America’s Roundup: Dollar gains, tracks rising government bond yields , Wall ends mixed, Gold little changed, Oil rises on supply shortage-September 28th,2021

Posted at 27 September 2021 / Categories Market Roundups

Market Roundup

• US Aug Durable Goods Orders (MoM)  1.8%,0.7% forecast, -0.1% previous

•US Aug Durables Excluding Defense (MoM) 2.4%,-1.1% previous

•US Aug Core Durable Goods Orders (MoM)  0.2%,0.5% forecast, 0.8% previous

•US Aug Goods Orders Non Defense Ex Air (MoM) 0.5%,0.4%,0.1% previous

•French 6-Month BTF Auction-0.677%,-0.681% previous

•French 3-Month BTF Auction-0.739%, -0.652% previous

•French 12-Month BTF Auction-0.650%,-0.657% previous

•US Sep Dallas Fed Mfg Business Index 4.6,9.0 previous

•US 2-Year Note Auction 0.310% ,0.242% previous

Looking Ahead Economic Data (GMT)

•01:30 Australia Aug Retail Sales (MoM)  -2.5%forecast, -2.7% previous

•01:30 Chinese Aug Industrial profit YTD  57.3% previous

•01:30 Chinese Aug Industrial profit (YoY) YTD 16.40%

Looking Ahead - Events, Other Releases (GMT)

•23:50 Japan Monetary Policy Meeting Minutes

Currency Summaries

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 strengthened against dollar 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/CAD: The Canadian dollar strengthened to its highest level in nearly two weeks against the greenback on Monday as oil prices rose and the impact of last week's hawkish shift by the U.S. Federal Reserve receded. The price of oil, one of Canada's major exports, rose for a fifth day as investors fretted about tighter supplies. U.S. crude oil futures were up 1.9% at $75.38 a barrel, while the Canadian dollar gained 0.3% to 1.2620 per greenback , after touching its strongest level since Sept. 14 at 1.2610. Canadian GDP data for July is due on Friday, which could offer clues on the Bank of Canada's policy outlook. Immediate resistance can be seen at 1.2684(38.2%fib), an upside break can trigger rise towards 1.2705(Ichimoku Cloud Top).On the downside, immediate support is seen at 1.2609 (50%fib), a break below could take the pair towards 1.2541 (61.8%fib).

USD/JPY: The dollar rose against yen on Monday as greenback was bolstered by the rise in Treasury yields ahead of a slew of Federal Reserve speakers this week who could affirm expectations of the start of asset purchase reduction before the end of the year. The greenback also extended gains after data showed new orders and shipments of key U.S.-made capital goods increased solidly in August, rising 0.5% in August amid strong demand for computers and electronic products. The dollar rose 0.3% versus the yen to 110.99 yen , after earlier rising to a nearly three-month high. Strong resistance can be seen at 111.00(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).

Equities Recap          

Europe’s STOXX 600 index ended lower on Monday as declines in tech stocks offset gains in banks and energy, while German shares hit 10-day highs as the federal election outcome reduced the chances of a left-wing coalition forming a government.

UK's benchmark FTSE 100 closed up by  0.17 percent, Germany's Dax ended up by 0.27 percent, France’s CAC finished the day up by 0.19percent.                 

Wall Street began the last week of September and the quarter with investors backing value over growth on Monday as tech shares, hurt by rising Treasury yields, weighed on the broader market.

Dow Jones closed up  by  0.21% percent, S&P 500 closed down by 0.28 % percent, Nasdaq settled down  by 0.52%            percent.

Treasuries Recap

 U.S 10-year Treasury yields continued their recent march on Monday, hitting 1.5% for the first time since June on solid economic data and signals the Federal Reserve is shifting towards a more hawkish policy.

Benchmark 10-year notes last fell 5/32 in price to yield 1.4768%, from 1.461% late on Friday.

Commodities Recap

Gold prices steadied in choppy trading on Monday, with gains curbed by a stronger dollar and an uptick in U.S. Treasury yields, while investors awaited speeches from Federal Reserve policymakers for more clues on the tapering strategy.

Spot gold was little changed at $1,752.19 per ounce by 01:35 p.m. EDT (1735 GMT).U.S. gold futures settled mostly unchanged at $1,752

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