Posted at 18 August 2021 / Categories Market Roundups
Market Roundup
•UK Jul PPI Output (MoM) 0.6%,0.4% forecast, 0.4% previous
•UK Jul Core CPI MoM (MoM) 0.0%, 0.1% forecast, 0.5% previous
•UK Jul CPI (MoM) 0.0%,0.3% forecast, 0.5% previous
•UK Jul CPI (YoY) 2.0%, 2.3% forecast,,2.5% previous
•UK Jul PPI Input (MoM) 0.8% 0.5% forecast,, -0.1% previous
•UK Jul PPI Input (YoY) 9.9%,9.1% forecast,, 9.1% previous
•UK Jul PPI Output (YoY) 4.9%,4.4% forecast,, 4.3% previous
•EU Jul CPI (MoM) -0.1%, -0.1% forecast,, 0.3% previous
•EU Jul CPI (YoY) 2.2%,2.2% forecast,, 2.2% previous
•EU Jul Core CPI (YoY) 0.7%,0.7% forecast,, 0.9% previous
Looking Ahead –Economic Data (GMT)
•12:30 US Jul Core CPI (MoM) 0.3% previous
•12:30 Canada Jul Core CPI (YoY) 2.7% previous
•12:30 Canada Jul CPI (MoM) 0.3% forecast,, 0.3% previous
•12:30 US Jul Housing Starts (MoM) 6.3% previous
•12:30 US Jul Housing Starts 1.600M forecast,, 1.643M previous
•12:30 US Jul Building Permits 1.610M forecast,, 1.594M previous
•12:30 US Jul Building Permits (MoM) -5.3% previous
•14;’30 Crude Oil Inventories -1.671M forecast, -1.400M previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro was little changed dollar on Wednesday as investors sought direction ahead of U.S. Federal Reserve meeting minutes due later in the day. Investors await the minutes of the U.S. central bank’s July policy meeting, due later in the day, for guidance on its tapering plans.On Tuesday, Minneapolis Fed President Neel Kashkari said it could be “reasonable” to start tapering later this year, but that would depend on the progress in the labour market. Immediate resistance can be seen at 1.1745(5DMA), an upside break can trigger rise towards 1.1768(38.2%fib).On the downside, immediate support is seen at 1.1693(23.6%fib), a break below could take the pair towards 1.1651(Lower BB)
GBP/USD: Sterling hovered near a 3-1/2-week low on Wednesday after UK inflation data showed a sharper slowdown than expected. The pound was little moved by the numbers, however. Investors believe it will have little bearing on the rising trend for inflation, and the currency fell on Tuesday after a jump in the dollar. British inflation fell to the Bank of England’s 2% target last month, a slowdown that economists said was most likely a blip as the reopening of the economy after lockdown drives prices higher.The pound was last at $1.3742, down 0.1% on the day and close to Tuesday’s level of $1.3726, the lowest since July 23. Immediate resistance can be seen at 1.3789(38.2%fib),an upside break can trigger rise towards 1.3821 (9DMA).On the downside, immediate support is seen at 1.3710(23.6%fib), a break below could take the pair towards 1.3697(Lower BB).
USD/CHF: The dollar edged lower against the Swiss franc on Wednesday as investors weighed the gradual opening of economies worldwide against rising cases of the COVID-19 Delta variant. Safe-haven assets continued to benefit from uncertainty over the spread of the coronavirus, with swiss gaining against dollar on Wednesday. Investors will scan the Fed minutes due 1800 GMT for further clues on when the bank might start tapering its bond purchases. At 10:35 GMT, the dollar was trading 0.04 percent higher versus the Swiss franc at 0.9139.Immediate resistance can be seen at 0.9142 (38.2%fib), an upside break can trigger rise towards 0.9175 (9DMA).On the downside, immediate support is seen at 0.9108(50%fib), a break below could take the pair towards 0.9071 (61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as concerns over the spread of the Delta variant of the coronavirus buoyed dollar against yen and investors awaited minutes from the Federal Reserve’s latest policy meeting. The minutes of the July 27-28 meeting, which are due to be released at 2 p.m. EDT (1800 GMT), will cover a session at which the Fed said it still had faith in the U.S. economic recovery even as the Delta variant of the coronavirus was fueling a troubling rise in cases. Strong resistance can be seen at 109.71(38.2%fib), an upside break can trigger rise towards 110.05(23.6%fib).On the downside, immediate support is seen at 109.40(50%fib), a break below could take the pair towards 108.12(61.8%fib).
Equities Recap
European stocks inched lower on Wednesday on rising concerns over a spike in global COVID-19 cases.
At (GMT 10:35),UK's benchmark FTSE 100 was last trading down at 0.42%percent, Germany's Dax was down by 0.18 % percent, France’s CAC finished was down by 0.41% percent.
Commodities Recap
Gold prices edged higher on Wednesday, as concerns over the spread of the Delta variant of the coronavirus buoyed bullion’s appeal and investors awaited minutes from the Federal Reserve’s latest policy meeting.
Spot gold was up 0.1% at $1,787.50 per ounce by 0958 GMT, after hitting its highest since Aug. 6 at $1,795.25 in the previous session.
Oil prices steadied on Wednesday after four days of declines with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport remained constrained amid surging COVID-19 cases worldwide.
Brent crude was up 70 cents or 1% at $69.73 a barrel by 0649 GMT. U.S. oil gained 54 cents or 0.8% to $67.13 a barrel.