Posted at 06 October 2021 / Categories Market Roundups
Market Roundup
•US Sep ADP Nonfarm Employment Change 568K,428K forecast, 374K previous
•14:30 US Gasoline Inventories 3.256M, -0.279M forecast, 0.193M previous
•14:30 US Crude Oil Inventories 2.346M, -0.418M forecast, 4.578M previous
Looking Ahead Economic Data (GMT)
• 23:50 Japan Sep Foreign Reserves (USD) 1,424.3B previous
• 23:50 Japan Foreign Bonds Buying 440.3B previous
• 23:50 Japan Foreign Investments in Japanese Stocks -229.4B previous
• 05:00 Japan Leading Index 104.1 previous
• 05:00 Japan Aug Coincident Indicator (MoM) -0.2% previous
• 05:00 Japan Aug Leading Index (MoM) -0.1% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:00 Japan BoJ Governor Kuroda Speaks
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday after data showed German industrial orders fell more than expected in August. The figures published by the Federal Statistics Office showed orders for goods 'Made in Germany' were down by 7.7% on the month in seasonally adjusted terms. A poll of analysts had pointed to a drop of 2.1% on the month. Immediate resistance can be seen at 1.1562 (38.2%fib), an upside break can trigger rise towards 1.1593(50%fib).On the downside, immediate support is seen at 1.1529(Lower BB), a break below could take the pair towards 1.1500 (Psychological level).
GBP/USD: The British pound declined against the dollar on Wednesday as soaring energy prices and a surge in bond yields hit the pound. Soaring energy prices encouraged investors into the dollar, pushing it close to the one-year high touched last week against a basket of currencies. That knocked sterling 0.4% lower to $1.3565, though it stayed away from the lows hit last week. The prospect of imminent rate hikes, signalled by the Bank of England, was not enough to support sterling Immediate resistance can be seen at 1.3625(50%fib),an upside break can trigger rise towards 1.3687(61.8%fib).On the downside, immediate support is seen at 1.3552(38.2%fib), a break below could take the pair towards 1.3469(23.6%fib).
USD/CAD: The Canadian dollar weakened against the greenback on Wednesday as fears that soaring energy prices would boost inflation contributed to a selloff in global equity markets, with the loonie pulling back from a four-week high hit the day before. Shares fell globally and the safe-haven U.S. dollar rose against a basket of major currencies as oil prices hit their highest in seven years, fuelling concerns about rising inflation. Investors fear that accelerating inflation could force central banks to tighten policy sooner than expected.The loonie was trading 0.2% lower at 1.2610 to the greenback, after trading in a range of 1.2576 to 1.2647.Immediate resistance can be seen at 1.2621 (38.2%fib), an upside break can trigger rise towards 1.2639(11DMA).On the downside, immediate support is seen at 1.2578 (50%fib), a break below could take the pair towards 1.2530 (61.8%fib).
USD/JPY: The dollar edged higher against yen on Wednesday as surging energy prices fuelled concerns about inflation and interest rate hikes, increasing investors' appetite for dollar . Rising inflationary pressures could pose headwinds to growth and have implications for how soon the Federal reserve can raise interest rates. The U.S. payrolls report at the end of the week, which could provide clues to the U.S. Federal Reserve's next move, remains a point of focus for investors. The U.S. dollar currency index , which measures the greenback against a basket of six currencies, was 0.3% higher at 94.228. The index hit a 1-year high of 94.504 last week. Strong resistance can be seen at 111.75(23.6%fib), an upside break can trigger rise towards 111.93(Higher BB).On the downside, immediate support is seen at 111.17(38.2%fib), a break below could take the pair towards 111.03(11DMA).
Equities Recap
Automakers, retail and travel shares fell more than 2.5% on Wednesday, leading declines across all major sectors in Europe as soaring oil and gas prices intensified concerns inflation will dent economic growth.
UK's benchmark FTSE 100 closed down by 1.15 percent, Germany's Dax ended down by 1.46 percent, France’s CAC finished the day down by 1.27 percent.
U.S. stock indexes rose on Wednesday, turning positive after early losses as investors grew more optimistic that congressional Democrats and Republicans could reach a deal to avert a government debt default.
Dow Jones closed up by 0.30% percent, S&P 500 closed up by 0.41 % percent, Nasdaq settled up by 0.47% percent.
Treasuries Recap
Yields on the shortest end of the U.S. Treasury curve tumbled on Wednesday after the Senate's top Republican said his party would support an extension of the federal debt ceiling into December, a move that would avert a historic default later this month.
The benchmark 10-year yield, which earlier hit a session high of 1.573%, was last down 1 basis point at 1.5206% after retreating from June highs along with yields on 20-year and 30-year bonds.
Commodities Recap
Gold ticked up in tight trading on Wednesday on a retreat in U.S. Treasury yields, although a stronger dollar put a lid on gains for the safe-haven metal, with investors awaiting U.S. labour market data due later this week.
Spot gold was up 0.1% at $1,760.78 per ounce by 1:38 p.m. EDT (1738 GMT), reversing from an earlier session low of $1,744.84. U.S. gold futures settled up 0.1% at $1,761.8.
Oil prices dropped nearly 2% on Wednesday, pulling back from multi-year highs, as an unexpected rise in U.S. crude inventories prompted buyers to take a breather after recent torrid gains.
Brent crude hit $83.47 a barrel, its highest since October 2018, but settled at $81.08, down $1.48 a barrel, or 1.8%. U.S. crude climbed to $79.78, highest since November 2014, before retreating to $77.43 for a daily decline of $1.50 or 1.9%.