Market Roundup
• German HICP (MoM) 0.5%, 0.5% forecast,0.4% previous
• German Jul HICP (YoY) 3.1%,3.1% forecast, 2.1% previous
• German Jul CPI (MoM) 0.9%, 0.9% forecast, 0.4% previous
• German Jul CPI (YoY) 3.8%, 3.8% forecast, 2.3% previous
• Italian Jul HICP (MoM) -1.0%,-1.1% forecast, 0.2% previous
• Italian Jul CPI (MoM) 0.5%,0.3% forecast, 0.1% previous
•Italian Jul CPI Ex Tobacco (MoM) 1.9%,1.4% previous
Looking Ahead –Economic Data (GMT)
•12:30 US Jul CPI, n.s.a (MoM) 0.93% previous
•12:30 US Jul CPI Index, s.a 270.98 previous
•12:30 US Jul Core CPI Index 278.14 previous
•12:30 US Jul CPI (YoY) 5.3% forecast, 5.4% previous
•12:30 US Jul CPI Index, n.s.a 272.87 forecast, 271.70 previous
•12:30 US Jul Core CPI (MoM) 0.4% forecast, 0.9% previous
•12:30 US Jul CPI (MoM) 0.5% forecast, 0.9% previous
•12:30 US Jul Core CPI (YoY) 4.3% forecast, 4.5% previous
•14:30 US Crude Oil Inventories -1.271M forecast, 3.626M previous
•15:00 US Jul Cleveland CPI (MoM) 0.2% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped on Wednesday as rising cases of the COVID-19 Delta variant and a firmer dollar ahead of U.S. inflation data dented demand for euro. The euro hit a four-month low against the dollar, with the pair changing hands at $1.1726. The dollar gained traction ahead of U.S. inflation data due at 1230 GMT. A strong reading could push bond yields and the dollar higher again as it will boost bets that the Federal Reserve might start tapering its stimulus soon. Immediate resistance can be seen at 1.1730(38.2%fib), an upside break can trigger rise towards 1.1776(50%fib).On the downside, immediate support is seen at 1.1701 (Lower BB), a break below could take the pair towards 1.1684(23.6%fib)
GBP/USD: Sterling declined against dollar on Wednesday, with traders holding off major bets ahead of British GDP figures due a day later. Sterling fell 0.2% against the dollar to $1.38150 as the greenback rose against a basket of major currencies to a three-week top of 92.139, close to its highest this year 2021.Buoying the dollar has been impressive U.S. jobs data and from remarks by Federal Reserve officials about tapering bond buying and, eventually, raising rates, sooner than policymakers elsewhere. Stronger U.S. inflation data due later on Wednesday could add to pressure on the Fed to wind back policy support. Immediate resistance can be seen at 1.3861(38.2%fib),an upside break can trigger rise towards 1.3894(50DMA).On the downside, immediate support is seen at 1.3772(50%fib), a break below could take the pair towards 1.3687(61.8%fib).
USD/CHF: The dollar rose against the Swiss franc on Wednesday ahead of crucial U.S. inflation data that is expected to set the tone for markets.U.S. consumer prices are expected to have risen 5.3% year-on-year in July, according to a Reuters poll, slightly below last month’s 5.4% but keeping inflation elevated. The data will follow comments by two U.S. Federal Reserve officials that inflation is already at levels that satisfy one leg of a key test for tightening policy. Immediate resistance can be seen at 0.9244(Daily high), an upside break can trigger rise towards 0.9263 (23.6% fib).On the downside, immediate support is seen at 0.9215 (38.2% fib), a break below could take the pair towards 0.9180 (50%fib ).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as greenback rose ahead of U.S. inflation data, with the prospect a strong number could pressure the Federal Reserve to wind back policy support. The greenback has enjoyed a lift from last week's impressive U.S. jobs data and from remarks by Fed officials about tapering bond buying and, eventually, raising rates, sooner than policymakers elsewhere. The yen, which has dropped for five consecutive sessions against the dollar, fell marginally to 110.69 per dollar in early trade, its lowest since mid July. Strong resistance can be seen at 110.84(Higher BB), an upside break can trigger rise towards 110.93(23.6%fib).On the downside, immediate support is seen at 110.64(38.2%fib), a break below could take the pair towards 110.35(50%fib).
Equities Recap
European shares hit record highs on Wednesday and were on track for their longest winning streak in two months, as an upbeat earnings season reinforced optimism about the region’s economic recovery.
At (GMT 10:38 ),UK's benchmark FTSE 100 was last trading up at 0.51 percent, Germany's Dax was up by 0.09 percent, France’s CAC was last up by 0.30 percent.
Commodities Recap
Gold edged higher on Wednesday as concerns over the rapid spread of the Delta coronavirus variant spurred some safe haven buying though gains were capped by bets on early tapering by the U.S. Federal Reserve and a firm dollar.
Spot gold was up 0.2% at $1,732.50 per ounce by 0919 GMT, recovering some ground after four straight sessions of declines. U.S. gold futures rose 0.1% to $1,733.60.
Oil held above $70 a barrel on Wednesday as signs of rising fuel demand in the United States were balanced by concerns about travel curbs in Asia caused by the spread of the COVID-19 Delta variant.
Brent crude fell 9 cents, or 0.1%, to $70.54 a barrel at 0915 GMT, following a 2.3% rally on Tuesday. U.S. West Texas Intermediate (WTI) gained 4 cents to $68.33, adding to a 2.7% jump on Tuesday.
