Posted at 15 July 2021 / Categories Market Roundups
Market Roundup
•US Jul Philly Fed Business Conditions 48.6, 69.2 previous
•US Jul Philly Fed Employment 29.2,30.7 previous
•US Jul Philly Fed Prices Paid 69.70,80.70 previous
•US Import Price Index (MoM) 1.0%,1.2% forecast, 1.1% previous
•US Jul Philadelphia Fed Manufacturing Index 21.9,28.0 forecast, 30.7 previous
•US Jul Export Price Index (MoM) 1.2%,1.2% forecast, 2.2% previous
•US Jul NY Empire State Manufacturing Index 43.00,18.00 forecast, 17.40 previous
•Canada ADP Nonfarm Employment Change -294.2K,101.6K previous
•Canada New Motor Vehicle Sales (MoM) 152.0%, 167.0% previous
•US Initial Jobless Claims 360K,360K forecast, 373K previous
•US Jobless Claims 4-Week Avg 382.50K,394.50K previous
•US Continuing Jobless Claims 3,241K,3,313K forecast, 3,339K previous
•US Jun Industrial Production (YoY) 9.80%, 16.32% previous
•US Jun Manufacturing Production (MoM) -0.1%,0.2% forecast, 0.9% previous
•US Capacity Utilization Rate 75.4%,75.6% forecast, 75.2% previous
Looking Ahead –Economic Data (GMT)
•07:30 Japan Jul Thomson Reuters IPSOS PCSI 38.28 previous
•07:30 China Jul Thomson Reuters IPSOS PCSI 73.16 previous
Looking Ahead - Events, Other Releases (GMT)
•08:30 Japan BoJ Press Conference
•08:30 Japan BoJ Monetary Policy Statement
•08:30 Japan BoJ Outlook Report
Currency Summaries
EUR/USD: The euro gave up earlier ground on Thursday as dollar gained after jobless claims data. The number of Americans filing new claims for unemployment benefits fell to a 16-month low last week as the labor market gains traction, but worker shortages and bottlenecks in the supply chain are frustrating efforts by businesses to ramp up production to meet strong demand for goods and services. Initial claims for state unemployment benefits fell 26,000 to a seasonally adjusted 360,000 for the week ended July 10, the lowest level since the middle of March in 2020.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. Sterling eased 0.3% against the dollar at $1.3828, 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/CAD: The loonie fell to nearly three month low versus its US counterpart on Thursday, as was loonie hit by dismal economic data and weak oil prices. Canada lost 294,200 jobs in June, mainly on a plunge in service-sector jobs in industries hit hard by COVID-19 restrictions, a report from payroll services provider ADP showed on Thursday. The Canadian dollar was also hurt by weakness in the price of oil, one of Canada's major exports. The Canadian dollar was trading 0.8% lower at 1.2604 to the greenback. Immediate resistance can be seen at 1.2607 (23.6%fib), an upside break can trigger rise towards 1.2637(Higher BB).On the downside, immediate support is seen at 1.2526(38.2%fib), a break below could take the pair towards 1.2467(50%fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as investors await next catalyst. The dollar dipped against yen as investors mulled the Federal Reserve's benign inflation outlook and upbeat assessment of the U.S. economy. The number of Americans filing new claims for unemployment benefits fell to a 16-month low last week as the U.S. labor market steadily gains traction while other data showed import prices rose solidly in June but have probably peaked. 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
Losses on Thursday knocked European shares 1.2% off all-time highs as a clutch of dismal earnings and falling bond yields dampened sentiment, while UK-listed Avast soared 18% on merger talks.
UK's benchmark FTSE 100 closed down by 1.51 percent, Germany's Dax ended down by 2.56 percent, France’s CAC finished the day down by 2.85 percent.
The Nasdaq ended lower on Thursday, pulled down by Apple, Amazon and other Big Tech companies as a fall in weekly jobless claims data fed investor concerns about a recent inflation spike.
Dow Jones closed up by 0.15% percent, S&P 500 closed down by 0.33 % percent, Nasdaq settled up by 0.70% percent.
Treasuries Recap
U.S. Treasury yields fell to one-week lows on Thursday as Federal Reserve Chairman Jerome Powell testified before Congress for the second day that rising inflation is likely to be transitory and that the U.S. central bank would continue to support the economy.
Benchmark 10-year yields fell six basis points on Thursday to 1.297%. The yield curve between two-year and 10-year notes flattened five basis points to 107 basis points.
Commodity Recap
Gold hit a one-month peak on Thursday, spurred by U.S. Federal Reserve Chair Jerome Powell’s dovish comments and some concerns over a stalling global economy.
Spot gold rose 0.1% to $1,829.16 per ounce by 1:59 pm EDT. U.S. gold futures gained 0.3% to $1,830.00.
Oil falls as invOil prices fell by more than $1 a barrel on Thursday on expectations of more crude hitting the market after a compromise deal between leading OPEC producers and a surprisingly poor weekly reading on U.S. fuel demand.
Brent crude settled at $73.47 a barrel, dropping $1.29, or 1.7%. U.S. West Texas Intermediate (WTI) crude settled at $71.65 a barrel, down $1.48, or 2.2%.estors look out for more supply