Posted at 15 July 2021 / Categories Market Roundups
Market Roundup
•UK May Employment Change 3M/3M (MoM) 25K ,90K forecast, 113Kprevious
•UK June Claimant Count Change -114.8K,-151.4Kprevious
•UK May Unemployment Rate 4.8%,4.7% forecast, 4.7%previous
•UK May Average Earnings ex Bonus 6.6%,6.6% forecast, 5.6% previous
•UK May Average Earnings Index +Bonus 7.3%, 7.1% forecast, 5.6% previous
• Italian Jun HICP (MoM) 0.2%, 0.2% previous
• Italian Jun CPI Ex Tobacco (MoM) 1.4%, ,1.3% previous
• Italian Jun CPI (MoM) 0.1%, 0.1%,0.1% previous
• Italian Jun CPI (YoY) 1.3%,1.3% forecast, 1.3% previous
• EU Jan Reserve Assets Total 885.46B previous
Looking Ahead –Economic Data (GMT)
•12:30 US Jul Philly Fed Business Conditions 69.2 previous
•12:30 US Jul Philly Fed Employment 30.7 previous
•12:30 US Jul Philly Fed Prices Paid 80.70 previous
•12:30 US Import Price Index (MoM) 1.2% forecast, 1.1% previous
•12:30 US Jul Philadelphia Fed Manufacturing Index 28.0 forecast, 30.7 previous
•12:30 US Jul Export Price Index (MoM) 1.2% forecast, 2.2% previous
•12:30 US Jul NY Empire State Manufacturing Index 18.00 forecast, 17.40 previous
•12:30 Canada ADP Nonfarm Employment Change 101.6K previous
•12:30 Canada New Motor Vehicle Sales (MoM) 167.0% previous
•12:30 US Initial Jobless Claims 360K forecast, 373K previous
•12:30 US Jobless Claims 4-Week Avg 394.50K previous
•12:30 US Continuing Jobless Claims 3,313K forecast, 3,339K previous
•13:15 US Jun Industrial Production (YoY) 16.32% previous
•13:15 US Jun Manufacturing Production (MoM) 0.2% forecast, 0.9% previous
•13:15 US Capacity Utilization Rate 75.6% forecast, 75.2% previous
Looking Ahead - Events, Other Releases (GMT)
•13:30 US Fed Chair Powell Testifies
•15:00 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro rebounded from 3-1/2 month low against the U.S. dollar on Thursday after dovish comments by the Fed chief broke a recent spike in Treasury yields. In testimony to the U.S. Congress, Fed Chair Jerome Powell said the U.S. economy was still a ways off rom levels the central bank wanted to see before tapering its monetary support. The euro steadied against the greenback, at $1.1831, recovering from an early April low of $1.1772 hit before the Powell testimony in the previous session. Immediate resistance can be seen at 1.1850 (11DMA), an upside break can trigger rise towards 1.1884 (50%fib).On the downside, immediate support is seen at 1.1821 (38.2%fib), a break below could take the pair towards 1.1754(23.6%fib)
GBP/USD: Sterling retreated further against the dollar on Thursday, shrugging off another set of stronger economic data and focusing on the impending end of activity curbs even as COVID-19 infection rates climbed. Britain is set to drop all COVID-linked activity curbs from next Monday, including mandatory mask-wearing. While two-thirds of British adults are fully vaccinated, scientists warn another wave of infections. The anxiety seems to be outweighing signs the economy is bouncing back strongly from the lockdowns. By GMT 0835, sterling eased 0.3% against the dollar at $1.382, retreating further from two-week highs hit at the start of the week. Immediate resistance can be seen at 1.3870 (38.2% fib), an upside break can trigger rise towards 1.3940 (50%fib).On the downside, immediate support is seen at 1.3830 (14DMA), a break below could take the pair towards 1.3780 (23.6%fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday, following further reassurance from Federal Reserve chair Jerome Powell that he was in no rush to tighten policy. Powell said overnight that high inflation seemed linked to reopening, that it would be a mistake to act prematurely to tame it and that tapering bond buying was still a ways off. At 10:37 GMT, the dollar was 0.12 percent higher versus the Swiss franc at 0.9161. Immediate resistance can be seen at 0.9138 (50%fib), an upside break can trigger rise towards 0.9161 (38.2%fib).On the downside, immediate support is seen at 0.9118 (61.8%fib), a break below could take the pair towards 0.9088 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen on Thursday as dovish cues from U.S. Federal Reserve Chair Jerome Powell weighed on dollar. Powell stuck to the view on Wednesday that the current price increases are transitory and the Fed expects to continue its bond-buying until there is “substantial further progress” on jobs, with interest rates pinned near zero likely until at least 2023.His comments came on the heels of a robust U.S. producer prices data. At 10:37 GMT, the dollar was 0.5 percent lower versus the yen at 110.26. Strong resistance can be seen at 110.00 (Psychological level), an upside break can trigger rise towards 110.15 (38.2%fib).On the downside, immediate support is seen at 109.70 (23.6%fib), a break below could take the pair towards 109.47 (Lower BB).
Equities Recap
European shares fell for a second straight session on Thursday, as lower crude prices hit oil stocks, while Siemens Energy’s margin outlook weighed on wind energy companies.
At (GMT 10:10 ),UK's benchmark FTSE 100 was last trading down at 0.35 percent, Germany's Dax was down by 0.64 percent, France’s CAC was last down by 0.42 percent.
Commodities Recap
Gold prices extended gains to a one-month peak on Thursday after U.S. Federal Reserve Chair Jerome Powell played down fears of the early easing of monetary support, sending the dollar and U.S. Treasury yields lower.
Spot gold was up 0.3% at $1,831.70 per ounce, as of 0915 GMT, after hitting its highest since June 16. U.S. gold futures rose 0.4% to $1,833.10.
Oil prices fell on Thursday, extending losses as investors braced for increased supplies after a compromise deal between leading OPEC producers and as U.S. fuel stocks rose, raising concerns over demand in the world's largest consumer.
Brent crude dropped 52 cents, or 0.7%, to $74.24 a barrel by 0850 GMT and U.S. West Texas Intermediate (WTI) crude was down 72 cents, or 1%, at $72.41.