Posted at 10 August 2021 / Categories Market Roundups
Market Roundup
•Sweden Industrial Production (YoY) 16.7%,24.2% previous
• Sweden Industrial Production (MoM) 1.9%,0.1% previous
• Sweden Jun Industrial New Orders (YoY) 24.4%, 32.7% previous
•German Aug ZEW Economic Sentiment 40.4,56.7 forecast, 63.3 previous
•German Aug ZEW Current Conditions 29.3, 30.0 forecast, 21.9 previous
•EU Aug ZEW Economic Sentiment 42.7,61.2 previous
Looking Ahead –Economic Data (GMT)
•12:30 US Nonfarm Productivity (QoQ) (Q2) 3.5% forecast, 5.4% previous
•12:30 US Unit Labor Costs (QoQ) (Q2) 1.1% forecast, 1.7% previous
•12:55 US Redbook (YoY) 17.2% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
•18:30 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Tuesday after German investor morale fell further on fears over fourth COVID-19 wave. Investor sentiment in Germany deteriorated for the third month in a row in August on fears that rising COVID-19 infections and a fourth wave of coronavirus cases could hold back the recovery in Europe's largest economy, a survey showed on Tuesday. The ZEW economic research institute said its survey of investors' economic sentiment fell to 40.4 from 63.3 points in the previous month. The euro hit a four-month low against the dollar, with the pair changing hands at $1.1726.Immediate resistance can be seen at 1.1730(38.2%fib), an upside break can trigger rise towards 1.1776(50%fib).On the downside, immediate support is seen at 1.1700 (Lower BB), a break below could take the pair towards 1.1684(23.6%fib)
GBP/USD: Sterling touched two-week lows against the dollar on Tuesday as greenback was buoyed by more signs that the U.S. Federal Reserve would start reining in its bond-buying support in the coming months. Sterling has performed well in recent weeks as a fall in COVID-19 cases has allowed the British government to lift most social-distancing rules.owever, Monday’s comments by regional Federal Reserve presidents, Rafael Bostic of the Atlanta Fed and Eric Rosengren from Boston, sent the dollar to four-month highs against a currency basket and spurred bets that the U.S. central bank could make a move on tapering by year-end or even sooner. Immediate resistance can be seen at 1.3902(50DMA),an upside break can trigger rise towards 1.3949(23.6%fib).On the downside, immediate support is seen at 1.3800(July 15th low), a break below could take the pair towards 1.3754(50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as greenback continued its upwards as march after U.S. jobs data bolstered expectations that the Federal Reserve could soon start tapering its massive bond-buying programme. U.S. job openings, a measure of labour demand, hit a record high in June while hiring also increased, the Labor Department said in a monthly survey on Monday.That followed Friday’s non-farm payroll report showing jobs increased by 943,000 in July, above the 870,000 forecast. At 10:27 GMT, the dollar was trading 0.03 percent lower versus the swiss franc at 0.9213.Immediate resistance can be seen at 0.9219(23.6%fib), an upside break can trigger rise towards 0.9288 (Higher BB).On the downside, immediate support is seen at 0.9170 (38.2%fib), a break below could take the pair towards 0.9133 (50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday as anticipation of earlier tapering by the Federal Reserve drove the U.S. dollar higher. Markets were looking ahead to U.S. inflation numbers on Wednesday for further indications of when the world's largest economy may start to withdraw stimulus after taper talk was amped up by strong jobs data. After strengthening on Friday and Monday, the dollar index reached a high of 93.02 during Asian trading hours on Tuesday - an 18-day high. Strong resistance can be seen at 110.55(23.6%fib), an upside break can trigger rise towards 111.02 (Higher BB).On the downside, immediate support is seen at 110.26(38.2%fib), a break below could take the pair towards 110.13(50%fib).
Equities Recap
European stocks hit record highs on Tuesday, extending gains for a seventh straight session as investors took comfort from strong earnings reports and economic recovery prospects despite concerns about the Delta variant of COVID-19.
At (GMT 10:27),UK's benchmark FTSE 100 was last trading down at 0.16 percent, Germany's Dax was up by 0.12 percent, France’s CAC was last up by 0.08 percent.
Commodities Recap
Gold steadied on Tuesday, after three straight session of declines, as uncertainties from rising COVID-19 infections countered a buoyant dollar and bets for early tapering of the U.S. Federal Reserve’s economic support.
Spot gold was little changed at $1,729.38 per ounce at 0917 GMT, while U.S. gold futures stood at $1,731.50.
Oil prices rose more than $1 on Tuesday, recouping some of the losses in the previous session, as rise of demand in Europe and the United States outweighed concerns over a rise of COVID cases in Asian countries.
Brent crude was up $1.20, or 1.7%, at $70.24 a barrel by 0858 GMT, and U.S. oil rose $1.47 cents, or 2.2%, to $67.95 a barrel.