Posted at 23 August 2021 / Categories Market Roundups
Market Roundup
• US Chicago Jul Fed National Activity 0.53,0.09 previous
•French 6-Month BTF Auction -0.691%,-0.672% previous
•French 3-Month BTF Auction -0.649%,-0.648% previous
•US Aug Manufacturing PMI 61.2,62.8 forecast, 63.4 previous
•US Aug Services PMI 55.2,59.4 forecast, 59.9 previous
•US Aug Markit Composite PMI 55.4,58.3 forecast, 59.9 previous
•US Jul Existing Home Sales (MoM) 2.0%,1.4% previous
•US Jul Existing Home Sales 5.99M,5.81M forecast, 5.86M previous
• EU Aug Consumer Confidence -5.3. -5.0 forecast, -4.4 previous
Looking Ahead –Economic Data (GMT)
•05:00 Japan BoJ Core CPI (YoY) 0.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
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 1.1788(50%fib), an upside break can trigger rise towards 1.1847 (61.8%fib).On the downside, immediate support is seen at 1.1734(38.2%fib), a break below could take the pair towards 1.1665 (23.6%fib)
GBP/USD: Sterling edged up against the dollar on Monday as risk sentiment across markets recovered somewhat after jitters over global growth sparked a broad selloff last week. The pound gained 0.7% against the broadly weaker dollar, taking it back above $1.37, after it swung 1.8% lower the previous week. Sterling was coming off its worst week in two months against both currencies, amid concerns the Delta coronavirus variant could derail the global recovery and worries major central banks will quickly taper emergency stimulus. Immediate resistance can be seen at 1.3736(50%fib),an upside break can trigger rise towards 1.3787 (61.8%fib).On the downside, immediate support is seen at 1.3675(38.2%fib), a break below could take the pair towards 1.3592(23.6%fib).
USD/CAD: The Canadian dollar rose against its U.S. counterpart on Monday as higher oil prices and weaker dollar boosted Canadian dollar across the board. Oil prices rose more than 5% after seven days of declines. Brent crude climbed $3.57, or 5.5%, to settle at $68.75 a barrel after touching its lowest since May 21 at $64.60 during the session. U.S. West Texas Intermediate (WTI) crude for October delivery rose $3.50, or 5.6%, to settle at $65.64.Last week, both crude benchmarks marked their biggest weekly declines in more than nine months, with Brent sliding about 8% and WTI about 9%. Immediate resistance can be seen at 1.2752 (38.2%fib), an upside break can trigger rise towards 1.2831 (Daily high).On the downside, immediate support is seen at 1.2632 (50%fib), a break below could take the pair towards 1.2603(14 DMA).
USD/JPY: The dollar declined against the Japanese yen on Monday as markets embraced a risk-on mood with weak data suggesting the Federal Reserve is unlikely to quickly remove its accommodative monetary stance. Now, investors are less confident Fed Chair Jerome Powell’s speech at Jackson Hole this week will indicate a timeline for winding down the Fed’s bond-buying program. The dollar index, which measures the currency’s performance against a basket of six major currencies, fell 0.516% to 92.999. Strong resistance can be seen at 109.89(14DMA), an upside break can trigger rise towards 110.00(Psychological level).On the downside, immediate support is seen at 109.62(38.2%fib), a break below could take the pair towards 109.32 (50%fib).
Equities Recap
European stocks recovered from their biggest weekly loss in nearly six months on Monday, helped by mining and oil stocks as commodity prices bounced back from steep losses driven by uncertainty over U.S. monetary policy and rising COVID-19.
UK's benchmark FTSE 100 closed up by 0.30 percent, Germany's Dax ended up by 0.28 percent, France’s CAC finished the day up by 0.86 percent.
Wall Street rallied on Monday, and the Nasdaq reached an all-time closing high as sentiment was boosted by full FDA approval of a COVID-19 vaccine and market participants looked ahead to the Jackson Hole Symposium expected to convene later this week.
Dow Jones closed up by 0.61% percent, S&P 500 closed up by 0.85% percent, Nasdaq settled up by 1.55 % percent.
Treasuries Recap
U.S. Treasury yields ended marginally lower on Monday in light trading volumes as investors waited on comments from Federal Reserve Chair Jerome Powell on Friday for any new clues on when the U.S. central bank may begin paring bond purchases.
Benchmark 10-year yields fell less than a basis point on the day to 1.253%.
Commodities Recap
Gold vaulted over the key $1,800 psychological level on Monday as a retreat in the dollar pushed investors to bullion, with rising coronavirus cases driving expectations that the U.S. Federal Reserve might delay tapering of economic support.
Spot gold jumped 1.3% to $1,803.29 at 1:35 p.m. EDT (1735 GMT), after scaling its highest since Aug. 5 at $1,806.23.U.S. gold futures settled up 1.3% at $1,806.3 per ounce.
Oil prices rose more than 5% on Monday, as a weaker dollar and strong global equities markets boosted crude futures after seven sessions of declines.
Brent crude climbed $3.57, or 5.5%, to end the session at $68.75 a barrel after touching its lowest since May 21 at $64.60 during the session.
U.S. West Texas Intermediate (WTI) crude for October delivery rose $3.50, or 5.6%, to settle at $65.64.