Posted at 21 July 2021 / Categories Market Roundups
Market Roundup
•Canada June New Housing Price Index (MoM) 0.6%,1.4% previous
•US Gasoline Inventories -0.121M,-1.043M forecast, 1.039M previous
•US Crude Oil Inventories 2.108M, -4.466M forecast, -7.897M previous
•US Cushing Crude Oil Inventories -1.347M forecast, -1.589M previous
Looking Ahead –Economic Data (GMT)
•23:50 Japan Foreign Investments in Japanese Stocks -10.5B previous
•23:50 Japan Foreign Bonds Buying
•01:30 Australia NAB Quarterly Business Confidence 17 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as investors focus shifted to Thursdays’ ECB meeting. In a quiet day for economic data, currency markets are looking ahead to the European Central Bank (ECB) meeting. A dovish tone is expected after ECB President Christine Lagarde foreshadowed a guidance tweak during an interview last week. The euro was down 0.2% against the dollar at 0731 GMT, at $1.1771, close to its lowest since early April. Immediate resistance can be seen at 1.1793(5DMA), an upside break can trigger rise towards 1.1824 (38.2% fib).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling edged higher on Wednesday after falling almost 2% against the dollar from Friday’s high amid rising numbers of COVID-19 Delta variant cases in Britain and confusion about the lifting of restrictions in England. The pound this week fell to its lowest point since February 4 of $1.3572 after Prime Minister Boris Johnson lifted most COVID-19 restrictions in England. Sterling rose 0.35% versus the dollar to $1.3690 at 1955 GMT Immediate resistance can be seen at 1.3776 (50%fib),an upside break can trigger rise towards 1.3798 (5DMA).On the downside, immediate support is seen at 1.3693 (38.2%fib), a break below could take the pair towards 1.3610 (23.6%fib).
USD/CAD: The Canadian dollar on Wednesday strengthened to its highest in nearly a week against its U.S. counterpart, benefiting from investor optimism that rising COVID-19 cases in some parts of the world would not derail economic recovery. The price of oil, one of Canada's major exports, rose for a second day as investors bet that an earlier flight to safety sparked by fears about the spread of the Delta coronavirus variant was overdone. The Canadian dollar was last trading 0.9% higher at 1.2566 to the greenback. Immediate resistance can be seen at 1.2642 (23.6%fib), an upside break can trigger rise towards 1.2716(Higher BB).On the downside, immediate support is seen at 1.2526 (38.2%fib), a break below could take the pair towards 1.2419 (50%fib).
USD/JPY: The dollar rose against the Japanese yen Wednesday as greenback was firm against yen on concerns over the impact of a fast-spreading coronavirus variant. The Delta variant of the coronavirus, which has caused a surge in infections worldwide, rose to the top of investor concerns along with inflation this week. At 19:03 GMT, the dollar was trading 0.4 percent higher versus the yen at 110.24.Strong resistance can be seen at 110.39(30DMA), an upside break can trigger rise towards 110.48 (23.6%fib).On the downside, immediate support is seen at 110.10 (38.2%fib), a break below could take the pair towards 109.97(5DMA).
Equities Recap
A slew of upbeat updates from European blue-chip firms helped the region’s benchmark index rise on Wednesday and further recover from Monday’s sharp losses, while travel stocks roared back after weeks of declines.
UK's benchmark FTSE 100 closed up by 1.70 percent, Germany's Dax ended up by 1.36 percent, France’s CAC finished the day up by 1.85 percent.
Wall Street stocks posted their second straight daily gain on Wednesday, with robust corporate earnings and renewed optimism about the U.S. economic recovery fueling a risk-on rally.
Dow Jones closed up by 0.83%percent, S&P 500 closed up by 0.82% percent, Nasdaq settled up by 0.92 % percent.
Treasuries Recap
Yields on U.S. Treasuries rebounded for a second day on Wednesday, with a sale of 20-year government debt on the weak side, as fears of new COVID-19 lockdowns eased and a rally in equity markets suggested renewed optimism about a robust economic recovery.
The yield on 10-year Treasury notes was up 8.8 basis points to 1.297%, after briefly crossing above 1.3% earlier in trading.
Commodities Recap
Gold dropped for a second straight session to its lowest level in more than a week on Wednesday, as risk appetite resumed with equities and U.S. bond yields rebounding to curb safe-haven bullion bids.
Spot gold fell 0.4% to $1,803.11 per ounce by 12:34 p.m. EDT, having hit a low since July 12 of $1,793.59. U.S. gold futures settled 0.4% down at $1,803.40.
Oil prices rose more than 4% on Wednesday, continuing the previous trading day's gains, supported by improved risk appetite, but data showed an unexpected surge in oil inventories.
Brent crude futures rose $2.88, or 4.2%, to settle at $72.23 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose $3.1, or 4.6%, to settle at $70.30 a barrel.