Posted at 15 September 2021 / Categories Market Roundups
Market Roundup
•Canada Aug Core CPI (MoM) 0.2%,0.6% previous
•US Aug Import Price Index (MoM) -0.3%, 0.3% forecast, 0.3% previous
•Canada Aug Core CPI (YoY) 3.5%, 3.3% previous
•US Aug Export Price Index (MoM) 0.4%,0.4% forecast, 1.3% previous
•US Sep NY Empire State Manufacturing Index 34.30,18.00 forecast, 18.30 previous
•Canada Aug CPI (MoM) 0.2%,0.1% forecast, 0.6% previous
•US Aug Industrial Production (YoY) 5.95%,6.56% previous
•US Crude Oil Inventories -6.422M,-3.544M forecast, -1.529M previous
Looking Ahead –Economic Data (GMT)
•23:50 Japan Aug Trade Balance -47.7B forecast, 439.4B previous
•23:50 Japan Aug Imports (YoY) 40.0% forecast, 28.5% previous
•23:50 Japan Aug Exports (YoY) 34.0% forecast, 37.0% previous
•23:50 Japan Foreign Bonds Buying 1,043.1B previous
•01:30 Australia Aug Participation Rate 65.7% forecast, 66.0% previous
•01:30 Australia Aug Unemployment Rate 4.9% forecast, 4.6% previous
•01:30 Australia Aug Employment Change -90.0Kforecast, 2.2K previous
•01:30 Australia Aug Full Employment Change -4.2K previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro strengthened against dollar on Wednesday as softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve. The Federal Open Market Committee's (FOMC) two-day policy meeting next week should provide some clarity on the outlook for tapering and interest rates. the euro was up 0.1% against the dollar at $1.1813 .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 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, largely due to a one-off boost reflecting the “Eat Out to Help Out” scheme that pushed down restaurant meal prices last year. Sterling rose 0.2% versus the dollar at $1.3832 by 1450 GMT, but it was off the 5-week high of $1.39.13 against the dollar touched on Tuesday. Immediate resistance can be seen at 1.3856(Daily high),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/CAD: The Canadian dollar on Wednesday strengthened against its U.S. counterpart and all but one of the other G10 currencies as oil prices rose and domestic data showed inflation climbing to its highest level in 18 years. Canada's annual inflation rate accelerated to 4.1% in August, its highest since March 2003, boosted in part by a big jump in gasoline prices. The loonie was up 0.4% at 1.2642 to the greenback , after trading in a range of 1.2631 to 1.2708.Immediate resistance can be seen at 1.2644 (5 DMA), an upside break can trigger rise towards 1.2691(38.2%fib).On the downside, immediate support is seen at 1.2613(50%fib), a break below could take the pair towards 1.2539 (61.8%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. The dollar fell to a four-week low of 109.14 yen , and last changed hands at 109.38, down 0.3%. 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 utilities fell on Spain’s move to cap energy bills, while luxury stocks continued to weaken on worries about a slowing Chinese economy.
UK's benchmark FTSE 100 closed down by 0.68 percent, Germany's Dax ended down by 0.25 percent, France’s CAC finished the day up by 1.04 percent.
U.S. stocks closed higher on Wednesday as rising crude prices boosted energy shares and a swath of positive U.S. data suggested inflation has crested and the economic recovery remains robust, boosting investor sentiment.
Dow Jones closed up by 0.68 percent, S&P 500 closed up by 0.85percent, Nasdaq settled up by 0.82 % percent.
Treasuries Recap
U.S. government bond yields ticked higher on Wednesday, in a bounce back as the 10-year yield touched a fresh three-week low following economic data that showed further evidence that inflation had probably peaked.
The yield on 10-year Treasury notes was up 2.3 basis points to 1.302% after earlier touching a three-week low of 1.26%.
Commodities Recap
Gold retreated below the key $1,800 level on Wednesday, hit by a bout of technical selling after it failed to hold recent gains as investors looked past a subdued dollar and sought clarity on the U.S. Federal Reserve’s tapering strategy.
Spot gold fell 0.6% to $1,793.20 per ounce by 1:47 p.m. EDT (1747 GMT), while U.S. gold futures settled down 0.7% at $1,794.8.
Oil prices rose over $2 a barrel on Wednesday after government data showed a larger-than-expected drawdown in U.S. crude inventories, and on expectations demand will rise as vaccination roll-outs widen.
Brent crude rose $1.86, or 2.5%, to settle at $75.46 a barrel. U.S. West Texas Intermediate (WTI) crude climbed $2.15, or 3.1%, to $72.61 a barrel.