Posted at 24 August 2021 / Categories Market Roundups
Market Roundup
• US Redbook (YoY) 16.6%,15.0% previous
• US Corporate Profits (QoQ) 18.1% previous
• US New Jul Home Sales (MoM) 1.0%,3.0% forecast, -6.6% previous
• US Richmond Aug Manufacturing Shipments 6 ,21 previous
• US Richmond Aug Services Index 15,19 previous
• US Richmond Aug Manufacturing Index 9,27 previous
• US Aug New Home Sales 708K, 700K forecast, 676K previous
Looking Ahead –Economic Data (GMT)
•5:20 Japan Foreign Bonds Buying 661.8B previous
•5:20 Japan Foreign Investments in Japanese Stocks 198.8B previous
•5:20 Japan Corporate Services Price Index (CSPI) (YoY) 1.4% previous
•07:00 Australia Plant/Machinery Capital Expenditure (QoQ) (Q2) 9.1% previous
•07:00 Australia Private New Capital Expenditure (QoQ) (Q2) 2.5% forecast, 6.3% previous
•07:00 Australia Building Capital Expenditure (MoM) (Q2) 3.8% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Tuesday as upbeat German GDP data supported euro. The German economy grew more than expected in the second quarter as the easing of COVID-19 curbs spurred consumers to dip into record savings piled up during the winter lockdown and the state pressed on with a huge debt-financed stimulus push. Gross domestic product grew an adjusted 1.6% on the quarter, the Federal Statistic Office said on Tuesday, up from its previous estimate of 1.5% and following a revised first quarter contraction of 2%. The euro was up 0.08% at $1.1752. Immediate resistance can be seen at 1.1792(50%fib), an upside break can trigger rise towards 1.1845 (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 traded flat against the dollar on Tuesday, holding most gains made against the greenback on the back of a risk rebound at the start of the week that saw the British currency bounce nearly 1%.The pound has traded roughly in line with risk sentiment in global markets, and a recovery in world stock markets on Monday helped give it a leg up after a nearly 2% loss last week its worst in two months.By 22:30 GMT on Tuesday, sterling was flat against the dollar at $1.3723 , holding on to its Monday bounce. Immediate resistance can be seen at 1.3733(50%fib),an upside break can trigger rise towards 1.3793 (61.8%fib).On the downside, immediate support is seen at 1.3673(38.2%fib), a break below could take the pair towards 1.3595(23.6%fib).
USD/CAD Canadian dollar strengthened against its U.S. counterpart on Tuesday as weaker dollar and higher oil prices helped boost the Canadian dollar. Brent crude oil futures added 3% after rallying more than 5% on Monday, as a weaker dollar and strong global equities markets boosted crude following seven sessions of declines. Market attention is focused on the Federal Reserve's Jackson Hole conference on Friday, at which some investors expect Fed Chair Jerome Powell to hint on a possible timeline for tapering the U.S. central bank's bond-buying monetary stimulus. Immediate resistance can be seen at 1.2643(9DMA), an upside break can trigger rise towards 1.2692 (38.2%fib).On the downside, immediate support is seen at 1.2568 (50%fib), a break below could take the pair towards 1.2463(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday after data showed U.S. new home sales increased in July. Sales of new U.S. single-family homes increased in July, but housing market momentum is slowing amid surging prices that are being driven by an acute shortage of properties on the market. New home sales rose 1.0% to a seasonally adjusted annual rate of 708,000 units last month, the Commerce Department said on Tuesday. June’s sales pace was revised up to 701,000 units from the previously reported 676,000 units. Strong resistance can be seen at 109.96(23.6%fib), an upside break can trigger rise towards 110.25(19th Aug high).On the downside, immediate support is seen at 109.61(38.2%fib), a break below could take the pair towards 109.35 (50%fib).
Equities Recap
European stocks ended flat on Tuesday as investors held back from making big bets ahead of an update on U.S. monetary policy, even as data outlined a stronger-than-expected economic recovery in Germany.
UK's benchmark FTSE 100 closed up by 0.24 percent, Germany's Dax ended up by 0.33 percent, France’s CAC finished the day down by 0.28 percent.
Wall Street ended higher in a late-summer, light volume rally on Tuesday as the FDA’s full approval of a COVID-19 vaccine on Monday and the absence of negative catalysts kept risk appetite alive ahead of the much-anticipated Jackson Hole Symposium.
Dow Jones closed up by 0.09% percent, S&P 500 closed up by 0.15% percent, Nasdaq settled up by 0.52% percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday as investors waited on comments on Friday by Federal Reserve Chair Jerome Powell for any new indications on when the central bank is likely to begin paring bond purchases.
Benchmark 10-year yields rose three and a half basis points to 1.290%. The yields are in a range after falling from a one-month high of 1.379% on Aug. 12, while holding above a six-month low of 1.127% reached earlier this month.
Commodities Recap
Gold consolidated above $1,800 on Tuesday as some investors bet the recent surge in COVID-19 cases could steer the U.S. Federal Reserve away from announcing at its Jackson Hole symposium that it plans to taper its economic support.
Spot gold was steady at $1,804.99 per ounce by 1:47 p.m. EDT (1747 GMT), having earlier hit its highest since Aug. 5. U.S. gold futures settled up 0.1% at $1,808.90.
Oil prices rose 3% on Tuesday, supported after Mexico suffered a large production outage due to a fire on an oil platform and also by full U.S. regulatory approval of vaccines for COVID-19.
Brent crude oil futures settled up $2.30, or 3.4%, at $71.05 a barrel, while U.S. West Texas Intermediate (WTI) gained $1.90, or 2.9%, to settle at $67.54.