Europe Roundup: Euro gains after upbeat Eurozone GDP data, European shares slip, Gold firms, Oil prices fall, but on track for weekly gain-July 30th,2021

Posted at 30 July 2021 / Categories Market Roundups

Market Roundup

•French GDP (QoQ) (Q2) 0.9%,.8% forecast, -0.1% previous

• French Jun Consumer Spending (MoM)  0.3%,1.4% forecast, 10.4% previous

•French CPI (MoM) 0.1%,0.1% forecast,0.1% previous

•French CPI (YoY) 1.2%, 1.5% previous

•French HICP (MoM) 0.1%, 0.2% previous

• French HICP (YoY) 1.6%,1.9% previous

•German GDP (QoQ) (Q2) 1.5%,2.0% forecast, -1.8% previous

•German GDP (YoY) (Q2) 12.9%,9.6% forecast, -3.4% previous

•EU Jun Unemployment Rate 7.7%,  7.9% forecast, 7.9% previous

•EU Jul CPI (YoY)  2.2%,2.0% forecast, 1.9% previous

•Italian Jul CPI (MoM) 0.3%,0.2% forecast, 0.1% previous

• EU GDP (YoY)  13.7%,-1.3% previous

• EU GDP (QoQ) 2.0%,-0.3% previous

• EU HICP ex Energy and Food (MoM) -0.3%,0.2% previous

Looking Ahead –Economic Data (GMT)

• 12:30 Canada Jun IPPI (MoM)  2.7% previous

• 12:30 US Employment Cost Index (QoQ) (Q2) 0.9% forecast, 0.9% previous

•12:30 Canada  Jun RMPI (YoY)  40.1% previous

•12:30 Canada Jun RMPI (MoM)  3.2% previous

•12:30 Canada Jun IPPI (YoY)  16.4% previous

•12:30 US Employment Wages (QoQ) (Q2) 1.00% previous

•12:30 US Employment Benefits (QoQ) (Q2) 0.60% previous

•12:30 US Jun Personal Income (MoM)  -0.3% forecast, -2.0% previous

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

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

•12:30 US Jun PCE Price index (YoY)  3.9 previous

•12:30 US Jun Personal Spending (MoM)  0.7% forecast, 0.9% previous

•12:30 Canada May GDP (MoM)  -0.3% forecast, -0.3% previous

•13:45 US Jul Chicago PMI  64.6 forecast, 66.1 previous

•14:00 US Jul Michigan Consumer Sentiment 80.8 forecast, 85.5 previous

•14:00 US Michigan Current Conditions 90.7, 84.5 previous

•14:00 US Jul Michigan Consumer Expectations  78.4 forecast, 83.5 previous

•14:00 US Jul Michigan Inflation Expectations  4.8% forecast, 4.2% previous

•14:00 US Jul Michigan 5-Year Inflation Expectations  2.90% forecast, 2.80% previous

•15:00 Canada May Budget Balance (YoY) -314.00B previous

•15:00 Canada May Budget Balance  -31.44B previous

•16:00 Dallas Jun Fed PCE  2.80% previous

•17:00 U.S. Baker Hughes Oil Rig Count 380 previous

•17:00 U.S. Baker Hughes Total Rig Count 484 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


Currency Summaries

EUR/USD: The euro strengthened against dollar on Friday after data showed Euro zone GDP rebounds strongly in second quarter. The euro zone economy grew faster than expected in the second quarter, pulling out of a recession caused by the COVID-19 pandemic as curbs to stop the virus were eased.The European Union's statistics office Eurostat said on Friday that its initial estimate of gross domestic product in the 19 countries that use the euro currency was growth of 2.0% quarter-on-quarter and 13.7% year-on-year. Immediate resistance can be seen at 1.1911(38.2%fib),an upside break can trigger rise towards 1.1966 (23.6%fib).On the downside, immediate support is seen at 1.1867 (50%fib), a break below could take the pair towards 1.1828 (61.8%fib).

GBP/USD: Sterling hovered close to a one-month high versus the dollar on Friday and was on course for its strongest week since December ahead of a Bank of England meeting next week.A drop in COVID-19 cases, although they are still high, and the reopening of the British economy have fuelled a rebound in the pound - it has added around 3% in less than a fortnight to hit close to $1.40. By 0745 GMT on Friday, the pound was marginally higher at $1.3965, slightly below the one-month high of $1.3982 reached on Thursday. Immediate resistance can be seen at 1.3983(Higher BB),an upside break can trigger rise towards 1.4022 (23.6%fib).On the downside, immediate support is seen at 1.3918 (38.2%fib), a break below could take the pair towards 1.3833 (50%fib).

 USD/CHF: The dollar dipped against the Swiss franc on Friday as renewed signs that the U.S. Federal Reserve might not taper economic support weighed on dollar. Fed Chairman Jerome Powell wrong footed bulls after a policy meeting this week by saying that rate increases were a ways away  and the job market still had  some ground to cover . The dollar index was last down 0.1% at 91.809. While, greenback dipped 0.10% versus the Swiss franc to 0.9053. Immediate resistance can be seen at 0.9071 (38.2%fib), an upside break can trigger rise towards 0.9109 (50%fib).On the downside, immediate support is seen at 0.9041(Daily low), a break below could take the pair towards 0.9023(23.6%fib).

USD/JPY: The dollar edged higher against the Japanese yen on Friday as  solid second-quarter U.S. growth numbers had helped dollar gain against yen. The U.S. economy grew past pre-pandemic levels in the second quarter, helped by rising COVID-19 vaccinations and government aid, though the expansion fell short of expectations. Investors will keep a close eye on a bunch of U.S. macro indicators due later in the day including second-quarter employment cost index, personal income and spending for June and the University of Michigan consumer sentiment index for July. Strong resistance can be seen at 109.78(38.2%fib), an upside break can trigger rise towards 109.96 (11DMA).On the downside, immediate support is seen at 109.32 (50%fib), a break below could take the pair towards 108.89(61.8%fib).

Equities Recap

European stocks fell from record highs on Friday as concerns about the fast-spreading Delta variant and regulatory actions in China outweighed optimism around quarterly earnings season and an economic recovery.

At (GMT 11:19),UK's benchmark FTSE 100 was last trading down at 0.84 percent, Germany's Dax was down by 0.74 percent, France’s CAC was last down by 0.10 percent.

Commodities Recap

Gold prices held firm near a two-week high on Friday, heading for their biggest weekly gains in more than two months after the U.S. Federal Reserve cemented investors hopes that interest rates are going to stay low for some time.

Spot gold was up 0.1% at $1,829.10 per ounce by 0917 GMT, after hitting its highest since July 15 at $1,832.40 on Thursday. It is up 1.5% so far for this week.

Oil prices fell on Friday but remained on track to post weekly gains with demand growing faster than supply, while vaccinations are expected to alleviate the impact of a resurgence in COVID-19 infections across the globe.

Brent crude futures for September , which expire on Friday, had dropped 6 cents, or 0.1%, to $75.99 a barrel by 1103 GMT, following a 1.75% jump on Thursday.

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