News

Europe Roundup: Euro softer after ECB pledged record low rates for longer, European shares gain,Gold little changed, Oil slips but set to end week steady on tight supply-July 23rd,2021

Posted at 23 July 2021 / Categories Market Roundups


Market Roundup

•UK June Retail Sales (MoM)  0.5%,0.4% forecast,-1.4%previous

•UK Jun Core Retail Sales (MoM) 0.3%, 0.6% forecast, -2.1% previous

•UK Jun Retail Sales (YoY)  9.7%,9.6% forecast, 24.6% previous

•UK Jun Core Retail Sales (YoY)  7.4%,8.2% forecast, 21.7% previous         

• French Jul Manufacturing PMI 58.1, 58.4 forecast, 59.0 previous             

• French Jul Markit Composite PMI  56.8, 58.5 forecast, 57.4 previous

•German Jul Services PMI  62.2,59.1 forecast, 57.5 previous

•German Jul Manufacturing PMI  65.6, 64.2 forecast, 65.1 previous

•EU Jul Markit Composite PMI  60.6,60.0 forecast, 59.5 previous

•EU Jul Services PMI 60.4, 59.5 forecast, 58.3 previous

•EU Jul Manufacturing PMI  62.6,62.5 forecast, 63.4 previous

•UK Manufacturing PMI 60.4,62.7 forecast, 63.9 previous

•UK Services PMI 57.8,62.0 forecast, 62.4 previous

•UK Composite PMI 57.7,61.9 forecast, 62.2 previous

Looking Ahead –Economic Data (GMT)

•12:30 Canada Core Retail Sales (MoM) -2.2% forecast,-7.2% previous

•12:30 Canada   May Retail Sales (MoM)  -3.0% forecast, -5.7% previous

•13:45 US Jul Services PMI  64.8 forecast, 64.6 previous

•13:45 US Jul Manufacturing PMI  62.0 forecast, 62.1 previous

•13:45 US Jul Markit Composite PMI  63.7 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat                                          

EUR/USD: The euro was little changed against dollar on Friday as euro was unmoved by mixed business activity readings from the region’s largest economies, while investors continued to digest Thursday’s ECB policy decision. Flash Purchasing Managers’ Index (PMI) data from IHS Markit, seen as a good gauge of economic health, is expected to show a combined reading of the bloc’s services and manufacturing service growth accelerated further in July. Data from France showed business activity growth slowing more than expected in July. Immediate resistance can be seen at 1.1781 (5DMA), an upside break can trigger rise towards 1.1823 (38.2%fib).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1721 (Lower BB).

GBP/USD: Sterling fell on Friday despite better-than-expected retail sales data as investors weighed up the risk of a further rise in COVID-19 cases and the impact of self-isolation on Britain’s food and travel industries. Official data on Friday showed British retail sales resuming their post-lockdown recovery in June after a surprise fall in May. By 0750 GMT, the pound was 0.2% lower versus the dollar at $1.3737. Immediate resistance can be seen at 1.3794(50%fib),an upside break can trigger rise towards 1.3886 (61.8%fib).On the downside, immediate support is seen at 1.3716 (38.2%fib), a break below could take the pair towards 1.3623(23.6%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Friday as the market's focused on next week's U.S. Federal Reserve meeting. The market's next major focus is the Federal Reserve 's two-day policy meeting that wraps up on Thursday. Since the previous meeting on June 16, when Fed officials dropped a reference to the coronavirus as a weight on the economy, cases are spiking. Immediate resistance can be seen at 0.9223(38.2%fib), an upside break can trigger rise towards 0.9282 (50%fib).On the downside, immediate support is seen at 0.9169 (50%fib), a break below could take the pair towards 0.9115(61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen Friday as the dollar continued to gain at the end of a turbulent week when the regional FX market was mostly driven by the global investor mood, which turned risk-averse as COVID-19 spread. Investors believe the dollar a popular safe haven during uncertain times will rise if the Delta variant of COVID-19 spreads and risk aversion grows in markets. At 10:21 GMT, the dollar was trading 0.29 percent higher versus the yen  at 110.44.Strong resistance can be seen at 110.52(38.2%fib), an upside break can trigger rise towards 110.91 (23.6%fib).On the downside, immediate support is seen at 110.19 (50%fib), a break below could take the pair towards 110.75(5DMA).

Equities Recap

European stocks were on track to close the week higher on Friday, as optimism about the earnings season and the European Central Bank’s pledge of continued monetary support outweighed risks of a resurgence in COVID-19 cases.

At (GMT 10:21),UK's benchmark FTSE 100 was last trading up at 0.84 percent, Germany's Dax was up by 0.81 percent, France’s CAC was last up by 0.92 percent.

Commodities Recap

Gold traded in a narrow range on Friday as a stronger dollar dimmed bullion’s appeal and put it on course for its first weekly decline in five, with investors looking to the U.S. Federal Reserve’s next meeting for policy cues.

Spot gold fell 0.2% to $1,803.66 an ounce by 0854 GMT. U.S. gold futures were flat at $1,805.30.

Oil edged further below $74 a barrel on Friday but was on track to end the week little changed after a surprising recovery from Monday's slide, underpinned by expectations that supply will remain tight as demand recovers.

Brent crude was down 3 cents at $73.76 a barrel by 1000 GMT after jumping 2.2% on Thursday. U.S. West Texas Intermediate (WTI) crude dropped 1 cent to $71.90, following a 2.3% gain on Thursday.


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