Posted at 26 August 2021 / Categories Market Roundups
Market Roundup
•US Jobless Claims 4-Week Avg 366.50K, 377.75K previous
•US Continuing Jobless Claims 2,862K,2,790K forecast, 2,820K previous
•US Initial Jobless Claims 353K,350K forecast, 348K previous
•US Corporate Profits (QoQ) (Q2) 9.7%,4.5% previous
•US GDP Sales (Q2) 7.9%,7.7% previous
•US GDP Price Index (QoQ) (Q2) 6.2%, 6.0% forecast, 6.1% previous
•US GDP (QoQ) (Q2) 6.6%,6.7% forecast, 6.5% previous
•US Real Consumer Spending (Q2) 11.9%,11.8% previous
• US Natural Gas Storage 29B,40B forecast, 46B previous
•US Aug KC Fed Manufacturing Index 22, 41 previous
•US KC Fed Composite Index 29 ,30 previous
Looking Ahead –Economic Data (GMT)
• 01:30 Chinese Jul Industrial profit (YoY) 20.00% previous
• 01:30 Chinese Jul Chinese Industrial profit YTD 66.9% previous
• 01:30 Australia Jul Retail Sales (MoM) -2.3% forecast, -1.8% previous
• Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher dollar on Thursday as caution kicked in ahead of a major U.S. Federal Reserve summit. Powell is due to speak on Friday at the Federal Reserve’s annual Jackson Hole, Wyoming, policy symposium, which is being held virtually due to the spread of coronavirus cases in the region. Investors are keenly eying Fed Chair Jerome Powell’s speech during Friday’s symposium, on the heels of suggestions from St. Louis Fed President James Bullard that the U.S. central bank should end bond buying by early next year.The euro was last up 0.04% at $1.1756. 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. 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 1.3686(Daily low), a break below could take the pair towards 1.3606(23.6%fib).
USD/CAD: The Canadian dollar declined against its U.S. counterpart on Thursday as stronger dollar and lower oil prices weighed on Canadian dollar. Oil fell 1% on Thursday as renewed concerns about demand due to rising COVID-19 infections cut short a three-day rally, and as Mexico restored some oil production after a fire disrupted supplies. The Canadian dollar was trading 0.03% lower at 1.2681 to the greenback . It touched its weakest intraday level since Aug 23rd .Immediate resistance can be seen at 1.2688(38.2%fib), an upside break can trigger rise towards 1.2791 (Higher BB).On the downside, immediate support is seen at 1.2642 (5 DMA), a break below could take the pair towards 1.2571 (50%fib).
USD/JPY: The dollar was little changed 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 ended lower on Thursday after data showed faltering German consumer morale amid rising COVID-19 cases, while investors fretted over U.S. monetary policy ahead of the Jackson Hole symposium.
UK's benchmark FTSE 100 closed down by 0.35 percent, Germany's Dax ended down by 0.42 percent, France’s CAC finished the day down by 0.16 percent.
Wall Street lost ground on Thursday, ending a streak of all-time closing highs on concerns over developments in Afghanistan, while fears of a potential shift in U.S. Federal Reserve policy prompted a broad but shallow sell-off the day before the Jackson Hole Symposium.
Dow Jones closed down by 0.54%percent, S&P 500 closed down by 0.58% percent, Nasdaq settled down by 0.64 % percent.
Commodities Recap
Gold prices stabilised after a sharp retreat on Thursday, taking a firmer dollar in its stride as investors looked forward to the U.S. Federal Reserve’s stance on tapering economic support at its Jackson Hole symposium.
Spot gold rose 0.1% to $1,792.01 per ounce by 1:38 p.m. EDT (1738 GMT). U.S. gold futures settled up 0.2% at $1,795.20.
Oil settled lower on Thursday, snapping a three-day rally on renewed concerns over demand due to rising COVID-19 infections and as Mexico restored some output after a fire disrupted supplies.
Brent crude settled down $1.18, or 1.6%, at $71.07 a barrel. U.S. West Texas Intermediate oil settled down 94 cents, or 1.4% at 67.42 a barrel.