Posted at 26 July 2021 / Categories Market Roundups
•German Jul Current Assessment 100.4 , 101.6 forecast, 99.6 previous
•German Jul Ifo Business Climate Index 100.8, 102.1 forecast, 101.8 previous
•German Jul Business Expectations 101.2,103.3 forecast, 104.0 previous
Looking Ahead –Economic Data (GMT)
•13:00 French 6-Month BTF Auction-0.638% previous
•13:00 French 3-Month BTF Auction-0.651% previous
•13:00 French 6-Month BTF Auction -0.640% previous
•14:00 US June New Home Sales (MoM) 3.5% forecast, -5.9% previous
•14:00 US June New Home Sales 800K forecast, 769K previous
•14:00 US Dallas Jul Fed Mfg Business Index 31.1 previous
•15:30 US 3-Month Bill Auction 0.050% previous
•15:30 US 6-Month Bill Auction 0.050% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro gained on Monday as greenback dipped investors were cautious ahead of the Federal Reserve meeting. They key event of the week for markets is the Fed meeting, where investors will look for Chair Jerome Powell’s comments about the timing for the start of tapering of the central bank’s asset purchases. The euro was up 0.25% against the dollar at 10:41 GMT, at $1.1795. Immediate resistance can be seen at 1.1822(38.2%fib), an upside break can trigger rise towards 1.1881 (50% fib).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1726 (Lower BB).
GBP/USD: Sterling edged higher on Monday after data over the weekend showed a fall in COVID-19 cases in Britain but experts warned the full impact of the economy’s reopening on infection rates remained to be seen. The pound has held up better than most major currencies in recent weeks, supported by Britain’s high vaccination rate at a time when the Delta variant has caused cases to surge worldwide. Immediate resistance can be seen at 1.3820 (38.2%fib),an upside break can trigger rise towards 1.3838 (30DMA).On the downside, immediate support is seen at 1.3768 (5DMA), a break below could take the pair towards 1.3734 (50%fib).
USD/CHF: The dollar dipped against the Swiss franc on Monday as concerns over rising COVID-19 infections set a cautious tone in global markets ahead of the U.S. Federal Reserve's meeting this week. The dollar has in recent sessions benefited from safe-haven buying on fears a surge in infections of the fast-spreading Delta variant could derail the global recovery. At (GMT 10:32), greenback dipped 0.05% versus the Swiss franc to 0.9181. Immediate resistance can be seen at 0.9226 (38.2%fib), an upside break can trigger rise towards 0.9260 (23.6%fib).On the downside, immediate support is seen at 0.9167 (50%fib), a break below could take the pair towards 0.9121 (Lower BB).
USD/JPY: The dollar edged lower against the Japanese yen Monday as financial markets looked ahead to the Federal Open Market Committee (FOMC) meeting this week for clues on the timing of stimulus tapering. The week is also is packed with U.S. data. Second-quarter gross domestic product is forecast to show annualised growth of 8.6%, while the Fed’s favoured measure of core inflation is seen rising an annual 3.7% in June. At 10:32 GMT, the dollar was trading 0.18 percent lower versus the yen at 110.29.Strong resistance can be seen at 110.60(38.2%fib), an upside break can trigger rise towards 110.99 (23.6%fib).On the downside, immediate support is seen at 110.28 (50%fib), a break below could take the pair towards 109.54(61.8%fib).
European stocks eased from all-time highs on Monday after regulatory concerns knocked Asian markets lower, while automakers retreated following a strong showing last week.
At (GMT 10:35),UK's benchmark FTSE 100 was last trading down at 0.24 percent, Germany's Dax was down by 0.42 percent, France’s CAC was last down by 0.28 percent.
Gold prices rose on Monday as a softer dollar and concerns over rising coronavirus cases stalling economic recovery lifted demand for the safe-haven metal, while investors awaited the Federal Reserve meeting for policy cues.
Spot gold rose 0.4% to $1,807.73 per ounce by 0829 GMT. U.S. gold futures rose 0.4% to $1,808.80 per ounce.
Oil prices fell $1 on Monday as concerns about fuel demand caused by the spread of COVID-19 variants as well as changes to import rules in China offset expectations of tight supplies through the rest of the year.
Brent crude futures for September fell 97 cents, or 1.3%, to $73.13 a barrel by 0850 GMT while U.S. Texas Intermediate crude was at $71 a barrel, down $1.07.