Posted at 19 July 2021 / Categories Market Roundups
•EU May Construction Output (MoM) 0.90%,-2.17% previous
Looking Ahead –Economic Data (GMT)
•13:00 French 12-Month BTF Auction -0.637% previous
•13:00 French 3-Month BTF Auction -0.647% previous
•13:00 French 6-Month BTF Auction-0.641% previous
•14:00 July NAHB Housing Market Index 82, 81 previous
•15:30 US 6-Month Bill Auction 0.050% previous
•15:30 US 3-Month Bill Auction 0.050% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro declined against the U.S. dollar on Monday ahead of Thursday’s policy meeting of the European Central Bank (ECB), while concerns about the Delta variant of the coronavirus continued to dampen risk sentiment. ECB policymakers are set for a showdown as they chart a new policy path, with disagreements on the economic outlook and thus on how much more stimulus, mainly in bond purchases, is needed. The euro was last trading around $1.1801, just a touch away from last week's three month low of $1.1772. Immediate resistance can be seen at 1.1802 (5DMA), an upside break can trigger rise towards 1.1821 (38.2%fib).On the downside, immediate support is seen at 1.1750 (23.6%fib), a break below could take the pair towards 1.1727(Lower BB)
GBP/USD: Sterling declined against the dollar on Monday as a cautious tone in global markets weighed on riskier currencies and boosting demand for safe-haven dollar. Britain is facing a new wave of COVID-19 cases, but Prime Minister Boris Johnson is lifting most restrictions in England in what some have dubbed Freedom Day. Johnson has urged the public to remain cautious. Last week, the pound had its worst week in a month versus the dollar, and this downward turn continued on Monday with sterling hitting $1.37125 at 0710 GMT, its lowest since April 13. Immediate resistance can be seen at 1.3792 (38.2% fib), an upside break can trigger rise towards 1.3842 (21 DMA).On the downside, immediate support is seen at 1.3703 (23.6%fib), a break below could take the pair towards 1.3681 (Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as the spread of the Delta coronavirus variant made investors nervous about the global recovery and sent money into safety of greenback. Daily infections have been surging from the United States and Europe to Asia and the global seven-day average of new cases each day is over half a million for the first time since May. At 10:37 GMT, the dollar was trading 0.12 percent higher versus the Swiss franc at 0.9161. Immediate resistance can be seen at 0.9215 (38.2%fib), an upside break can trigger rise towards 0.9264 (Higher BB).On the downside, immediate support is seen at 0.9191 (21 DMA), a break below could take the pair towards 0.9158 (50%fib).
USD/JPY: The dollar dipped against the Japanese yen on Monday as investors rushed to safe havens on rising COVID-19 cases around the globe. Rising virus cases, particularly of the highly infectious Delta variant, cast a pall over most risk-driven assets, and encouraged flows into safe havens such as the dollar and the Japanese yen. The dollar/yen currency pair traded below the 110 yen per dollar mark at 109.85, leaving the yen 0.2% higher on the day.Strong resistance can be seen at 110.00 (5DMA), an upside break can trigger rise towards 110.19(38.2%fib).On the downside, immediate support is seen at 109.71 (23.6%fib), a break below could take the pair towards 109.55 (Lower BB).
European shares fell and travel stocks hit February lows on Monday on worries that the fast-spreading Delta variant could hamper travel demand and slow the ongoing global economic recovery.
At (GMT 10:39 ),UK's benchmark FTSE 100 was last trading down at -1.97% percent, Germany's Dax was down by -1.98% percent, France’s CAC was last down by 2.00 percent.
Gold prices reversed course to trade at a near one-week low on Monday as investors sought comfort in the U.S. dollar amid rising coronavirus cases, although a dip in Treasury yields limited the metal’s losses.
Spot gold fell 0.4% to $1,803.20 per ounce by 0833 GMT, after falling to its lowest since July 13 at $1,801.20.
•Oil prices fell sharply on Monday after OPEC+ overcame internal divisions and agreed to boost output, sparking concerns about a crude surplus as COVID-19 infections rise in many countries.
Brent crude was down $2.01, or 2.7%, at $71.58 a barrel by 0850 GMT. U.S. oil was down $2.06, or 2.8%, at $69.75 a barrel.