Posted at 26 August 2021 / Categories Market Roundups
Market Roundup
• German GfK Sep Consumer Climate -1.2,-0.7 forecast, -0.3 previous
•Swiss Employment Level (Q2) 5.126M,5.101M previous
•French Industrial Investments (Q3) 10.0%,10.0% previous
•French Aug Business Survey 110,109 forecast, 110 previous
•EU Private Sector Loans (YoY) 4.2%,4.0% previous
Looking Ahead –Economic Data (GMT)
•12:30 US Jobless Claims 4-Week Avg 377.75K previous
•12:30 US Continuing Jobless Claims 2,790K forecast, 2,820K previous
•12:30 US Initial Jobless Claims 350K forecast, 348K previous
•12:30 US Corporate Profits (QoQ) (Q2) 4.5% previous
•12:30 US GDP Sales (Q2) 7.7% previous
•12:30 US GDP Price Index (QoQ) (Q2) 6.0% forecast, 6.1% previous
12:30 •US GDP (QoQ) (Q2) 6.7% forecast, 6.5% previous
•12:30 US Real Consumer Spending (Q2) 11.8% previous
•14:30 Natural Gas Storage 40B forecast, 46B previous
•15:00 US Aug KC Fed Manufacturing Index 41 previous
•15:00 US KC Fed Composite Index 30 previous
• Looking Ahead - Events, Other Releases (GMT)
•13:00 Jackson Hole Symposium
•11:30 ECB Publishes Account of Monetary Policy Meeting
•15:00 ECB's Schnabel Speaks
Fxbeat
EUR/USD: The euro edged higher dollar on Thursday as investors awaited European Central Bank meeting minutes. Investors will be focused on European Central Bank speakers, including board member Isabel Schnabel who is due to speak at a roundtable at 1500 GMT. The minutes of the ECB's July meeting will also be released later in the day. The dollar index, which measures the currency against six rivals, edged up 0.12% to 92.933 after dropping to 92.801 for the first time since Aug. 17. The euro was last up 0.02% at $1.1772 . 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: Britain’s pound steadied against the dollar on Thursday, consolidating gains made on the back of a risk-led recovery this week that saw it relcaim the $1.37 level. Sterling has traded largely in line with global risk sentiment in financial markets in recent weeks, tracking the direction of world stock markets higher or lower. While concerns about the Delta variant have rattled stocks, higher commodity prices have helped put a floor under riskier, growth-correlated currencies, including the pound. On Thursday, sterling was 0.1% lower to the dollar at $1.3739 by 0809 GMT, having made gains of 1% against the greenback this week. Immediate resistance can be seen at 1.3768(50%fib),an upside break can trigger rise towards 1.3829 (61.8%fib).On the downside, immediate support is seen at 1.3707(38.2%fib), a break below could take the pair towards 1.3606(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as dollar was supported by U.S. Treasury yields holding above 1.34% in a quiet market where focus was firmly trained on what signals the Federal Reserve might send at its annual Jackson Hole conference. The conference kicks off later in the day in virtual format but the main event is Fed boss Jerome Powell’s speech on Friday where he is widely expected to signal when the central bank could start unwinding its monetary stimulus.. Immediate resistance can be seen at 0.9178 (Daily high), an upside break can trigger rise towards 0.9201 (23.6%fiib).On the downside, immediate support is seen at 0.9156(38.2%fib), a break below could take the pair towards 0.9113(50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as market focus turned Jackson Hole conference. Fed Chair Jerome Powell is scheduled to speak at the annual economic symposium at Wyoming on Friday, and investors will look for any hints about whether and when the Federal Reserve plans to taper its economic support measures, with the Delta coronavirus variant still a concern. Markets are assessing how the Fed will react to signs inflation could be less transitory than it had flagged and whether it will stick to its new policy framework of letting inflation run hot.. 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 109.78(38.2%fib), a break below could take the pair towards 109.49 (50%fib).
Equities Recap
European shares headed lower on Thursday after data outlined faltering German consumer morale as COVID-19 cases surge, while worries about monetary policy outlook further dented the mood.
At (GMT 10:35),UK's benchmark FTSE 100 was last trading down at 0.44%percent, Germany's Dax was down by 0.69 % percent, France’s CAC was last down by 0.45% percent.
Commodities Recap
Gold extended losses into a third day on Thursday as the dollar and U.S. Treasury yields gained, and many investors held back, awaiting the next day’s speech from the Fed Chair at Jackson Hole for clues on a strategy for tapering economic support.
Spot gold fell 0.3% to $1,784.86 per ounce by 0913 GMT, after failing to capitalize on its break above the key psychological $1,800 level this week.U.S. gold futures edged 0.3% lower to $1,786.00.
Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as Mexico restored some oil production.
Brent crude was down 71 cents, or 1%, at $71.54 a barrel by 0939 GMT, having risen 1.7% on Wednesday.
U.S. West Texas Intermediate oil was down 78 cents, or 1.15%, at $67.58 a barrel, after gaining 1.2% in the previous session.