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America’s Roundup: U.S. dollar strengthens against rivals as Fed's taper talk gathers pace, Wall Street ends mixed, Gold gains, Oil rises to six-week high as U.S. supply concerns dominate-September 14th,2021

Posted at 14 September 2021 / Categories Market Roundups


Market Roundup

•French 6-Month BTF Auction -0.675%,-0.668% previous         

•French 3-Month BTF Auction-0.651%,-0.652% previous

•French 12-Month BTF Auction-0.649%, -0.655% previous

•US 3-Month Bill Auction 0.040%,0.045% previous

•US 6-Month Bill Auction 0.050%,0.050% previous

•US Aug Federal Budget Balance -171.0B ,-173.0B forecast, -302.0B-302.0B

Looking Ahead –Economic Data (GMT)

• 01:30 Australian House Price Index (QoQ) (Q2) 6.0% forecast, 5.4% previous

• 01:30 Australian Aug NAB Business Survey 11  previous

• 01:30 Australian Aug NAB Business Confidence  -8 previous

Looking Ahead - Events, Other Releases (GMT)

• 02:45 Australia RBA Governor Lowe Speaks

Currency Summaries

EUR/USD: The euro initially dipped against dollar on Monday but recovered most of the ground as investors focused on potential corporate tax hikes and upcoming economic data. Market participants are focused on the likely passage of U.S. President Joe Biden’s $3.5 trillion budget package, which is expected to include a proposed corporate tax rate hike to 26.5% from 21%. The Labor Department is due to release its consumer price index data on Tuesday, which could shed further light on the current inflation wave and whether it is as transitory as the Fed insists. Immediate resistance can be seen at 1.1814 (5DMA), an upside break can trigger rise towards 1.1832(23.6%fib).On the downside, immediate support is seen at 1.1800(38.2%fib), a break below could take the pair towards 1.1774 (50%fib).

GBP/USD: Sterling recovered most of ground from earlier fall on Monday as investors awaited for more data to assess the pace of the post-lockdown economic recovery and how soon interest rates could he hiked. Figures on July jobs are scheduled for Tuesday while inflation and retail sales data will be published on Wednesday and Friday respectively. The Bank of England expects inflation to rise sharply this year and hit a peak of 4%. Immediate resistance can be seen at 1.3863(Sep 9th high),an upside break can trigger rise towards 1.3887 (23.6%fib).On the downside, immediate support is seen at 1.3825(38.2%fib), a break below could take the pair towards 1.3793(30DMA).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as higher oil prices offset broad-based gains for the greenback, with the loonie faring better than nearly all the other G10 currencies. The price of oil, one of Canada's major exports, was supported by concerns over shut output in the United States because of damage from Hurricane Ida. U.S. crude rose 1.2% to $70.53 a barrel, while the Canadian dollar was trading 0.2% higher at 1.2665 to the Greenback. The currency traded in a range of 1.2662 to 1.2694. Immediate resistance can be seen at 1.2663(5DMA), an upside break can trigger rise towards 1.2684 (38.2%fib).On the downside, immediate support is seen at 1.2612 (50%fib), a break below could take the pair towards 1.2543(61.8%fib).

USD/JPY: The dollar strengthened against yen on Monday as greenback was bolstered by expectations the U.S. Federal Reserve could reduce its asset purchases by the end of the year despite a surge in COVID-19 cases. A round of U.S. economic data is due out this week, starting with consumer prices on Tuesday, which will give the latest update on how hot inflation has been ahead of next week's Fed meeting. Against the yen, the dollar was up 0.1% at 110 yen. Strong resistance can be seen at 110.17(23.6%fib), an upside break can trigger rise towards 110.22(Higher BB).On the downside, immediate support is seen at 109.94(9DMA), a break below could take the pair towards 109.85(38.2%fib).  

Equities Recap

European stocks ended higher for the first time in five days on Monday, as oil, banks and utility shares gained on hopes that a strong euro zone economic recovery would outweigh risks from a global slowdown.

UK's benchmark FTSE 100 closed up by 0.56 percent, Germany's Dax ended up  by 0.59 percent, France’s CAC finished the day up by 0.20 percent.

Wall Street stocks wavered on Monday, struggling to regain ground lost in last week's bruising sell-off, but economically sensitive shares rose as investors focused on potential corporate tax hikes and upcoming economic data.

Dow Jones closed up by  0.76 percent, S&P 500 closed up by 0.23% percent, Nasdaq settled down by 0.07%  percent.

Treasuries Recap

U.S. government bond yields dipped on Monday with markets looking ahead to consumer inflation data on Tuesday that is expected to show a continuing slowdown in the pace of price increases.

The yield on 10-year Treasury notes was down 2 basis points to 1.321%. The yield on the 30-year Treasury bond was down 2.7 basis points to 1.907%.

Commodities Recap

Gold prices rose on Monday in the run-up to the release of key U.S. economic data including readings on inflation that could dictate the direction of the Federal Reserve’s monetary policy.

Spot gold rose 0.3% to $1,792.05 per ounce by 1:40 p.m. EDT (1740 GMT), while U.S. gold futures settled up 0.1% at $1,794.4.

Oil prices rose to a six-week high on Monday as U.S. output remains slow to return two weeks after Hurricane Ida slammed into the Gulf Coast and worries another storm could affect output in Texas this week.

Brent futures rose 59 cents, or 0.8%, to settle at $73.51 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 73 cents, or 1.1%, to settle at $70.45.


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