Posted at 14 August 2021 / Categories Market Roundups
Market Roundup
•US Jul Export Price Index (MoM) 1.3%,0.8% forecast, 1.2% previous
•US Jul Import Price Index (MoM) 0.3%, 0.6% forecast, 1.0% previous
•US Aug Michigan Current Conditions 77.9,84.5 previous
•US Aug Michigan Consumer Expectations 65.2,85.0 forecast, 79.0 previous
•US Aug Michigan Michigan Inflation Expectations 4.6%, 4.7% previous
•US Aug Michigan Consumer Sentiment 70.2., 81.2 forecast,81.2 previous
•US Aug Michigan 5-Year Inflation Expectations 3.00%,2.80% previous
•U.S. Baker Hughes Total Rig Count 500 ,488 previous
Looking Ahead - Economic data ahead (GMT)
•No data ahead
Looking Ahead – Events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Friday as dollar fell after data showed U.S. consumer confidence plummeted in early August. The University of Michigan’s survey showed consumer confidence falling to its lowest level since 2011 in the first half of this month. The decline marked one of the six largest drops in the past 50 years of the survey. The unexpectedly weak reading could give Federal Reserve policymakers reason to pause on a decision over whether to begin pulling back the extraordinary stimulus it put in place to shield the U.S. economy from the COVID-19 pandemic. Immediate resistance can be seen at 1.1827 (50%fib), an upside break can trigger rise towards 1.1883(61.8%fib).On the downside, immediate support is seen at 1.1772 (38.2%fib), a break below could take the pair towards 1.1705(23.6%fib)
GBP/USD: Sterling steadied against the dollar on Friday as the greenback weakened following a weak reading of consumer sentiment, but the British currency was still on track for a second week of declines. 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 and high vaccination rates allowed the British government to lift most restrictions. On Friday, sterling dipped to its lowest levels since July 27, down 0.15% against the dollar to $1.3790 Immediate resistance can be seen at 1.3878(38.2%fib),an upside break can trigger rise towards 1.3987 (23.6%fib).On the downside, immediate support is seen at 1.3789(50%fib), a break below could take the pair towards 1.3703(61.8%fib).
USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Friday, with news that Canadian Prime Minister Justin Trudeau is planning to call a snap election for Sept. 20 having little impact on the currency. 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 loonie was trading nearly unchanged at 1.2515 to the greenback, after trading in a range of 1.2509 to 1.2533. For the week, the loonie was on track to advance 0.3%.Immediate resistance can be seen at 1.2523 (14EMA), an upside break can trigger rise towards 1.2543 (38.2%fib).On the downside, immediate support is seen at 1.2483 (50%fib), a break below could take the pair towards 1.2424(61.8%fib).
USD/JPY: The dollar declined sharply against the Japanese yen on Friday after a survey showed U.S. consumer sentiment dropped sharply in early August, raising worries of a dent in economic activity. The University of Michigan said its preliminary consumer sentiment index fell to 70.2 in the first half of this month from a final reading of 81.2 in July. That was the lowest level since 2011 and one of the six largest drops in the past 50 years of the survey. The dollar index, which measures the greenback against a basket of six rivals, was 0.5% lower at 92.521, its lowest since Aug 6. For the week the index was down 0.3%.Strong resistance can be seen at 109.73(38.2%fib), an upside break can trigger rise towards 110.01 (23.6%fib).On the downside, immediate support is seen at 109.51(50%fib), a break below could take the pair towards 109.28(61.8%fib).
Equities Recap
European stocks scaled new highs on Friday and clocked their fourth consecutive week of gains on optimism over a strong earnings season and steady recovery from the pandemic-led economic downturn.
UK's benchmark FTSE 100 closed up by 0.35 percent, Germany's Dax ended up by 0.25 percent, France’s CAC finished the day up by 0.20 percent.
U.S. stocks held near the unchanged mark on Friday and notched a second straight week of gains, as a climb in Walt Disney shares boosted the Dow Industrials and S&P 500 but a sharp drop in consumer sentiment kept the investor optimism in check.
Dow Jones closed up by 0.04%percent, S&P 500 closed up by 0.16% percent, Nasdaq settled down by 0.04% percent.
Treasuries Recap
Sinking consumer sentiment accelerated a fall in U.S. Treasury yields on Friday amid low trading volume as the market looked to the Federal Reserve and upcoming data for signs that could push rates higher.
The benchmark 10-year yield, which traded as low as 1.293%, was last down 6.7 basis points at 1.3001%. That was about 17 basis points above a six-month low of 1.127% reached on Aug. 4.
Commodities Recap
Oil prices dipped on Friday after weathering concerns from banks and the International Energy Agency that the spread of coronavirus variants is slowing oil demand.
Global oil benchmark Brent crude settled down 72 cents, or 1%, at $70.59 a barrel for the session.U.S. West Intermediate crude settled down 65 cents at $68.44.
Gold rose more than 1% on Friday after a survey showing that U.S. consumer sentiment dived in early August calmed investor concerns over an early tapering of the Federal Reserve’s asset purchases.
Spot gold rose 1.4% to $1,776.21 per ounce by 1:44 p.m. EDT (1744 GMT). U.S. gold futures settled 1.5% up at $1,778.20.