News

Europe Roundup: Sterling dips after rally triggered by hawkish BoE, European shares slips, Gold climbs, Oil heads for third week of gains as output stumbles-September 24th,2021

Posted at 24 September 2021 / Categories Market Roundups


Market Roundup

•Sweden Aug PPI (MoM) 2.0%,2.7% previous

•Sweden Aug PPI (YoY) 15.8% ,13.5% previous

•Italian Sep Consumer Confidence 119.6, 115.8 forecast, 116.2 previous

•Italian Business Confidence    113.0, 112.6 forecast ,113.4 previous            

•German Ifo Business Climate Index 98.8,98.9 , 99.4 previous

•German Business Expectations 97.3. 96.5,9.75 previous

•UK Sep CBI Distributive Trades Survey 35,60 previous

•US Aug New Home Sales 740K, 714K, 708K previous

•  US Aug New Home Sales (MoM) 1.5%, 1.0% previous

Looking Ahead –Economic Data (GMT)

•15:00 Canada Jul Budget Balance -12.71B

•15:00 Canada Jul Budget Balance (YoY) -36.47B

•17:00 US Baker Hughes Total Rig Count 503 previous

Looking Ahead - Events, Other Releases (GMT)

•13:15 ECB's Lane Speaks

•14:00 US FOMC Member Clarida Speaks

•14:00 US FOMC Member Bowman Speaks

•14:00 US Fed Chair Powell Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Friday as uncertainty over beleaguered Chinese property developer Evergrande helped the greenback bounce back from a sharp decline in the prior session. China Evergrande Group owes $305 billion and has run short on cash, missing a Thursday deadline for paying $83.5 million and leaving investors questioning whether it will make the payment before a 30-day grace period expires. A collapse of the company could create systemic risks to China's financial system. The dollar index rose 0.291%, with the euro down 0.25% to $1.1707.Immediate resistance can be seen at 1.1751 (50%fib), an upside break can trigger rise towards 1.1784(61.8%fib).On the downside, immediate support is seen at 1.1700(Daily low), a break below could take the pair towards 1.1680 (23.6%fib).

GBP/USD: Sterling dipped against the dollar on Friday, losing some of its gains from a rally which followed the Bank of England taking a hawkish tone on interest rates and its pandemic-era government bond buying scheme. Markets brought forward their expectations of an interest rate rise after the central bank lifted on Thursday its forecast for inflation and two of its policymakers called for an immediate halt to its 895 billion pound ($1.23 trillion) bond purchase programme. The pound, which had risen as high as $1.375 during the previous session, retreated to about $1.371 by 0830 GMT. Immediate resistance can be seen at 1.3756(23.6%fib),an upside break can trigger rise towards 1.3768 (21 DMA).On the downside, immediate support is seen at 1.3695(38.2%fib), a break below could take the pair towards 1.3647(50%fib).

USD/CHF: The dollar dipped against the Swiss franc on Friday as investors remained wary of a fallout from debt-laden property developer China Evergrande. Evergrande bondholders were spooked by worries that the company was inching closer to a potential default as an interest payment deadline expired on Thursday without any announcement from the company. Immediate resistance can be seen at 0.9259 (38.2%fib), an upside break can trigger rise towards 0.9317 (Daily high).On the downside, immediate support is seen at 0.9221(50%fib), a break below could take the pair towards 0.9197(21DMA).

USD/JPY: The dollar strengthened against yen on Friday as uncertainty over troubled Chinese real estate developer Evergrande   helped the dollar rise against yen. Investors continued to worry about the fate of property developer Evergrande which missed an interest payment deadline on Thursday and has entered a 30-day grace period. Strong resistance can be seen at 110.72(Daily high), an upside break can trigger rise towards 111.00(Psychological level).On the downside, immediate support is seen at 110.15(38.2%fib), a break below could take the pair towards 109.84(50%fib).

Equities Recap          

European shares slipped on Friday but held their gains for the week as uncertainty around the fate of debt-ridden China Evergrande weighed on investor sentiment.

At (GMT 10:10),UK's benchmark FTSE 100 was last trading down at 0.19% percent, Germany's Dax was down by 0.67 %percent, France’s CAC  was last down by 0.87% percent.

Commodities Recap

Gold recouped some losses on Friday after a 1% drop in the last session, helped by a weaker dollar and as concerns over the fate of China’s Evergrande returned to the fore, burnishing bullion’s safe-haven status.

Spot gold rose 0.7% to $1,754.73 per ounce by 0924 GMT. U.S. gold futures rose 0.3 % to $1,755.10.

Oil prices steadied on Friday near a two-month high of $77.50 a barrel and were headed for a third straight week of gains, supported by global output disruptions and inventory draws.


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