Posted at 02 August 2021 / Categories Market Roundups
Market Roundup
•U.S. manufacturing sector growth slowing-ISM
•U.S. 10-year Treasury yields slip to near 2-week low
•US Jul ISM Manufacturing Employment 52.9,49.9 previous
•US Jun Construction Spending (MoM) 0.1%, 0.4% forecast, -0.3% previous
•US Jul ISM Manufacturing Prices 85.7, 92.1 previous
•US Jul ISM Manufacturing PMI 59.5, 60.9 forecast, 60.6 previous
•US Jul ISM Manufacturing New Orders Index 64.9,66.0 previous
Looking Ahead –Economic Data (GMT)
•23:50 Japan Jul CPI Tokyo Ex Food and Energy (MoM) -0.1% previous
•23:50 Japan Jul Tokyo Core CPI (YoY) 0.0%forecast, 0.0% previous
•05:20 Japan Monetary Base (YoY) 19.1% previous
•07:00 Australia Jun Building Approvals (MoM) -4.5% forecast, -7.1% previous
•07:00 Australia Jun Private House Approvals-10.3% previous
•10:00 Australia RBA Aug Interest Rate Decision 0.10% forecast, 0.10% previous
Looking Ahead - Events, Other Releases (GMT)
•10:00 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday as markets remained directionless in the absence of any major triggers. The euro showed little reaction to a Purchasing Managers Index (PMI) reading of July manufacturing at 62.8, a touch above the flash number of 62.6. The data follows last week's data showing inflation shooting past the European Central Bank's 2% target. The euro firmed 0.16% at $1.1871 having last week risen as high as $1.1909. Immediate resistance can be seen at 1.1904(38.2%fib), an upside break can trigger rise towards 1.1962(23.6%fib).On the downside, immediate support is seen at 1.1861 (50% fib), a break below could take the pair towards 1.1828(9DMA).
GBP/USD: Sterling steadied on Monday versus the dollar, ahead of a Bank of England meeting later in the week, as global risk tone improved on optimism for the U.S. infrastructure bill.Sterling flattened versus the dollar to $1.3888 by 1940 GMT, after hitting a five-week high of $1.3983 on Friday, closing its best week versus the weakening greenback since early May.Prospects of the U.S. bill passing provided support for riskier assets like the pound.Immediate resistance can be seen at 1.3931(Daily high),an upside break can trigger rise towards 1.3995(23.6%fib).On the downside, immediate support is seen at 1.3886 (38.2%fib), a break below could take the pair towards 1.3842 (9DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday as lack of new catalyst and mixed economic data led investors to avoid making new bets on the pair. Oil prices tumbled about 3% on Monday as weak economic data from China and the U.S., the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply. The loonie was trading 0.02% higher at 1.2498 to the greenback, after trading in a range of 1.2445 to 1.2498. Immediate resistance can be seen at 1.2538 (11DMA), an upside break can trigger rise towards 1.2566 (23.6%fib).On the downside, immediate support is seen at 1.2448 (38.2%fib), a break below could take the pair towards 1.2442(61.8%fib).
USD/JPY: The dollar little changed against the Japanese yen on Monday as markets assessed how tightly to embrace risk following dovish statements from Federal Reserve policy makers last week and mixed economic data. The dollar index , which measures the currency against six major peers, was down less than 0.1% at 92.058 by early afternoon in New York after having been down about 0.2% on the day. The dollar was last up 0.02 percent lower versus the yen at 109.33. Strong resistance can be seen at 109.73(38.2%fib), an upside break can trigger rise towards 109.97 (Higher BB).On the downside, immediate support is seen at 109.15 (Daily low), a break below could take the pair towards 109.00(Psychological level).
Equities Recap
European stocks ended at a new peak on Monday, as increased dealmaking activity and a batch of strong financial sector earnings helped markets mark a strong start to August.
UK's benchmark FTSE 100 closed up by 0.70 percent, Germany's Dax ended up by 0.16 percent, France’s CAC finished the day up by 0.96 percent.
The S&P 500 Index closed slightly lower on Monday after erasing early gains as worries about the Delta variant of the coronavirus and a slowing U.S. economy overshadowed optimism around more fiscal stimulus and a strong second-quarter earnings season.
Dow Jones closed down by 0.28% percent, S&P 500 closed down by 0.19% percent, Nasdaq settled up by 0.06% percent.
Treasuries Recap
U.S. Treasury yields fell on Monday as a soft manufacturing report and the spread of the coronavirus Delta variant raised questions about economic growth.
The benchmark 10-year Treasury yield was down 5.5 basis points at 1.1839% in afternoon trading.
Commodities Recap
Gold prices ticked higher on Monday, propped up by a weaker dollar and U.S. bond yields, though an uptick in risk appetite took some shine off the safe-haven metal.
Spot gold rose 0.1% to $1,816.01 per ounce by 1:44 pm EDT (1744 GMT), having hit a session low of $1,804.49, while U.S. gold futures settled up 0.3% at $1,822.20.
Oil prices fell more than 3% on Monday after weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures settled down $2.52, or 3.3%, at $72.89 a barrel, while U.S. West Texas Intermediate (WTI) crude ended $2.69, or 3.6%, lower at $71.26.