Posted at 15 October 2021 / Categories Market Roundups
Market Roundup
•US Sep PPI (MoM) 0.5%,0.6% forecast, 0.7% previous
•US Core PPI (MoM) 0.2%,0.5% forecast, 0.6% previous
•US Sep Core PPI (YoY) 6.8%,7.1% forecast, 6.7% previous
•Canada Aug Manufacturing Sales (MoM) 0.5%0.5% forecast, -1.5% previous
•US Initial Jobless Claims 293K,319K forecast, 326K previous
•US Jobless Claims 4-Week Avg 334.25K ,344.00K previous
•US Continuing Jobless Claims 2,593K,2,675K forecast, 2,714K previous
•US Crude Oil Inventories 6.088M,0.702M forecast, 2.346M previous
•US Natural Gas Storage 81B,94B forecast, 118B previous
Looking Ahead Economic Data (GMT)
•02:00 China Oct Thomson Reuters IPSOS PCSI 73.09 previous
•02:00 Japan Oct Tertiary Industry Activity Index (MoM) -0.6% previous
•02:00 Japan Oct Thomson Reuters IPSOS PCSI 38.06 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar dipped as investors assessed whether the Federal Reserve would tighten its monetary policy as early as anticipated .The greenback had rallied since early September on expectations the U.S. central bank would tighten monetary policy more quickly than previously expected amid an improving economy and surging inflation. But the dollar reversed course, even after the minutes of the Fed's Sept. 21-22 policy meeting confirmed the tapering of stimulus is likely to start this year and data showed that pricing pressures were still hitting U.S. consumers. Immediate resistance can be seen at 1.1619 (50%fib), an upside break can trigger rise towards 1.1649(61.8%fib).On the downside, immediate support is seen at 1.1588(38.2%fib), a break below could take the pair towards 1.1544(23.6%fib).
GBP/USD: Sterling hit a two-week high on Thursday, building on the previous session’s gains, as traders focused on hopes a post-Brexit trade war with the European Union will be avoided and on expectations the Bank of England will increase rates this year.Two BoE policy makers are expected to give speeches later in the day and investors will be closely watching for any signs that markets got ahead of themselves in pricing a rise in interest rates before the end of the year. Immediate resistance can be seen at 1.3732(50%fib),an upside break can trigger rise towards 1.3772 (Higher BB).On the downside, immediate support is seen at 1.3667(38.2%fib), a break below could take the pair towards 1.3580(23.6%fib).
USD/CAD: The Canadian dollar on Thursday strengthened to its highest level in more than three months against its U.S. counterpart, as oil prices rose and domestic manufacturing data added to evidence that economic activity picked up in the third quarter. Canadian factory sales rose 0.5% in August from July, on higher sales of petroleum and coal, chemicals and primary metals, Statistics Canada said. The price of oil, one of Canada's major exports, rose after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply. The Canadian dollar was trading 0.6% higher at 1.2362 to the greenback , its strongest level since July 6.Immediate resistance can be seen at 1.2414 (38.2%fib), an upside break can trigger rise towards 1.2471(50% fib).On the downside, immediate support is seen at 1.2351 (23.6%fib), a break below could take the pair towards 1.2303 (Lower BB).
USD/JPY: The dollar strenthed against yen on Thursday as investors bet the Federal Reserve would begin tapering its asset purchases next month and attention turned to the timing of interest rate hikes. Expectations that the U.S. Federal Reserve would tighten monetary policy more quickly than previously expected amid an improving economy and surging inflation had fuelled a rise in the greenback since early September. Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level since mid-March 2020. Strong resistance can be seen at 113.84(23.6%fib), an upside break can trigger rise towards 114.00(Psychological level).On the downside, immediate support is seen at 113.21(38.2%fib), a break below could take the pair towards 112.76(50%fib).
Equities Recap
European stocks rose on Thursday, hitting the highest in more than two weeks as investors bet a steady economic recovery from the pandemic-induced slump will support corporate earnings despite signs of elevated inflation.
UK's benchmark FTSE 100 closed up by 0.92 percent, Germany's Dax ended up by 1.40 percent, France’s CAC finished the day up by 1.33 percent.
Wall Street rose on Thursday after big banks reported better-than-expected quarterly results, helping investors to look away from inflation concerns.
Dow Jones closed ended up by 1.56 percent, S&P 500 ended up by 1.71 percent, Nasdaq finished the day up by 1.73 % percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday after data on the labor market and inflation eased worries the Federal Reserve may need to take action earlier than expected to combat rising prices, with shorter-dated notes poised to snap an extended run higher.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 1.4 basis points at 0.354% and poised for its first decline after seven straight days of gains, its longest streak since June.
Commodities Recap
Gold touched a one-month high on Thursday, as a dip in the dollar and U.S. bond yields allowed investors to turn to bullion as an inflation hedge.
Spot gold gained 0.2% at $1,796.59 per ounce by 13:46 p.m. EDT (1746 GMT), after hitting its highest since Sept. 15 at $1,800.12. U.S. gold futures settled up 0.2% at $1,797.9.
Oil prices rose 1% on Thursday after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.
Brent crude futures settled up 82 cents to $84 a barrel, a 1% gain, and its highest settle since October 2018. U.S. West Texas Intermediate (WTI) crude futures ended up 87 cents to $81.31 a barrel, notching another seven-year closing high.