Posted at 14 July 2021 / Categories Market Roundups
Market Roundup
•UK June CPI (MoM) 0.5% ,0.2% forecast,0.6% previous
• UK June CPI, n.s.a 111.30,110.80 previous
• UK June Core RPI (YoY) 3.9%,3.4% previous
• UK June PPI Output (MoM) 0.4%, 0.6%forecast,0.5% previous
• UK June Core CPI (YoY) 2.3%,2.0% forecast, 2.0% previous
• UK June Core CPI MoM (MoM) 0.5%,0.2% forecast, 0.8% previous
• UK Jun CPI (YoY) 2.5%,2.2% forecast, 2.1% previous
• UK Jun PPI Output (YoY) 4.3%,4.8% forecast, 4.6% previous
• UK Jun PPI Input (MoM) -0.1%,1.2% forecast, 1.1% previous
• EU May Industrial Production (YoY) 20.5%,22.2% forecast, 39.3% previous
• EU May Industrial Production (MoM) -1.0%,-0.2% forecast, 0.8% previous
Looking Ahead –Economic Data (GMT)
• 12:30 Canada May Manufacturing Sales (MoM) 1.0% forecast, -2.1% previous
•12:30 US June Core PPI (MoM) 0.5% forecast, 0.7% previous
•12:30 US Jun PPI (YoY) 6.8% forecast, 6.6% previous
•12:30 US Jun PPI (MoM) 0.6% forecast, 0.8% previous
•14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous
•14:30 US Gasoline Inventories -1.786M forecast, -6.076M previous
•14:30 US Crude Oil Inventories -4.359M forecast, -6.866M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 Canada BoC Rate Statement
•14:00 Canada BoC Monetary Policy Report
•15:00 Canada BOC Press Conference
•15:00 US Fed Chair Powell Testifies
Fxbeat
EUR/USD: The euro recovered marginally against dollar on Wednesday after data a day earlier showed inflation had scaled 13-year highs in June amid supply constraints and higher travel-related costs. The greenback is likely to take its direction from Fed Chair Jerome Powell's two-day testimony before Congress which starts later on Wednesday. Markets are seeking clues on when the central bank might consider tapering its stimulus and whether it still holds the oft-reiterated view that higher inflation is transitory. 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 climbed against the dollar on Wednesday as UK inflation rose more than expected to its highest in almost three years, putting the focus of the Bank of England's plan to keep its huge stimulus programme in place. Inflation jumped in June further above the BoE's 2% target to hit 2.5%, its highest since August 2018. Higher prices for food, fuel and used cars as the economy bounced back from its lockdown slump were among the drivers. By 09:05 GMT, the pound was up 0.2% at $1.3843. Against the euro , sterling gained 0.2% to 85.13 pence. Immediate resistance can be seen at 1.3867 (50% fib), an upside break can trigger rise towards 1.3930 (61.8%fib).On the downside, immediate support is seen at 1.3793 (38.2%fib), a break below could take the pair towards 1.3737 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday after a jump in U.S. inflation fuelled expectations of a quicker end to Federal Reserve stimulus. The U.S. consumer price index rose 0.9% in June, data showed on Tuesday, above market expectations and the largest gain since June 2008.Investors are watching the semi-annual testimony of Fed Chair Jerome Powell to Congress on Wednesday and Thursday for more clues on whether the Fed will take more aggressive steps to halt rising inflation.At 10:12 GMT, the dollar was 0.07 percent higher versus the Swiss franc at 0.9191. Immediate resistance can be seen at 0.9193(38.2%fib), an upside break can trigger rise towards 0.9219 (23.6%fib%).On the downside, immediate support is seen at 0.9173(50%fib), a break below could take the pair towards 0.9150(61.8% fib).
USD/JPY: The dollar edged lower against the Japanese yen Wednesday after U.S. inflation data stoked fears of earlier-than-expected policy tightening by the Federal Reserve. Data on Tuesday showed U.S. consumer prices in June rose by the most in 13 years. Focus now shifts to Powell's testimony before the Congress for any views on the rising price pressures and possible tightening of monetary policy.At 10:12 GMT, the dollar was 0.12 percent lower versus the yen at 110.48. Strong resistance can be seen at 110.65(38.2%fib), an upside break can trigger rise towards 110.80 (July 7th High).On the downside, immediate support is seen at 110.27(5DMA), a break below could take the pair towards 110.18(23.6%fib).
Equities Recap
European stocks slipped from peaks on Wednesday, as the global mood soured on increasing concerns about inflation, while travel stocks dropped on worries about the Delta variant’s spread in the continent.
At (GMT 09:05 ),UK's benchmark FTSE 100 was last trading down at 0.51% percent, Germany's Dax was down by 0.17%percent, France’s CAC was last down by 0.24 percent.
Commodities Recap
Gold prices firmed on Wednesday after getting a lift from weaker U.S. Treasury yields and dollar, though the main focus was on Federal Reserve Chair Jerome Powell’s testimony due later in the day following a robust rise in consumer prices.
Spot gold was up 0.4% at $1,814.13 per ounce, as of 0639 GMT, while U.S. gold futures rose 0.3% to $1,814.5.
Oil prices declined on Wednesday after data showed a drop in China's half-year crude imports while expectations for a further tightening of U.S. inventories offered support.
Brent crude was down 38 cents, or 0.5%, at $76.11 a barrel by 0820 GMT. West Texas Intermediate was off by 46 cents, or 0.6%, at $74.79 a barrel.