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America’s Roundup: Dollar little changed as US jobs data report looms ,Wall Street ends lower ,Gold rises, Oil settles down 1% as U.S. refineries shut; Washington pushes OPEC to pump more-September 1st,2021

Posted at 01 September 2021 / Categories Market Roundups


Market Roundup

•Canada GDP (QoQ) (Q2) -0.3%, 1.4% previous

•Canada Canada GDP Annualized (QoQ) (Q2) -1.1%, 2.5% forecast, 5.6% previous

•Canada GDP Implicit Price (QoQ) (Q2) 2.20%,2.90% previous

•Canada Jun GDP (MoM)  0.7%, 0.7%forecast, -0.3% previous

•US Redbook (YoY) 18.6% ,16.6% previous

•US Jun House Price Index (MoM) 1.6%,  1.7% previous

•US Jun House Price Index  343.3 ,337.4 previous

•US Aug Chicago PMI  66.8 ,68.0 forecast, 73.4 previous

•US Aug CB Consumer Confidence  113.8 ,124.0 forecast, 129.1 previous

•US Aug Texas Services Sector Outlook 5.4, 33.3 previous

•US Aug Dallas Fed Services Revenues  16.5 ,21.7 previous

Looking Ahead –Economic Data (GMT)

•01:30 Australia GDP Final Consumption (Q2)  0.7% previous

•01:30 Australia GDP Chain Price Index (Q2) 3.1% previous

•01:30 Australia GDP Capital Expenditure (Q2) 4.7% previous

•01:30 Australia GDP (YoY) (Q2) 9.2% forecast, 1.1% previous

•01:30 Australia GDP (QoQ) (Q2) 0.5% forecast, 1.8% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro initially gained against dollar but gave up some ground on Tuesday  after a higher-than-expected inflation reading and an ECB policymaker called on the bank to reduce its emergency bond purchases as soon as the next quarter. Robert Holzmann, governor of Austria's central bank, said the bank was in a situation where it could think about reducing buying and added he expected the issue to be discussed at the bank's policy meeting next week. Holzmann's call to start tapering bond purchases followed data showing euro zone inflation increased to 3% year-on-year in August, the highest in a decade, far above the European Central Bank'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 was little changed overall on Tuesday, hitting two-week highs due to U.S. dollar weakness following the Jackson Hole conference before retreating as the dollar recovered during the session. At the conference on Friday, U.S. Federal Reserve Chair Jerome 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 dollar and pushed up the pound -moves that continued on Tuesday, with the pound hitting a two-week high of $1.3807 at 1448 GMT. But as the dollar recovered, the pound gave up its gains. At 1538 GMT, it was flat on the day at $1.3755 . Immediate resistance can be seen at 1.3774(21DMA),an upside break can trigger rise towards 1.3808(38.2%fib).On the downside, immediate support is seen at 1.3725(23.6%fib), a break below could take the pair towards 1.3684(27th Aug low).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Tuesday, clawing back earlier losses that were driven by lower oil prices and data showing a surprise contraction of Canada's economy in the second quarter . Canada's economy shrank 1.1% in the second quarter and likely had far less momentum than had been expected heading into the summer, data showed. Analysts had expected second-quarter annualized growth of 2.5%. The loonie  was trading nearly unchanged at 1.2605 to the greenback, after trading in a range of 1.2569 to 1.2653. Immediate resistance can be seen at 1.2688 (38.2%fib), an upside break can trigger rise towards 1.2735(June 21st high).On the downside, immediate support is seen at 1.2601 (21 DMA), a break below could take the pair towards 1.2562 (50%fib).

USD/JPY: The dollar strengthened against yen on Tuesday as investors awaited U.S. jobs figures later this week for insight into the possible path of U.S. Federal Reserve monetary policy. Investors will look to a round of U.S. data later this week to gauge the strength of the labor market, culminating with payrolls numbers due Friday, in an effort to determine when the Fed may begin tightening its policy. The dollar was 0.09 percent higher versus the Japanese yen at 110.09 .  Strong resistance can be seen at 110.28(23.6%fib), an upside break can trigger rise towards 110.61(Higher BB).On the downside, immediate support is seen at 109.90(38.2%fib), a break below could take the pair towards 109.62(50%fib).

Equities Recap

European stocks fell on Tuesday as a spike in inflation caused jitters about a possible shift in monetary policy, but nevertheless rose nearly 2% in August on strong quarterly earnings and optimism over an economic recovery.

UK's benchmark FTSE 100 closed down by  0.40 percent, Germany's Dax ended down  by 0.33 percent, France’s CAC finished the day down by 0.11 percent.                

Wall Street finished marginally lower on Tuesday, although the slightly subdued ending to August failed to detract from a strong monthly performance by its three main indexes, in what is traditionally regarded as a quiet period for equities.

 Dow Jones closed down by 0.11 percent, S&P 500 closed down by 0.13  percent, Nasdaq settled down  by 0.4 % percent.

Treasuries Recap

Month-end effects roiled U.S. Treasury market trading on Tuesday, leaving yields higher and the curve steeper despite waves of buying.

The benchmark 10-year yield, which rose as high as 1.314%, was last up 2.5 basis points at 1.3088%.

Commodities Recap

Gold firmed on Tuesday as the dollar weakened, but its advance slowed as some investors stayed on the sidelines ahead of the August U.S. non-farm payrolls data due later this week.

Spot gold was up 0.2% at $1,814.42 per ounce by 2:01 pm EDT (1801 GMT), after hitting its highest since Aug. 4 on Monday at $1,822.92. U.S. gold futures settled up 0.3% at $1,818.1.

Oil settled down 1% on Tuesday, posting its first monthly loss since March, as demand is expected to drop after Hurricane Ida shuttered U.S. Gulf refineries.

Brent crude futures for October, due to expire on Tuesday, settled down 42 cents, or 0.6%, at $72.99 a barrel.

U.S. West Texas Intermediate (WTI) crude futures settled down 71 cents, or 1%, at $68.50.


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