Posted at 19 August 2021 / Categories Market Roundups
Market Roundup
•Swiss Jul Trade Balance 5.246B,5.529B previous
•EU Jun Current Account n.s.a2 4.0B, 4.3B previous
•EU Jun Current Account 21.8B, 11.7B previous
Looking Ahead –Economic Data (GMT)
•12:30 US Continuing Jobless Claims 2,800K forecast, 2,866K previous
•12:30 US Jobless Claims 4-Week Avg 396.25K forecast, 375K previous
•12:30 Canada ADP Nonfarm Employment Change -294.2K previous
•12:30 US Aug Philly Fed CAPEX Index 41.20 previous
•12:30 US Aug Philadelphia Fed Manufacturing Index 23.0 forecast, 21.9 previous
•12:30 US Philly Fed Employment 29.2 previous
•12:30 US Aug Philly Fed Business Conditions 48.6 previous
•12:30 US Aug Philly Fed New Orders 17.0 previous
•12:30 US Aug Philly Fed Prices Paid 69.70 previous
•14:00 US US Jul Leading Index (MoM) 0.8% forecast,0.7% previous
•14:30 US Natural Gas Storage 31B forecast, 49B previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Thursday as a double-whammy of Fed taper fears and COVID worries haunted markets. The minutes from the Federal Reserve's July meeting published on Wednesday showed officials expected they could ease stimulus this year, even though there was division over the labour market recovery and the level of risk posed by rising coronavirus cases. Focus now shifts to the Fed's annual research conference in Jackson Hole, Wyoming next week for clues on the central bank's next steps. Immediate resistance can be seen at 1.1736(38.2%fib), an upside break can trigger rise towards 1.1793(50%fib).On the downside, immediate support is seen at 1.1664 (23.6%fib), a break below could take the pair towards 1.1638 (Lower BB)
GBP/USD: Sterling hit its lowest in a month against the dollar on Thursday as a pull-back in global stock markets saw a bid for safe havens such as the greenback, which weighed on risk and growth correlated currencies. Minutes from the U.S. Federal Reserve’s latest meeting released on Wednesday showed policymakers at the central bank expect to reduce pandemic-era stimulus before the year is out. Immediate resistance can be seen at 1.37389(38.2%fib),an upside break can trigger rise towards 1.3778 (5DMA).On the downside, immediate support is seen at 1.3665(23.6%fib), a break below could take the pair towards 1.3584(21st July low).
USD/CHF: The dollar initially gained but gave ground against the Swiss franc on Thursday after minutes from the U.S. central bank’s last meeting showed the increasing prospect of reduced monetary stimulus this year. The minutes from the July policy meeting published Wednesday fleshed out the Fed’s thinking on when to taper its monthly bond purchases, and showed officials expected they could ease stimulus this year if the economy continues to improve. At 12:05 GMT, the dollar was trading 0.01 percent lower versus the Swiss franc at 0.9167.Immediate resistance can be seen at 0.9191 (23.6%fib), an upside break can trigger rise towards 0.9208 (Daily high).On the downside, immediate support is seen at 0.90143(38.2%fib), a break below could take the pair towards 0.9106 (50%fib).
USD/JPY: The dollar dipped against the Japanese yen on Thursday after minutes from a U.S. Federal Reserve meeting showed that the world’s most important central bank is not yet ready to slow down its asset purchases. Minutes from the Federal Reserve’s July meeting showed that policymakers in the United States felt the employment benchmark for decreasing support for the economy could be reached this year, but had not yet been satisfied. Strong resistance can be seen at 110.28(23.6%fib), an upside break can trigger rise towards 110.22(Daily high).On the downside, immediate support is seen at 109.71(38.2%fib), a break below could take the pair towards 109.41(50%fib).
Equities Recap
European shares fell almost 2% on Thursday as fears built that tapering in global monetary policy would happen sooner than previously expected, while a slump in commodity prices dragged mining stocks lower.
At (GMT 12:04),UK's benchmark FTSE 100 was last trading up at 2.10% percent, Germany's Dax was down by 2.03 %percent, France’s CAC was last down by 2.78% percent.
Commodities Recap
Gold prices fell on Thursday as a jump in the U.S. dollar made bullion more expensive for other currency holders after minutes from Federal Reserve’s July meeting showed tapering of its massive stimulus is possible this year.
Spot gold was down 0.5% at $1,778.66 per ounce by 0832 GMT. U.S. gold futures eased 0.2% to $1,780.70.
Oil dropped to below $66 a barrel on Thursday, its lowest since May, pressured by concerns about weaker demand as COVID-19 cases rise, a stronger U.S. dollar and a surprise increase in U.S. gasoline inventories.
Brent crude was down $1.87, or 2.7%, at $66.36 at 1025 GMT, after touching its lowest since May 21. U.S. West Intermediate (WTI) fell $1.96, or 3%, to $63.50 after falling as low as $62.83, also its lowest since May 21.