Posted at 06 September 2021 / Categories Market Roundups
•German Jul Factory Orders (MoM) -1.0%forecast, 4.1% previous
•German Aug IHS Markit Construction PMI 47.1 previous
•EU Sep Sentix Investor Confidence 19.7 forecast, 22.2 previous
•UK Aug Construction PMI 56.9 forecast, 58.7 previous
Looking Ahead Economic Data
•13:00 French 12-Month BTF Auction -0.653% previous
•13:00 French 3-Month BTF Auction -0.648% previous
•13:00 French 6-Month BTF Auction -0.665% previous
EUR/USD: The dipped against dollar on Monday as focus turned to European Central Bank policy decision on Thursday. Analysts reckon it is still too early for the ECB to call time on emergency stimulus, but it could agree to slow the pace of its bond buys after euro area inflation surged to a 10-year high at 3% last week. Trading conditions were thin with U.S. markets closed on Monday for a holiday. Immediate resistance can be seen at 1.1867 (38.2%fib), an upside break can trigger rise towards 1.1908(23.6%fib).On the downside, immediate support is seen at 1.1853(5DMA), a break below could take the pair towards 1.1833 (50%fib)
GBP/USD: Sterling slipped on Monday, pulling back from near one-month highs against the dollar and as signs grew that economic gains from post-lockdown reopening were starting to fade.The currency firmed on Friday against the dollar after data showed the United States created far fewer jobs in August than forecast. But subsequent moves have been listless as traders await further cues on the UK economy and the Bank of England’s future policy direction. Immediate resistance can be seen at 1.3841(Daily high),an upside break can trigger rise towards 1.3881 (23.6%fib).On the downside, immediate support is seen at 1.3822(38.2%fib), a break below could take the pair towards 1.3808 (5DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as concerns about slowing global growth boosted its safe-haven appeal. The weak jobs report did not spark a new wave of dollar selling on Monday as the greenback spent much of the London session pushing higher against its rivals, prompting some major currencies including the yen and the Swiss franc to move back to pre-Friday jobs report levels. Immediate resistance can be seen at 0.9160 (9DMA), an upside break can trigger rise towards 0.9192 (23.6%fib).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 strengthened against yen on Monday as greenback clawed back some of the losses sustained after last week’s poor U.S. jobs report, helped by firmer U.S. Treasury yields in a big week for major central banks. The dollar index, which measures the currency against six rivals, edged 0.1% higher to 92.23, after dipping to 91.941 for the first time since Aug. 4 on Friday, when a closely watched U.S. labour report showed the world’s largest economy created the fewest jobs in seven months in August. 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 109.78(50%fib), a break below could take the pair towards 109.45(61.8%fib).
European stocks edged towards record levels on Monday, led by gains in technology stocks, as hopes of more economic stimulus bolstered global sentiment.
At (GMT 12:34),UK's benchmark FTSE 100 was last trading up at 0.65% percent, Germany's Dax was up by 0.74 %percent, France’s CAC finished was up by 0.83% percent.
Gold prices steadied near a 2-1/2-month high on Monday after weaker-than-expected U.S. non-farm payrolls data drove expectations that the Federal Reserve may go slow on tapering economic support measures.
Spot gold was little changed at $1,823.59 per ounce by 1128 GMT. On Friday, prices hit their highest since June 16 at $1,833.80.
Oil prices fell on Monday, extending losses after the world's top exporter Saudi Arabia slashed crude contract prices for Asia over the weekend, reflecting well-supplied global markets and concerns over the outlook for demand.
Brent crude futures for November fell 49 cents, or 0.67%, to $72.12 per barrel by 1042 GMT.
U.S. West Texas Intermediate crude for October was at $68.82 a barrel, down 47 cents, or 0.68%. Both contracts were down over $1 in earlier trade.