Posted at 19 August 2021 / Categories Market Roundups
Market Roundup
• U.S. weekly jobless claims hit 17-month low
•US Continuing Jobless Claims 2,820K,2,800K forecast, 2,866K previous
•US Jobless Claims 4-Week Avg 377.75K,396.25K forecast, 375K previous
•Canada ADP Nonfarm Employment Change 221.3K,-294.2K previous
•US Aug Philly Fed CAPEX Index 33.70,41.20 previous
•US Aug Philadelphia Fed Manufacturing Index 19.4, 23.0 forecast, 21.9 previous
•US Philly Fed Employment 32.6, 29.2 previous
•US Aug Philly Fed Business Conditions 33.7,48.6 previous
•US Aug Philly Fed New Orders 22.8, 17.0 previous
•US Aug Philly Fed Prices Paid 71.20, 69.70 previous
•US US Jul Leading Index (MoM) 0.9%, 0.8% forecast,0.7% previous
•US Natural Gas Storage 46B, 31B forecast, 49B previous
Looking Ahead –Economic Data (GMT)
•01:30 China PBoC Loan Prime Rate 3.85% previous
•03:00 New Zealand Credit Card Spending (YoY) 6.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
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. The euro fell as low as $1.1665 against the dollar for the first time since early November, and was last down 0.3% at $1.1676. 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 1.3699(38.2%fib),an upside break can trigger rise towards 1.3717 (5DMA).On the downside, immediate support is seen at 1.3620 (23.6%fib), a break below could take the pair towards 1.3584(21st July low).
USD/CAD: The Canadian dollar fell on Thursday for a fourth day against its broadly stronger U.S. counterpart, as investors worried that global economic growth could slow and that the Federal Reserve was prepared to reduce stimulus. Investors worry that circulation of the Delta variant of the coronavirus could slow global economic recovery. The Canadian dollar was trading 1.2% lower at 1.2820 to the greenback, giving up all of this year's gains and extending a string of declines since the start of the week. Immediate resistance can be seen at 1.2840 (23.6%fib), an upside break can trigger rise towards 1.2876(2nd Feb 2021 High).On the downside, immediate support is seen at 1.2727(38.2%fib), a break below could take the pair towards 1.2703 (23.6%fib).
USD/JPY: The dollar edged higher against the Japanese yen on Thursday as worries about widespread coronavirus infections and Federal Reserve meeting minutes showing it was considering reducing pandemic-era stimulus this year increased demand for greenback. The dollar hardly reacted to weekly unemployment data showing that the number of people on state jobless rolls dropped in early August to levels last seen in mid-March 2020.Strong resistance can be seen at 109.98(23.6%fib), an upside break can trigger rise towards 110.22(Daily high).On the downside, immediate support is seen at 109.61(38.2%fib), a break below could take the pair towards 109.32(23.6%fib).
Equities Recap
European shares tumbled to their biggest daily loss in a month on Thursday as a slump in commodity prices dragged down mining stocks, while luxury stocks were hit by a Chinese wealth redistribution push.
UK's benchmark FTSE 100 closed down by 1.54 percent, Germany's Dax ended down by 1.25 percent, France’s CAC finished the day down by 2.43 percent.
Wall Street indexes were supported by gains in defensive and heavyweight technology stocks on Thursday, as investors fretted over when the Federal Reserve could begin tapering its massive stimulus program.
Dow Jones closed down by 0.19%percent, S&P 500 closed up by 0.13% percent, Nasdaq settled up by 0.11 % percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday as risk appetite worsened on concerns about the spread of COVID variants, and a day after the Federal Reserve said it expects to begin paring bond purchases this year.
Benchmark 10-year yields dipped three basis points to 1.245%. They fell to 1.127% earlier this month, which was the lowest since February.
Commodities Recap
Gold prices eased on Thursday as a stronger dollar and bets over an early policy tapering by the U.S. Federal Reserve weighed on sentiment, although losses for the safe-haven metal were limited by concerns that rising COVID-19 cases will slow global growth.
Spot gold fell 0.5% to $1,778.65 per ounce by 2:21 p.m. EDT (1821 GMT). U.S. gold futures settled down 0.1% at $1,783.1.
Oil prices skidded on Thursday for a sixth session, hitting lows not seen since May, as investors pulled back over concerns about weakened global demand as COVID-19 cases climband on the back of a rise in the U.S. dollar.
Brent crude lost $1.78, or 2.6%, to settle at $66.45 a barrel, after touching $65.57, the lowest level since May 21. The most-active contract for U.S. West Intermediate (WTI) fell $1.71, or 2.6%, to $63.50 a barrel. It fell earlier to $62.41 a barrel, the lowest level since May 21.