021 / Categories Market Roundups
Market Roundup
•EU MAy PPI (YoY) 9.6%,9.5% forecast,7.6% previous
•EU May PPI (MoM) 1.3%,1.2% forecast, 1.0% previous
Looking Ahead - Economic Data (GMT)
•12:30 US June Unemployment Rate 5.7% forecast, 5.8% previous
•12:30 US June Average Hourly Earnings (YoY) (YoY) 3.7%,2.0% previous
•12:30 US June U6 Unemployment Rate 10.2% previous
•12:30 US June Participation Rate 61.6% previous
•12:30 US June Trade Balance -71.40B, -68.90B previous
•12:30 Canada May Building Permits (MoM) -0.3%forecast,-0.5% previous
•12:30 US June Average Weekly Hours 34.9 forecast, 34.9 previous
•12:30 US May Imports 49.61B previous
•12:30 US June Average Hourly Earnings (MoM) 0.4% forecast ,0.5%previous
•12:30 US June Manufacturing Payrolls 28K forecast, 23K previous
•12:30 US June Private Nonfarm Payrolls 600K forecast, 492K previous
•12:30 US June Nonfarm Payrolls 700K forecast, 559K previous
•12:30 Canada May Exports 50.21B previous
•12:30 Canada May Trade Balance 0.37B forecast, 0.59B previous
•13:30 Canada June Manufacturing PMI 57.0 previous
•14:00 US May Factory Orders (MoM) 1.6% forecast, -0.6% previous
•14:00 US May Durables Excluding Defense (MoM) 0.5% previous
Looking Ahead - Economic events and other releases (GMT)
•12:30 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday as ahead of U.S. jobs data which might affect the Federal Reserve’s narrative about the economy.While, more dovish signals came from the European Central Bank (ECB) with President Christine Lagarde saying the euro zone’s economy is beginning to rebound from a pandemic-induced slump but this recovery remains fragile. The ECB plans to come down on banks that are taking too much risk via financial instruments, the ECB’s top supervisor Andrea Enria said on Friday. The euro slipped to a three-month low of $1.1837 overnight and last stood at $1.1847. Immediate resistance can be seen at 1.1869 (5DMA), an upside break can trigger rise towards 1.1923 (38.2%fib).On the downside, immediate support is seen at 1.1835(23.6%fib), a break below could take the pair towards 1.1743(Lower BB).
GBP/USD: Sterling hit fresh two-month lows against the dollar on Friday, pressured in the wake of dovish comments from the Bank of England’s governor.In his annual Mansion House speech on Thursday, Andrew Bailey said 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. Bailey’s comments knocked the pound to its lowest since April 16, and the currency hit a fresh low of $1.3745. Immediate resistance can be seen at 1.3807 (5DMA), an upside break can trigger rise towards 1.3855(38.2%fib).On the downside, immediate support is seen at 1.3731 (23.6%fib), a break below could take the pair towards 1.3695 (Lower BB).
USD/CHF: The dollar steadied against the Swiss franc on Friday as traders wagered strong U.S. labour data could lift it even further. The greenback has strengthened broadly since the U.S. Federal Reserve surprised markets last month by signalling it could tighten policy earlier than expected to curb inflation.The U.S. jobs report is due at 1230 GMT and is forecast to show a solid rise of 700,000, with traders braced for any surprises. At ( GMT 12:10),greenback edged lower 0.11% versus the Swiss franc to 0.914.Immediate resistance can be seen at 0.9277 (23.6%fib), an upside break can trigger rise towards 0.9328(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 was little changed against the Japanese yen on Friday as investors looked to U.S. jobs data for signs of balanced economic growth with tame inflationary pressure. Monthly nonfarm payroll data, due out later on Friday, is expected to show a 700,000 increase in June, and economists expect wage growth in June of around 0.4%.Dollar was perched at a 15-month high on the yen and at multi-month peaks against other majors on Friday.The dollar rose to as high as 111.66 yen , hitting its highest level since March last year. Strong resistance can be seen at 111.66(Higher BB), an upside break can trigger rise towards 111.88 (23.6%fib).On the downside, immediate support is seen at 111.21(38.2%fib), a break below could take the pair towards 110.07 (5DMA).
Equities Recap
European shares rose on Friday on a boost from semiconductor makers, while investors awaited a closely watched monthly jobs report from the United States later in the day.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading higher at 0.20 percent, Germany's Dax was up by 0.39 percent, France’s CAC was trading up by 0.07 percent.
Commodities Recap
Gold gained for a third straight session on Friday as concerns over the Delta variant of COVID-19 boosted bullion’s safe-haven appeal, with investors awaiting a crucial U.S. jobs report that could shed more light on the Federal Reserve’s next move.
Spot gold rose 0.3% to $1,781.62 per ounce by 0904 GMT. U.S. gold futures gained 0.4% to $1,783.30.
Oil prices edged lower on Friday after OPEC+ ministers delayed their output policy meeting, with sources saying the United Arab Emirates had balked at plans to return 2 million barrels per day (bpd) to the market in the second half of the year.
Brent crude futures were down 20 cents at $75.64 a barrel by 0940 GMT after rising 1.6% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures were down 15 cents at $75.08, having jumped 2.4% on Thursday to close at their highest since October 2018.