America’s Roundup: Dollar edges up before central bank meetings, Wall Street ends higher, Gold retreats, Oil benchmarks settle at highest since 2014 on short supply-October 27th,2021

Posted at 27 October 2021 / Categories Market Roundups

Market Roundup

•US Redbook (YoY) 15.6% ,15.4% previous          

•US Aug House Price Index (MoM) 1.0%,  1.4% previous

•US Aug House Price Index  351.7,348.4 previous

•US Aug House Price Index (YoY)  18.5%,19.2% previous

•US Aug S&P/CS HPI Composite - 20 s.a. (MoM) 1.2%, 1.5%forecast, 1.5% previous

•US Aug S&P/CS HPI Composite - 20 n.s.a. (YoY)  19.7%,20.0% forecast, 19.9% previous

•US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM)  0.9%,1.5% forecast, 1.5% previous

•US Sep New Home Sales (MoM) 14.0%, 1.5% previous

•US Sep New Home Sales  800K,760K forecast, 740K previous

•US Oct CB Consumer Confidence  113.8,108.3 forecast, 109.3 previous

•US Oct Richmond Services Index  9,-3 previous

•US Oct Richmond Manufacturing Index 12, -3 previous

•US Oct Dallas Fed Services Revenues  19.6,14.5 previous

•US Oct Texas Services Sector Outlook  20.7,8.3 previous

Looking Ahead Economic Data (GMT)

•05:20 Japan Sep Retail Sales (YoY) -2.3% forward, -3.2% previous

•05:20 Japan Sep Foreign Bonds Buying 1,221.3B previous

•05:20 Japan Large Retailers' Sales (MoM) -4.7% previous

•06:00   Australia Import Price Index (QoQ) (Q3) 1.9% previous

•06:00   Australia Export Price Index (QoQ) (Q3) 13.2% previous

Looking Ahead - Events, Other Releases (GMT)

•05:10 Australia RBA Assist Gov Debelle Speaks


EUR/USD: The euro dipped against dollar on Tuesday as expectations that the European Central Bank will take a dovish stance when it meets on Thursday weighed on euro. Monday’s German business climate index, which showed business morale deteriorated for the fourth month running in October, also weighed on the euro. The weaker-than-expected business sentiment survey was followed by a grim outlook from Germany's central bank, which said in its monthly report that economic growth was likely to slow sharply in the fourth quarter. The euro was a touch lower against the dollar, down 0.1% at $1.1595. Immediate resistance can be seen at 1.1612(5DMA), an upside break can trigger rise towards 1.1653(38.2%fib).On the downside, immediate support is seen at 1.1588 (23.6%fib), a break below could take the pair towards 1.1530(Lower BB).

GBP/USD: The British pound initially gained against dollar on Tuesday after British retailers reported stronger than expected sales in October affirming the prospect of higher rates but recent  mixed data with strong PMIs and soft retail sales kept investors cautious. The CBI's monthly distributive trade survey showed the headline sales balance for retailers picked up to +30 in October from +11 in September which was its lowest level since March, when many retailers were closed during a COVID-19 lockdown. Sterling strengthened as far as $1.3829  before ceding some of those gains to trade at $1.3765, or 0.2% higher. Immediate resistance can be seen at 1.3803(23.6%fib),an upside break can trigger rise towards 1.3856(Higher BB).On the downside, immediate support is seen at 1.3726(38.2%fib), a break below could take the pair towards 1.3687(50%fib).

 USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as the risk that the Bank of Canada would temper investor expectations for earlier interest rate hikes offset higher oil prices.The BoC could become the first central bank from a G7 country to end stimulus from its pandemic-era bond-buying program at an interest rate announcement on Wednesday. The central bank has pledged to keep rates at a record low 0.25% until economic slack is absorbed, which would happen in the second half of 2022 in its latest forecast . The Canadian dollar was trading 0.1% lower at 1.2388 to the greenback , having traded in a range of 1.2351 to 1.2396.Immediate resistance can be seen at 1.2425 (50%fib), an upside break can trigger rise towards 1.2478 (61.8%fib).On the downside, immediate support is seen at 1.2375 (38.2%fib), a break below could take the pair towards 1.2311 (23.6%fib).

USD/JPY: The dollar strengthened against yen on Tuesday  as markets awaited news from upcoming central bank meetings that might spark volatility. The greenback mostly hovered around a point midway between its one-year high reached earlier this month and the one-month low touched early on Monday. The U.S. dollar rose 0.4% against the Japanese yen, with the pair at 114.1400, below the four-year high of 114.695 reached last week . Strong resistance can be seen at 114.63 (23.6%fib), an upside break can trigger rise towards 115.00(Psychological level).On the downside, immediate support is seen at 114.06(50%fib), a break below could take the pair towards 113.66(61.8%fib).

Equities Recap

European stocks hit a more-than two-month high on Tuesday, ending just below record levels as strong results from UBS, Reckitt Benckiser and others added to overall optimism about the third-quarter earnings season.

UK's benchmark FTSE 100 closed up by  0.76 percent, Germany's Dax ended up by 1.01 percent, France’s CAC finished the day up by 0.80 percent.                

U.S. stock indexes closed modestly higher on Tuesday, with the Dow Industrials and S&P 500 hitting fresh records, and gains were subdued as Facebook shares fell in the wake of its quarterly earnings.

Dow Jones closed down  by  0.04% percent, S&P 500 closed up  by 0.18 % percent, Nasdaq settled down  by 0.06%           percent.

Treasuries Recap

U.S. Treasury yields were mixed on Tuesday in thin volume, with those on the long end of the curve falling for a third straight session as investors looked to next week's Federal Reserve meeting for clues as to the timing of its first interest rate hike in three years.

U.S. 2-year debt prices were lower on the day ahead of the note's $60 billion auction.

Commodities Recap

Gold prices fell as much as 1.5% on Tuesday, snapping a five-session long streak of gains, as the dollar firmed and strong company earnings bolstered appetite for riskier assets.

Spot gold was down 0.9% at $1,790.54 per ounce by 01:46 p.m. EDT (1746 GMT). U.S. gold futures for December delivery settled down 0.7% to $1,793.40 per ounce.

Oil prices edged up to their highest since 2014 on Tuesday, supported by a global supply shortage and strong demand in the United States, the world's biggest consumer.

Brent futures rose 41 cents, or 0.5%, to settle at $86.40 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 89 cents, or 1.1%, higher at $84.65.

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