Posted at 23 August 2021 / Categories Market Roundups
Market Roundup
•French Aug Services PMI 56.4, 57.0 forecast, 56.8 previous
•French Aug Markit Composite PMI 55.9, 56.5 forecast, 56.6 previous
•French Aug Manufacturing PMI 57.3,57.3 forecast, 58.0 previous
•German Aug Manufacturing PMI 62.7, 65.0 forecast, 65.9 previous
• German Aug Services PMI 61.5, 61.0 forecast, 61.8 previous
• EU Aug Markit Composite PMI 59.5, 59.7 forecast, 60.2 previous
• EU Aug Services PMI 59.7,59.8 forecast, 59.8 previous
•UK Aug Manufacturing PMI 60.1, 60.4 previous
•UK Aug CBI Industrial Trends Orders 18,16 forecast, 17 previous
Looking Ahead –Economic Data (GMT)
• 12:30 Chicago Jul Fed National Activity 0.09 previous
•13:00 French 6-Month BTF Auction -0.672% previous
•13:00 French 3-Month BTF Auction -0.648% previous
•13:45 US Aug Manufacturing PMI 62.8 forecast, 63.4 previous
•13:45 US Aug Services PMI 59.4 forecast, 59.9 previous
•13:45 US Aug Markit Composite PMI 58.3 forecast, 59.9 previous
•13:45 US Jul Existing Home Sales (MoM) 1.4% previous
•14:00 US Jul Existing Home Sales 5.81M forecast, 5.86M previous
•14:00 US Aug Consumer Confidence -5.0 forecast, -4.4 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened dollar on Monday as world stocks rebounded from last week’s sell off and a closely watched gauge of business activity suggested that the bloc’s economy is holding up well and price pressures are rising.IHS Markit’s euro zone Flash Composite Purchasing Managers’ Index, seen as a good guide to economic health, fell to 59.5 in August from 60.2 last month, but remained well above the 50-mark separating growth from contraction. The survey also showed that supply chain disruption continued to push up firms’ costs a development that could mean a pick up in inflation, widely viewed as transitory by major central banks including the ECB - could last longer than anticipated. Immediate resistance can be seen at 1.1734(38.2%fib), an upside break can trigger rise towards 1.1792 (50%fib).On the downside, immediate support is seen at 1.1698(5DMA), a break below could take the pair towards 1.1665 (23.6%fib)
GBP/USD: Sterling edged up against the dollar and was flat against the euro on Monday as risk sentiment across markets recovered somewhat after jitters over global growth sparked a broad selloff last week. Concerns that the Delta coronavirus variant could derail the global recovery and worries major central banks will taper emergency stimulus sooner boosted the safe haven dollar last week at the expense of most major rival currencies. The pound clawed backs some of its lost ground against the dollar on Monday, gaining a third of a percent, but was still pinned below $1.37. Sterling had swung 1.8% lower against the dollar last week. Immediate resistance can be seen at 1.3663(50%fib),an upside break can trigger rise towards 1.3691 (5DMA).On the downside, immediate support is seen at 1.3602(38.2%fib), a break below could take the pair towards 1.3526(23.6%fib).
USD/CHF: The dollar initially strengthened against the Swiss franc on Monday but gave up ground as some doubts about the course of U.S. monetary policy triggered profit-taking. The dollar index hit a nine-month high last week, climbing nearly 5% from May lows, as investors firmed up bets the U.S. Federal Reserve will start scaling back pandemic-era stimulus policies ahead of Europe and Japan.But Dallas Federal Reserve President Robert Kaplan, a well-known hawk, dented those expectations on Friday, saying he might reconsider the need for an early start to tapering if the virus harms the economy.Immediate resistance can be seen at 0.9192 (23.6%fib), an upside break can trigger rise towards 0.9209 (19th Aug).On the downside, immediate support is seen at 0.9161(5DMA), a break below could take the pair towards 0.9145(38.2%fib).
USD/JPY: The dollar strengthen against the Japanese yen on Monday as safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy. Markets will be paying attention to Fed Chair Jerome Powell's speech at Jackson Hole this week, although investors looking for clear indications about tapering may be disappointed. Fed Chair Jerome Powell will discuss the economic outlook at the central bank’s Jackson Hole Aug.26-28 conference, in a speech that will be carefully parsed by traders eager for clues about the timing and pace of policy tightening. Strong resistance can be seen at 110.22(23.6%fib), an upside break can trigger rise towards 110.45(13th Aug high).On the downside, immediate support is seen at 109.88(38.2%fib), a break below could take the pair towards 109.56 (50%fib).
Equities Recap
European stocks rose on Monday after a bruising sell-off last week on global growth worries, with a rebound in luxury stocks and M&A speculation related to British supermarket chains supporting the main indexes..
At (GMT 11:38),UK's benchmark FTSE 100 was last trading up at 0.40 %percent, Germany's Dax was up by 0.28 % percent, France’s CAC finished was up by 0.93% percent.
Commodities Recap
Gold climbed higher on Monday as the dollar pulled back, while lingering fears of possible roadblocks to global economic growth from rising Delta coronavirus cases worldwide also supported prices.
Spot gold was up 0.5% at $1,789.20 per ounce by 1058 GMT, while U.S. gold futures gained 0.4% to $1,791.10.
Oil prices jumped 3% on Monday, recovering from a seven-day losing streak, with gains driven by a weaker dollar despite demand concerns stoked by rising cases of the Delta coronavirus variant.
Brent crude climbed $2.08, or 3%, to $67.26 a barrel by 1052 GMT after touching its lowest since May 21 at $64.60.
U.S. West Texas Intermediate (WTI) crude for October delivery rose $1.90, or 3%, to $64.04.