Europe Roundup: Euro edges higher against greenback ahead of ECB meeting, European stocks gains, Gold eases, Oil prices rise on signs of tightening supplies-22nd July,2021

Posted at 22 July 2021 / Categories Market Roundups

Market Roundup

•French Jul Business Survey 110, 107 forecast, 107 previous

•Belgium Jul Consumer Confidence 8,  8 previous

•UK Jul CBI Industrial Trends Orders 17, 16 forecast, 19 previous

Looking Ahead –Economic Data (GMT)

• 11:45 EU ECB Jul Interest Rate Decision  0.00% forecast, 0.00% previous

• 11:45 EU ECB Jul Deposit Facility Rate -0.50% forecast, -0.50% previous

• 11:45 EU ECB Marginal Lending Facility 0.25% previous

 •12:30 US Continuing Jobless Claims 3,100K forecast, 3,241K previous

•12:30 US Jobless Claims 4-Week Avg  382.50K previous

•12:30 US Initial Jobless Claims 350K forecast, 360K previous

•12:30 US Jun Chicago Fed National Activity  0.29 previous

•13:00 Russia Central Bank reserves (USD) 593.7B previous

•14:00 US Jun US Leading Index (MoM)  0.9% forecast, 1.3% previous

•14:00 US Jun Existing Home Sales  5.90M forecast ,5.80M previous

•14:00 EU Jul Consumer Confidence  -2.5 forecast , -3.3 previous

•14:00 US Jun Existing Home Sales (MoM)  -0.9% previous

•14:30 US Natural Gas Storage  44B forecast, 55B previous

•15:00 US Jul KC Fed Composite Index 27 previous

•15:00 US Jul KC Fed Manufacturing Index  30 previous

•Russia Jun Industrial Production (YoY)  10.1% forecast, 11.8% previous

Looking Ahead - Events, Other Releases (GMT)

•12:30 ECB Press Conference


EUR/USD: The euro edged higher against dollar on Thursday as investors were cautious ahead of European Central Bank meeting scheduled later in the day. ECB’s policy decision, due at 1145 GMT, when it is all but certain to promise an even longer period of stimulus to make good on its commitment to boost inflation.The euro stood at $1.1789, rising off Wednesday's 3-1/2-month low of $1.1752. Immediate resistance can be seen at 1.1820 (38.2%fib), an upside break can trigger rise towards 1.1842 (21DMA).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1721 (Lower BB).

GBP/USD: Britain's pound rose against the dollar for a second day on Thursday as recovering risk sentiment in global markets helped buoy currencies correlated with economic growth. Investor nerves over whether vaccinations will successfully head off future lockdowns amid surging coronavirus cases led to a stock selloff earlier this week, whacking sterling as much as 1.3% lower to the dollar on the week. Sterling continued to rise, up 0.2% at $1.3733 by 0815 GMT. Immediate resistance can be seen at 1.3764 (50%fib),an upside break can trigger rise towards 1.3836 (61.8%fib).On the downside, immediate support is seen at 1.3695 (38.2%fib), a break below could take the pair towards 1.3605 (23.6%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors switched to safety of dollar as worries persisted over the Delta variant's negative impact on economic growth. A revived appetite for riskier assets came as worries that the Delta variant of COVID-19 would seriously crimp economic recovery. At (GMT 10:03), greenback gained 0.03% versus the Swiss franc to 0.9178. Immediate resistance can be seen at 0.9223 (38.2%fib), an upside break can trigger rise towards 0.9263 (Higher BB).On the downside, immediate support is seen at 0.9167 (50%fib), a break below could take the pair towards 0.9111 (61.8%fib).

USD/JPY: The dollar edged higher against the Japanese yen Thursday as greenback continued firm against yen , while investors awaited the European Central Bank policy meeting later in the day. The dollar index held steady, hovering below a 3-1/2-month peak ahead of the ECB policy decision due at 1145 GMT. At 10:03 GMT, the dollar was trading 0.01 percent higher versus the yen  at 110.24.Strong resistance can be seen at 110.38(30DMA), an upside break can trigger rise towards 110.48 (23.6%fib).On the downside, immediate support is seen at 110.09 (38.2%fib), a break below could take the pair towards 109.75(50%fib).

Equities Recap

European stocks extended gains for a third session on Thursday, as signs of a strong corporate earnings season and expectations that the European Central Bank (ECB) will stick to a dovish stance lifted demand for risky equities.

At (GMT 10:06),UK's benchmark FTSE 100 was last trading up at 0.19 percent, Germany's Dax was up by 0.77 percent, France’s CAC was last up by 0.72 percent.

Commodities Recap

Gold prices extended slide to their lowest in nearly two weeks on Thursday on the back of a rebound in stocks and firmer U.S. dollar, while investors looked to the European Central Bank for their stance on policy.

Spot gold fell 0.5% to $1,794.58 per ounce by 0843 GMT. U.S. gold futures slipped 0.5% to $1,793.90.

Oil prices rose on Thursday, extending strong gains made in previous sessions on expectations of tighter supplies until the end of the year as economies recover from the coronavirus crisis.

Brent crude rose 27 cents, or 0.4%, to $72.50 a barrel at 0830 GMT, after rising 4.2% in the previous session. U.S. West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to $70.63 a barrel, after rising 4.6% on Wednesday.

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