Posted at 01 September 2021 / Categories Market Roundups
Market Roundup
•US Aug ADP Nonfarm Employment Change 374K,613K forecast, 330K previous
• Canada Aug Manufacturing PMI 57.2,56.2 previous
•US Aug Manufacturing PMI 61.1,61.2 previous
•US Aug ISM Manufacturing New Orders Index 66.7,64.9 previous
•US Aug ISM Manufacturing PMI 59.9, 58.6 forecast, 59.5 previous
•US Aug ISM Manufacturing Employment 49.0,52.9 previous
•US Jul Construction Spending (MoM) 0.3%,0.2% forecast, 0.1% previous
•US Crude Oil Inventories-7.169M,-3.088M, -2.979M previous
Looking Ahead Economic Data
•22:40 New Zealand Terms of Trade - Imports Prices (Q2) 1.8% forecast, -0.8% previous
•22:40 New Zealand Terms of Trade - Exports Prices (Q2) 3.0% forecast, -0.8% previous
• 23:50 Japan Foreign Bonds Buying -183.0B previous
• 23:50 Japan Foreign Investments in Japanese Stocks-550.6B previous
•01:30 Australia Jul Imports (MoM) 1% previous
•01:30 Australia Jul Trade Balance 10.200B forecast, 10.496B previous
•01:30 Australia Home Loans (MoM) -2.5% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 japan BoJ Board Member Kataoka Speaks
Currency Summaries
EUR/USD: The euro rose against the greenback to a one-month high on Wednesday as inflation worries persisted following data on Tuesday which showed euro zone inflation increased in August. German Bundesbank President Jens Weidmann said euro zone inflation risks overshooting ECB projections and the central bank should prepare for the end of its 1.85 trillion euro Pandemic Emergency Purchase Program (PEPP).The ECB is scheduled to hold a policy meeting on Sept. 9. Immediate resistance can be seen at 1.1821(38.2%fib), an upside break can trigger rise towards 1.1839(Higher BB).On the downside, immediate support is seen at 1.1789 (50%fib), a break below could take the pair towards 1.1758 (61.8%fib)
GBP/USD: Sterling rose towards a two-week high versus the dollar on Wednesday, benefiting from a fall in the U.S. currency as investors bought into riskier assets.The pound is taking it cue from other currencies this week, which is light on data and Bank of England speakers. It was last trading at $1.3784, up 0.3% on the day and just below two-week highs reached on Tuesday of $1.3807. The greenback extended its drop on Wednesday as investors turned more bullish, buying equities and selling currencies such as the dollar which are viewed as safe havens. Immediate resistance can be seen at 1.3781(21DMA),an upside break can trigger rise towards 1.3809 (38.2%fib).On the downside, immediate support is seen at 1.3725(23.6%fib), a break below could take the pair towards 1.3615(Lower BB).
USD/CAD: The Canadian dollar was little changed against its broadly weaker U.S. counterpart on Wednesday as investors awaited further clues on the timing of the Federal Reserve's asset purchase tapering. Fed Chair Jerome Powell told the central bank's annual Jackson Hole symposium on Friday that tapering of stimulus could start this year but its timing should not be construed as a signal for when interest rates will begin to rise. The loonie was trading nearly unchanged at 1.2618 to the greenback, after trading in a range of 1.2580 to 1.2637.Immediate resistance can be seen at 1.2621(5DMA), an upside break can trigger rise towards 1.2686 (38.2%fib).On the downside, immediate support is seen at 1.2570 (50%fib), a break below could take the pair towards 1.2446 (61.8%fib).
USD/JPY: The dollar edged lower against yen on Wednesday after a report on the U.S. labor market missed expectations by a wide margin. The greenback fell after the ADP National Employment Report showed private payrolls rose by 374,000 in August, up from 326,000 in July but well short of the 613,000 forecast. A report on weekly initial jobless claims arrives on Thursday and on Friday the government releases the payrolls report for August, which could provide clues about the Federal Reserve’s policy path. Strong resistance can be seen at 110.04(38.2%fib), an upside break can trigger rise towards 110.43(23.6%fib).On the downside, immediate support is seen at 109.89(9DMA), a break below could take the pair towards 109.73(50%fib).
Equities Recap
European stocks closed higher on Wednesday as fresh signs of weakness in Asian economies were offset by hopes for more stimulus, while investors shook off concerns about rising inflation.
UK's benchmark FTSE 100 closed up by 0.42 percent, Germany's Dax ended down by 0.07 percent, France’s CAC finished the day down by 1.17 percent.
Wall Street's main indexes marched on, with the S&P 500 and Nasdaq hitting record highs on Wednesday, as fresh technology stock buying combined with hopes the Federal Reserve would keep the stimulus taps open after weaker-than-expected private payrolls data.
Dow Jones closed down by 0.14% percent, S&P 500 closed up by 0.03 % percent, Nasdaq settled up by 0.33% percent.
Treasuries Recap
U.S. Treasury yields hovered around the unchanged mark on Wednesday in low-volume afternoon trading as the market focused on the government's jobs report due out on Friday.
The benchmark 10-year yield, which rose as high as 1.334%, was last unchanged at 1.302%.
Commodities Recap
Gold traded within a narrow range on Wednesday, as investors largely looked past a slew of U.S. economic readings to focus on key labour data that could influence the Federal Reserve’s tapering plans.
Spot gold was down 0.1% at $1,812.55 per ounce by 1:50 pm EDT (1750 GMT), while U.S. gold futures settled down 0.1% at $1,816 an ounce.
Oil prices steadied on Wednesday after OPEC and its allies agreed to stick to their existing policy of gradual oil output increases.
Brent crude fell 4 cents to settle at $71.59 a barrel. U.S. West Texas Intermediate (WTI) crude rose 9 cents to settle at $68.59 a barrel.