Europe Roundup: Euro dips against dollar as markets await cues from Fed meet, European shares falls, Gold little changed, Oil steadies as supply shortages outweigh the spread of the virus-27th July,2021

Posted at 27 July 2021 / Categories Market Roundups

Market Roundup

•Sweden Jun Trade Balance 10.30B, 5.10B previous

•Sweden Jun Household Lending Growth (YoY) 6.2%, 5.9% previous

•EU Private Sector Loans (YoY) 4.0%,3.9% previous

•EU Jun M3 Money Supply (YoY) 8.3%, 8.2% forecast, 8.4% previous

•Greek May Unemployment Rate  15.9% ,17.0% previous

•UK Jul CBI Distributive Trades Survey 23, 21 forecast, 25 previous

Looking Ahead –Economic Data (GMT)

• 12:30 US June Durables Excluding Defense (MoM)  1.7% previous

• 12:30 US June Core Durable Goods Orders (MoM)  0.8% forecast, 0.3% previous

• 12:30 US June Durable Goods Orders (MoM)  2.1% forecast, 2.3% previous

• 12:30 US June Goods Orders Non Defense Ex Air (MoM)  0.7% forecast, 0.1% previous

• 12:55 US Redbook (YoY) 15.0% previous

• 13:00 US May  S&P/CS HPI Composite - 20 s.a. (MoM)  1.6% forecast, 1.6% previous

• 13:00 US May S&P/CS HPI Composite - 20 n.s.a. (YoY)  16.4% forecast, 14.9% previous

• 13:00 US May House Price Index (MoM)  1.8% previous

• 14:00 US Jul CB Consumer Confidence  123.9   forecast, 127.3 previous

• 14:00 US Jul Richmond Manufacturing Index  22 previous

• 14:00 US Jul Richmond Manufacturing Shipments  8 previous

• 14:30 US Jul Dallas Fed Services Revenues  16.7 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


EUR/USD: The euro dipped against dollar on Tuesday as concerns over rising COVID-19 infections and  cautious tone in global markets ahead of the U.S. Federal Reserve’s meeting this week weighed on euro. Market participants are waiting for the U.S. central bank’s meeting on Tuesday and Wednesday. While no policy change is expected, investors will look for clues on when the Fed might start reining in its easy monetary policies. The euro was down 0.15% against the dollar at 10:25GMT, at $1.1781. Immediate resistance can be seen at 1.1820(38.2%fib), an upside break can trigger rise towards 1.1842 (32.6% fib).On the downside, immediate support is seen at 1.1770(23.6% fib), a break below could take the pair towards 1.1747 (Lower BB).

GBP/USD: Sterling declined against dollar on Tuesday as global stock markets sank led by a heavy sell-off in Chinese shares, which sapped risk sentiment and drove a bid for dollars ahead of a U.S. Federal Reserve policy meeting.The pound has been particularly sensitive to risk sentiment in recent weeks and has correlated well with the performance of global stock markets. Receding COVID-19 cases in Britain have also helped the pound steady above $1.37 against the greenback. Immediate resistance can be seen at 1.3849 (38.2%fib),an upside break can trigger rise towards 1.3916(Higher BB).On the downside, immediate support is seen at 1.3793 (21DMA), a break below could take the pair towards 1.3763 (50%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as investors turned to this week's Federal Reserve meeting for clues on the policy outlook. Greenback has been rising broadly for more than a month as markets are wary of the Fed starting to taper its monetary support, and data shows investors are now long dollars for the first time since March 2020. The Fed meeting is on Wednesday and the focus is on discussions around bond purchases and insight into the bank's comfort with surging inflation. At (GMT 10:11), greenback gained 0.29% versus the Swiss franc to 0.9181. Immediate resistance can be seen at 0.9194 (38.2%fib), an upside break can trigger rise towards 0.9267 (23.6%fib).On the downside, immediate support is seen at 0.9142 (50%fib), a break below could take the pair towards 0.9114 (Lower BB).

USD/JPY: The dollar declined against the Japanese yen Tuesday as Investors focused on the Fed's meeting this week for clues as to when the central bank might curtail its flexible monetary policy. The Fed’s two-day meeting will start on Tuesday and a policy statement will be issued at 1800 GMT on Wednesday, followed by a news conference by Fed Chairman Jerome Powell. At 10:11 GMT, the dollar was trading 0.22 percent lower versus the yen  at 110.12.Strong resistance can be seen at 110.28(50%fib), an upside break can trigger rise towards 110.61 (38.2%fib).On the downside, immediate support is seen at 110.10 (11DMA), a break below could take the pair towards 109.99(61.8%fib).

Equities Recap

European stocks lost further ground on Tuesday as sharp falls in Chinese shares and Reckitt Benckiser’s warning on margin offset a batch of strong earnings updates from companies including fashion powerhouse LVMH.

At (GMT 10:20),UK's benchmark FTSE 100 was last trading down at 0.53 percent, Germany's Dax was down by 0.56 percent, France’s CAC was last down by 0.37 percent.

Commodities Recap

Gold prices lingered below the key $1,800 per-ounce level on Tuesday, as investors maintained a cautious stance ahead of the Federal Reserve policy meeting and awaited cues on the U.S. central bank’s timeline for tightening its monetary policies.

Spot gold was flat at $1,796.30 per ounce, as of 0915 GMT, after hitting a session low of $1,792.00, with a firmer dollar curbing the precious metal’s appeal further.

Oil prices steadied on Tuesday as investors bet tight supply and rising vaccination rates will help offset any impact on demand from surging COVID-19 cases worldwide.

Brent crude futures rose 1 cent to $74.51 a barrel by 0819 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 8 cents, or 0.1%, to $71.83 a barrel.

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