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Europe Roundup: Sterling hits a 5-month low as COVID19 cases rise in the UK, European stocks stabilise, Gold rebounds, Oil rises after slide but COVID-19, supply concerns weigh-July 20th,2021

Posted at 20 July 2021 / Categories Market Roundups


Market Roundup

•German Jun PPI (YoY)  1.3%, 8.4% forecast, 7.2%previous

•German Jun PPI (MoM) 8.5%, 1.1% forecast, 1.5% previous

•Swiss Jun Trade Balance 5.529B, 4.948B previous

• EU May Current Account n.s.a.  4.3B,31.4B previous

• EU May Current Account 11.7B, 22.8B previous

Looking Ahead –Economic Data (GMT)

•12:30 US Jun Building Permits (MoM) -2.9% previous

•12:30 US Jun Building Permits  1.700M forecast, 1.683M previous

•12:30 US Jun Housing Starts   1.590M forecast, 1.572M previous

•12:30 US Jun Housing Starts (MoM)  3.6% previous

•12:30 US Redbook (YoY) 14.0% previous

•15:30 New Zealand GlobalDairyTrade Price Index -3.6% previous

•16:00 Russian May  Real Wage Growth (YoY)  2.2% forecast, 7.8% previous

•16:00 Russian Jun Unemployment Rate  5.0% forecast, 4.9% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined against the U.S. dollar on Tuesday as concerns over the economic impact of surging Delta coronavirus cases drove investors towards greenback. The European Central Bank announces policy on Thursday, with market participants keen to see how the monetary authority implements changes to its strategy unveiled earlier this month. 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 1.1821 (38.2%fib), an upside break can trigger rise towards 1.1855 (21DMA).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: Britain’s pound hit a five-month low against the dollar   on Tuesday, as broad demand for the safe-haven dollar amid a global surge in coronavirus infections kept investors jittery. England lifted all COVID-19 social restrictions on Monday, in what local media dubbed “Freedom Day”, although looming over the end to lockdown measures was a surge in infections caused largely by the highly contagious Delta variant of the virus. By 0756 GMT on Tuesday, sterling was 0.2% lower against the dollar at $1.3644, having hit a more than five-month low of $1.3628.Immediate resistance can be seen at 1.3691 (38.2% fib), an upside break can trigger rise towards 1.3765 (50%fib).On the downside, immediate support is seen at 1.3627 (Daily low), a break below could take the pair towards 1.3606 (23.6%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as fears that a rampant coronavirus variant could upend the global economic recovery drove investors to seek comfort in the U.S. dollar. Rising coronavirus cases across the United States and abroad fuelled fears of a pandemic resurgence as the highly contagious Delta variant appeared to be taking hold. At 11:00 GMT, the dollar was trading 026 percent higher versus the Swiss franc at 0.9190. Immediate resistance can be seen at 0.9195 (38.2%fib), an upside break can trigger rise towards 0.9222 (July 19th high).On the downside, immediate support is seen at 0.9174 (5 DMA), a break below could take the pair towards 0.9139 (50%fib).

USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as growing fears the spreading Delta variant of the coronavirus would harm the global economic recovery sent riskier assets higher. The fast-spreading Delta variant of COVID-19 is now the dominant strain worldwide, and has been accompanied by a surge in infections around the United States, particularly in areas where vaccinations have lagged. At 11:00 GMT, the dollar was trading 0.01 percent higher versus the yen  at 109.44. Strong resistance can be seen at 109.68 (38.2%fib), an upside break can trigger rise towards 110.03(11DMA).On the downside, immediate support is seen at 109.31 (Daily low), a break below could take the pair towards 109.11 (23.6%fib).

Equities Recap

European stocks bounced back on Tuesday after their worst selloff this year in the previous session, helped by a handful of positive corporate earnings and production updates from miners.

At (GMT 11:03 ),UK's benchmark FTSE 100 was last trading up at  0.28% percent, Germany's Dax was up by 0.07% percent, France’s CAC was last up by 0.51 percent.

Commodities Recap

Gold prices edged higher on Tuesday, supported by a drop in U.S. bond yields and concerns over a relentless surge in Delta variant infections, although a stronger dollar kept bullion’s gains in check.

Spot gold was up 0.2% at $1,815.61 per ounce by 0653 GMT, after hitting a one-week low of $1,794.06 in the previous session. U.S. gold futures gained 0.5% to $1,817.90.

Oil rose above $69 a barrel on Tuesday, recouping some of the previous session’s 7% slide, as a tight physical market pushed aside concerns about rising COVID-19 infections weakening the demand outlook and higher OPEC+ supply.

Brent crude gained 82 cents, or 1.2%, to $69.44 by 0810 GMT, after sliding 6.8% on Monday. U.S. crude for August , which expires later on Tuesday, was up 93 cents, or 1.4%, at $67.35, after falling 7.5% on Monday.


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