Posted at 01 September 2021 / Categories Market Roundups
•German Jul Retail Sales (MoM) -5.1%,-0.9%forecast, 4.2% previous
•German Jul Retail Sales (YoY) -0.3%,3.7% forecast, 6.2% previous
•UK Aug Nationwide HPI (MoM) 2.1%,0.2% forecast, -0.5% previous
•UK Aug Nationwide HPI (YoY) 11.0%,8.6% forecast, 10.5% previous
•Italian Aug Manufacturing PMI 60.9,60.1 forecast, 60.3 previous
•German Aug Manufacturing PMI 62.6,62.7 forecast, 62.7 previous
•EU Aug Manufacturing PMI 61.4,61.5 forecast, 62.8 previous
•UK Aug Manufacturing PMI 60.3, 60.1 forecast, 60.1 previous
•EU Jul Unemployment Rate 7.6%,7.6% forecast, 7.7% previous
•US MBA 30-Year Mortgage Rate 3.03% ,3.03% previous
•US MBA Mortgage Applications (WoW) -2.4%, 1.6% previous
Looking Ahead Economic Data
•12:15 US Aug ADP Nonfarm Employment Change 613K forecast, 330K previous
•12:30Cnada Aug Manufacturing PMI 56.2 previous
•13:45 US Aug Manufacturing PMI 61.2 previous
•14:00 US Aug ISM Manufacturing New Orders Index 64.9 previous
•14:00 US Aug ISM Manufacturing PMI 58.6 forecast, 59.5 previous
•14:00 US Aug ISM Manufacturing Employment 52.9 previous
•14:00 US Jul Construction Spending (MoM) 0.2% forecast, 0.1% previous
•14:30 US Crude Oil Inventories-3.088M-3.088M, -2.979M previous
Looking Ahead - Events, Other Releases (GMT)
•11:30 German Buba President Weidmann Speaks
•11:30 German Buba Wuermeling Speaks
EUR/USD: The euro strengthened against dollar on Wednesday as investors shook off concerns about rising inflation. Borrowing costs across the bloc shot up on Tuesday as news that euro area inflation surged to a 10-year high in August and hawkish comments from European Central Bank policymaker Robert Holzmann unnerved investors. The ECB's Klaas Knot said late on Tuesday he expected the ECB to start reducing the pace of its emergency bond purchases at next week's meeting, with a view to ending them in March. Immediate resistance can be seen at 1.1821(38.2%fib), an upside break can trigger rise towards 1.1839(Higher BB).On the downside, immediate support is seen at 1.1789 (50%fib), a break below could take the pair towards 1.1758 (61.8%fib)
GBP/USD: Sterling steadied on Wednesday close to two-week highs versus the dollar, with the pound taking its cue from other currencies given this week is light on data and Bank of England speakers. Currency market moves were very small on Wednesday as investors took stock at the start of a new month and ahead of U.S. jobs data due at the end of this week. The Purchasing Managers Index survey for the manufacturing sector in August came in slightly better than the flash numbers published previously and confirmed that British factory output grew at the weakest rate for six months as supply chain problems weighed, but the pound did not budge.Immediate resistance can be seen at 1.3781(21DMA),an upside break can trigger rise towards 1.3809 (38.2%fib).On the downside, immediate support is seen at 1.3725(23.6%fib), a break below could take the pair towards 1.3615(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors focused on a key U.S. jobs report due on Friday for clues on when the Federal Reserve might begin paring stimulus. The dollar index , which measures the greenback against six rivals, edged higher to 92.751 from Tuesday, when it dipped as low as 92.395 for the first time since Aug. 6. Meanwhile, data overnight showed U.S. consumer confidence slumping to a six-month low as soaring COVID-19 infections dampened the economic outlook .Immediate resistance can be seen at 0.9192 (23.6%fib), an upside break can trigger rise towards 0.9238 (Higher BB).On the downside, immediate support is seen at 0.9138(38.2%fib), a break below could take the pair towards 0.9099(50%fib).
USD/JPY: The dollar strengthened against yen on Wednesday as investors focused on a key U.S. jobs report due on Friday for clues on when the Federal Reserve might begin paring stimulus. Fed Chair Jerome Powell has suggested an improvement in the labour market is one major remaining prerequisite for a tapering of asset purchases. The Fed last week appeared in no rush to pullback from its massive stimulus, with the continuing dovish tone contributing to a strong monthly performance by the United States’ three main indexes, even as U.S. consumer confidence fell to a six-month low in August as soaring COVID-19 infections and rising inflation dampened the economic outlook. Strong resistance can be seen at 110.44(23.6%fib), an upside break can trigger rise towards 110.60(Higher BB).On the downside, immediate support is seen at 110.04(38.2%fib), a break below could take the pair towards 109.75(50%fib).
European stocks edged closer to record highs on Wednesday as fresh signs of weakness in Asian economies were offset by hopes for more stimulus, while investors shook off concerns about rising inflation.
At (GMT 11:14),UK's benchmark FTSE 100 was last trading up at 0.82%percent, Germany's Dax was up by 0.13 %percent, France’s CAC was last up by 1.16% percent.
Gold prices were caught in a tight range on Wednesday as investors held off from making large bets as they prepared for key U.S. jobs data that could influence the Federal Reserve’s stimulus tapering strategy.
Spot gold was flat at $1,813.36 per ounce, as of 0933 GMT, while U.S. gold futures eased 0.2% to $1,814.50.
Oil prices rose on Wednesday before an OPEC+ meeting in which the producer club is expected to stick to a plan to add 400,000 barrels per day (bpd) each month through to December.
Brent crude for November delivery gained 36 cents, or 0.5%, to touch $71.99 a barrel by 0850 GMT. U.S. West Texas Intermediate (WTI) crude for October was at $68.81 a barrel, up 31 cents, or 0.5%.