Posted at 07 July 2021 / Categories Market Roundups
Market Roundup
• US Redbook (YoY) 19.4%,18.2% previous
• Canada June Ivey PMI n.s.a 67.7, 59.8 previous
• Canada June Ivey PMI 71.9, 64.7 previous
• US May JOLTs Job Openings 9.209M, 9.388M forecast, 9.286M previous
• US IBD/TIPP Economic Optimism 54.3,56.4 previous
•Russia June CPI (MoM) 0.7%,0.5% forecast, 0.7% previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan May Current Account n.s.a. 1.820T forecast, 1.322T previous
•23:50 Japan Bank Lending (YoY) 2.9% previous
•23:50 Japan Foreign Bonds Buying-1,026.5B previous
•23:50 Japan Foreign Investments in Japanese Stocks -147.1B previous
•23:50 Japan Adjusted Current Account1.55T previous
•01:00 New Zealand ANZ Business Confidence-0.6 previous
Looking Ahead - Economic events and other releases (GMT)
•02:30 Australia RBA Governor Lowe Speaks
EUR/USD: The euro traded near a three-month low against the dollar on Wednesday after German data raised doubts about the strength of the economic recovery, while the U.S. currency awaited the minutes from the last Federal Reserve policy meeting. German-made goods posted their sharpest slump in May since the first lockdown in 2020, hurt by weaker demand from countries outside the euro zone. The European single currency changed hands at $1.1820 , having touched a three-month low of $1.1774 on Wednesday. Immediate resistance can be seen at 1.1841 (5DMA), an upside break can trigger rise towards 1.1895 (38.2%fib).On the downside, immediate support is seen at 1.1779(7th July low), a break below could take the pair towards 1.1723(Lower BB).
GBP/USD: Sterling steadied versus the dollar on Wednesday as Britain set out reopening plans following the COVID-19 pandemic. found support this week on British Prime Minister Boris Johnson’s plans to end social and economic COVID-19 restrictions in England in two weeks’ time.Johnson said on Monday the government aimed to end restrictive measures on July 19, with a final decision to be taken next week. He said the step would end formal limits on social contact, the instruction to work from home and mandates to wear face masks.Sterling was 0.03% higher versus the dollar at 1.3801 by 21:38 GMT. Immediate resistance can be seen at 1.3827 (14DMA), an upside break can trigger rise towards 1.3868 (38.2%fib).On the downside, immediate support is seen at 1.3774(23.6%fib), a break below could take the pair towards 1.3680 (Lower BB).
USD/CAD: The Canadian dollar weakened against its US counterpart for a third day on Wednesday as oil prices fell and investors digested the minutes of the Fed's last monetary policy meeting. The loonie is up 2% since the start of the year, the best performance among the G10 currencies, but has fallen from a six-year high last month close to 1.20. The loonie was trading 0.1% lower at 1.2477 to the greenback, or 80.15 U.S. cents, after touching its weakest intraday level since April 22 at 1.2519.Immediate resistance can be seen at 1.2515 (23.6%fib), an upside break can trigger rise towards 1.2535 (Higher BB).On the downside, immediate support is seen at 1.2465(38.2%fib), a break below could take the pair towards 1.2420(50%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Wednesday following the release of the minutes of the last monetary policy meeting of the US Federal Reserve, which showed that Fed officials are grappling with emerging concerns about inflation and financial stability, but included no big surprises. The dollar index, which measures the greenback against a basket of peer currencies, was up 0.135% at 92.664, consolidating near its recent 3-month high. The Japanese yen traded little changed at 110.590 yen per dollar , still holding on to gains from its 15-month low of 111.64 touched last week. Strong resistance can be seen at 110.67(38.2%fib), an upside break can trigger rise towards 111.02(23.6%fib).On the downside, immediate support is seen at 110.52(21DMA), a break below could take the pair towards 110.34(50%fib).
Equities Recap
European stocks gained on Wednesday as economically sensitive sectors such as miners and automakers recovered from sharp falls in the previous session, triggered by falling bond yields.
UK's benchmark FTSE 100 closed up by 0.71 percent, Germany's Dax ended up by 1.17 percent, France’s CAC finished the day up by 0.31 percent.
U.S. stocks ended higher on Wednesday after minutes from the last Federal Reserve meeting showed officials were divided on economic signals.
Dow Jones closed up at 0.30 percent, S&P 500 ended up at 0.34 percent, Nasdaq settled up by 0.01 % percent.
Treasuries Recap
U.S. Treasury yields continued on their downward trajectory on Wednesday, with 10-year yields on track for a seventh straight session of declines on worries the economic recovery may be softening .
The yield on 10-year Treasury notes was down 4.9 basis points to 1.321% after earlier falling as low as 1.296%, the lowest level since Feb. 19.
Commodities Recap
Gold firmed above $1,800 an ounce on Wednesday as U.S. Treasury yields declined after minutes from the Federal Reserve’s June meeting showed officials felt its ‘substantial progress’ goal on economic recovery has not yet been met.
Spot gold extended gains slightly post the release of the minutes and was up 0.4% to $1,804.16 per ounce by 2:36 p.m. EDT (1836 GMT), having hit its highest since June 17 at $1,814.78 on Tuesday. U.S. gold futures settled 0.4% higher at $1,802.10 per ounce.
Oil prices fell more than $1 a barrel on Wednesday in another seesaw trading session, as investors feared what this week's collapse in OPEC+ talks meant for worldwide production.
Brent crude settled at $73.43 a barrel, falling $1.10, or 1.5%. U.S. West Texas Intermediate settled at $72.20 a barrel, shedding $1.17 or 1.6%. Both benchmarks rallied more than $1 a barrel earlier in the session, similar to Tuesday's action.