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Europe Roundup: Euro slips against dollar on dovish ECB, Europe stocks falls, Gold slips, Oil rally resumes as OPEC+ seen keeping supply tight-October 29th,2021

Posted at 29 October 2021 / Categories Market Roundups


Market Roundup

•French GDP (QoQ) (Q3) 3.0% ,2.1% forecast, 1.1% previous

• French Sep Consumer Spending (MoM) -0.2%, 0.3% forecast, 1.0% previous

•French CPI (MoM) 0.4%,-0.2% previous

•French CPI (YoY) 2.6%,2.2% previous

• French HICP (MoM) 0.5%,-0.2% previous

•Spanish GDP (QoQ) (Q3) 2.7% forecast, 1.1% previous

•Spanish GDP (YoY) (Q3)  3.5% forecast,               17.5% previous

•German GDP (QoQ) (Q3) 1.8%,2.2% forecast, 1.6% previous

•German GDP (YoY) (Q3) 2.5%,2.4% forecast, 9.8% previous

•Italian GDP (QoQ) (Q3) 2.6%,2.0% forecast, 2.7% previous

•EU Oct CPI (YoY)  3.8%,3.7% forecast, 3.4% previous

•EU Oct HICP ex Energy & Food (YoY)  4.1%,1.9% forecast, 1.9% previous

•EU CPI (MoM) 0.8%,0.5% previous

•EU GDP (YoY) 3.7%,14.3% previous

•EU GDP (QoQ) 2.2%,2.2% previous

•EU HICP ex Energy and Food (MoM) 0.3%, 0.4% previous

Looking Ahead Economic Data (GMT)

•12:30 US Employment Cost Index (QoQ) (Q3) 0.9% forecast, 0.7% previous

•12:30 Canada Sep RMPI (YoY)  27.7% previous

•12:30 Canada Sep IPPI (MoM)  -0.3% previous

•12:30 Canada Sep RMPI (MoM) -2.4% previous

•12:30 US Employment Wages (QoQ) (Q3) 0.90% previous

•12:30 US Employment Benefits (QoQ) (Q3) 0.40% previous

•12:30 US Sep Personal Income (MoM)  -0.2% forecast, 0.2% previous

•12:30 US Sep Real Personal Consumption (MoM)  0.4% previous

•12:30 US Sep PCE price index (MoM)  0.4% previous

•12:30 US Sep PCE Price index (YoY)  4.3 previous

•12:30 US Sep Personal Spending (MoM)  0.5% forecast, 0.8% previous

•12:30 US Core PCE Price Index (MoM)  0.2% forecast, 0.3% previous

•12:30 US Core PCE Price Index (YoY)  3.7% forecast, 3.6% previous

•12:30 Canada Aug GDP (MoM)  0.7% forecast, -0.1% previous

•13:00 US S&P/CS HPI Composite - 20 n.s.a. (YoY) 3.9% previous

•13:00 US S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.6% previous

•13:45 US Oct Chicago PMI  63.5 forecast, 64.7 previous

•14:00 US Texas Services Sector Outlook 11.5 previous

•14:00 US Oct Michigan Consumer Expectations  67.2 forecast, 68.1 previous

•14:00 US Oct Michigan Inflation Expectations  4.8% forecast, 4.6% previous

•14:00 US Oct Michigan Consumer Sentiment  71.4 forecast, 71.4 previous

•14:00 US Oct Michigan Current Conditions  77.9 forecast, 80.1 previous

•15:00 Canada Aug Budget Balance  -11.98B previous

•15:00 Canada Aug Budget Balance (YoY)  -48.45B previous

•17:00 U.S. Baker Hughes Oil Rig Count 445 previous

•17:00 U.S. Baker Hughes Total Rig Count 543 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined on Friday as euro zone inflation shot past expectations this month to equal its all-time high, creating a policy dilemma for the European Central Bank. The single currency which has broadly struggled against its rivals on Friday, slipped to more than one-year lows against the Swiss franc as Italian bond yields resumed their upward march a day after the European Central Bank struck a dovish note at a policy meeting. Data on Friday showed inflation in the 19 countries sharing the euro rose to 4.1% in October from 3.4% a month earlier, beating a consensus forecast of 3.7%.Immediate resistance can be seen at 1.1676 (Higher BB), an upside break can trigger rise towards 1.1696(38.2%fib).On the downside, immediate support is seen at 1.1645 (38.2%fib), a break below could take the pair towards 1.1624(11DMA).

