Posted at 18 August 2021 / Categories Market Roundups
Market Roundup
• US Jul Core CPI (MoM) 0.6%,0.3% previous
• Canada Jul Core CPI (YoY) 3.3% , 2.7% previous
• Canada Jul CPI (MoM) 0.6%, 0.3% forecast,, 0.3% previous
• US Jul Housing Starts (MoM) -7.0%,6.3% previous
• US Jul Housing Starts 1.534M,1.600M forecast,, 1.643M previous
• US Jul Building Permits 1.635M,1.610M forecast,, 1.594M previous
• US Jul Building Permits (MoM) 2.6%, -5.3% previous
• Crude Oil Inventories -3.234M1.671M forecast, -1.400M previous
Looking Ahead –Economic Data (GMT)
•01:30 Australia Employment Change -46.2K forecast, 29,100.0K previous
•01:30 Australia Jul Unemployment Rate 5.0% forecast, 4.9% previous
•01:30 Australia Jul Participation Rate 66.0% forecast, 66.2% previous
•01:30 Australia Jul Full Employment Change 51.6K previous
Looking Ahead - Events, Other Releases (GMT)
•No significant event
Currency Summaries
EUR/USD: The euro edged higher from recent lows against dollar on Wednesday after minutes of last month's Federal Reserve meeting suggested there was no consensus about the timing of a tapering of its asset purchases under the U.S. central bank's quantitative easing program. Dollar failed to draw any sustained strength from Fed Chair's Jerome Powell's comments and mixed U.S. data, markets shifted focus toward the Jackson Hole symposium where some expect the Fed to signal a change in direction with regards to its asset purchase plans. 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 1.3812 (9DMA).On the downside, immediate support is seen at 1.3716(23.6%fib), a break below could take the pair towards 1.3697(Lower BB).
USD/CAD: The Canadian dollar was little changed against the greenback on Wednesday as investors weighed minutes from the latest Federal Reserve meeting, while domestic data showing higher inflation was seen unlikely to move the needle for the Bank of Canada. The price of oil, one of Canada's major exports, settled 1.7% lower at $65.46 a barrel, with investors remaining worried about the outlook for fuel demand as COVID-19 cases surge worldwide. The loonie was trading nearly unchanged at 1.2634 to the greenback. It touched its strongest level of the session at 1.2597 after the inflation data but then fell to its weakest since July 21 at 1.2653. Immediate resistance can be seen at 1.2660 (23.6%fib), an upside break can trigger rise towards 1.2678 (Higher BB).On the downside, immediate support is seen at 1.2603 (5 DMA), a break below could take the pair towards 1.2581 (38.2%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday after meeting minutes showed U.S. Federal Reserve officials split on when to ease back on economic stimulus. The minutes fleshed out the Fed’s thinking on when to taper its monthly bond purchases, and showed that Fed officials expected it is possible they could ease that stimulus this year if the economy continues to improve as expected.However, the minutes showed officials noted that the spread of the COVID-19 Delta variant could temporarily delay the full reopening of the economy and restrain a jobs market that looms large in the Fed’s thinking. Strong resistance can be seen at 109.85(21DMA), an upside break can trigger rise towards 110.05(23.6%fib).On the downside, immediate support is seen at 109.69(38.2%fib), a break below could take the pair towards 109.40(50%fib).
Equities Recap
European stocks held steady on Wednesday as investors favoured utilities and healthcare shares over economically sensitive sectors on rising concerns over a spike in global COVID-19 cases.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day down by 0.73 percent.
Wall Street's main indexes slid on Wednesday, with the S&P 500 falling over 1%, after the release of minutes from the Federal Reserve's policy meeting last month showed officials felt the employment benchmark for decreasing support for the economy "could be reached this year.
Dow Jones closed down by 0.05% percent, S&P 500 closed down by 0.08% percent, Nasdaq settled down by 0.89% percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after minutes from the Federal Reserve's July meeting showed that Fed officials felt the employment benchmark for decreasing support for the economy "could be reached this year," but had not yet been satisfied.
Benchmark 10-year notes fell to 1.273%, after rising to a session high of 1.300% before the minutes were released.
Commodities Recap
Crude prices fell for a fifth day on Wednesday, as investors remain worried about the outlook for fuel demand as COVID-19 cases surge worldwide just as more supply reaches the market from large global producers, including the United States.
Brent crude ended down 80 cents, or 1.2%, at $68.23 a barrel. The global benchmark has lost 11% in the last 13 trading days dating to the end of July. U.S. crude futures settled down $1.13, or 1.7%, to $65.46 a barrel.
Gold turned positive after the release of the U.S. Federal Reserve’s July policy meeting minutes on Wednesday, although a firm dollar limited any safe haven inflows into bullion in response to the spread of the Delta coronavirus variant.
Spot gold was up 0.1% at $1,786.76 per ounce by 2:43 pm EDT (1843 GMT). U.S. gold futures settled down 0.2% at $1,784.4 per ounce.