Posted at 05 August 2021 / Categories Market Roundups
Market Roundup
• German Jun Factory Orders (MoM) 4.1%,1.9% forecast, -3.7% previous
•French Jun Industrial Production (MoM) 0.5%,0.6% forecast, -0.3% previous
• German Jul IHS Markit Construction PMI 47.1,47.0 previous
• UK Jul Construction PMI 58.7,64.0 forecast, 66.3 previous
• UK Aug BoE Interest Rate Decision 0.10% forecast, 0.10% previous
Looking Ahead – Economic Data (GMT)
•12:30 US Jobless Claims 4-Week Avg 394.50K previous
•12:30 US Continuing Jobless Claims 3,260K forecast, 3,269K previous
•12:30 US Exports 204.99B previous
•12:30 US Imports 273.89B previous
•12:30 US Initial Jobless Claims 384K forecast, 400K previous
•12:30 Canada Jun Exports 49.53B previous
•12:30 US Jun Trade Balance -74.10B forecast, -71.20B previous
•12:30 US Jun Trade Balance -0.68B forecast, -1.39B previous
•12:30 US Jun Imports 50.92B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant data
Fxbeat
EUR/USD: The euro edged higher against dollar on Thursday after data showed German industrial orders bounced back in June German industrial orders rose more than twice as much as expected in June, driven by bookings from domestic clients for large manufacturing products, but weaker turnover suggested that supply bottlenecks continued to hold back production. The figures published by the Federal Statistics Office showed orders for goods ‘Made in Germany’ jumped by 4.1% on the month in seasonally adjusted terms. Immediate resistance can be seen at 1.1859(38.2%fib), an upside break can trigger rise towards 1.1902(23.6%fib).On the downside, immediate support is seen at 1.1825 (50% fib), a break below could take the pair towards 1.1795(61.8%fib).
GBP/USD: The British pound rose on Thursday ahead of a Bank of England meeting at which policymakers are expected to keep stimulus pumping despite rising inflation and a strong economic recovery . Investors will be closely watching for any signals from the central bank on its plan for how it will eventually reverse its stimulus, with some policymakers elsewhere beginning to taper asset purchases. Immediate resistance can be seen at 1.3981(Daily high),an upside break can trigger rise towards 1.4009(21DMA).On the downside, immediate support is seen at 1.3875 (38.2%fib), a break below could take the pair towards 1.3823 (21DMA).
USD/CHF: The dollar edged higher against Swiss franc on Thursday as greenback gained after July data showed that U.S. jobs growth slowed but demand for services increased, all as Federal Reserve officials signaled a likely pullback in market support. U.S. private payrolls increased far less than expected in July, likely constrained by shortages of workers and raw materials. The Institute for Supply Management said on Wednesday its non-manufacturing activity index hit 64.1 last month from 60.1 in June, the highest reading in its history. Immediate resistance can be seen at 0.9086(50%fib), an upside break can trigger rise towards 0.9128 (61.8%fib).On the downside, immediate support is seen at 0.9047 (38.2%fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as hawkish comments from the U.S. Federal Reserve led markets to bring forward the likely timing of a policy tightening. The rally came after Fed Vice Chair Richard Clarida said conditions for an interest rate hike could be met in late 2022, setting the stage for a move in early 2023. The dollar also reached 109.67 yen , from a trough of 108.71 on Wednesday, negating what had been a bearish break to the downside. Strong resistance can be seen at 109.74(61.8%fib), an upside break can trigger rise towards 109.87 (21DMA).On the downside, immediate support is seen at 109.30 (38.2%fib), a break below could take the pair towards 108.78(23.6%fib).
Equities Recap
European stocks hit record highs on Thursday, as strong earnings from Novo Nordisk and Siemens helped outweigh weakness in miners and banking shares.
At (GMT 10:49),UK's benchmark FTSE 100 was last trading down at 0.18 percent, Germany's Dax was up by 0.04 percent, France’s CAC was last up by 0.35 percent.
Commodities Recap
Gold prices were on the back foot on Thursday as an uptick in the dollar following hawkish comments from a key Federal Reserve official raised early tapering bets and dented demand for the safe-haven metal.
Spot gold fell 0.1% to $1,809.10 per ounce by 0853 GMT, while U.S. gold futures were down 0.1% at $1,812.10.
Oil prices rose towards $71 a barrel on Thursday on rising Middle East tensions, while fresh movement restrictions imposed by countries to counter a surge in COVID-19 cases threatened the demand recovery.