Posted at 13 July 2021 / Categories Market Roundups
Market Roundup
•US Jun Real Earnings (MoM) -0.9%, -0.1% previous
•US Jun CPI Index, s.a 270.9, 268.55 previous
•US Jun CPI, n.s.a (MoM) 0.93%,0.80% previous
•US Jun Core CPI Index 278.14,275.72 previous
•US Jun Core CPI (MoM) 0.9%, 0.4%forecast, 0.7% previous
•US Jun CPI (YoY) 5.4%,4.9% forecast, 5.0% previous
•US Jun CPI (MoM) 0.9%,0.5% forecast, 0.6% previous
•US Jun Core CPI (YoY) 4.5%,4.0% forecast, 3.8% previous
•US Redbook (YoY) 14.0%,19.4% previous
•US Jun Cleveland CPI (MoM) 0.2%,0.3% previous
Looking Ahead –Economic Data ( GMT)
•00:30 Australia Jul Westpac Consumer Sentiment -5.2% previous
•02:00 New Zealand RBNZ Interest Rate Decision 0.25%forecast,0.25 previous
•03:00 Australia HIA New Home Sales (MoM) 15.2% previous
•03:00 Japan May Industrial Production (MoM) -5.9% previous
Looking Ahead - Events, Other Releases (GMT)
02:00 New Zealand 02:00 New Zealand RBNZ Rate Statement
Currency Summaries
EUR/USD: The euro declined on Tuesday as dollar rose after data showed U.S. inflation data for June coming in hotter than expected, raising the prospect that inflationary concerns are set to linger. U.S. consumer prices rose by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum. The dollar index , which measures the greenback against a basket of six currencies, was 0.59% higher at 92.762, its highest since July 8. Immediate resistance can be seen at 1.1818 (38.2%fib), an upside break can trigger rise towards 1.1853 (14 DMA).On the downside, immediate support is seen at 1.1769 (Lower BB), a break below could take the pair towards 1.1739 (Lower BB)
GBP/USD: Sterling declined 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.Immediate resistance can be seen at 1.3819 (9DMA), an upside break can trigger rise towards 1.3845 (38.2%fib).On the downside, immediate support is seen at 1.3736 (23.6%fib), a break below could take the pair towards 1.3735(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as modest weakness in the price of oil, a major export for Canada, combined with the broadly stronger greenback weighed on Canadian dollar. The Canadian central bank is due to update its economic forecasts at a policy announcement on Wednesday. The Canadian dollar was trading down 0.05% at 1.2519to the greenback . Immediate resistance can be seen at 1.2548(Higher BB), an upside break can trigger rise towards 1.2575 (23.6%fib).On the downside, immediate support is seen at 1.2498 (5 DMA), a break below could take the pair towards 1.2436 (50%fib).
USD/JPY: The dollar rose against the Japanese yen on Tuesday after data showed U.S. consumer prices surged in June. U.S. consumer prices increased by the most in 13 years in June amid supply constraints and a continued rebound in the costs of travel-related services from pandemic-depressed levels as the economic recovery gathered momentum. The consumer price index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May. Economists had forecast the CPI would climb 0.5%. Strong resistance can be seen at 110.64 (38.2%fib), an upside break can trigger rise towards 111.04 (50%fib).On the downside, immediate support is seen at 110.21 (23.6%fib), a break below could take the pair towards 109.79 (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.
UK's benchmark FTSE 100 closed up by 0.01 percent, Germany's Dax ended down by 0.01 percent, France’s CAC finished the day down by 0.01 percent.
The S&P 500 and Nasdaq dropped on Tuesday after hitting record highs earlier in the session, with investors digesting a jump in consumer prices in June and earnings from JPMorgan and Goldman Sachs that kicked off the quarterly reporting season.
Dow Jones was down by 0.31 percent, S&P 500 ended down by 0.35 percent, Nasdaq settled down by 0.38 percent.
Treasuries Recap
Long-dated U.S. Treasury yields rose on Tuesday after the Treasury Department drew weak demand for a $24 billion sale of 30-year bonds, which came after data showed inflation in June jumped more than expected.
Benchmark 10-year yields jumped to 1.415%, after getting as low as 1.343% earlier on Tuesday.
Thirty-year note yields rose to 2.040% from 1.97% before the auction. The yield curve between five-year notes and 30-year bonds steepened to 120 basis points.
Commodities Recap
Gold was little changed on Tuesday as a firmer dollar offset support from bets that the Federal Reserve was unlikely to respond with immediate monetary tightening after U.S. consumer prices rose by the most in 13 years last month.
Spot gold was steady at $1,806.64 per ounce by 2:11 p.m. EDT. U.S. gold futures settled up 0.2% at $1,809.90.
Oil prices gained almost 2% on Tuesday after the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additional crude to ship worldwide.
Brent crude rose $1.33, or 1.8%, to settle at $76.49 a barrel, while U.S. West Texas Intermediate crude rose $1.15, or 1.6%, to settle at $75.25 a barrel.