News

Europe Roundup: Euro edge down as global sentiment turns south,European shares falls, Gold dips, Oil prices drop amid faltering demand outlook in China-August 16th,2021

Posted at 16 August 2021 / Categories Market Roundups


Market Roundup

• EU Jul Reserve Assets Total 888.49B, 869.05B previous

Looking Ahead –Economic Data (GMT)

•12:30 Canada Jun Wholesale Sales (MoM)  -2.0% forecast, 0.5% previous

•12:30 Canada Jun Manufacturing Sales (MoM)  2.5% forecast, -0.6% previous

•12:30 US NY Aug Empire State Manufacturing Index 29.00 forecast, 43.00 previous

•12:30 Canada Jun New Motor Vehicle Sales (MoM) 152.0% previous

•13:00 French 6-Month BTF Auction -0.673% previous

•13:00 French 3-Month BTF Auction -0.648% previous

•13:00 French 12-Month BTF Auction -0.645% previous

•15:30 US 3-Month Bill Auction 0.050% previous

•15:30 US 3-Month Bill Auction   0.050% previous

 Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro dipped against dollar on Monday as latest data from the world’s biggest economies cast a shadow over the growth outlook. Data showed China’s factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted activity. Fresh signs that China’s economic recovery is losing momentum followed news on Friday that U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade. Immediate resistance can be seen at 1.1798(38.2%fib), an upside break can trigger rise towards 1.1854(50%fib).On the downside, immediate support is seen at 1.1729 (23.6%fib), a break below could take the pair towards 1.1700 (Lower BB)

GBP/USD: The British pound was little changed on Monday, hurt by a fall in risk appetite globally, after economic data from the United States and China prompted concerns about their recovery from COVID-19. Data on Friday showing a plunge in U.S. consumer confidence and data on Monday showing a sharp slowdown in China’s factory output and retail sales growth spooked investors. At 0757 GMT, the pound was down 0.1% against the dollar at $1.3852.  Immediate resistance can be seen at 1.3878(38.2%fib),an upside break can trigger rise towards 1.3933 (50%fib).On the downside, immediate support is seen at 1.3833(21DMA), a break below could take the pair towards 1.3800(50%fib).

 USD/CHF: The dollar declined against the Swiss franc on Monday as demand for safe haven asstets increased following disappointing Chinese economic data .Figures on July retail sales, industrial production and urban investment in China all missed forecasts, a trend that is only likely to get worse given the recent tightening in coronavirus restrictions there. At 11:21 GMT, the dollar was trading 0.12 percent lower versus the Swiss franc at 0.9140.Immediate resistance can be seen at 0.9165(38.2%fib), an upside break can trigger rise towards 0.9212(23.6%fib).On the downside, immediate support is seen at 0.9128 (50%fib), a break below could take the pair towards 0.9090 (61.8%fib).

USD/JPY: The dollar declined against the Japanese yen on Monday as fresh signs of a slowdown in the world's second-largest economy hit market sentiment. Official data showed China's factory output and retail sales growth both slowed in July as export growth cooled and new COVID-19 outbreaks disrupted business. Dismal report from China swiped out a week of gains for the dollar, sending it back to 92.547 against a basket of currencies from a near five-month top of 93.195. Strong resistance can be seen at 109.54(50%fib), an upside break can trigger rise towards 109.81(23.6%fib).On the downside, immediate support is seen at 109.30(38.2%fib), a break below could take the pair towards 109.08(23.6%fib).

Equities Recap          

A 10-day run of gains for European stocks came to a halt on Monday following a surprise slowdown in China's economic indicators, with commodity-linked stocks falling the most.

At (GMT 11:15),UK's benchmark FTSE 100 was last trading down at 1.04%percent, Germany's Dax was down by 0.41 %percent, France’s CAC finished was down by 0.80% percent.

Commodities Recap

Gold prices edged lower on Monday as the dollar held steady, although receding worries about early tapering by the U.S. Federal Reserve and concerns over the coronavirus Delta variant kept bullion near a one-week peak.

Spot gold was down 0.3% at $1,774 per ounce by 1102 GMT after hitting its highest since Aug. 6 at $1,782.40 earlier in the session. U.S. gold futures fell 0.1% to $1,776.70.

Oil prices fell by about 1% on Monday, dropping for a third session, after official data showed that refining throughput and economic activity slowed in China in an indication that COVID-19 outbreaks are crimping the world's second-largest economy.

Brent crude was down 58 cents, or 0.8%, at $70.01 a barrel by 0943 GMT. U.S. oil fell by 64 cents, or 0.9%, to $67.80. Both contracts dropped by more than $1 earlier in the session.


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