Posted at 28 July 2021 / Categories Market Roundups
•German Jun Import Price Index (YoY) 12.9%,12.6% forecast, 11.8% previous
•UK July Nationwide HPI (YoY) 10.5%,12.1% forecast, 13.4% previous
•UK July Nationwide HPI (MoM) -0.5%,0.6% forecast, 0.7% previous
•German Aug GfK German Consumer Climate -0.3, 1.0 forecast, -0.3 previous
•French Jul Consumer Confidence 101, 102 forecast, 102 previous
•Sweden Jun Retail Sales (YoY) 8.5%, 10.3% previous
•Italian Jul Consumer Confidence 116.6, 115.5 forecast, 115.1 previous
Looking Ahead –Economic Data (GMT)
•12:30 Canada Trimmed CPI (YoY) 2.7% previous
•12:30 Canada Median CPI (YoY) 2.4% previous
•12:30 Canada Common CPI (YoY) 1.8% previous
•12:30 US Wholesale Inventories (MoM) 1.3% previous
•12:30 Canada Jun CPI (MoM) 0.4% forecast, 0.5% previous
•12:30 US Jun Goods Trade Balance -88.16B previous
•12:30 US Jun Retail Inventories Ex Auto 0.9% previous
•12:30 US Jun Core CPI (MoM) 0.4% forecast, 0.4% previous
•12:30 US CPI (YoY) 3.2% forecast, 3.6% previous
•12:30 US Core CPI (YoY) 2.4% forecast,2.8% previous
•14:30 US Gasoline Inventories -0.916M forecast, -0.121M previous
•14:30 US Crude Oil Inventories- 2.928M forecast, 2.108M previous
•18:00 US Fed Interest Rate Decision 0.25% forecast, 0.25% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Statement
•18:30 US FOMC Press Conference
EUR/USD: The euro was little changed on Wednesday as investors await a statement from the Fed policy meeting and a press conference by Fed chair Jerome Powell due tonight for clues on the timing of stimulus tapering. The Fed’s policy statement is due at 1800 GMT on Wednesday, followed by a news conference by Chairman Jerome Powell. The euro was down 0.02% against the dollar at 10:32 GMT, at $1.1812. 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 held firm against dollar on Wednesday despite broader tone of risk aversion in currency markets ahead of a U.S. Federal Reserve meeting. The pound was an outlier, mostly holding on to its recent gains. It saw a sudden surge on Tuesday around the time at which daily foreign exchange benchmarks are calculated. At 0808 GMT on Wednesday, the pound was at $1.3869, close to its highest in 13 days. Immediate resistance can be seen at 1.3900 (Daily high),an upside break can trigger rise towards 1.3951(23.6%fib).On the downside, immediate support is seen at 1.3850 (50%fib), a break below could take the pair towards 1.3817 (5DMA).
USD/CHF: The dollar little changed against the Swiss franc on Wednesday as traders reluctant to place large bets ahead of the outcome of the Federal Reserve meeting. The statement from the Fed policy meeting, and a press conference from chairman Jerome Powell are due at 2 p.m. EDT (1800 GMT).Markets will be watching closely for any hints in relation to inflation, economic growth, interest rates and when the Fed will likely start reducing its purchases of government bonds. At (GMT 10:32), greenback dipped 0.001% versus the Swiss franc to 0.9142. Immediate resistance can be seen at 0.9143 (5DMA), an upside break can trigger rise towards 0.9186 (38.2%fib).On the downside, immediate support is seen at 0.9129(50%fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar edged higher against the Japanese yen on Wednesday as investors were waiting for outcome of a U.S. Federal Reserve meeting. The dollar has enjoyed a month-long rally after a hawkish shift from the Fed in June. Markets are waiting to see whether the Fed will provide any clues on the timing of tapering later in the day amid surging U.S. inflation. At 10:32 GMT, the dollar was trading 0.18 percent lower versus the yen at 109.96.Strong resistance can be seen at 110.01(38.2%fib), an upside break can trigger rise towards 110.14 (5DMA).On the downside, immediate support is seen at 109.70 (50%fib), a break below could take the pair towards 109.39(61.8%fib).
European stocks gained on Wednesday as encouraging earnings reports from British bank Barclays and luxury group Kering helped investors look past worries about China’s regulatory crackdown that kept markets on edge this week.
At (GMT 10:35),UK's benchmark FTSE 100 was last trading up at 0.24 percent, Germany's Dax was up by 0.22 percent, France’s CAC was last up by 0.76 percent.
Gold prices held steady near the key $1,800-per-ounce level on Wednesday as investors held back from making large bets ahead of a U.S. Federal Reserve policy decision due later in the day.
Spot gold was up 0.1% at $1,800.40 per ounce, as of 0857 GMT. U.S. gold futures were steady at $1,798.90.
Oil rose to around $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell more than expected, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.
Brent crude rose 57 cents, or 0.8%, to $75.05 a barrel at 0950 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 79 cents, or 1.1%, to $72.44.