Posted at 20 August 2021 / Categories Market Roundups
Market Roundup
• UK Jul Retail Sales (YoY) 2.4%,6.0% forecast, 9.7% previous
• German PPI Jul (MoM) 1.9%,0.8% forecast, 1.3% previous
• UK Jul Retail Sales (MoM) -2.5%,0.4% forecast, 0.5% previous
• UK Jul Core Retail Sales (YoY) 1.8%,5.7% forecast ,7.4% previous
• UK Jul Core Retail Sales (MoM) -2.4%, 0.3% forecast , 0.3% previous
Looking Ahead –Economic Data (GMT)
• 12:30Canada Jul New Housing Price Index (MoM) 0.6% previous
• 12:30 Canada Jun Core Retail Sales (MoM) 4.6% forecast, -2.0% previous
• 12:30 Canada Jun Retail Sales (MoM) 4.4% forecast, -2.1% previous
• 16:00 Russia Jul Retail Sales (YoY) 5.4% forecast, 10.9% previous
• 17:00 U.S. Baker Hughes Oil Rig Count 387 previous
•17:00 U.S. Baker Hughes Total Rig Count 491 previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 US FOMC Member Kaplan Speaks
Fxbeat
EUR/USD: The euro little changed against dollar on Friday as market sentiment was rattled by rising coronavirus cases compounded concerns over Chinese growth and the outlook for U.S. stimulus. The swirling economic currents have weighed on sentiment all week, setting a cautious tone ahead of a meeting of U.S. central bankers at Jackson Hole next week, with markets watching for any sign of monetary tightening in the world's biggest economy. The euro was little changed at $1.1674, but still near the 9-1/2-month low of $1.16655 reached overnight. It is down nearly 1% this week, the most since mid-June. Immediate resistance can be seen at 1.1705(5DMA), an upside break can trigger rise towards 1.1736(38.2%fib).On the downside, immediate support is seen at 1.1662 (23.6%fib), a break below could take the pair towards 1.1626 (Lower BB)
GBP/USD: Sterling touched a new one-month low against a robust dollar on Friday and also slipped to a one-month low against the euro as global risk aversion propelled investors towards currencies considered safer.Risk currencies such as sterling have taken a knock this week on worries that the Delta coronavirus variant could derail the global recovery, boosting demand for the safe-haven dollar. Concerns that major central banks such as the U.S. Federal Reserve will begin tapering emergency stimulus just as growth slows has also undermined risk sentiment.Data released on Friday showed British retail sales unexpectedly fell sharply last month, but analysts said the pound was more likely to be driven by global risk sentiment than by the UK data Immediate resistance can be seen at 1.3664(38.2%fib),an upside break can trigger rise towards 1.3710 (50%fib).On the downside, immediate support is seen at 1.3597(38.2%fib), a break below could take the pair towards 1.3521(23.6%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Friday as fears that the Delta coronavirus variant could delay the global economic recovery kept investors cautious. Minutes from the Federal Reserve’s last policy meeting showed officials largely expect to reduce the central bank’s emergency monthly purchases of $120 billion of Treasury bonds and mortgage-backed securities later this year, amid a recovery in the jobs market.Focus is now on the Fed’s annual research conference in Jackson Hole, Wyoming, next week for any read about the central bank’s next steps. At 12:02 GMT, the dollar was trading 0.06 percent lower versus the Swiss franc at 0.9178.Immediate resistance can be seen at 0.9192 (23.6%fib), an upside break can trigger rise towards 0.9209 (Aug 19th high).On the downside, immediate support is seen at 0.9179(5DMA), a break below could take the pair towards 0.9146 (38.2%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Friday as rising coronavirus cases compounded concerns over Chinese growth and the outlook for U.S. stimulus. Against the backdrop of recent tapering hints from the U.S. central bank, spotlight shifts to the Fed’s annual get-together next week in Jackson Hole, Wyoming that could shed further light on monetary strategy and timeline. The dollar index , which measures its performance against six currencies, hit 93.587, its highest since early November of last year. Strong resistance can be seen at 110.00(Psychological level), an upside break can trigger rise towards 110.22(Aug 19th high).On the downside, immediate support is seen at 109.60(38.2%fib), a break below could take the pair towards 109.33(50%fib).
Equities Recap
A slide in European shares halted on Friday, although the index was still on course for its worst week since February on signs of slowing growth, rising COVID-19 cases and fears of a sooner-than-expected tapering in monetary stimulus.
At (GMT 12:02),UK's benchmark FTSE 100 was last trading down at 0.05%percent, Germany's Dax was down by 0.44 %percent, France’s CAC was last down by 0.30% percent.
Commodities Recap
Gold edged up on Friday, helped by worries over a spike in COVID-19 cases that could muddy the global economic outlook, but gains were capped as it had to compete with the dollar to attract investors seeking safe-haven assets.
Spot gold was up 0.1% at $1,781.99 per ounce by 0911 GMT and up about 0.2% on the week. U.S. gold futures were up 0.1% at $1,784.
Oil prices were down for a seventh straight session on Friday near three-month lows and heading for a weekly loss of over 6% as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand.
Brent crude futures fell 42 cents or 0.6% to $66.03 a barrel at 1042 GMT, near their lowest since May and down over 6% for the week.
U.S. West Texas Intermediate (WTI) crude futures for September, due to expire on Friday, fell 49 cents or 0.8% to $63.2 a barrel and were down over 7% for the week.