Posted at 13 August 2021 / Categories Market Roundups
Market Roundup
• U.S. producer prices rise sharply in year through July
• U.S. weekly jobless claims dip
• US Continuing Jobless Claims 2,866K,2,880K forecast, 2,930K previous
• US Jobless Claims 4-Week Avg 396.25K,394.00K previous
• US Initial Jobless Claims 375K, 375K forecast, 385K previous
• US Jul Core PPI (YoY) 6.2%, 5.6% forecast, 5.6% previous
• US Jul PPI (MoM) 1.0%,0.6% forecast, 1.0% previous
• US Jul Core PPI (MoM) 1.0%, 0.5% forecast, 1.0% previous
• UK NIESR Monthly GDP Tracker 3.9%,4.8% previous
Looking Ahead –Economic Data (GMT)
• 05:20 Japan Foreign Investments in Japanese Stocks
• 05:20 Japan Aug Thomson Reuters IPSOS PCSI 40.93 previous
07:30 China Aug Thomson Reuters IPSOS PCSI 74.07 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro recovered ground against dollar on Thursday as investors weighed data showing a steady jobs market recovery against a rise in producer prices, with the debate continuing over when the Federal Reserve will start to ease stimulus. A U.S. Labor Department report showed the number of Americans filing new claims for unemployment benefits fell last week, as expected, while a separate reading showed U.S. producer prices rose more than expected through July. The dollar index rose 0.117%, with the euro down 0.09% to $1.1726.Immediate resistance can be seen at 1.1757 (38.2%fib), an upside break can trigger rise towards 1.1797(50%fib).On the downside, immediate support is seen at 1.1701 (23.6%fib), a break below could take the pair towards 1.1667(Lower BB)
GBP/USD: Sterling declined on Thursday as U.S. dollar advanced after data showed producer prices posted their largest annual increase in more than a decade in the 12 months through July, suggesting inflation pressures remain strong. U.S. producer prices increased more than expected in July, a Labor Department report showed on Thursday, suggesting inflation could remain high as strong demand fuelled by the recovery continues to hurt supply chains.The producer price index (PPI) for final demand increased 1.0% last month after rising 1.0% in June. In the 12 months through July, the PPI jumped 7.8%, a record high since the measure was introduced just over a decade ago. Immediate resistance can be seen at 1.3878(38.2%fib),an upside break can trigger rise towards 1.3927 (100DMA).On the downside, immediate support is seen at 1.3787(50%fib), a break below could take the pair towards 1.3700(61.8%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, as data suggesting U.S. inflation pressures remain strong raised pressure on the Federal Reserve to reduce economic stimulus and investors braced for a Canadian federal election. Canadian Prime Minister Justin Trudeau is planning to call a snap election for Sept. 20. Investors are looking for signs that Canada's next government could dial back historic levels of fiscal spending to support the economy during the pandemic, with activity already on track to make a full recovery. The Canadian dollar was trading 0.2% lower at 1.2525 to the greenback. Immediate resistance can be seen at 1.2554(38.2%fib), an upside break can trigger rise towards 1.2623 (23.6%fib).On the downside, immediate support is seen at 1.2486 (50%fib), a break below could take the pair towards 1.2427 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday after data showed producer prices posting their largest annual increase in more than a decade in July. U.S. producer prices increased more than expected in July, suggesting inflation could remain high as strong demand fuelled by the economic recovery from the coronavirus pandemic continues to press supply chains. The Labor Department also reported on Thursday that initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 375,000 for the week ended Aug. 7.Strong resistance can be seen at 110.54(38.2%fib), an upside break can trigger rise towards 110.81(23.6%fib).On the downside, immediate support is seen at 110.30(50%fib), a break below could take the pair towards 110.06(61.8%fib).
Equities Recap
European shares rose on Thursday, hitting yet another record high, as strong earnings from insurers and M&A activity in the UK helped offset a fall in mining stocks.
UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended up by 0.72 percent, France’s CAC finished the day up by 0.36 percent.
The Dow and S&P 500 jumped to record closes for a third straight day on Thursday, with mega-cap technology stocks driving the market higher as investors warmed to jobs data showing a steady U.S. economic recovery.
Dow Jones closed up by 0.04% percent, S&P 500 closed up by 0.30% percent, Nasdaq settled down by 0.35% percent.
Treasuries Recap
U.S. Treasury yields on the longer end of the curve hovered near the unchanged mark on Thursday after struggling to maintain higher levels reached in the wake of a 30-year bond auction, while cash flowing into to an overnight Federal Reserve facility set a new record.
The benchmark 10-year yield rose as high as 1.379% after the auction and was last at 1.3607%.
Commodities Recap
Gold prices held slightly above the key $1,750 mark on Thursday as expectations of an early taper of the Federal Reserve’s asset purchases eased, offsetting a firmer dollar and yields.
Spot gold was steady at $1,750.91 per ounce by 1:46 p.m. EDT. U.S. gold futures settled 0.1% down at $1,751.80.
Oil prices fell on Thursday after the International Energy Agency (IEA) said the spread of the Delta variant of the coronavirus would slow the recovery of global oil demand.
Brent crude futures fell 13 cents to settle at $71.31 a barrel. Earlier, Brent hit a session high of $71.90.U.S. West Texas Intermediate (WTI) crude fell 16 cents to settle at $69.09 a barrel.