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Europe Roundup: Euro edges higher against dollar ahead of US inflation data and ECB meeting, European stocks hovering around recent peaks, Gold steady, Oil rallies amid signs of strong fuel demand in Western countries-June 9th,2021

Posted at 09 June 2021 / Categories Market Roundups


Market Roundup

• German Apr  Exports (MoM)  0.3%, 0.5% forecast, 1.2% previous

• German Apr  Trade Balance  15.9B, 16.3B forecast, 14.3B previous

•German Apr Imports (MoM)  -1.7%, -1.1% forecast, 6.5% previous       

•Gemran Apr Current Account Balance n.s.a  21.3B, 30.2B previous

Looking Ahead - Economic data ahead (GMT)

•14:00 US Apr Wholesale Trade Sales (MoM)  1.0% forecast, 4.6% previous

•14:00 Canada BoC Interest Rate Decision 0.25% forecast, 0.25% previous

•14:00 US Apr Wholesale Inventories (MoM) 0.8% previous

•14:30 US Gasoline Inventories 0.698M forecast, 1.500M previous

•14:30 US Crude Oil Inventories -2.036M forecast, -5.080M previous

•14:30 US Cushing Crude Oil Inventories 0.784M previous

Looking Ahead - Economic data ahead (GMT)

•14:00 Canada BoC Rate Statement

Fxbeat

EUR/USD: The euro edged higher against dollar on Wednesday as traders awaited the next inflation data from the US and a meeting of the European Central Bank (ECB) to gauge the pace of the global recovery and policymakers anticipating a reduction in stimulus. The focus will be on US consumer price data on Thursday, a reading that could affect market expectations that the US Federal Reserve will cut its massive bond-buying program ahead of its meeting next week. The ECB is likely to say it will maintain the current rate of bond purchases at its monetary policy meeting on Thursday. Immediate resistance can be seen at 1.1212 (23.6%fib), an upside break can trigger rise towards 1.1258 (June 1st high).On the downside, immediate support is seen at 1.2172 (5 DMA), a break below could take the pair towards 1.2148(38.2%fib).

GBP/USD:The British pound rose slightly against the U.S. dollar on Wednesday, ignoring Northern Ireland's trade issues post  Britain's withdrawal from the European Union Britain’s Brexit Secretary David Frost will meet with European Commission Vice-President Marros Sevkovic in London on Wednesday to try to resolve differences in the trade agreement between the British province of Northern Ireland, which still remained within the European Union’s single market after Brexit due to its open land border with Ireland. So far, months of negotiations have had little effect on breaking the deadlock. Britain said on Tuesday that it would notify the European Union that time is running out to find a solution. Immediate resistance can be seen at 1.4187(Daily high), an upside break can trigger rise towards 1.4250(23.6%fib).On the downside, immediate support is seen at 1.4128 (38.2%fib), a break below could take the pair towards 1.4086(June 4th low).

USD/CHF: The dollar edged lower against the Swiss franc on Wednesday as dollar dipped ahead of US inflation data, which may provide clues as to the Federal Reserve's stance on easing monetary stimulus. The focus is on the US consumer price data released on Thursday and the European Central Bank meeting to get more information on how long policymakers can withdraw support for European economic expansion after the COVID-19 crisis. At 12:00 GMT, the dollar was 0.19 percent lower versus the Swiss franc at 0.8949 . Immediate resistance can be seen at 0.8986 (5 DMA), an upside break can trigger rise towards 0.9027 (38.2% fib).On the downside, immediate support is seen at 0.8941 (23.6% fib), a break below could take the pair towards 0.8900 (Psychological level).

USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors awaited fresh cues from inflation data this week and an upcoming Federal Reserve meeting. The United States Central Bank has said that the rise in inflation this quarter would be temporary and will not endanger price stability, one of its key mandates. Thursday's US consumer price data is expected to show the headline inflation rate to climb to 4.7% and core inflation to rise. increased to 3.4%.At (GMT 12:10), the dollar was last down  0.08 % at 109.37 yen. Strong resistance can be seen at 109.55(38.2%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.q3 (50%fib), a break below could take the pair towards 108.67  (61.8%fib).

Equities Recap

European stocks stabilized near all-time highs on Wednesday, with investors not placing big bets ahead of a European Central Bank policy decision and US inflation later this week.

At (GMT 12:00 ),UK's benchmark FTSE 100 was last trading down at 0.36 percent, Germany's Dax was up  by 0.49 percent, France’s CAC  was last up by 0.06 percent.

Commodities Recap

Gold remained in a tight range below the $ 1,900 an ounce mark on Wednesday as investors awaited inflation data from the United States and a meeting of the European Central Bank for clues about monetary policy.

Spot gold was down 0.2% at $1,889.84 per ounce by 1135 GMT, while U.S. gold futures slipped 0.1% to $1,892.10.

Oil prices continued to rise on Wednesday amid signs of strong demand for fuel in western economies, while prospects for a return of Iranian supplies diminished as the U.S. Secretary of State said it was unlikely to lift sanctions on Tehran.

Brent crude futures were up 42 cents, or 0.6%, at $72.64 a barrel at 1138 GMT, having earlier touched $72.83, the highest since May 20, 2019. Brent rose 1% on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures climbed 35 cents, or 0.5%, to $70.40 a barrel


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