America’s Roundup: U.S. dollar inches higher to three-month peak,Wall Street gains, Gold little changed, Oil rebounds as market seizes on discounted prices-July 21st,2021

Posted at 20 July 2021 / Categories Market Roundups

Market Roundup

• US Jun Building Permits (MoM) -5.1%,-2.9% previous

• US Jun Building Permits  1.598M, 1.700M forecast, 1.683M previous

• US Jun Housing Starts 1.643M,  1.590M forecast, 1.572M previous

• US Jun Housing Starts (MoM) 6.3%,  3.6% previous

• US Redbook (YoY)  15.0%,14.0% previous

• New Zealand GlobalDairyTrade Price Index 15.0%, -3.6% previous

 Looking Ahead –Economic Data (GMT)

• 23:50 Japan Jun Exports (YoY)  46.2% forecast, 49.6% previous

• 23:50 Japan Jun Imports (YoY)  29.0% forecast, 27.9% previous

• 23:50 Japan Trade Balance  460.0B forecast, -189.4B previous

• 01:30 Australia Retail Sales (MoM) -0.5% forecast,0.4% previous

• 03:00 New Zealand Credit Card Spending (YoY) 27.2% previous

Looking Ahead - Events, Other Releases (GMT)

• 23:50 Japan Monetary Policy Meeting Minutes

Currency Summaries

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  $1.1782, just a touch away from last week's three month low of $1.1753. 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. Sterling was last trading 0.01% lower against the dollar at $1.3627, having hit a more than five-month low of $1.3570.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/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as worries that the spread of the Delta coronavirus variant could impede global economic recovery helped to underpin the safe-haven greenback and pressured oil prices.    U.S. crude  prices were down 1.8% at $65.21 a barrel,while the U.S. dollar gained ground against a basket of major currencies. The Canadian dollar weakened 0.2% to 1.2772 to the greenback, after trading in a range of 1.2733 to 1.2786. On Monday, it touched a five-month low at 1.2807. Immediate resistance can be seen at 1.2719 (38.2%fib), an upside break can trigger rise towards 1.2795 (23.6%fib).On the downside, immediate support is seen at 1.26599(50%fib), a break below could take the pair towards 1.25951(61.8%fib).

USD/JPY: The dollar gained 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 22:00 GMT, the dollar was trading 0.02 percent higher versus the yen  at 109.85. Strong resistance can be seen at 110.02 (5DMA), an upside break can trigger rise towards 110.15(50%fib).On the downside, immediate support is seen at 109.69 (32.6%fib), a break below could take the pair towards 109.11 (23.6%fib).

Equities Recap

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

UK's benchmark FTSE 100 closed up by 0.54 percent, Germany's Dax ended up by 0.55 percent, France’s CAC finished the day up by 0.81 percent.

Wall Street ended sharply higher on Tuesday, rebounding from a multi-day losing streak as a string of upbeat earnings reports and revived economic optimism fueled a risk-on rally.

Dow Jones closed up by  1.62% percent, S&P 500 closed up by 1.53% percent, Nasdaq settled down by 1.57%  percent.

Treasuries Recap

Yields on 10-year Treasuries rebounded from new five-month lows on Tuesday after the previous session's biggest single-day decline since February, as traders scrambled to hedge against the unexpected rally in the U.S. bond benchmark.

The yield on 10-year Treasury notes rose 1.8 basis points to 1.199%, a reversal from a low of 1.128% earlier in the session.

Commodities Recap

Gold was subdued in volatile trade on Tuesday as the dollar strengthened, curbing inflows into the safe-haven metal despite some concerns over a surge in COVID-19 cases.

Spot gold was little changed at $1,811.51 per ounce by 1733 GMT, while U.S. gold futures settled up 0.1% to $1,811.40.

Crude oil futures rebounded on Tuesday as market participants vied to take advantage of oil's two-month low touched in the previous session.

Brent crude settled up 73 cents, or 1.1%, at $69.35 a barrel after sliding 6.8% on Monday.U.S. crude ended up $1, or 1.5%, to $67.42 in its final day of trading, after hitting a low of $65.21 on Tuesday. The contract fell 7.5% on Monday.

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