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Europe Roundup: Sterling falls versus dollar after U.S. yields surge , European shares drop ,Gold slides, Brent tops $80 a barrel on tighter supplies-September 28th,2021

Posted at 28 September 2021 / Categories Market Roundups


Market Roundup

• French Sep Consumer Confidence 102, 100 forecast, 99 previous

•German GfK Oct Consumer Climate  0.3, -1.6 forecast, -1.1 previous

•Sweden Aug Trade Balance-10.30B, 7.10B  previous

•Sweden Aug Retail Sales (YoY) 6.6%,- 5.4%previous

•Irish Aug Retail Sales (MoM) 3.5%,-1.7% previous

•Irish Aug Retail Sales (YoY) 6.0%, 5.2% previous

Looking Ahead Economic Data (GMT)

•12:30 Wholesale Inventories (MoM) 0.6% previous

•12:30 US Aug Goods Trade Balance -86.82B previous

•12:30 US Aug Retail Inventories Ex Auto 0.5% previous

•12:55 US Redbook (YoY) 17.1% previous

•12:30 US Jul House Price Index (MoM) 1.6% previous

•12:30 US Jul House Price Index 343.3 previous

•12:30 US Jul House Price Index (YoY) 18.8%

•12:30 US Jul S&P/CS HPI Composite - 20 s.a. (MoM) 1.7% forecast, 1.8% previous

•12:30 US Jul S&P/CS HPI Composite - 20 n.s.a. (YoY) 20.0% forecast, 19.1% previous

•14:00  US Sep Richmond Manufacturing Shipments 6 previous

•14:00  US Sep CB Consumer Confidence 114.5 forecast, 113.8 previous

•14:00  US Sep Richmond Services Index 15 previous

•14:00  US Sep Texas Services Sector Outlook 5.4 previous

Looking Ahead - Events, Other Releases (GMT)

•12:00 ECB President Lagarde Speaks

•17:40 US FOMC Member Bowman Speaks

•17:40 US FOMC Member Bowman Speaks

•18:00 ECB's Panetta Speaks

•19:00 FOMC Member Bostic Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Tuesday as firmer dollar and soaring U.S. Treasury yields weighed on euro. The dollar index hit a more than one-month high, while the benchmark U.S. 10-year Treasury yields touched its highest level in over three months. Investors now eye Congressional testimony from Fed Chair Jerome Powell due later in the day, after he said the central bank would move against unchecked inflation if needed. The euro was down 0.2% versus the dollar at $1.16775. Immediate resistance can be seen at 1.1710 (38.2%fib), an upside break can trigger rise towards 1.1742(50%fib).On the downside, immediate support is seen at 1.1670(23.6%fib), a break below could take the pair towards 1.1600 (Psychological level).

GBP/USD: Sterling fell versus a strengthening dollar on Tuesday after U.S. treasury yields jumped to the highest in almost three months following hawkish U.S. Federal Reserve remarks.U.S. yields have surged since last week when the Federal Reserve announced it may start tapering stimulus as soon as November and flagged interest rate increases may follow sooner than expected. Sterling fell 0.3% to $1.3671 at 0830 GMT. Versus the euro it edged 0.1% lower at 85.48 pence. Immediate resistance can be seen at 1.3655 (38.2%fib),an upside break can trigger rise towards 1.3704 (50%fib).On the downside, immediate support is seen at 1.3589(23.6%fib), a break below could take the pair towards 1.3557(Higher BB).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday rising U.S. Treasury yields further boosted greenback. The 10-year U.S. Treasury yield hit 1.5444%, its highest level since Jun. 17, pulling up euro zone bond yields in its wake. Two-year Treasury yields surged to 18-month highs. At (GMT 09:16), Greenback gained 0.02% versus the Swiss franc to 0.9324. Immediate resistance can be seen at 0.9272 (38.2%fib), an upside break can trigger rise towards 0.9331(23.6%fib).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 Tuesday as U.S. treasury yields jumped to the highest in almost three months following hawkish U.S. Federal Reserve remarks. U.S. Treasury yields have surged since the end of last week, after the Federal Reserve said it will likely begin reducing its monthly bond purchases as soon as November and hinted that interest rate hikes may follow more. At 0722 GMT, the U.S. dollar index was up 0.2% at 93.592, having earlier hit 93.616, its highest since August 20 .Strong resistance can be seen at 111.49(23.6%fib), an upside break can trigger rise towards 112.00(Psychological level).On the downside, immediate support is seen at 111.02(38.2%fib), a break below could take the pair towards 110.65(50%fib).

Equities Recap          

European stocks sank to their lowest in a week on Tuesday as a surge in government bond yields knocked high-growth technology shares, with fresh signs of a slowdown in China’s economy weighing on investor sentiment.

At (GMT 11:30),UK's benchmark FTSE 100 was last trading down at 0.18% percent, Germany's Dax was down by 0.44 % percent, France’s CAC  was last down by 1.40% percent.

Commodities Recap

Gold slid to a 1-1/2-month low on Tuesday, as a stronger dollar and U.S. Treasury yields curbed demand for non-interest-bearing bullion, while investors also waited for policy cues from a speech by Federal Reserve chair Jerome Powell.

Spot gold hit its lowest level since Aug. 11 at $1,735.40 per ounce and was down 0.5% at $1,741.90 per ounce by 0855 GMT.U.S. gold futures fell 0.5% to $1,742.40.

Oil markets climbed for a sixth day on Tuesday, boosted by a tighter supply and firm demand outlook, but power shortages in China which hit factory output tempered the rally.

Brent crude futures gained 67 cents, or 0.8%, to $80.20 a barrel at 1016 GMT, after reaching their highest level since October 2018 at $80.75. Brent gained 1.8% on Monday.


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