Posted at 27 September 2021 / Categories Market Roundups
•Sweden Aug Household Lending Growth (YoY) 6.4%,6.3% previous
•EU Private Sector Loans (YoY) 4.2%,4.2% previous
•Italian Aug Trade Balance Non-EU 1.58B, 6.85B previous
•EU Aug M3 Money Supply (YoY) 7.9%,7.8%,7.6% previous
•EU Aug Loans to Non Financial Corporations 1.5%,1.7% previous
Looking Ahead Economic Data (GMT)
• 12:30 US Aug Durable Goods Orders (MoM) 0.7% forecast, -0.1% previous
•12:30 US Aug Durables Excluding Defense (MoM) -1.1% previous
•12:30 US Aug Core Durable Goods Orders (MoM) 0.5% forecast, 0.8% previous
•12:30 US Aug Goods Orders Non Defense Ex Air (MoM) 0.4%,0.1% previous
•13:00 French 6-Month BTF Auction-0.681% previous
•13:00 French 3-Month BTF Auction -0.652% previous
•13:00 French 12-Month BTF Auction-0.657% previous
•14:30 US Sep Dallas Fed Mfg Business Index 9.0 previous
•15:30 US 2-Year Note Auction 0.242% previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 US FOMC Member Williams Speaks
•15:00 UK BoE Gov Bailey Speaks
•15:00 ECB's Panetta Speaks
•16:00 US FOMC Member Williams Speaks
•16:50 US FOMC Member Brainard Speaks
Looking Ahead - Events, Other Releases (GMT)
EUR/USD: The euro edged lower against dollar on Monday as investors pondered the implications of a German government led by the centre-left Social Democrats after a narrow victory in Sunday's election.The Social Democrats claimed a clear mandate to lead a government for the first time since 2005, ending 16 years of conservative-led rule under Angela Merkel. Merkel, who did not seek a fifth term as chancellor, will stay on in a caretaker role during the coalition negotiations that will set the future course of Europe's largest economy. Immediate resistance can be seen at 1.1725 (38.2%fib), an upside break can trigger rise towards 1.1759(50%fib).On the downside, immediate support is seen at 1.1681(23.6%fib), a break below could take the pair towards 1.1657 (Higher BB).
GBP/USD: Sterling edged up on Monday as expectations that the Bank of England could hike interest rates early next year gave some support, but fears of a tough winter for the British economy capped its gains. Sterling jumped last week following the Bank of England’s hawkish tone on interest rates and its pandemic-era government bond-buying scheme, but analysts said those gains may have been overdone given the other challenges facing the British economy. The pound rose 0.4% to 85.39 pence versus the euro at 0828 GMT. Against the dollar, it firmed 0.2% to $1.3694, retreating from last week’s high of $1.3750. Immediate resistance can be seen at 1.3710(38.2%fib),an upside break can trigger rise towards 1.3765 (23.6%fib).On the downside, immediate support is seen at 1.3659(50%fib), a break below could take the pair towards 1.3610(61.8%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as investors awaited speeches from Federal Reserve policymakers for clues on when the central bank could taper its pandemic-era economic support. Market focus will be on speeches by a slew of Fed officials this week including Chairman Jerome Powell, who will testify before Congress on the central bank’s policy response to the pandemic. At (GMT 09:16), Greenback gained 0.02% versus the Swiss franc to 0.9324. Immediate resistance can be seen at 0.9272 (23.6%fib), an upside break can trigger rise towards 0.9317(Higher BB).On the downside, immediate support is seen at 0.9250(5DMA), a break below could take the pair towards 0.9226(50%fib).
USD/JPY: The dollar rose against yen on Monday as fears of widespread market contagion from indebted China Evergrande Group receded. Eyes will also be on U.S. fiscal policy with the House of Representatives due to vote on a $1 trillion infrastructure bill this week, while a Sept. 30 deadline on funding federal agencies could force the second partial government shutdown in three years. The week is packed with U.S. Federal Reserve speeches led by Chair Jerome Powell on Tuesday and Wednesday, with more than a dozen other events on the calendar.Strong resistance can be seen at 110.00(Psychological level), an upside break can trigger rise towards 111.18(Higher BB).On the downside, immediate support is seen at 110.68(38.2%fib), a break below could take the pair towards 110.54(Daily low).
European shares fell to a near two-month low on Monday and Germany’s benchmark index sank 2%, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programmes at various meetings this week.
At (GMT 11:30),UK's benchmark FTSE 100 was last trading down at 0.02% percent, Germany's Dax was up by 0.44 %percent, France’s CAC was last up by 0.26% percent.
Gold prices were subdued on Monday, pressured by an uptick in U.S. bond yields and a robust dollar, as investors awaited speeches from Federal Reserve policymakers for clues on when the central bank could taper its pandemic-era economic support.
Spot gold was little changed at $1,750.51 per ounce by 0912 GMT. U.S. gold futures were down 0.1% to$1,750.20.
Oil prices rose for a fifth straight day on Monday with Brent at its highest since October 2018 and heading for $80 amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions.
Brent crude was up 92 cents or 1.2% at $79.01 a barrel by 1100 GMT, having posted three straight weeks of gains. U.S. Oil added 82 cents, or 1.1%, to $74.80, near its highest since July, after rising for a fifth straight week last week.