Posted at 26 August 2021 / Categories Market Roundups
Market Roundup
•Canada Wholesale Sales (MoM) -2.0%, -0.8% previous
•US Jul Goods Orders Non Defense Ex Air (MoM) 0.0%,0.5% forecast, 0.7% previous
•US Jul Durable Goods Orders (MoM) -0.1%, -0.3% forecast, 0.9% previous
•US Jul Core Durable Goods Orders (MoM) 0.7%, 0.5% forecast, 0.5% previous
•US Jul Durables Excluding Defense (MoM) -1.2%,1.1% previous
•US Crude Oil Inventories -2.979M ,-2.683M forecast, -3.234M previous
Looking Ahead –Economic Data (GMT)
• 01:30 Australia Building Capital Expenditure (MoM) (Q2) 3.8% previous
•01:30 Australia Private New Capital Expenditure (QoQ) (Q2) 2.5%forecast,6.3% previous
•01:30 Australia Plant/Machinery Capital Expenditure (QoQ) (Q2) 9.1% previous
• Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Wednesday as investors sought cues on the timeline of monetary tapering from the U.S. Federal Reserve’s symposium this week. Powell’s speech at the Fed’s symposium in Wyoming on Aug. 27, which had to be moved online because of virus-related concerns, could shed more light on the timeline for withdrawing stimulus, with some still betting on a less dovish stance. The dollar index , which measures the U.S. currency against a basket of six major trading currencies, was higher in early trading, then eased 0.06% to 92.8550. The euro gained 0.09% at $1.1771. 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 scheme. 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 edged lower against its U.S. counterpart on Wednesday, clawing back some earlier gains as oil prices slowed after a big two-day advance, while investors awaited clues on the tapering of economic support by the Federal Reserve at this week's Jackson Hole symposium. Oil prices rose more than 1% for a third session of gains, after U.S. data showed fuel demand climbed to its highest since the start of the pandemic. The Canadian dollar was down 0.03 percent at 1.2592 to the greenback. Immediate resistance can be seen at 1.2627 (11DMA), an upside break can trigger rise towards 1.2691(38.2%fib).On the downside, immediate support is seen at 1.2571 (50%fib), a break below could take the pair towards 1.2510(50 DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as oil prices slowed after a big two-day advance, U.S. Treasury yields moved higher and investors awaited clues on the tapering of economic support by the Federal Reserve at this week's Jackson Hole symposium. Focus has turned to Jackson Hole and what Fed Chair Jerome Powell may say about tapering the U.S. central bank's stimulative bond-buying program when he speaks on Friday. Markets expect Powell to sound dovish and echo concerns last week by Robert Kaplan, the Dallas Fed president, who said he might reconsider the start to tapering due to the Delta variant of the coronavirus Strong resistance can be seen at 110.15(23.6%fib), an upside break can trigger rise towards 110.57(Higher BB).On the downside, immediate support is seen at 109.82(38.2%fib), a break below could take the pair towards 109.52 (50%fib).
Equities Recap
European stocks ended unchanged on Wednesday as losses in Italian utilities outweighed gains in travel and bank stocks, while global markets were range-bound ahead of a policy update from the U.S. Federal Reserve this week.
UK's benchmark FTSE 100 closed up by 0.34 percent, Germany's Dax ended down by 0.28percent, France’s CAC finished the day up by 0.18 percent.
Wall Street advanced on Wednesday, with chipmakers and financials setting the S&P 500 and the Nasdaq on course to once again cinch all-time closing highs as investors look to the upcoming Jackson Hole Symposium for clues regarding the Federal Reserve's timeline for policy tightening.
Dow Jones closed up by 0.11% percent, S&P 500 closed up by 0.22% percent, Nasdaq settled up by 0.15% percent.
Treasuries Recap
U.S. Treasury yields rose to almost two-week highs on Wednesday ahead of a speech later in the week by Federal Reserve Chair Jerome Powell that will be scoured for any new clues on when the U.S. central bank is likely to begin paring bond purchases.
In choppy trading, benchmark 10-year yields gained six basis points to 1.349%, the highest since Aug. 13
Commodities Recap
Gold retreated over 1% on Wednesday, sliding further below the $1,800 level as the dollar ticked higher and investors hoped for a timeline for the tapering of economic support from the U.S. Federal Reserve at this week’s Jackson Hole symposium.
Spot gold slipped 0.8% to $1,788.90 per ounce by 1:46 pm EDT (1746 GMT), while U.S. gold futures settled down 1% at $1,791 an ounce.
Oil prices rose more than 1% on Wednesday, extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic.
Brent crude rose $1.20, or 1.7%, to settle at $72.25 a barrel. U.S. West Texas Intermediate (WTI) crude gained 82 cents, or 1.2%, to end at $68.36 a barrel.