Posted at 04 August 2021 / Categories Market Roundups
Market Roundup
• U.S. private payrolls rise less than expected in July-ADP report
• Coronavirus cases worldwide surpassed 200 million
• U.S. gasoline rises to highest since hitting April 2020 record
• US Jul ADP Nonfarm Employment Change 330K,695K forecast, 692K previous
• Canada Jun Building Permits (MoM) 6.9%,5.5% forecast, -14.8% previous
• US Jul Markit Composite PMI 59.9,59.7 previous
• US Jul Services PMI 59.9, 59.8 previous
• US Jul ISM Non-Manufacturing Business Activity 67.0, 60.6 forecast, 60.4 previous
• US Jul ISM Non-Manufacturing PMI 64.1,60.5 forecast, 60.1 previous
• US Jul ISM Non-Manufacturing Prices 82.3, 79.5 previous
• US Jul ISM Non-Manufacturing Employment 53.8,49.3 previous
• US Gasoline Inventories -5.292M, -1.780M forecast, -2.253M previous
• US Crude Oil Inventories 3.626M,-3.102M forecast, -4.089M previous
Looking Ahead – Economic Data (GMT)
•23:50 US Foreign Investments in Japanese Stocks -58.5B previous
•23:50 US Foreign Bonds Buying -1,087.4B previous
•01:30 Australia June Trade Balance 10.450B, 9.681B previous
•01:30 Australia June Exports (MoM) 6% previous
•01:30 Australia June Imports (MoM) 3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined on Wednesday as dollar strengthened after comments by a senior Federal Reserve official on interest rates shifted traders' focus from disappointing payroll data. The official's bullish comments on the U.S. economy triggered a rebound in dollar and turned currency market attention away from the release of an unexpectedly weak private employment report. Market focus now shifts to Friday’s U.S. non-farm payroll report with economists in a poll forecasting a 926,000 increase in jobs. 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 1.1841 (50% fib), a break below could take the pair towards 1.1828(9DMA).
GBP/USD: Sterling steadied around $1.39 against the dollar on Wednesday, buoyed by risk sentiment in markets, optimism over the outlook for COVID-19 in Britain and some anticipation of a hawkish turn from the Bank of England when it meets on Thursday. Britain’s pound has rebounded after most lockdown measures in England were dropped on July 19, reaching $1.3984 at the end of the month.Immediate resistance can be seen at 1.3957(Daily high),an upside break can trigger rise towards 1.3995(23.6%fib).On the downside, immediate support is seen at 1.3885 (38.2%fib), a break below could take the pair towards 1.3824 (21DMA).
USD/CAD The Canadian dollar was little changed against its U.S. counterpart on Wednesday as broader declines for the greenback offset falling oil prices, while domestic data showed building permits rebounding in June. The price of oil , one of Canada's major exports, was down 2.3% at $68.92 a barrel as the spread of the coronavirus Delta variant in top consuming countries outweighed Mideast geopolitical tensions and a fall in U.S. inventories. The loonie was trading nearly unchanged at 1.2534 to the U.S. dollar, breaking a string of declines since Friday. Immediate resistance can be seen at 1.2603 (23.6%fib), an upside break can trigger rise towards 1.2689(23.6%fib).On the downside, immediate support is seen at 1.2523 (38.2%fib), a break below could take the pair towards 1.2456 (50%fib).
USD/JPY: The dollar gained against the Japanese yen on Wednesday as markets chose to focus on a suggestion from a top U.S. Federal Reserve official that the central bank may reduce support for the improving economy more quickly than widely thought. The bullish comments on the U.S. economy, by Fed Vice Chair Richard Clarida, boosted dollar turning market attention away from the release of an unexpectedly weak private employment report earlier of an unexpectedly weak private employment report that had driven the dollar down. In the afternoon in New York, the dollar index against major currencies was up 0.2% to 92.246. Strong resistance can be seen at 109.59(50%fib), an upside break can trigger rise towards 109.91 (61.8%fib).On the downside, immediate support is seen at 109.26 (38.2%fib), a break below could take the pair towards 109.01(Lower BB).
Equities Recap
European shares ended at fresh highs on Wednesday with technology stocks hitting a 20-year peak, while optimism over the second-quarter earnings season continued to feed into positive sentiment.
UK's benchmark FTSE 100 closed up by 0.26 percent, Germany's Dax ended up by 0.88 percent, France’s CAC finished the day up by 0.33percent.
U.S. stocks closed mostly lower on Wednesday, with the S&P 500 falling from a record high after data signaled a slowdown in jobs growth in July, and General Motors tracked its worst day since early March.
Dow Jones closed down by 0.92% percent, S&P 500 closed down by 0.46% percent, Nasdaq settled up by 0.13% percent.
Treasuries Recap
U.S. Treasury yields settled mostly higher on Wednesday after a top Federal Reserve official's comments on interest rates shifted traders' focus away from disappointing payroll data.
The benchmark 10-year yield was up 1.1 basis points at 1.1854% in afternoon trading.
Commodities Recap
Gold gave up early gains on Wednesday as comments from a top U.S. Federal Reserve official and record U.S. services industry activity data shifted concerns back to the Federal Reserve potentially easing asset purchases later in the year.
Spot gold was up 0.1% at $1,811.38 per ounce by 2:11 p.m. EDT, while U.S. gold futures settled little changed at $1,814.50.
Oil prices fell for a third day in a row to a two-week low on Wednesday on a surprise build in U.S. crude stockpiles, negative U.S. economic report and worries the spread of the coronavirus Delta variant will weigh on global energy demand.
Brent futures fell $2.03, or 2.8%, to settle at $70.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.41, or 3.4%, to settle at $68.15.