Posted at 13 July 2021 / Categories Market Roundups
Market Roundup
•German Jun HICP (YoY) 2.1%,2.1% forecast, 2.4% previous
•German Jun CPI (YoY) 2.3%, 2.3% forecast, 2.5% previous
•German Jun CPI (MoM) 0.4%,0.4% forecast, 0.5% previous
•German Jun HICP (MoM) 0.4%, 0.4% forecast, 0.3% previous
•Swiss June PPI (YoY) 2.9%,3.2% previous
•Swiss June PPI (MoM) 0.3%, 0.8% previous
•French CPI (YoY) 1.5%,1.5% forecast, 1.4% previous
•French June HICP (MoM) 0.2%,0.2% forecast, 0.3% previous
•French Jun CPI (MoM) 0.1%,0.2% forecast, 0.3% previous
Looking Ahead –Economic Data ( GMT)
•12:30 US Jun Real Earnings (MoM) -0.1% previous
•12:30 US Jun CPI Index, s.a 268.55 previous
•12:30 US Jun CPI, n.s.a (MoM) 0.80% previous
•12:30 US Jun Core CPI Index 275.72 previous
•12:30 US Jun Core CPI (MoM) 0.4%forecast, 0.7% previous
•12:30 US Jun CPI (YoY) 4.9% forecast, 5.0% previous
•12:30 US Jun CPI (MoM) 0.5% forecast, 0.6% previous
•12:30 US Jun Core CPI (YoY) 4.0% forecast, 3.8% previous
•12:55 US Redbook (YoY) 19.4% previous
•15:00 US Jun Cleveland CPI (MoM) 0.3% previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 USFOMC Member Bostic Speaks
•18:30 FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro dipped on Tuesday as dollar steadied before the release of U.S. consumer price data, with inflation in the world’s biggest economy widely expected to tick marginally lower from last month. A poll shows expectations are for inflation in the United States to come in at 4.9% for the month of June when the data is released at 1230 GMT, compared to 5% the month before. Immediate resistance can be seen at 1.1871 (38.2%fib), an upside break can trigger rise towards 1.1896 (21 DMA).On the downside, immediate support is seen at 1.1796 (23.6%fib), a break below could take the pair towards 1.1764(Lower BB)
GBP/USD: Sterling edged lower against dollar on Tuesday after the Bank of England scrapped pandemic-era curbs on dividend payments by banks but warned some asset prices look stretched. BoE Governor Andrew Bailey said its stress test showed the banking sector was well capitalised to cope with the fallout from COVID-19 on the economy. But the BoE also said in its Financial Stability Report (FSR) that some asset prices look stretched.The bank added it is keeping a close eye on the housing market and how fast rising prices translate into household indebtedness. Sterling eased 0.15% to $1.3856 against the dollar by 0850 GMT, after jumping to a two-week high on Monday Immediate resistance can be seen at 1.3909 (38.2% fib), an upside break can trigger rise towards 1.3955 (21DMA).On the downside, immediate support is seen at 1.3840 (14DMA), a break below could take the pair towards 1.3825 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday ahead of U.S. inflation data, with investors on edge over whether the figures may offer clues about the likely timing of tapering and interest rate hikes. Economists polled expect the U.S. consumer price index to have risen 0.5% from May and 4.9% from a year earlier. Traders think a miss on either side could move the greenback and the bond market by shifting expectations on interest rates. At 10:37 GMT, the dollar was 0.12 percent higher versus the Swiss franc at 0.9161. Immediate resistance can be seen at 0.9172 (21DMA), an upside break can trigger rise towards 0.9267 (23.6%fib%fib).On the downside, immediate support is seen at 0.9132 (50%fib), a break below could take the pair towards 0.9080 (61.8% fib).
USD/JPY: The dollar edged lower against the Japanese yen Tuesday as markets awaited the release of U.S. inflation data for further clues about the global economic recovery. After the U.S. consumer price index due for release at 1230 GMT, the focus turns to Fed Chairman Jerome Powell’s testimony before Congress on Wednesday and Thursday for his response to the inflation data and possible tapering measures. At 10:37 GMT, the dollar was 0.5 percent lower versus the yen at 110.26. Strong resistance can be seen at 110.43 (21DMA), an upside break can trigger rise towards 110.57 (9DMA).On the downside, immediate support is seen at 109.97 (23.6%fib), a break below could take the pair towards 109.28 (Lower BB).
Equities Recap
European stocks eased from all-time highs on Tuesday, ahead of a key U.S. inflation reading, but British banks kept UK’s FTSE 100 afloat after a central bank move to scrap curbs on dividends.
At (GMT 10:42 ),UK's benchmark FTSE 100 was last trading up at 0.10% percent, Germany's Dax was down by 0.03%percent, France’s CAC was last down by 0.20 percent.
Commodities Recap
Gold prices were trapped in a tight range as investors awaited U.S. inflation data on Tuesday that could provide more clarity on the Federal Reserve’s timeline for policy tightening.
Spot gold was up 0.1% at $1,808.20 per ounce by 0854 GMT. U.S. gold futures were 0.2% higher at $1,808.70.
Oil prices climbed on Tuesday, mostly reversing the previous day's losses, as tight supply and expectations of a further draw in U.S. and global crude inventories provided support, although fears over the spreading COVID-19 variant capped gains.
Brent crude for September rose 63 cents, or 0.8%, to $75.79 a barrel by 0852 GMT, after losing 0.5% on Monday.
U.S. West Texas Intermediate crude for August was at $74.70 a barrel, up 60 cents, or 0.8%, having fallen 0.6% the previous day.