Posted at 13 August 2021 / Categories Market Roundups
Market Roundup
•German Jul WPI (YoY) 11.3%,10.7% previous
•German Jul WPI (MoM) 1.1%, 1.5% previous
•Swiss Jul PPI (YoY) 3.3%,2.9% previous
•Swiss Jul PPI (MoM) 0.5%,0.3% previous
•French Jul HICP (MoM) 0.1%,0.1% forecast, 0.1% previous
•French Jul HICP (YoY) 1.5%,1.6% forecast, 1.6% previous
•Sweden Jul CPI (MoM) 0.3%, 0.3% forecast, 0.1% previous
•Sweden Jul CPI (YoY) 1.4%, 1.3% forecast, 1.3% previous
Looking Ahead - Economic data ahead (GMT)
•12:30 US Jul Export Price Index (MoM) 0.8% forecast, 1.2% previous
•12:30 US Jul Import Price Index (MoM) 0.6% forecast, 1.0% previous
•14:00 US Aug Michigan Current Conditions 84.5 previous
•14:00 US Aug Michigan Consumer Expectations 85.0 forecast, 79.0 previous
•14:00 US Aug Michigan Michigan Inflation Expectations 4.7% previous
•14:00 US Aug Michigan Consumer Sentiment 81.2 forecast,81.2 previous
•14:00 US Aug Michigan 5-Year Inflation Expectations 2.80% previous
•14:00 U.S. Baker Hughes Total Rig Count 488 previous
Looking Ahead – Events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Friday as dollar took a breather after U.S. inflation data cooled talk of a rapid reeling-in of Federal Reserve stimulus. Nearly two-thirds of economists here polled said the Fed is likely to announce a taper of its asset purchases currently set at $80 billion of Treasuries and $40 billion of mortgage-backed securities per month at its September meeting. The euro edged higher but at $1.1739 was not far off four-month lows. Immediate resistance can be seen at 1.1760 (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 dipped to two-week lows against the dollar on Friday, putting it on track for a second week of decline as investors looked for fresh catalysts after Britain’s growth figures for the second quarter came in as expected. Recent moves have been attributed largely to shifts in risk sentiment and moves in the dollar, although sterling has outperformed as COVID-19 cases have fallen Recent moves have been attributed largely to shifts in risk sentiment and moves in the dollar, although sterling has outperformed as COVID-19 cases have fallen. Sterling dipped to its lowest levels since July 27, down 0.15% against the dollar at 0838 GMT to $1.3790. Immediate resistance can be seen at 1.3823(38.2%fib),an upside break can trigger rise towards 1.3876 (38.2%fib).On the downside, immediate support is seen at 1.3789(50%fib), a break below could take the pair towards 1.3738(26th July low).
USD/CHF: The dollar was little changed against the Swiss franc on Friday as speculation that the U.S. Federal Reserve could soon start to unwind its bond buying stimulus calmed dollar following tame U.S. consumer prices data this week. Focus will be on the minutes from the U.S. central bank’s last policy meeting for clues on the outlook for monetary policy. The minutes will be announced next week. At 10:45 GMT, the dollar was trading 0.03 percent lower versus the swiss franc at 0.9048.Immediate resistance can be seen at 0.9238(Daily high), an upside break can trigger rise towards 0.9256(23.6%fib).On the downside, immediate support is seen at 0.9211 (38.2%fib), a break below could take the pair towards 0.9174 (50%fib).
USD/JPY: The dollar declined against the Japanese yen on Friday as investors weighed the possibility of the Federal Reserve announcing its plans to reduce its stimulus in the coming weeks. The Fed will announce a plan to taper its asset purchases in September, according to a solid majority of economists polled .Several Fed officials this week came out in support of tapering bond buying in coming months, setting themselves apart from other, more dovish major central banks such as the European Central Bank and the Bank of Japan.Strong resistance can be seen at 110.45(38.2%fib), an upside break can trigger rise towards 110.75 (23.6%fib).On the downside, immediate support is seen at 110.20(50%fib), a break below could take the pair towards 109.97(61.8%fib).
Equities Recap
European stocks hit new highs on Friday and were on course for a record-breaking run, capping another strong week as investors seize on a dip in U.S. inflation and more forecast-beating corporate earnings.
At (GMT 10:03),UK's benchmark FTSE 100 was last trading up at 0.33 percent, Germany's Dax was up by 0.42 percent, France’s CAC was last up by 0.33 percent.
Commodities Recap
Gold prices climbed on Friday on concerns over rising cases of the Delta variant, although uncertainties over the U.S. Federal Reserve’s tapering timeline kept bullion on course for a weekly drop.
Spot gold rose 0.2% to $1,755.90 per ounce by 0832 GMT. U.S. gold futures gained 0.4% to $1,758.40.
The Brent benchmark oil price fell for a second day on Friday, albeit holding above $70 a barrel, after the International Energy Agency warned that demand growth for crude is slowing sharply owing to the spread of coronavirus variants.
Brent crude was down 15 cents, or 0.2%, at $71.16 a barrel by 0931 GMT. U.S. crude was off by 21 cents, or 0.3%, at $68.88. Over the week the benchmarks are up less than 1%.