Posted at 16 August 2021 / Categories Market Roundups
Market Roundup
•Canada Jun Wholesale Sales (MoM) -0.8%,-2.0% forecast, 0.5% previous
•Canada Jun Manufacturing Sales (MoM) 2.1%,2.5% forecast, -0.6% previous
•US NY Aug Empire State Manufacturing Index 18.30,29.00 forecast, 43.00 previous
•Canada Jun New Motor Vehicle Sales (MoM) 169.0%,152.0% previous
•French 6-Month BTF Auction-0.672%, -0.673% previous
•French 3-Month BTF Auction -0.648%,-0.648% previous
•French 12-Month BTF Auction -0.648%,-0.645% previous
Looking Ahead –Economic Data (GMT)
•03:00 New Zealand Jul RBNZ Offshore Holdings 45.10% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro dipped against dollar on Monday as disappointing economic data from China, political tension in Afghanistan, and the spreading Delta variant of the coronavirus increased demand for dollar. The dollar's gains came after a slump in consumer sentiment on Friday weakened the U.S. unit.Against a basket of six major currencies , the dollar was up 0.1% at 92.620, after falling to a one-week low of 92.468 on Friday. 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 slipped against the dollar as risk appetite in global markets waned after economic data from the United States and China stirred concern 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, pausing the 10-day winning streak in European stocks. At 19:44 GMT, the pound was down 0.1% against the dollar, at $1.3843. 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/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as data showing slower economic growth in China weighed on sentiment, overshadowing Canadian Prime Minister Justin Trudeau's early election call. Trudeau on Sunday called an election for Sept. 20, betting that high vaccination rates against the coronavirus and a post-pandemic economic rebound will help him prolong and strengthen his grip on power. U.S. crude prices were down nearly 3% at $66.41 a barrel, while the Canadian dollar was trading 0.3% lower at 1.2554 to the greenback, or 79.66 U.S. cents.Immediate resistance can be seen at 1.2607 (Higher Bollinger Band), an upside break can trigger rise towards 1.2623 (23.6%fib ).On the downside, immediate support is seen at 1.2550 (38.2%fib), a break below could take the pair towards 1.2489 (50%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. The release of the Fed minutes this week will be key to the short-term outlook for the greenback, especially if it confirms more policymakers are leaning toward tapering its bond purchase plan by the end of the year. 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 109.08(23.6%fib), a break below could take the pair towards 108.92(Lower BB).
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.
UK's benchmark FTSE 100 closed down by 0.90 percent, Germany's Dax ended down by 0.32 percent, France’s CAC finished the day down by 0.83 percent.
The benchmark S&P 500 hit a record high on Monday as investors moved into defensive sectors and stocks recovered from losses earlier in the session, shaking off glum economic data out of China.
Dow Jones closed up by 0.31% percent, S&P 500 closed up by 0.26% percent, Nasdaq settled down by 0.20% percent.
Treasuries Recap
U.S. Treasury yields fell on Monday as weak Chinese economic data and concerns about the Taliban victory in Afghanistan and new COVID variants increased demand for the safe-haven bonds.
Benchmark 10-year yields fell four basis points to 1.256%, after earlier getting as low as 1.223%. The yield curve between two-year and 10-year notes flattened two basis points to 105 basis points.
Commodities Recap
Gold extended its recovery on Monday, buoyed by a pullback in U.S. Treasury yields and some safe-haven buying spurred by COVID-19-related concerns, with investors looking for more direction from the Federal Reserve on monetary policy.
Spot gold rose 0.4% to $1,786.29 per ounce by 1:40 pm EDT (1740 GMT). U.S. gold futures settled up 0.7% at $1,789.8.
Oil prices settled lower on Monday, paring steep losses on weak Chinese economic data after sources told Reuters that OPEC and its allies believe the markets do not need more oil than they plan to release in the coming months.
Brent crude settled down $1.08, or 1.5%, at $69.51 a barrel after earlier falling to $68.14. U.S. oil fell by $1.15, or 1.7%, to $67.29 after reaching lows of $65.73. Afghanistan