Posted at 11 August 2021 / Categories Market Roundups
Market Roundup
•U.S. inflation rise slows in July
•US Jul CPI, n.s.a (MoM) 0.48% ,0.93% previous
•US Jul CPI Index, s.a 272.26 ,270.98 previous
•US Jul Core CPI Index 279.05 ,278.14 previous
•US Jul CPI (YoY) 5.4% ,5.3% forecast 5.4% previous
•US Jul CPI Index, n.s.a 273.00 ,272.87 forecast, 271.70 previous
•US Jul Core CPI (MoM) 0.3% ,0.4% forecast, 0.9% previous
•US Jul CPI (MoM) 0.5%, 0.5% forecast, 0.9% previous
•US Jul Core CPI (YoY) 4.3%, 4.3% forecast, 4.5% previous
•US Crude Oil Inventories -0.447M ,-1.271M forecast, 3.626M previous
•US Jul Cleveland CPI (MoM) 0.3% ,0.2% previous
•US Jul Federal Budget Balance -302.0B, -307.0B forecast, -174.0B previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Jul PPI (MoM) 0.5% forecast, 0.6% previous
•23:50 Japan Jul PPI (YoY) 5.0% forecast, 5.0% previous
•23:50 Japan Jul Core Machinery Orders (YoY) 12.2% previous
•23:50 Japan Jun Core Machinery Orders (MoM) 7.8% previous
•:01:30 Australia MI Inflation Expectations 3.7% previous
•:01:30 Australia Wage Price Index (YoY) (Q2) 1.4% forecast, 1.5% previous
•:01:30 Australia Wage Price Index (QoQ) (Q2) 0.5% forecast, 0.6% previous
•:03:00 New Zealand Inflation Expectations (QoQ) 2.1% previous
•:04:00 Australia HIA New Home Sales (MoM) 14.8% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro recovered from recent lows against dollar on Wednesday after data showed U.S. consumer price increases slowed in July.The greenback had enjoyed a lift from last week's better-than-expected U.S. jobs data, as well as from remarks by Fed officials about tapering bond purchases and, eventually, raising rates, sooner than policymakers elsewhere. The euro gained 0.16% against the greenback, to 1.17395, following six straight sessions of losses. Immediate resistance can be seen at 1.1758(38.2%fib), an upside break can trigger rise towards 1.1794 (50%fib).On the downside, immediate support is seen at 1.1710 (23.6%fib), a break below could take the pair towards 1.1680(Lower BB)
GBP/USD: Sterling reversed course and rose on Wednesday after three days of losses against the dollar, which slipped after the release of U.S. inflation data and dovish comments by Fed policymaker Thomas Barkin. The British currency earlier touched two-week lows against the greenback, which has been buoyed in recent days by impressive U.S. jobs data and remarks by Federal Reserve officials about tapering bond buying and, eventually, raising interest rates, sooner than policymakers elsewhere. But the dollar slipped after data showed annual U.S. inflation at a slightly above-forecast 5.4%. Immediate resistance can be seen at 1.3883(38.2%fib),an upside break can trigger rise towards 1.3931 (Aug 6th high).On the downside, immediate support is seen at 1.3831(21DMA), a break below could take the pair towards 1.3797(50%fib).
USD/CAD: The Canadian dollar strengthened against the greenback on Wednesday as investors weighed the impact of U.S. inflation data on the Federal Reserve's policy outlook, with the currency adding to its recovery from a near two-week low the day before. U.S. crude prices on Wednesday were down 0.9% at $67.65 a barrel as the United States urged OPEC and its oil-producing partners to boost output. The Canadian dollar was trading 0.2% higher at 1.2505 to the greenback, after trading in a range of 1.2489 to 1.2548. Immediate resistance can be seen at 1.2584 (38.2%fib), an upside break can trigger rise towards 1.2548 (23.6% fib).On the downside, immediate support is seen at 1.2483 (50% retracement level), a break below could take the pair towards 1.2420 (61.8%fib).
USD/JPY: The dollar dipped against the Japanese yen on Wednesday after data showed that US consumer price gains slowed in July, dispelling concerns that the Federal Reserve will signal scale back in bond purchases. The data showed tentative signs inflation had peaked as supply-chain disruptions work their way through the U.S. economy. The yen was up 0.12% at 110.44, after dropping for five consecutive sessions against the dollar. Strong resistance can be seen at 110.63(38.2%fib), an upside break can trigger rise towards 110.94(23.6%fib).On the downside, immediate support is seen at 110.44(50%fib), a break below could take the pair towards 110.16(61.8%fib).
Equities Recap
European shares notched up another record high on Wednesday as investors looked through rising COVID infections in Asia to new highs on Wall Street, after U.S. lawmakers agreed a trillion dollar boost to the economy.
The UK's benchmark FTSE 100 closed up by 0.83 percent, Germany's Dax ended up by 0.35 percent, and France’s CAC finished the up by 0.55 percent.
The Dow Jones Industrial Average and S&P 500 closed at record levels on Wednesday, as data indicated U.S. inflation growth may have peaked, while sectors tied to economic growth advanced on the heels of the passage of a large infrastructure bill.
Dow Jones closed up by 0.62 percent, S&P 500 ended up 0.25 percent, Nasdaq finished the day down by 0.16 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday in choppy trading, after a strong 10-year note auction and data showing a slight moderation in consumer prices for the month of July in the world's largest economy.
U.S. 10-year yields dropped to session lows after the auction, falling from four-week peaks earlier in the session.
Commodities Recap
Gold prices jumped on Wednesday after tame U.S. consumer price data eased fears that the Federal Reserve would taper its economic support sooner than expected.
Spot gold rose 1.4% to $1,752.46 per ounce by 2:07 p.m. EDT (1807 GMT). U.S. gold futures settled up 1.2% at $1,753.30.
Oil futures settled higher on Wednesday, changing course after the Biden administration said it would not call on U.S. producers to increase crude output, and that efforts to increase OPEC production were a longer-range plan.
Brent settled up 81 cents, or 1.15%, at $71.44 a barrel.U.S. West Texas Intermediate (WTI) settled up 96 cents, or 1.41%, at $69.25 a barrel, after a 2.7% jump on Tuesday.