America’s Roundup: Dollar sluggish at 1-month low on bets of a dovish Fed, Wall Street rises to record peak,Gold jumps over 1%, Oil settles up as U.S. supplies tighten more-July 30th,2021,

Posted at 29 July 2021 / Categories Market Roundups

Market Roundup

• U.S. Q2 advance GDP lower than expected

• U.S. initial jobless claims were higher than forecast

• US Continuing Jobless Claims 3,269K, 3,196K forecast, 3,236K previous

•US Jobless Claims 4-Week Avg 394.50K,385.25K previous

•US Initial Jobless Claims 400K, 380K forecast, 419K previous

•US GDP Price Index (QoQ) (Q2)  6.1%,5.4% forecast, 4.3% previous

•US Core PCE Prices (Q2) 6.10%, 5.90% forecast, 2.50% previous

•US GDP (QoQ) (Q2) 7.7%,8.5% forecast, 6.4% previous

•US Jun Pending Home Sales (MoM)  -1.9%,0.3% forecast, 8.0% previous

•US Jun Pending Home Sales Index 112.8,  114.7 previous

•US Natural Gas Storage 36B, 43B forecast, 49B previous

Looking Ahead –Economic Data (GMT)

• 23:30  Japan Jun Jobs/applications ratio  1.10 forecast, 1.09 previous

• 23:30  Japan Jun Unemployment Rate  3.0% forecast, 3.0% previous

• 23:50  Japan Jun Retail Sales (YoY) 0.2% forecast, 8.3% previous

• 23:50  Japan Jun Industrial Production (MoM)  5.0%forecast,-6.5% previous

• 01:30 Australia PPI (YoY) (Q2) 0.2% previous

• 01:30 Australia Jun Private Sector Credit (MoM)  0.4% previous

• 01:30 Australia PPI (QoQ) (Q2)                 0.4% previous

• 01:30 Australia Jun Housing Credit  0.6% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro rose against dollar on Thursday as euro was boosted jump in German’s inflation. Germany’s annual consumer price inflation accelerated by more than expected in July, rising further above the European Central Bank’s target of close to but below 2%, the Federal Statistics Office said on Thursday. Germany’s inflation rose by 3.1% in July, compared with 2.1% in June. The July figure compared with a consensus forecast for a reading of 2.9%. The euro gained 0.35% against the dollar, to 1.1885.Immediate resistance can be seen at 1.1895(50%fib), an upside break can trigger rise towards 1.1940 (61.8%fib).On the downside, immediate support is seen at 1.1838 (38.2% fib), a break below could take the pair towards 1.1767(23.6%fib).

GBP/USD: The pound hit its highest in over a month against the dollar on Thursday, as gains were driven by a fall in coronavirus cases in Britain. Although COVID-19 infection numbers in Britain rose again on Wednesday for the first time in a week compared with the previous day, they were still lower week on week and there was little reaction from the pound. By 19:50 GMT, sterling was 0.12% higher on the day at $1.3969, having hit its highest since June 24 against the dollar. Immediate resistance can be seen at 1.3963(Higher BB),an upside break can trigger rise towards 1.4004 (23.6%fib).On the downside, immediate support is seen at 1.3891 (38.2%fib), a break below could take the pair towards 1.3860(5DMA).

 USD/CAD :The Canadian dollar touched a two-week high against its broadly weaker U.S. counterpart on Thursday, as the Federal Reserve remained patient about reducing stimulus and the Bank of Canada reassured Canadians it would keep inflation under control. U.S. crude  prices were up 0.7% at $72.87 a barrel, while the Canadian dollar  gained 0.5% to 1.2432 per greenback,. It touched its strongest intraday level since July 14 at 1.2432 .Immediate resistance can be seen at 1.2484 (38.2%fib), an upside break can trigger rise towards 1.2517 (5DMA).On the downside, immediate support is seen at 1.2425 (50%fib), a break below could take the pair towards 1.2370 (61.8%fib).

USD/JPY: The dollar declined against the Japanese yen on Thursday, a day after the U.S. Federal Reserve's reassurance that interest rate hikes remain distant helped put the brakes on the U.S. currency. Data on Thursday showed that while the U.S. economy grew solidly in the second quarter, boosted by massive government aid, growth fell short of economists' expectations. Gross domestic product increased at a 6.5% annualised rate last quarter, the Commerce Department said on Thursday. Strong resistance can be seen at 109.57(50%fib), an upside break can trigger rise towards 109.80 (5DMA).On the downside, immediate support is seen at 109.28 (Lower BB), a break below could take the pair towards 109.15(38.2%fib).

Equities Recap

European stocks hit all-time highs on Thursday after strong earnings from commodity majors, Airbus and a clutch of other companies, while data showing record high euro zone economic sentiment in July added to the positive mood.

UK's benchmark FTSE 100 closed up  by  0.88 percent, Germany's Dax ended up by 0.45 percent, France’s CAC finished the day up by 0.37 percent.                

U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve’s message earlier this week that it is in no hurry to taper stimulus pinned the dollar at a one-month low.

Dow Jones closed up by 0.44 percent, S&P 500 closed up by 0.42  percent, Nasdaq settled up by 0.11 % percent.

Treasuries Recap

U.S. Treasury yields inched higher on Thursday, but were below their peaks for the day, after a soft 7-year note auction added to the positive risk tone which persisted all day despite weaker-than expected U.S. data.

In late afternoon trading, the U.S. 10-year Treasury yield was up a little at 1.267%.U.S. 30-year yields were little changed at 1.913% from Wednesday's 1.911%.

Commodities Recap

Gold jumped more than 1% on Thursday as investors cheered U.S. Federal Reserve Chairman Jerome Powell’s comments suggesting the central bank was unlikely to hike rates anytime soon.

Spot gold was 1.3% higher at $1,830.11 per ounce by 2:19 pm EDT (1819 GMT), having hit its highest since July 15 at $1,832.40.U.S. gold futures settled 1.8% higher at $1,831.2 per ounce.

Oil prices rose on Thursday, with global benchmark Brent topping $76 a barrel, as supplies in the United States tightened further after shrinking to the smallest levels since January 2020.

Brent crude oil futures settled up $1.31 a barrel, or 1.75% at $76.05 a barrel. U.S. West Texas Intermediate (WTI) crude oil futures settled up $1.23, or 1.7% at $73.62 a barrel.

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