Posted at 21 August 2021 / Categories Market Roundups
Market Roundup
• Canada Jul New Housing Price Index (MoM) 0.4%,0.6% previous
• Canada Jun Core Retail Sales (MoM) 4.7%,4.6% forecast, -2.0% previous
• Canada Jun Retail Sales (MoM) 4.2%,4.4% forecast, -2.1% previous
• U.S. Baker Hughes Oil Rig Count 405,387 previous
• U.S. Baker Hughes Total Rig Count 503, 491 previous
Looking Ahead –Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Friday as rising concerns about COVID-19 variants and incresaing volatility in the stock market boosted demand for euro. Focus next week will be on the high-profile annual U.S. Jackson Hole central bankers’ conference, where Fed Chair Jerome Powell could signal he is ready to start easing monetary support. The euro was higher at $1.1699, but still near the 9-1/2-month low of $1.1665 reached overnight. It is down nearly 1% this week, the most since mid-June. Immediate resistance can be seen at 1.1713(5DMA), an upside break can trigger rise towards 1.1732(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 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 have also undermined risk sentiment. 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/CAD: The Canadian dollar weakened to its lowest level in eight months against the greenback on Friday and was on track for its biggest weakly decline since March 2020 as the prospect of a slowing global economic recovery weighed on investor sentiment. Global shares fell for a fifth straight day and the U.S. dollar remained firm in a flight to safety as rising coronavirus cases compounded concerns over Chinese growth and the outlook for U.S. stimulus. U.S. crude oil futures fell for a seventh day, down 1.9% at $62.50 a barrel, while the Canadian dollar weakened 0.6% to 1.2902 per greenback .Immediate resistance can be seen at 1.2842(38.2%fib), an upside break can trigger rise towards 1.2955 (23.6%fib).On the downside, immediate support is seen at 1.2745 (50%fib), a break below could take the pair towards 1.2699 (5 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Friday as risk appetite improved with equities gaining and benchmark Treasury yields higher. The U.S currency remained supported overall by concerns that the coronavirus Delta variant could derail global economic recovery just as central banks begin to reverse COVID-19 pandemic-related stimulus. 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
European shares edged higher on Friday as Marks & Spencer lifted retailers, but the benchmark STOXX 600 still marked its worst week since February on signs of slowing economic growth and rising COVID-19 cases.
UK's benchmark FTSE 100 closed up by 0.41 percent, Germany's Dax ended up by 0.27 percent, France’s CAC finished the day up by 0.31 percent.
Wall Street rallied to close sharply higher on Friday, closing a tumultuous week on easing concerns over whether the U.S. Federal Reserve could begin tightening its dovish monetary policy sooner than expected.
Dow Jones closed up by 0.65%percent, S&P 500 closed up by 0.81% percent, Nasdaq settled up by 1.19 % percent.
Treasuries Recap
U.S. Treasury yields edged higher on the day but closed lower on the week on Friday as concerns about the spread of COVID-19 variants and rising volatility in the stock market boosted demand for the safe haven debt.
Benchmark 10-year yields rose two basis points on the day to 1.260%, but are down from 1.283% last week. They fell to 1.127% earlier this month, which was the lowest since February.
Commodities Recap
Gold was little changed on Friday, with gains curbed by a stronger dollar, while growing concerns over a global economic slowdown due to a spike in COVID-19 infections underpinned the safe-haven metal.
Spot gold was up 0.1% at $1,782.45 per ounce by 1:56 p.m. EDT (1756 GMT). U.S. gold futures settled up 0.1% at $1,784 per ounce.
Oil prices closed out their biggest week of losses in more than nine months with another down day on Friday, as investors sold futures in anticipation of weakened fuel demand worldwide due to a surge in COVID-19 cases.
Brent crude fell 8% on the week, settling down $1.27, or 1.9%, to $65.18 a barrel, its lowest since April and down about 8% for the week. U.S. West Texas Intermediate (WTI) crude for September settled down $1.37, or 2.2%, to $62.32 a barrel on Friday, to lose more than 9% for the week.