Posted at 31 August 2021 / Categories Market Roundups
•French Jul Consumer Spending (MoM) 2.2%, -0.5% forecast, 0.3% previous
•French GDP (QoQ) (Q2) 1.1%,0.9% forecast, 0.9% previous
• French CPI (MoM) 0.6%,0.1% previous
• French CPI (YoY) 1.9%,1.2% previous
•German Aug Unemployment Rate 5.5%,5.6% forecast, 5.7% previous
•German Aug Unemployment Change -53K,-40K forecast, -91K previous
•UK Jul BoE Consumer Credit -0.042B, 0.441B forecast, 0.308B previous
•UK Jul Mortgage Approvals 75.15K,78.60K forecast, 81.34K previous
•EU Aug CPI (YoY) 3.0%, 2.7% forecast, 2.2% previous
•EU Core CPI (YoY) 1.6% ,0.7% previous
•EU CPI (MoM) 0.4%, -0.1% previous
•EU Core CPI (MoM) 0.3%,-0.4% previous
Looking Ahead –Economic Data (GMT)
•12:30 Canada GDP (QoQ) (Q2) 1.4% previous
•12:30 Canada Canada GDP Annualized (QoQ) (Q2) 2.5% forecast, 5.6% previous
•12:30 Canada GDP Implicit Price (QoQ) (Q2) 2.90% previous
•12:55 US Redbook (YoY) 16.6% previous
•13:00 US Jun House Price Index (MoM) 1.7% previous
•13:00 US Jun S&P/CS HPI Composite - 20 n.s.a. (YoY) 18.5% forecast, 17.0% previous
•13:00 US Jun House Price Index 337.4 previous
•13:45 US Aug Chicago PMI 68.0 forecast, 73.4 previous
•14:00 US Aug CB Consumer Confidence 124.0 forecast, 129.1 previous
•14:00 US Aug Texas Services Sector Outlook 33.3 previous
•14:30 US Aug Dallas Fed Services Revenues 21.7 previous
Looking Ahead - Events, Other Releases (GMT)
•14:40 German Buba Mauderer Speaks
EUR/USD: The euro strengthened against dollar on Tuesday as hopes for more policy support overshadowed economic risks from a surge in COVID-19 cases caused by the Delta variant globally. On the data front,Euro zone inflation surged to a 10-year-high this month with further rises still likely to come, challenging the European Central Bank’s benign view on price growth and its commitment to look past what it deems a transient increase. Consumer prices in the 19 countries sharing the euro rose by 3% this month, after increasing by 2.2% in July, far above expectations for 2.7% and moving well clear of the ECB’s 2% target. Immediate resistance can be seen at 1.18(38.2%fib), an upside break can trigger rise towards 1.1844(23.6%fib).On the downside, immediate support is seen at 1.1779 (30DMA), a break below could take the pair towards 1.1768 (50%fib)
GBP/USD: The pound rose to its highest in two weeks on Tuesday, extending gains against the dollar which weakened after U.S. Federal Reserve Chair Jerome Powell did not signal a timeline for a policy shift.At the highly-anticipated Jackson Hole economic conference on Friday, Powell offered no indication about when the central bank planned to cut its asset purchases beyond saying it could be "this year". The comments knocked the U.S. dollar and pushed up the pound. Sterling extended these gains on Tuesday as the dollar fell further. At 0738 GMT, the pound was up 0.3% at $1.3792, its strongest since Aug. 17 .Immediate resistance can be seen at 1.3773(38.2%fib),an upside break can trigger rise towards 1.3800 (30DMA).On the downside, immediate support is seen at 1.3742(5DMA), a break below could take the pair towards 1.3684(23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Tuesday as investors looked to U.S. jobs figures later this week for clues on stimulus taper timing.The greenback has been on the back foot since Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole conference on Friday that the U.S. central bank could scale back its bond-buying program this year but did not give a firm timeline. U.S. payrolls numbers due Friday this week will be closely watched .Immediate resistance can be seen at 0.9190 (23.6%fib), an upside break can trigger rise towards 0.9211 (Aug 19th high).On the downside, immediate support is seen at 0.9138(38.2%fib), a break below could take the pair towards 0.9098 (50%fib).
USD/JPY: The dollar was little changed against yen on Tuesday in the wake of U.S. Federal Reserve Chair Jerome Powell's dovish speech at last week's Jackson Hole symposium. The greenback had one of its biggest daily percentage declines of the month on Friday after Powell said tapering could begin this year but that the central bank was in no hurry to raise interest rates. The spotlight shifts to Friday's U.S. jobs report, which could shed more light on the Fed's tapering strategy.The market is expecting an increase of 728,000 jobs, unemployment to fall to 5.2% from 5.4%, and average hourly earnings to rise 0.4% month-on-month. Strong resistance can be seen at 109.92(38.2%fib), an upside break can trigger rise towards 110.28(23.6%fib).On the downside, immediate support is seen at 109.69(50%fib), a break below could take the pair towards 109.30(61.8%fib).
European stocks rose on Tuesday, on course for their seventh straight month of gains, as hopes for more policy support overshadowed economic risks from a surge in COVID-19 cases caused by the Delta variant globally.
At (GMT 10:13),UK's benchmark FTSE 100 was last trading down at 0.19%percent, Germany's Dax was up by 0.61%percent, France’s CAC finished was up by 0.18% percent.
Gold prices rose back towards the previous session’s four-week high on Tuesday, supported by a weaker dollar and a fall in U.S. Treasury yields, as investors awaited August U.S. non-farm payrolls data due later this week.
Spot gold was up 0.3% at $1,815.11 per ounce by 0848 GMT, after hitting its highest since Aug. 4 on Monday at $1,822.92. U.S. gold futures rose 0.3% to $1,817.20.
Oil prices slipped on Tuesday amid concerns that power outages and flooding in Louisiana after Hurricane Ida will cut crude demand from refineries at the same time global producers plan to raise output.
U.S. West Texas Intermediate (WTI) crude futures were down 9 cents, or 0.13%, at $69.12 a barrel as of 0640 GMT, reversing some of Monday’s gains.
Brent crude futures for October, due to expire on Tuesday, fell 8 cents, or 0.11%, to $73.33 a barrel, after gaining nearly 1% on Monday. The more active November contract was down 9 cents, or 0.12%, at $72.14 per barrel.