Posted at 23 July 2021 / Categories Market Roundups
Market Roundup
•Canada Core Retail Sales (MoM) -2.1%,-2.2% forecast,-7.2% previous
•Canada May Retail Sales (MoM) -2.0%,-3.0% forecast, -5.7% previous
•US Jul Services PMI 59.8,64.8 forecast, 64.6 previous
•US Jul Manufacturing PMI 63.1, 62.0 forecast, 62.1 previous
•US Jul Markit Composite PMI 59.7, 63.7 previous
•U.S. Baker Hughes Oil Rig Count 387, 380 previous
•U.S. Baker Hughes Total Rig Count 491, 484 previous
Looking Ahead –Economic Data (GMT)
•No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged lower against dollar on Friday as fears over the spread of the Delta variant of the coronavirus rattled markets and prompted investors to buy safer assets. Financial markets were volatile earlier in the week as sentiment over the global economic outlook swung with each new Delta headline. Euro zone bond yields ended the day broadly flat after a muted reaction to IHS Markit’s flash Purchasing Managers’ Index (PMI), which showed euro zone business activity expanded at its fastest monthly pace in over two decades in July. Immediate resistance can be seen at 1.1781 (5DMA), an upside break can trigger rise towards 1.1822 (38.2%fib).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1716 (Lower BB).
GBP/USD: Sterling fell on Friday after a survey showed Britain’s economic rebound slowing sharply in July when a spike in COVID-19 cases forced hundreds of thousands of workers to self-isolate under government rules. Friday’s monthly purchasing managers’ index (PMI) data gave the first clear evidence of the scale of the impact. The IHS Markit/CIPS flash composite PMI dropped to 57.7 in July from 62.2 in June. The pound weakened as much as 0.3% to $1.3720 before recovering somewhat to trade at $1.3751. Immediate resistance can be seen at 1.3794(50%fib),an upside break can trigger rise towards 1.3886 (61.8%fib).On the downside, immediate support is seen at 1.3716 (38.2%fib), a break below could take the pair towards 1.3623(23.6%fib).
USD/CAD: The Canadian dollar weakened slightly against its U.S. counterpart on Friday, but ended a volatile week higher as investor sentiment improved and a preliminary estimate showed Canadian retail sales rebounding in June. The loonie weakened 0.1% to 1.2575 per greenback. For the week, the Canadian currency gained 0.3%, after three straight weekly declines. Canadian retail sales dropped 2.1% in May from April, Statistics Canada said, less than a 3.0% decline forecast by economists. Immediate resistance can be seen at 1.2584(38.2%fib), an upside break can trigger rise towards 1.2620 (5DMA).On the downside, immediate support is seen at 1.2520(50% fib), a break below could take the pair towards 1.2459(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen Friday as the market shifted focus to next week's Federal Reserve meeting. Investors' next major focus is the Fed's two-day policy meeting next week. Many economists still expect the meeting to advance discussions for a tapering of stimulus. Risk appetite remained high on Friday, with the rise in U.S. stocks, the sell-off in Treasuries, gains in most commodity currencies, and the greenback coming off its peaks. The dollar rose against the safe-harbor yen 0.3% to 110.54 yen. Strong resistance can be seen at 110.60(38.2%fib), an upside break can trigger rise towards 110.98 (23.6%fib).On the downside, immediate support is seen at 110.27 (50%fib), a break below could take the pair towards 109.97(61.8%fib).
Equities Recap
European stocks closed at all-time highs on Friday as optimism about the earnings season and the European Central Bank’s pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases.
UK's benchmark FTSE 100 closed up by 0.85 percent, Germany's Dax ended up by 1.00 percent, France’s CAC finished the day up by 1.35 percent.
All three major U.S. stock indexes closed at record highs on Friday after a rocky week in which investors fretted over the Delta coronavirus variant and cheered an economic recovery, while U.S. Treasury yields rose before a Federal Reserve meeting next week.
Dow Jones closed up by 0.68% percent, S&P 500 closed up by 1.01% percent, Nasdaq settled up by 1.04% percent.
Treasuries Recap
Treasury yields rose on Friday ahead of the Federal Reserve's policy-setting meeting next week, which will provide clues on the strength of the U.S. recovery and when the central bank might start to curb its economic support.
The benchmark note traded up 2.1 basis points at 1.288% after briefly rising above 1.3%. The yield on the 30-year Treasury bond rose 2.2 basis points to 1.925%.
Commodities Recap
Gold fell and was heading for a weekly dip on Friday as a stronger dollar, firmer yields and equity markets chipped away at its appeal.
Spot gold fell 0.3% to $1,800.72 per ounce by 1:43 pm EDT (1743 GMT). U.S. gold futures settled 0.2% lower at $1,801.80.
Oil prices edged higher on Friday and for the week after a strong recovery from Monday's steep slide, underpinned by expectations that supply will remain tight through the year.
Brent crude ended the session up 31 cents, or 0.4%, at $74.10 a barrel after jumping 2.2% on Thursday. U.S. West Texas Intermediate (WTI) crude settled up 16 cents, or 0.2%, at $72.07, after gaining 2.3% on Thursday.