America’s Roundup: Dollar extends gains, Wall Street ends lower, Gold hits two-week low, Oil settles up 1% on low U.S. output after hurricane, Oil settles up 1% on low U.S. output after hurricane-September 9th,2021

Posted at 09 September 2021 / Categories Market Roundups

Market Roundup

• US Redbook (YoY) 16.5%,18.6% previous

• US IBD/TIPP Economic Optimism 48.5,53.6 previous

• Canada BoC Interest Rate Decision  0.25%,0.25% forecast, 0.25% previous

• Canada Aug Ivey PMI n.s.a  63.8,59.8 previous

• US Jul JOLTs Job Openings 10.934M,10.000M forecast, 10.073M previous

• Canada Aug Ivey PMI 66.0, 56.4 previous

Looking Ahead –Economic Data (GMT)

•23:00  Japan Aug M3 Money Supply  1,992.8T previous

•23:00  Japan Foreign Bonds Buying -545.5B previous

•01:30 China Aug  CPI (YoY)  1.0% forecast, 1.0% previous

•01:30 China Aug  CPI (MoM)  0.5% forecast, 0.3% previous

•01:30 China Aug  PPI (YoY ) 9.0% forecast, 9.0% previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro dipped against the dollar on Wednesday ahead of European Central Bank policy decision.Fed Chair Jerome Powell has suggested an improvement in the employment numbers is the remaining major prerequisite for action, and such a move could damage risk appetite. Investors are wary of the ECB meeting on Thursday, anticipating a potential trim to the PEPP (Pandemic Emergency Purchase Programme) bond-buying pace.Analysts polled see PEPP purchases falling possibly as low as 60 billion euros a month from the current 80 billion, before a further fall early next year and the scheme's end in March. The euro slipped 0.05% to $1.1818 for the first time since Sept. 2. Immediate resistance can be seen at 1.1835 (38.2%fib), an upside break can trigger rise towards 1.1865(23.6%fib).On the downside, immediate support is seen at 1.1804(50%fib), a break below could take the pair towards 1.1770 (61.8%fib).

GBP/USD: Sterling fell for the third straight day on Wednesday, with the U.S. dollar broadly stronger and investors digesting the British government's announcement of a tax hike to fund health spending and social care.Lawmakers will vote on Prime Minister Boris Johnson's tax proposals, which raise the overall tax burden to the highest in decades. The pound extended its fall on Tuesday after the announcement. Analysts said higher taxes could slow the economic recovery, but more importantly for the pound may ease pressure on the Bank of England to begin tightening monetary policy. Immediate resistance can be seen at 1.3799(38.2%fib),an upside break can trigger rise towards 1.3856 (23.6%fib).On the downside, immediate support is seen at 1.3752(50%fib), a break below could take the pair towards 1.3703(38.2%fib).

USD/CAD: The Canadian dollar fell to its weakest level in more than two weeks against the greenback on Wednesday, as investors worried that the global economic outlook is deteriorating even as the Bank of Canada looked past a soft patch in the domestic economy. The Bank of Canada left its key interest rate unchanged at a record low 0.25%, as expected. It sees the economy strengthening in the second half of 2021 after shrinking in the second quarter, although a fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery. The loonie was trading 0.2% lower at 1.2675 to the greenback, after touching its weakest intraday level since Aug. 23 at 1.2761.Immediate resistance can be seen at 1.2740(50%fib), an upside break can trigger rise towards 1.2790 (Higher BB).On the downside, immediate support is seen at 1.2667 (38.2%fib), a break below could take the pair towards 1.2605 (9DMA).

USD/JPY: The dollar strengthened against yen on Wednesday investors awaited clues from major central banks on their stimulus tapering measures. Accommodative central bank policies and optimism about reopening economies has pushed dollar higher, but concerns are growing about the impact of rising coronavirus infections due to the Delta variant. The dollar index , which measures the currency against six rivals, ticked up 0.05% to 92.580, after earlier touching 92.590, a level not seen since Sept. 1 .Strong resistance can be seen at 110.42(23.6%fib), an upside break can trigger rise towards 111.00(Psychological level).On the downside, immediate support is seen at 110.10(38.2%fib), a break below could take the pair towards 109.82(50%fib).

Equities Recap          

European stocks marked their biggest decline in three weeks on Wednesday, a day before a European Central Bank meeting that will see policymakers debate a cut in its pandemic-era stimulus program.

UK's benchmark FTSE 100 closed down by  0.75 percent, Germany's Dax ended down by 1.47 percent, France’s CAC finished the day down by 0.85%percent.                             

Wall Street ended lower on Wednesday, spooked by worries that the Delta coronavirus variant could blunt the economy’s recovery and on uncertainty about when the Federal Reserve may pull back its accommodative policies.

Dow Jones closed down  by  0.20% percent, S&P 500 closed down by 0.13 % percent, Nasdaq settled down  by 0.57%     percent.

Treasuries Recap

Longer-dated U.S. government bond yields fell on Wednesday and touched a session low after a strong auction by the Treasury of 10-year notes and the Fed's Beige Book of economic activity.

The yield on 10-year Treasury notes was down 3.9 basis points to 1.333%. The yield on the 30-year Treasury bond was down 3.6 basis points to 1.950%.

Commodities Recap

Gold slipped to a two-week low on Wednesday as strength in the dollar and higher U.S. Treasury yields outweighed the boost to bullion from deepening concerns about global economic growth.

Spot gold was down 0.1% at $1,792.27 per ounce by 1:49 pm EDT (1749 GMT), having dropped to $1,781.30, its lowest since Aug. 26. U.S. gold futures settled down 0.3% at $1,793.5.

Oil prices jumped on Wednesday and settled up more than 1% as U.S. Gulf of Mexico producers made slow progress in restoring output after Hurricane Ida.

Brent settled up91 cents, or 1.3%, at $72.60 and U.S. West Texas Intermediate (WTI) crude settled up 95 cents, or 1.4%, to $69.30 a barrel.

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