Posted at 17 August 2021 / Categories Market Roundups
Market Roundup
•US Jul Retail Sales (YoY) 15.78%,17.98% previous
•US Jul Retail Sales (MoM) -1.1%,-0.3% forecast, 0.6% previous
•Canada Jun Foreign Securities Purchases 19.63B,20.79B previous
•US Jul Core Retail Sales (MoM ) -0.4%,0.1% forecast, 1.3% previous
•US Jul Retail Sales Ex Gas/Autos (MoM) -0.7%,1.1% previous
•Canada Foreign Securities Purchases by Canadians 28.10B,10.65B previous
•US Jul Retail Control (MoM) -1.0%,-0.1% forecast, 1.1% previous
•US Jul Industrial Production (YoY) 0.9%,0.5% forecast, 0.4% previous
•US Jul Capacity Utilization Rate 76.1%,75.7% forecast, 75.4% previous
•US Jul Industrial Production (YoY ) 6.55%, 9.80% previous
•US Aug NAHB Housing Market Index 75, 80 forecast, 80previous
•US Jun Business Inventories (MoM) 0.8%, 0.8% forecast, 0.5% previous
•New Zealand GlobalDairyTrade Price Index 0.3% -1.0% previous
Looking Ahead –Economic Data (GMT)
• 23:50 Japan Jul Imports (YoY) 35.1% forecast, 32.7% previous
• 23:50 Japan Jul Trade Balance 202.3B forecast, 384.0B previous
• 23:50 Japan Jul Exports (YoY) 39.0% forecast, 48.6% previous
• 01:30 Australia MI Leading Index (MoM) -0.1% previous
• 01:30 Australia Wage Price Index (QoQ) (Q2) 0.6% forecast, 0.6% previous
• 01:30 Australia Wage Price Index (YoY) (Q2) 1.9% forecast, 1.5% previous
• 02:00 New Zealand RBNZ Interest Rate Decision 0.50% forecast, 0.50% previous
Looking Ahead - Events, Other Releases (GMT)
• 02:00 New Zealand RBNZ Rate Statement
• 03:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro dipped against dollar on Tuesday as market sentiment was rattled by concerns over China’s regulations for its once-freewheeling internet sector and a worldwide spike in COVID-19 infections driven by the Delta variant. Amid signs that the world’s economic recovery is losing momentum, the continued spread of new COVID-19 variants and the impact on the global economy have also shaken market confidence. The U.S. dollar index rose 0.6% to 93.119 . The euro, the biggest component in the dollar index, fell 0.6% to $1.1709 .Immediate resistance can be seen at 1.1708(5DMA), an upside break can trigger rise towards 1.1765(38.2%fib).On the downside, immediate support is seen at 1.1695 (23.6%fib), a break below could take the pair towards 1.1646(Lower BB)
GBP/USD: Britain’s pound hits its lowest level in three weeks against the dollar on Tuesday as weakening risk sentiment weighed on global stock markets, hitting risk-correlated currencies. The market mostly overlooked positive jobs data. As Britain’s economy extended its recovery, payrolls rose by 182,000 in July to 28.9 million, data showed - 201,000 shy of the level seen before the COVID-19 pandemic hit in March 2020. The pound hit its weakest level since July 27 at 0707 GMT, falling 0.3% on the day to $1.3787. Immediate resistance can be seen at 1.3794(38.2%fib),an upside break can trigger rise towards 1.3856 (50%fib).On the downside, immediate support is seen at 1.3741(23.6%fib), a break below could take the pair towards 1.3695 (Lower BB).
USD/CAD: The Canadian dollar on Tuesday weakened to its lowest level in nearly four weeks against the greenback, as risk aversion weighed on global financial markets and a key technical level for the currency was breached. Global share markets stumbled, rattled by disappointing U.S. retail sales data and a surge in COVID-19 infections worldwide driven by the Delta variant. The loonie was trading 0.4% lower at 1.2625 to the greenback, after touching its weakest since July 21 at 1.2648 Canadian inflation data is due on Wednesday, which could offer clues on the Bank of Canada's policy outlook. Immediate resistance can be seen at 1.2638 (23.6%fib), an upside break can trigger rise towards 1.2652 (Higher BB).On the downside, immediate support is seen at 1.2570(5DMA), a break below could take the pair towards 1.2560 (38.2%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday greenback was bolstered by safe-haven demand, as investors fretted about Afghanistan, a slowing Chinese economy, and the rapid spread of the Delta coronavirus variant which forced some lockdowns. A much sharper decline than expected in Tuesday's U.S. retail sales curbed gains in the dollar, but that was offset by the higher-than-forecast rise in industrial production, which accelerated the greenback's gains. Strong resistance can be seen at 109.79(38.2%fib), an upside break can trigger rise towards 110.15 (23.6%fib).On the downside, immediate support is seen at 109.51(50%fib), a break below could take the pair towards 108.21(61.8%fib).
Equities Recap
European stocks eked out gains after falling to their lowest in a week on Tuesday, as upbeat euro zone data helped ease worries about a slowdown in global economic growth amid a spike in COVID-19 cases in Asia and elsewhere.
UK's benchmark FTSE 100 closed up by 0.38 percent, Germany's Dax ended down by 0.02 percent, France’s CAC finished the day down by 0.28 percent.
Wall Street's main indexes slid on Tuesday, weighed down by a decline in mega-cap technology-related stocks and a weak earnings report from Home Depot, while a mixed batch of data suggested an uneven U.S. economic recovery.
Dow Jones closed down by 0.79% percent, S&P 500 closed down by 0.71% percent, Nasdaq settled down by 0.93% percent.
Treasuries Recap
U.S. Treasury yields ended Tuesday little changed in choppy trading after data showed a mixed picture of the U.S. economy and as investors remained concerned about slowing global growth and the spread of COVID-19 variants.
Benchmark 10-year note yields were last at 1.258%, little changed on the day, after earlier falling as low as 1.217%.
Commodities Recap
Gold prices retreated slightly from a more than one-week peak on Tuesday as some investors opted for the dollar instead as surging COVID-19 Delta variant cases posed a threat to a global economic recovery.
Spot gold fell 0.2% to $1,784.02 per ounce by 1:59 p.m. EDT (1759 GMT) after hitting its highest since Aug. 6 at $1,795.25. U.S. gold futures settled 0.1% lower at 1,787.80 per ounce.
Oil prices weakened for a fourth session on Tuesday due to a strong dollar and as surging cases of coronavirus in Japan added to a weak demand picture in Asia.
Brent crude ended the session down 48 cents, or 0.7%, at $69.03 per barrel, while U.S. West Intermediate crude (WTI) settled 70 cents, or 1%, lower at $66.59 a barrel.