Posted at 22 July 2021 / Categories Market Roundups
Market Roundup
•US Weekly jobless claims rise unexpectedly
•US Continuing Jobless Claims 3,236K ,3,100K forecast, 3,241K previous
•US Jobless Claims 4-Week Avg 385.25K ,382.50K previous
•US Initial Jobless Claims 419K ,350K forecast, 360K previous
•US Jun Chicago Fed National Activity 0.09, 0.29 previous
•US Jun US Leading Index (MoM) 0.7%, 0.9% forecast, 1.3% previous
•US Jun Existing Home Sales 5.86M ,5.90M forecast ,5.80M previous
•EU Jul Consumer Confidence -4.4, -2.5 forecast , -3.3 previous
•US Jun Existing Home Sales (MoM) 1.4%, -0.9% previous
•US Natural Gas Storage 49B ,44B forecast, 55B previous
•US Jul KC Fed Composite Index 41 ,27 previous
•US Jul KC Fed Manufacturing Index 30, 30 previous
Looking Ahead –Economic Data (GMT)
•22:50 Australia Manufacturing PMI 58.6 previous
•22:50 Australia Services PMI 56.8 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro slipped lower against dollar on Thursday as investors digested the European Central Bank statement and comments by its president. ECB President Christine Lagarde, in her media briefing, did not say anything to change the market's cautious outlook on the euro zone. The ECB's dovish pivot - which follows its recently released strategy reviewat a time when many peers are mulling exiting pandemic-era stimulus is expected to keep the single European currency under pressure. Immediate resistance can be seen at 1.1820 (38.2%fib), an upside break can trigger rise towards 1.1842 (21DMA).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1721 (Lower BB).
GBP/USD: Britain's pound rose against the dollar on Thursday as recovering risk sentiment in global markets helped buoy currencies correlated with economic growth. Investor nerves over whether vaccinations will successfully head off future lockdowns amid surging coronavirus cases had led to a stock selloff earlier this week, whacking sterling as much as 1.3% lower to the dollar on the week.A broad recovery in stock markets took hold on Wednesday, helping the pound recover ground. Sterling was up 0.4% at $1.3767 by 1900 GMT. Immediate resistance can be seen at 1.3779(5DMA),an upside break can trigger rise towards 1.3812 (50%fib).On the downside, immediate support is seen at 1.3737 (38.2%fib), a break below could take the pair towards 1.3653(23.6%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, giving back some of its gains over the last two days as dovish guidance from the European Central Bank helped to boost the greenback against a basket of major currencies. The Canadian dollar was 0.2% lower at 1.2575 versus the greenback , after trading a range of 1.2529 to 1.2593. In domestic data, a preliminary estimate from Statistics Canada showed that manufacturing sales rose 1.9% in June, led by the transportation equipment industry. .Immediate resistance can be seen at 1.2642(23.6%fib), an upside break can trigger rise towards 1.2706(Higher BB).On the downside, immediate support is seen at 1.2551(14DMA), a break below could take the pair towards 1.2523 (38.2%fib).
USD/JPY: The dollar was little changed against the Japanese yen Thursday as the latest jobless claims report reinforced expectations the Federal Reserve's policy stance will remain dovish. The number of Americans filing new claims for jobless benefits rose to a two-month high last week, the Labor Department said in a report that nevertheless showed more people are returning to work. At 19:03 GMT, the dollar was trading 0.02 percent higher versus the yen at 110.14.Strong resistance can be seen at 110.38(30DMA), an upside break can trigger rise towards 110.48 (23.6%fib).On the downside, immediate support is seen at 110.09 (38.2%fib), a break below could take the pair towards 109.75(50%fib).
Equities Recap
European stocks rose for a third session on Thursday after the European Central Bank pledged to keep interest rates at record lows for even longer, while strong corporate earnings underpinned optimism about an economic recovery.
UK's benchmark FTSE 100 closed up by 0.60 percent, Germany's Dax ended down by 0.43 percent, France’s CAC finished the day up by 0.27 percent.
Wall Street edged higher on Thursday, as lackluster economic data and mixed corporate earnings sent investors back to growth stocks.
Dow Jones closed up by 0.07 percent, S&P 500 closed up by 0.20 percent, Nasdaq settled up by 0.36 percent.
Treasuries Recap
Yields on U.S. Treasuries eased on Thursday after the auction of $16 billion in 10-year TIPS was bid at a record low, while the latest jobless claims report reinforced expectations the Federal Reserve's policy stance will remain dovish.
The yield on 10-year Treasury notes fell 2.2 basis points to 1.260%. The yield on the 30-year Treasury bond slid 3.1 basis points to 1.899%.
Commodities Recap
Gold inched higher on Thursday as stocks and U.S. bond yields pulled back to offset a firmer dollar and restore some of bullion’s allure as a safe haven.
Spot gold had risen 0.1% to $1,804.45 per ounce by 1:33 p.m. EDT (1733 GMT). U.S. gold futures settled 0.1% higher at $1,805.40.
Oil prices rose about $1.50 a barrel on Thursday, extending gains made in the previous three sessions on expectations of tighter supplies through 2021 as economies recover from the coronavirus crisis.
Brent crude settled at $73.79 a barrel, up $1.56, or 2.2%, while U.S. West Texas Intermediate (WTI) settled at $71.91 a barrel, rising $1.61, or 2.3%.