Europe Roundup: Euro near 1-month peak versus dollar , European stocks edge higher, Gold firms, Oil rises on declining inventories and weaker dollar-September 2nd,2021

Posted at 02 September 2021 / Categories Market Roundups

Market Roundup

•Swiss Aug CPI (MoM)  0.2%,0.1% forecast, -0.1% previous

•Swiss Jul Retail Sales (YoY)  -2.6%,0.1% previous

•Swiss GDP (QoQ) (Q2) 0.9%,2.0% forecast, -0.5% previous

•Swiss GDP (YoY) (Q2) 7.7%, 9.0% forecast, -0.5% previous

•Spanish Unemployment Change -82.6K ,-197.8K previous

•EU Jul PPI (MoM) 2.3%,1.1% forecast, 1.4% previous

•EU Jul PPI (YoY)  12.1%, 11.0%   forecast, 10.2% previous

Looking Ahead –Economic Data (GMT)

•12:30 US Imports 283.40B previous

•12:30 US Exports 207.70B previous

•12:30 US Continuing Jobless Claims 2,775K forecast, 2,862K previous

•12:30 US Jobless Claims 4-Week Avg 366.50K previous

•12:30 US Initial Jobless Claims 345K forecast, 353K previous

•12:30 Canada Jul Building Permits (MoM)  0.3% forecast, 6.9% previous

•12:30 US Jul Trade Balance  -71.00B forecast, -75.70B previous

•12:30 US Nonfarm Productivity (QoQ) (Q2) 2.4% forecast, 2.3% previous

•12:30 Canada Jul Trade Balance  1.40B forecast, 3.23B previous

•12:30 US Unit Labor Costs (QoQ) (Q2) 0.9% forecast, 1.0% previous

•12:30 US Jul Exports  53.76B previous

•14:00 US Jul Factory Orders (MoM)  0.3% forecast, 1.5% previous

•14:00 US Jul Durables Excluding Defense (MoM)  -1.2% previous

•14:00 US Jul Factory orders ex transportation (MoM)  1.4% previous

Looking Ahead –Economic Data (GMT)

•17:00 US OMC Member Bostic Speaks

•17:00 US FOMC Member Daly Speaks


EUR/USD: The euro held near a one-month high versus the dollar on Thursday, supported by hawkish comments from ECB policymakers after data showed inflation at a decade high and amid signs the Fed is not hurrying to tighten policy. The single currency traded just off one-month highs of $1.1857, buoyed by data showing inflation rose 3% year on year in August, the highest growth in a decade and above the European Central Bank’s 2% target and a 2.7% forecast. Immediate resistance can be seen at 1.1862 (23.6%fib), an upside break can trigger rise towards 1.1870(Higher BB).On the downside, immediate support is seen at 1.1822(38.2%fib), a break below could take the pair towards 1.1788 (38.2%fib)

GBP/USD: Sterling edged higher on Thursday, driven by dollar weakness after disappointing U.S. labour data, while traders waited for the fuller jobs report on Friday to give new momentum to currency markets .So far this week, the pound has been propelled by moves in other currencies, in the absence of UK-specific data releases or Bank of England speakers. Earlier this year, the speed of Britain’s COVID-19 vaccination programme and a broader reflation trade in global markets made the pound the best performer among its G10 currency peers, but it has since lost that lead.Immediate resistance can be seen at 1.3804(38.2%fib),an upside break can trigger rise towards 1.3873 (30DMA).On the downside, immediate support is seen at 1.3749(9DMA), a break below could take the pair towards 1.3723(23.6%fib).

 USD/CHF: The dollar was little changed against the Swiss franc on Thursday as investors await a key U.S. jobs report on Friday for clues to when the Federal Reserve begins paring its stimulus. Fed Chair Jerome Powell has said an improving labor market is a prerequisite for tapering to begin. U.S. jobless claim figures are due at 1230 GMT, the Labour Department will release the non-farm payrolls report for August on Friday. 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 Thursday as recent disappointing economic indicators continued to weigh on market sentiment, while traders are awaiting U.S. non-farm payrolls due later this week for more clues on Fed tapering. Traders are awaiting a fuller jobs readout this week, including the closely watched U.S. non-farm payrolls data due on Friday. Fed Chair Jerome Powell said last week that the jobs recovery would determine the timing of the asset purchase tapering. Strong resistance can be seen at 110.06(38.2%fib), an upside break can trigger rise towards 110.42(23.6%fib).On the downside, immediate support is seen at 109.92(9DMA), a break below could take the pair towards 109.74(50%fib).

Equities Recap          

European stocks edged higher on Thursday supported by travel companies and automakers, while doubts over monetary policy outlook and signs of slowing global growth limited gains across the board.

At (GMT 12:15),UK's benchmark FTSE 100 was last trading down at 0.13%percent, Germany's Dax was up by 0.00%percent, France’s CAC finished was up by 0.03% percent.

Commodities Recap

Gold prices inched up on Thursday as the dollar remained weak, although they traded within a tight range ahead of U.S. August non-farm payrolls data considered crucial for the Federal Reserve’s tapering strategy.

Spot gold was up 0.1% at $1,815.10 per ounce by 1143 GMT. U.S. gold futures were steady at $1,816.80.

Oil prices edged higher on Thursday, supported by a sharp decline in U.S. crude stocks and a weaker dollar, though gains were capped by an OPEC+ decision to stick to its policy of gradually increasing output.

Brent crude was up 45 cents, or 0.6%, at $72.04 a barrel by 1101 GMT and West Texas Intermediate (WTI) crude rose 39 cents, or 0.6%, to $68.98.

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