Posted at 15 September 2021 / Categories Market Roundups
Market Roundup
•UK Aug Core PPI Output (MoM) 1.0%, 0.7% previous
•UK Aug Core PPI Output (YoY) 5.3%, 3.9% previous
•UK Aug PPI Output (MoM) 0.7%,0.4% forecast, 0.6% previous
•UK Aug PPI Input (MoM) 0.4%,0.2% forecast, 0.8% previous
•UK Aug CPI (YoY) 3.2%,2.9% forecast, 2.0% previous
•UK Aug CPI (MoM) 0.7%, 0.5%,0.5% previous
•French Aug CPI (MoM) 0.6%, 0.1% previous
•French Aug HICP (YoY) 2.4%,2.4% forecast, 1.5% previous
•French Aug HICP (MoM) 0.7%,0.7% forecast, 0.1% previous
•Italian Aug HICP (YoY) 2.5%, 2.6% forecast, 1.0% previous
•Italian Aug HICP (MoM) 0.2%,0.3% forecast, -1.0% previous
•Italian Aug CPI (MoM) 0.4%,0.5% forecast, 0.5% previous
•EU Wages in euro zone (YoY) (Q2) -0.40%,2.20% previous
•EU Industrial Production (YoY) 7.7%,6.3% forecast, 9.7% previous
•EU Jul Industrial Production (MoM) 1.5%,0.6% forecast, -0.3% previous
Looking Ahead –Economic Data (GMT)
•12:30 Canada Aug Core CPI (MoM) 0.6% previous
•12:30 US Aug Import Price Index (MoM) 0.3% forecast, 0.3% previous
•12:30 Canada Aug Core CPI (YoY) 3.3% previous
•12:30 US Aug Export Price Index (MoM) 0.4% forecast, 1.3% previous
•12:30 US Sep NY Empire State Manufacturing Index 18.00 forecast, 18.30 previous
•12:30 Canada Aug CPI (MoM) 0.1% forecast, 0.6% previous
•13:15 US Aug Industrial Production (YoY) 6.56% previous
•13:15 US Aug Industrial Production (MoM) 0.4% forecast, 0.9% previous
•14:00 US Crude Oil Inventories -3.544M forecast, -1.529M previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 ECB's Lane Speaks
•15:20 German Buba Balz Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday as softer-than-expected U.S. inflation weighed on greenback. CPI numbers suggested the Federal Reserve might be more dovish at next week’s policy meeting. The U.S. central bank was getting ready to reduce its bond-buying programme while deciding how soon to lift interest rates from near zero. Investors will now focus on ECB speakers, including Spain’s governor Pablo Hernández de Cos, board member Isabel Schnabel and Chief Economist Philip Lane.Immediate resistance can be seen at 1.1830 (23.6%fib), an upside break can trigger rise towards 1.1865(10th Sep high).On the downside, immediate support is seen at 1.1800(38.2%fib), a break below could take the pair towards 1.1789 (21DMA).
GBP/USD: Sterling edged up on Wednesday, but was off the multiple-week high touched the previous day, after data showed British inflation hit a more than nine-year high last month, fuelling expectations the Bank of England could act sooner to hike rates. Consumer prices in Britain rose by 3.2% in annual terms last month, the biggest monthly jump in the annual rate in at least 24 years. Sterling rose 0.2% versus the dollar at $1.3824 by 0825, but it was off the 5-week high of $1.3913 against the dollar touched on Tuesday.Immediate resistance can be seen at 1.3824(38.2%fib),an upside break can trigger rise towards 1.3885 (23.6%fib).On the downside, immediate support is seen at 1.3773(50%fib), a break below could take the pair towards 1.3724(61.8%fib).
USD/CHF: The dollar declined against the Swiss franc on Wednesday on weaker -expected rise in U.S. inflation led to uncertainty on when the U.S. central bank would begin tapering its asset purchases. Data yesterday showed underlying U.S. consumer prices increased at their slowest pace in six months in August, suggesting that inflation had probably peaked, though it could remain high for a while amid persistent supply constraints. The U.S. central bank is due to hold its two-day monetary policy meeting next week. Immediate resistance can be seen at 0.9176 (38.2%fib), an upside break can trigger rise towards 0.9204 (Daily high).On the downside, immediate support is seen at 0.9161(21DMA), a break below could take the pair towards 0.9131(50%fib).
USD/JPY: The dollar declined against yen on Wednesday as the dollar dipped on lower-than-expected U.S. inflation figures which softened expectations for stimulus to be tapered soon. Underlying U.S. consumer prices increased at their slowest pace in six months in August, lending credence to the Fed’s view that high levels of inflation were transitory. Focus now shifts to the Fed’s two-day monetary policy meeting next week for more cues on tapering. Strong resistance can be seen at 109.18(38.2%fib), an upside break can trigger rise towards 109.70(23.6%fib).On the downside, immediate support is seen at 109.15(50%fib), a break below could take the pair towards 108.84(61.8%fib).
Equities Recap
European shares slipped on Wednesday as worries about a slowing Chinese economy, declines in luxury and travel stocks and soaring UK inflation kept the main indexes under pressure.
At (GMT 11:30),UK's benchmark FTSE 100 was last trading up at 0.05% percent, Germany's Dax was down by 0.13 %percent, France’s CAC was last down by 0.54% percent.
Commodities Recap
Gold prices on Wednesday consolidated in a tight range near the key $1,800 level as softer U.S. inflation data fed uncertainty about the Federal Reserve’s tapering timeline.
Spot gold was down 0.1% at $1,801.97 per ounce by 1133 GMT, just below a one week peak of $1,808.50 hit on Tuesday, in part because the dollar recovered some ground following a slide driven by the inflation data.
Oil prices climbed nearly $1 on Wednesday after industry data showed a larger than expected drawdown in U.S. crude inventories and on expectations demand will rise as vaccination roll-outs widen.
Brent oil rose 92 cents, or 1.3%, to $74.52 a barrel by 1100 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 98 cents, or 1.4%, to $71.44 a barrel.