Posted at 06 October 2021 / Categories Market Roundups
Market Roundup
• Canada Aug Imports 52.51B, 52.97B previous
• Canada Aug Trade Balance 1.94B, 1.94B forecast, 0.78B previous
• Canada Aug Exports 54.44B, 53.75B previous
• US Aug Trade Balance -73.30B forecast, -70.50B forecast, -70.10B previous
• US Exports 213.70B forecast 212.80B previous
• US Sep Services PMI 54.9,54.4 forecast,55.1 previous
• US Sep Markit Composite PMI 55.0,54.5 forecast,54.5 previous
• US Sep ISM Non-Manufacturing Employment 53.0,53.7 previous
• US Sep ISM Non-Manufacturing Prices 77.5 forecast, 75.4 previous
• US Sep ISM Non-Manufacturing PMI 61.9,60.0 forecast,61.7 previous
Looking Ahead Economic Data (GMT)
• 01:00 New Zealand RBNZ Interest Rate Decision 0.50%,0.50%forecast, 0.50%previous
Looking Ahead - Events, Other Releases (GMT)
•01:00 New Zealand RBNZ Rate Statement
Currency Summaries
EUR/USD: The euro declined on Tuesday as dollar strengthened ahead of a key payrolls report at the end of the week that could boost the case for the Federal Reserve to start tapering stimulus as soon as next month The dollar also benefited from haven demand amid worries spanning the risk of global stagflation to the U.S. debt ceiling standoff. Immediate resistance can be seen at 1.1621 (50%fib), an upside break can trigger rise towards 1.1655(61.8%fib).On the downside, immediate support is seen at 1.1590(38.2%fib), a break below could take the pair towards 1.1549 (23.6%fib).
GBP/USD: Sterling edged lower against dollar as traders turned their attention back to the prospect of interest rate rises in Britain. Rising inflation expectations hit risk sentiment last week and saw bond yields climb higher, pushing risk-sensitive sterling to a two-month low versus the euro and to its lowest level against the dollar since December 2020. Versus the dollar, sterling was 0.07% lower at $1.3616, not far from the week’s high, touched the previous day. Immediate resistance can be seen at 1.3643(50%fib),an upside break can trigger rise towards 1.3682(61.8%fib).On the downside, immediate support is seen at 1.3578(38.2%fib), a break below could take the pair towards 1.3495(23.6%fib).
USD/CAD: The Canadian dollar strengthened to a four-week high against its U.S. counterpart on Tuesday as oil added to recent gains and data showed Canada's trade surplus widening in August . The price of oil, one of Canada's major exports, climbed to its highest since 2014 after the OPEC+ decision on Monday to stick to planned output rises.Canada's trade surplus widened to C$1.9 billion in August, easily beating analyst expectations, as strong exports of energy products outweighed a drop in two-way trade for motor vehicles and parts. Immediate resistance can be seen at 1.2609(38.2%fib), an upside break can trigger rise towards 1.2658(11DMA).On the downside, immediate support is seen at 1.2546(Lower BB), a break below could take the pair towards 1.2532 (50%fib).
USD/JPY: The dollar strengthened against yen on Tuesday as greenback regained strength ahead of U.S. payrolls data on Friday seen as key to the Federal Reserve’s next move. The U.S. dollar edged back towards a one-year high versus major peers ahead of a key payrolls report at the end of the week that could boost the case for the Fed to start tapering stimulus as soon as next month. The dollar gained 0.11% to 111.56 yen. Strong resistance can be seen at 111.26(38.2%fib), an upside break can trigger rise towards 111.76(23.6%fib).On the downside, immediate support is seen at 110.85(50%fib), a break below could take the pair towards 110.46(61.8%fib).
Equities Recap
A 3.5% jump in European banks and a rally in beaten down technology companies pushed an index of European stocks up over 1% on Tuesday, also helped by positive U.S. data bolstering Wall Street.
UK's benchmark FTSE 100 closed up by 0.94 percent, Germany's Dax ended up by 1.05 percent, France’s CAC finished the day up by 1.52 percent.
Wall Street ended sharply higher on Tuesday, as Microsoft and Apple spearheaded a strong rebound in growth stocks and investors awaited monthly payrolls data later this week that could influence the U.S. Federal Reserve's decision on when to scale back monetary stimulus.
Dow Jones closed up by 0.92 percent, S&P 500 closed up by 1.05 percent, Nasdaq settled up by 1.25% percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday, as worries about the debt ceiling prompted investors to move away from the shortest end of the curve, while inflation concerns weighed on longer-dated debt.
The benchmark U.S. 10-year yield , which last week rose to its highest since June, was last up 5 basis points at 1.5327%.
Commodities Recap
Gold prices inched lower on Wednesday as a firmer dollar and rise in U.S. Treasury yields weighed on the precious metal’s appeal, with investors focused on U.S. non-farm payrolls data due later this week.
Spot gold fell 0.1% to $1,758.06 per ounce by 0108 GMT, while U.S. gold futures were 0.1% lower at $1,758.40.
Oil prices jumped on Tuesday, with U.S. crude hitting its highest since 2014 and Brent futures climbing to a three-year high, after the OPEC+ group of producers stuck to its planned output increase rather than raising it further.
U.S. West Texas Intermediate (WTI) oil closed up $1.31, or 1.7%, at $78.93 a barrel. During the session it surged more than 2% to as high as $79.48, the most in nearly seven years. Brent crude settled up $1.30, or 1.6%, at $82.56. Earlier, Brent hit a three-year high of $83.13.