Posted at 26 July 2021 / Categories Market Roundups
•French 6-Month BTF Auction -0.641%,-0.638% previous
• French 3-Month BTF Auction-0.646% ,-0.651% previous
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Looking Ahead –Economic Data (GMT)
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 1.5% previous
• 01:30 Chinese Jun Industrial profit (YoY) 36.40% previous
• 01:30 Chinese Jun Industrial profit YTD 83.4% previous
Looking Ahead - Events, Other Releases (GMT)
• 07:30 BoJ Governor Kuroda Speaks
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 $1.1802. 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 1.3824 (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/CAD: The Canadian dollar edged higher against its broadly weaker U.S. counterpart on Monday as investors awaited a Federal Reserve meeting this week, with the loonie adding to last week's advance.The U.S. dollar fell against a basket of major currencies, while oil , one of Canada's major exports, was up 0.1% at $72.12 a barrel as the prospect of tight supply offset fears that the spread of the COVID-19 Delta variant would crimp demand. The Canadian dollar was trading 0.2% higher at 1.2542 to the greenback. Immediate resistance can be seen at 1.2583 (38.2%fib), an upside break can trigger rise towards 1.2663 (23.6% fib).On the downside, immediate support is seen at 1.2518(50 %fib ), a break below could take the pair towards 1.2354 (61.8% fib)
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.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, hurt by a decline in shares of Dutch technology investor Prosus on regulatory clampdowns in China.
The UK's benchmark FTSE 100 closed dow by 0.03 percent, Germany's Dax ended down by 0.32 percent, and France’s CAC finished the up by 0.15 percent.
Wall Street indexes hovered near record highs on Monday in a week packed with heavyweight technology earnings, with investors staying away from big bets in the runup to a policy meeting by the Federal Reserve.
Dow Jones closed up by 0.24 percent, S&P 500 ended up by 0.24 percent, Nasdaq finished the day up by 0.03 percent.
U.S. Treasury yields were little changed to slightly lower in choppy trading on Monday, recovering a bit from sharper falls in the Asian session and tracking shifts in risk appetite, with investors cautious as well ahead of the Federal Reserve's monetary policy meeting this week.
The yield curve, which can be a gauge of risk sentiment, was little changed at 107.40 basis points, as measured by the spread between 2-year and 10-year yields
Gold edged lower on Monday as investors turned cautious in the run-up to a Federal Reserve policy meeting, overshadowing some support from a weaker dollar.
Spot gold was down 0.2% at $1,798.41 per ounce by 13:56 p.m. EDT, while U.S. gold futures settled 0.1% lower at $1,799.20.
Oil prices steadied on Monday after a choppy session as the spread of the COVID-19 Delta variant stoked fears about fuel demand, but losses were limited by forecasts that crude supply will be tight the rest of the year.
Brent crude futures rose 40 cents, or 0.5%, to end the session at $74.50 a barrel, while U.S. West Texas Intermediate crude slipped by 16 cents, or 0.2%, to settle at $71.91.