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America’s Roundup: Dollar rebounds after improving jobs, housing data, Wall Street gains, Gold edges down, Oil dives, forecast of mild U.S. winter spurs retreat from multi-year highs-October 22nd,2021

Posted at 22 October 2021 / Categories Market Roundups


Market Roundup

•US Continuing Jobless Claims 2,481K,2,550K forecast, 2,593K previous

•US Jobless Claims 4-Week Avg  319.75K,334.25K previous

•US Initial Jobless Claims 290K,300K forecast, 293K previous

•Canada ADP Nonfarm Employment Change 9.6K,39.4K previous

•Canada Sep New Housing Price Index (MoM ) 0.4%,0.7% previous

•US Oct Philly Fed CAPEX Index 32.40, 23.60 previous

•US Oct Philadelphia Fed Manufacturing Index 23.8, 25.0 forecast, 30.7 previous

•US Oct Philly Fed New Orders 30.8, 15.9 previous

•US Oct Philly Fed Employment  30.7,26.3 previous

•US Oct Philly Fed Prices Paid  70.30,67.30 previous

•US Oct Philly Fed Business Conditions  24.2,20.0 previous

•US Sep Leading Index (MoM)  0.2%,0.4% forecast, 0.9% previous

•US Sep Existing Home Sales (MoM) 7.0%, -2.0% previous

•US Sep Existing Home Sales 6.29M, 6.09M forecast, 5.88M previous

Looking Ahead - Events, Other Releases (GMT)

•06:00 Japan Services PMI 47.8 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro dipped   on Thursday as dollar was boosted by better jobs and housing data, including data showing the number of Americans filing new claims for unemployment benefits dropped last week to a 19-month low, pointing to a tighter labor market. The dollar was also supported as benchmark 10-year U.S. Treasury yields rose to 1.683%, the highest since May 13. The euro was down 0.1% at $1.16395, still close to Tuesday’s three-week peak of $1.1670. Immediate resistance can be seen at 1.1630(38.2%fib), an upside break can trigger rise towards 1.1719(50%fib).On the downside, immediate support is seen at 1.1599 (23.6%fib), a break below could take the pair towards 1.1500(Psychological level).

GBP/USD: Sterling dipped below one-month highs on Thursday, tracking a similar move in risk-oriented currencies which lost some momentum against the dollar after a rally fuelled by rising prices for commodities.The pound has risen about 3% against the dollar since late September, on the back of expectations of an imminent interest rate hike by the Bank of England. A dip in September inflation is seen unlikely to stop the Bank of England from raising interest rates soon. The pound was down 0.17%, at $1.3800 at 1830 GMT, slightly below a one-month high of $1.3834 reached on Tuesday. Immediate resistance can be seen at 1.3830(23.6%fib),an upside break can trigger rise towards 1.3863(Higher BB).On the downside, immediate support is seen at 1.3750(38.2%fib), a break below could take the pair towards 1.3708(50DMA).

USD/CAD : The Canadian dollar weakened against its U.S. counterpart on Thursday as oil prices fell and Ottawa said it would wind down broad-based pandemic-era economic support, with the loonie pulling back from an earlier four-month high. Oil  , one of Canada's major exports, settled 1.1% lower at $82.50 a barrel as a forecast for a warm U.S. winter put the breaks on a rally that drove prices to multi-year highs.The loonie was trading 0.5% lower at 1.2375 to the greenback, its biggest decline since Sept. 29. Earlier, the currency touched its strongest level since June 25 at 1.2289.Immediate resistance can be seen at 1.2362(38.2%fib), an upside break can trigger rise towards 1.2414 (50%fib).On the downside, immediate support is seen at 1.2299 (23.6%fib), a break below could take the pair towards 1.2239 (Lower BB).

USD/JPY: The dollar strengthened against yen on Thursday as dollar was boosted by better jobs and housing data, and as U.S. Treasury yields rose. Data showed that the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October. U.S. home sales also surged to an eight-month high in September, but higher prices as supply remains tight are squeezing first-time buyers out of the housing market. Strong resistance can be seen at 114.25(38.2%fib), an upside break can trigger rise towards 114.75(23.6%fib).On the downside, immediate support is seen at 113.78(38.2%fib), a break below could take the pair towards 113.13(50%fib).

Equities Recap

European stocks steadied at six-week highs on Thursday, as buying of defensives and growth stocks helped offset losses in miners and disappointing earnings forecasts, including from software major SAP.

UK's benchmark FTSE 100 closed down by  0.45 percent, Germany's Dax ended down by 0.32 percent, France’s CAC finished the day down by 0.29 percent.                

The S&P 500 boasted a record closing high and its seventh straight session of gains on Thursday while the Nasdaq was boosted by such high-profile stocks as Tesla Inc and Microsoft Corp but a tumble in IBM shares weighed on the Dow.

Dow Jones closed down  by  0.02% percent, S&P 500 closed up by 0.33 % percent, Nasdaq settled up  by 0.62%  percent.

Treasuries Recap

U.S. Treasury yields rose on Thursday as a tighter labor market pointed to a recovering economy that renewed questions about the pace of inflation and when the Federal Reserve will raise interest rates.

Yields on U.S. Treasuries notes also rose, with the benchmark 10-year Treasury rising 4.5 basis points to 1.680%.

Commodities Recap

Gold prices edged lower in choppy trading on Thursday, pressured by rising U.S. bond yields that countered support from concerns over rising inflation and China’s troubled property sector.

Spot gold fell 0.1% to $1,780.61 per ounce by 1:38 pm EDT (1738 GMT). U.S. gold futures for December delivery settled down 0.2% at $1,781.9 per ounce.

Oil tumbled on Thursday as a forecast for a warm U.S. winter put the brakes on a rally that drove prices to a three-year high above $86 a barrel early in the session on tight supply and a global energy crunch.

Brent crude fell $1.21 to $84.61, after reaching a session high of $86.10, highest since October 2018. U.S. West Texas Intermediate crude settled down 92 cents to $82.50.


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