Posted at 03 August 2021 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 17.2%,16.0% previous
•Canada Jul Manufacturing PMI 56.2,56.5 previous
•US IBD/TIPP Economic Optimism 53.6,54.3 previous
•US Jun Factory Orders (MoM) 1.5%,1.0% forecast, 1.7% previous
•US Jun Durables Excluding Defense (MoM) 1.1%, 1.0% previous
•US Jun Factory orders ex transportation (MoM) 1.4%,0.7% previous
• New Zealand GlobalDairyTrade Price Index-1.0%,-2.9% previous
Looking Ahead – Economic Data (GMT)
•23:00 Australia Services PMI 44.2 forecast, 56.8 previous
•06:00 Japan Jul Services PMI 46.4 forecast, 48.0 previous
•06:00 Chinese Composite PMI 50.6 previous
•06:00 Chinese Caixin Services PMI 50.3 previous
•07:00 Australia Retail Sales (QoQ) (Q2) 0.9% forecast, -0.5% previous
•07:00 Australia Jun Retail Sales (MoM) -1.8% forecast, -1.8% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher on Tuesday as the dollar weakened due to concerns around the coronavirus Delta variant and slowing U.S. growth. The dollar was on the back foot against euro on Tuesday, dragged by soft U.S. manufacturing data and rising concerns about the Delta variant. Investors are looking forward to U.S. nonfarm payrolls data for July due on Friday, expected to see jobs increase by 880,000 after rising by 850,000 in June. Immediate resistance can be seen at 1.1870(5DMA), an upside break can trigger rise towards 1.1881(38.2%fib).On the downside, immediate support is seen at 1.1856 (50% fib), a break below could take the pair towards 1.1832(61.8% fib).
GBP/USD: Sterling strengthened slightly on Tuesday, helped by recent falls in COVID-19 infections in Britain, optimism around Britain's lockdown easing and market anticipation of hawkish signals when the Bank of England meets on Thursday. The pound had a rebound after most lockdown measures in England were dropped on July 19, reaching as high as $1.3984 at the end of the month. Since then it has stayed mostly above $1.39. The currency was up 0.1% versus the dollar, at $1.3910 by 20:35 GMT. Immediate resistance can be seen at 1.3931(3rd Aug high),an upside break can trigger rise towards 1.4030(Higher BB).On the downside, immediate support is seen at 1.3917 (38.2%fib), a break below could take the pair towards 1.3827 (11DMA).
USD/CAD: The Canadian dollar on Tuesday weakened for a third day against its U.S. counterpart as investors weighed the spread of the Delta variant of the coronavirus in some major economies, including the United States and China. Canada is a major producer of commodities, including oil, so its economy is sensitive to the global economic outlook. The price of oil fell as concern over rising cases of the Delta variant offset expectations of a decline in U.S. inventories. The Canadian dollar fell 0.2% to 1.2540 to the greenback. It traded in a range of 1.2489 to 1.2542. Immediate resistance can be seen at 1.2598 (23.6%fib), an upside break can trigger rise towards 1.2690 (Higher BB).On the downside, immediate support is seen at 1.2521(38.2%fib), a break below could take the pair towards 1.2456 (50%fib).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as questions about slowing U.S. economic growth and the COVID-19 Delta variant challenged risk appetite. Last week the dollar lost nearly 1% as U.S. Federal Reserve policy makers said they expected it would still be while before job growth allowed them to pull back on support for the economy.The U.S. dollar dipped below 109 yen , and for a second day gave up as much as 0.4% before recovering half of the day's loss to 109.1 yen.Strong resistance can be seen at 109.25 (38.2%fib), an upside break can trigger rise towards 109.59 (38.2%fib).On the downside, immediate support is seen at 109.01 (Lower BB), a break below could take the pair towards 108.85(23.6%fib).
Equities Recap
Strong earnings updates from heavyweights including BP and Societe Generale drove European stocks to a record-high close on Tuesday, although gains were capped by concerns over rising Delta variant cases and China’s regulatory moves.
UK's benchmark FTSE 100 closed up by 0.34 percent, Germany's Dax ended down by 0.09 percent, France’s CAC finished the day up by 0.72 percent.
The S&P 500 rose on Tuesday on gains in Apple and healthcare stocks, even though concerns around a surge in the Delta variant of the coronavirus took some shine off an upbeat corporate earnings season.
Dow Jones closed up by 0.80% percent, S&P 500 closed up by 0.82% percent, Nasdaq settled up by 0.55% percent.
Treasuries Recap
Traders left U.S. Treasury yields little changed on Tuesday as they awaited economic data, reinforcing a divergence between bond and equity price trends.
The benchmark 10-year yield sagged below 1.2% on Monday and was at 1.1722% on Tuesday afternoon, unchanged for the session.
Commodities Recap
Gold prices edged lower on Tuesday, as traders stayed on the sidelines in advance of U.S. jobs data due later this week that could influence the timeline of when the Federal Reserve cuts back on its asset purchase programme.
Spot gold fell 0.2% to $1,809.79 per ounce by 1:55 p.m. EDT (1755 GMT), while U.S. gold futures settled 0.4% lower at $1,814.10.
Oil settled lower on Tuesday, as concern about rising cases of the Delta coronavirus variant outweighed expectations for another weekly draw in U.S. inventories that had boosted prices early.
Brent crude oil futures settled down 48 cents, or 0.66% at $72.41 a barrel. U.S. West Texas Intermediate (WTI) crude settled down 70 cents, or 0.98% at $70.56 a barrel.