GBP/USD: Sterling firmed against dollar on Friday  as market attention focused on the possibility of a Bank of England rate hike next week. The pound's moves this week have been driven by speculation over whether the Bank of England will hike rates at its meeting on Nov. 4, or whether concerns about the possible longer-term hit to economic growth stemming from supply chain disruptions and Brexit will cause the bank to hold back. Sterling was last trdaing at $1.3784, on track for a weekly gain of 0.2% .Immediate resistance can be seen at 1.3810(23.6%fib),an upside break can trigger rise towards 1.3862(Higher BB).On the downside, immediate support is seen at 1.3769(11DMA), a break below could take the pair towards 1.3731(38.2%fib).

USD/CHF: The dollar declined against Swiss franc on Friday as investors focussing on the Federal Reserve’s response to inflationary pressure and concerns over tepid economic growth. The U.S. dollar was headed for a third straight weekly decline. Investors now await next week’s Fed policy meeting, after data showed the U.S. economy grew at a slower pace last quarter. Traders will have their eyes on economic gauges from US later in the day, reading of the consumer price index, US personal spending and income data. Immediate resistance can be seen at 0.9140(38.2%fib), an upside break can trigger rise towards 0.9160 (9DMA).On the downside, immediate support is seen at 0.9099(23.6%fib), a break below could take the pair towards 0.9000(Psychological level).

USD/JPY: The dollar strenthed against yen on Friday as investors focused on upcoming Fed meeting.  The U.S. Federal Reserve ends a two-day meeting on Wednesday and is widely expected to begin to pare back stimulus, with interest rate lift-off next year. Meanwhile, data showed the U.S. economy grew at a slower pace last quarter, while another report from the Labor Department indicated initial claims for state unemployment benefits dropped to their lowest level since mid-March 2020.The dollar index, which measures the currency against six main rivals edged up 0.1% to 93.462, but remained close to Thursday’s low at 93.277  a level not seen since Sept. 27. Strong resistance can be seen at 113.99 (9DMA), an upside break can trigger rise towards 114.34(23.6%fib).On the downside, immediate support is seen at 113.75(38.2%fib), a break below could take the pair towards 113.34(50%fib).

Equities Recap

Technology stocks dragged European equities lower on Friday as Apple’s suppliers fell after the iPhone maker’s downbeat holiday-quarter forecast, while investors remained nervous about the monetary policy outlook.

At (GMT 12:09 ),UK's benchmark FTSE 100 was last trading down at 0.30 percent, Germany's Dax was down by 0.63 % percent, France’s CAC   was last down by 0.26 percent.

Commodities Recap

Gold prices edged lower on Friday, weighed by a stronger U.S. dollar, while investors eyed an upcoming Federal Reserve policy meeting next week for further guidance on tapering as inflation expectations rise.

Spot gold fell 0.2% to $1,795.71 per ounce by 1042 GMT, but headed for a monthly gain, up 2.2% so far.U.S. gold futures dropped 0.3% to $1,797.10.

Oil rose further above $84 a barrel on Friday, within sight of a multi-year high hit this week, as expectations OPEC and its allies will keep supply tight countered rising U.S. inventories and the prospect of more Iranian exports.

Brent crude rose 25 cents, or 0.3%, to $84.57 a barrel by 1104 GMT, while U.S. West Texas Intermediate crude added 27 cents, or 0.3%, to $83.08. Both benchmarks touched multi-year highs on Monday.


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