Posted at 25 August 2021 / Categories Market Roundups
Market Roundup
•German Aug Ifo Business Climate Index 99.4,100.4 forecast, 100.8 previous
•German Aug Current Assessment 101.4, 100.8 forecast, 100.4 previous
•German Aug Business Expectations 97.5,100.0 forecast, 101.2 previous
•Swiss Aug ZEW Expectations -7.8,42.8 previous
•UK Aug CBI Distributive Trades Survey 20 forecast, 23 previous
Looking Ahead –Economic Data (GMT)
•12:30 Canada Wholesale Sales (MoM) -0.8% previous
•12:30 US Jul Goods Orders Non Defense Ex Air (MoM) 0.5% forecast, 0.7% previous
•12:30 US Jul Durable Goods Orders (MoM) -0.3% forecast, 0.9% previous
•12:30 US Jul Core Durable Goods Orders (MoM) 0.5% forecast, 0.5% previous
•12:30 US Jul Durables Excluding Defense (MoM) 1.1% previous
•14:30 US Crude Oil Inventories -2.683M forecast, -3.234M previous
• Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as investors were holding off from any big bets ahead of the U.S. Federal Reserve’s annual symposium on Friday. After last week’s drop, euro has recovered slightly as investor nerves over a possible pullback in Federal Reserve stimulus and a slowing economic rebound have eased. On the data front, German business morale fell for the second month running in August, as supply bottlenecks and rising COVID-19 cases drove companies to take a dimmer view of the coming months in Europe's largest economy, a survey showed on Wednesday. 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 was little changed on Wednesday, lacking direction as investors waited for the Federal Reserve's annual economic symposium on Friday to give new momentum to the dollar.Risk appetite was mixed, with riskier currencies such as the British pound supported by higher commodity prices at the start of the week, but any gains limited by concerns about the Delta variant of COVID-19. Market attention is focused on Friday's Jackson Hole conference, at which some investors expect Chair Jerome Powell to give hints about tapering the Fed's bond-buying schemeAt 0735 GMT, the pound was down 0.1% against the dollar at $1.3717 . 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/CHF: The dollar was little changed against the Swiss franc on Wednesday amid concerns that the highly contagious Delta coronavirus variant could derail a global economic recovery. Risk appetite in global markets has improved since the U.S. Food and Drug Administration granted full approval to the COVID-19 vaccine developed by Pfizer and BioNTech in a move that could accelerate U.S. inoculations. The dollar index, which tracks the currency against six rivals, edged up 0.07% to 92.981, after dipping to 92.804 the previous day for the first time since Aug. 17. Immediate resistance can be seen at 0.9143 (38.2%fib), an upside break can trigger rise towards 0.9156 (9DMA).On the downside, immediate support is seen at 0.9107(50%fib), a break below could take the pair towards 0.9072(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as combination of positive COVID-19 vaccine news and easing worries over tapering of Federal Reserve stimulus supported greenback. On Friday, the Federal Reserve will have its annual economic symposium, traditionally held at Jackson Hole, though this year it will take place virtually due to the spread of COVID-19 in the county. The focus remains squarely on Fed Chair Jerome Powell’s remarks at the event for any clues regarding the timeline for Fed’s tapering of asset purchases, an issue that has buffeted financial markets in recent months. 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 edged higher on Wednesday, with gains in travel stocks offsetting weak German business sentiment data, while global markets were range-bound ahead of a policy update from the U.S. Federal Reserve later this week.
At (GMT 11:17),UK's benchmark FTSE 100 was last trading up at 0.15 %percent, Germany's Dax was down by 0.21 % percent, France’s CAC was last up by 0.20% percent.
Commodities Recap
Gold prices rose on Monday after the U.S. dollar retreated from multi-month highs, while investor concerns that the Delta coronavirus variant could dampen the pace of global economic recovery also lifted bullion’s safe-haven appeal.
Spot gold rose 0.2% to $1,785.00 per ounce by 0657 GMT, while U.S. gold futures were up 0.2% at $1,786.50.
Oil prices steadied near $71 a barrel, taking a breather after a strong rally in recent days as Mexico was set to resume crude production following a major outage.