Posted at 05 August 2021 / Categories Market Roundups
Market Roundup
• US Jobless Claims 4-Week Avg 394.00K, 394.50K previous
• US Continuing Jobless Claims 2,930K, 3,260K forecast, 3,269K previous
• US Exports 207.70B,204.99B previous
• US Imports 283.40B,273.89B previous
• US Initial Jobless Claims 385K, 384K forecast, 400K previous
• Canada Jun Exports 53.76B, 49.53B previous
• US Jun Trade Balance -75.70B ,-74.10B forecast, -71.20B previous
• US Jun Trade Balance 3.23B, -0.68B forecast, -1.39B previous
• US Jun Imports 50.53B, 50.92B previous
Looking Ahead –Economic Data (GMT)
• 23:50 Japan Jun Overall wage income of employees 1.9% previous
•23:50 Japan Jun Overtime Pay (YoY) 19.90% previous
•23:50 Japan Jun Household Spending (YoY) 0.1%,11.6% previous
•03:00 New Zealand Inflation Expectations (QoQ) 2.1% previous
• 05:00 Japan Jun Leading Index (MoM) -1.2% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 Australia RBA Monetary Policy Statement
Currency Summaries
EUR/USD: The euro little changed against dollar on Thursday as the market awaited new direction from Friday’s U.S. jobs report. The greenback, which gained 0.2% on Wednesday, traded in a relatively tight range through the day, unmoved by new government reports on jobless claims and the trade deficit that came in close to estimates from economists. Friday’s employment report for U.S. employment in July is seen as highly uncertain but critical to Fed policymakers deciding when to begin tapering support for the economy. 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: Sterling held onto a modest gain on Thursday after the Bank of England laid out its plans for how it would start to wean the British economy off vast stimulus but kept the taps running for now despite rising inflation. With some policymakers elsewhere beginning to taper asset purchases, the focus was on signals from the BoE and its Governor Andrew Bailey as to when it would begin to ease off the stimulus pedal. The British pound was up 0.3% to $1.3927 by (21:06 GMT). Immediate resistance can be seen at 1.3981(23.6%fib),an upside break can trigger rise towards 1.4015 (Higher BB).On the downside, immediate support is seen at 1.3910(5DMA), a break below could take the pair towards 1.3875 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil prices rose and data showed Canada's exports increasing sharply in June, with the currency clawing back some of its decline over the past week. Since last Thursday, the loonie has weakened 0.6% along with lower prices for oil, one of Canada's major exports. U.S. crude prices were up 0.2% at $68.29 a barrel, but stayed near a two-week low as concern that surging COVID-19 cases in some countries would reduce demand offset the market impact of rising Middle East tensions. Immediate resistance can be seen at 1.2514 (5DMA), an upside break can trigger rise towards 1.2553 (23.6%fib).On the downside, immediate support is seen at 1.2475(38.2%fib), a break below could take the pair towards 1.2407 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday after upbeat jobless claims data, ahead of more detailed employment data. Labor Department figures showed initial claims for state unemployment benefits fell last week, while layoffs dropped to their lowest level in 21 years in July as companies held on to their workers amid a labor shortage. 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. 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 ended at record highs on Thursday, as strong results from Novo Nordisk and Siemens helped outweigh weak mining stocks and losses in major German retailers whose earnings were hurt by COVID-related disruptions.
UK's benchmark FTSE 100 closed down by 0.05 percent, Germany's Dax ended up by 0.33 percent, France’s CAC finished the day up by 0.52 percent.
The Nasdaq and S&P 500 closed at record levels on Thursday after a spate of strong corporate earnings and a further decline in U.S. unemployment claims last week, as investors weighed concerns of the surge of the Delta variant ahead of Friday’s job’s report.
Dow Jones closed up by 0.78% percent, S&P 500 closed down by 0.60% percent, Nasdaq settled up by 0.78% percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday as risk sentiment improved after a healthy jobless claims report, a day ahead of more detailed employment data.
The benchmark 10-year yield was up 3.8 basis points at 1.2219%.
Commodities Recap
Gold prices edged higher on Thursday as the dollar eased from a one-week peak, though gains were kept in check after hawkish comments from a key Federal Reserve official raised early tapering bets.
Spot gold was up 0.1% at $1,813.14 per ounce by 1143 GMT, while U.S. gold futures gained 0.2% to $1,817.30.
Oil prices rose more than 1% on Thursday on increasing Middle East tensions, but gains were capped as fresh restrictions to counter a surge in COVID-19 cases threatened the global energy demand recovery.
Brent crude oil futures rose 91 cents, or 1.3%, to settle at $71.29 a barrel, after earlier dipping below $70 for the first time since July 21. U.S. West Texas Intermediate (WTI) crude futures rose 94 cents, or 1.4%, to settle at $69.09 a barrel.