Europe Roundup: Euro extends gains versus dollar, European stocks rise, Gold gains, Oil prices rise over $1 as U.S. inventories decline-9th July ,2021

Market Roundup

• UK May Industrial Production (MoM)  0.8%,1.5%forecast, -1.3% previous

• UK Monthly GDP 3M/3M Change3.6%,1.5% previous

• UK GDP (MoM) 0.8%,2.3% previous

• UK June Manufacturing Production (MoM) -0.1%,1.0% forecast, -0.3% previous

• UK June Manufacturing Production (YoY)  27.7%,29.5% forecast, 39.7% previous

• Italian May Industrial Production (MoM)  -1.5%,0.3% forecast, 1.8% previous

• Italian May Industrial Production (YoY) 21.1%, 24.7% forecast, 79.5% previous

• Canada June Employment Change  230.7K,195.0K forecast, -68.0K previous

• Canada Unemployment Rate 7.8%, 7.7% forecast, 8.2% previous

• Canada June Participation Rate  65.2%,64.6% previous

• Canada June Part Time Employment Change263.9K,  -54.2K previous

• Canada June Full Employment Change-33.2K,  -13.8K previous

• US May Wholesale Trade Sales (MoM) 0.8%,0.8% previous     

• US Wholesale Inventories (MoM) 1.3%,1.1%   previous

Looking Ahead - Economic Data (GMT) 

•UK May Trade Balance  -11.10Bforecast, -10.96B previous

•UK May Trade Balance Non-EU -5.55B previous

•U.S. Baker Hughes Oil Rig Count 372 previous

•U.S. Baker Hughes Total Rig Count 470 previous

Looking Ahead - Economic events and other releases (GMT)

•20:30 US Fed Monetary Policy Report

Fxbeat

EUR/USD: The euro strengthened against dollar on Friday as investors pared exposure to risk and headed for safety amid a cloudy outlook for the pace of economic recovery. Investors are beginning to discount the view that reflating economies will force rates significantly higher this year, and instead adjust to the idea of lower-for-longer rates for now. The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.275 point or 0.3% to 92.369. The euro was last up 0.47% at $1.1844. Immediate resistance can be seen at 1.1868 (38.2%fib), an upside break can trigger rise towards 1.1935 (50%fib).On the downside, immediate support is seen at 1.1837 (5DMA), a break below could take the pair towards 1.1798(23.6%fib).

GBP/USD: Sterling strengthened against dollar on Friday as further relaxation of social-distancing rules boosted sterling despite slightly weaker UK GDP data. Sterling had found some support this week on British Prime Minister Boris Johnson’s plans to end social and economic COVID-19 restrictions in England. But investors remained cautious as the government also warned that the number of coronavirus cases could climb as measures are relaxed. Data showed Gross domestic product grew by 0.8% from April, the Office for National Statistics said, much weaker than the median forecast of 1.5% in a   of economists. Immediate resistance can be seen at 1.3893 (38.2%fib), an upside break can trigger rise towards 1.3941 (Jan 28th high).On the downside, immediate support is seen at 1.3823 (38.2%fib), a break below could take the pair towards 1.3732 (23.6%fib).

 USD/CHF: The dollar declined against the Swiss franc on Friday as investors turned cautious about the global economic recovery. Swiss franc stood tall amid growing concerns the fast-spreading Delta variant of COVID-19 could derail a revival that is already showing pockets of weakness. The Swiss franc   held on to gains from Thursday, when it soared more than 1%, to trade at 0.9152  per dollar .Immediate resistance can be seen at 0.9200 (38.2%fib), an upside break can trigger rise towards 0.9216(5DMA).On the downside, immediate support is seen at 0.9147(50%fib), a break below could take the pair towards 0.9096 (61.8%fib).

USD/JPY: The dollar strengthened on Friday as Japanese yen weakened  as a downward spiral in U.S. Treasury yields ran out of steam, but it was heading for its biggest weekly gain since November amid concerns about the global economic recovery. Bonds have rallied this week with 10-year U.S. Treasury yields falling as much as 20 bps to a February low while stocks took a hammering worldwide amid growing concerns the fast-spreading Delta variant of COVID-19 could derail a revival that is already showing pockets of weakness. At (GMT 12:15),greenback trading higher 0.86% versus the yen to .109.64.Strong resistance can be seen at 110.30(50%fib), an upside break can trigger rise towards 110.66(61.8%fib).On the downside, immediate support is seen at 109.93(38.2%fib), a break below could take the pair towards 109.50 (23.6%fib).

Equities Recap  

European stocks rose on Friday as investors sought bargains after one of the worst selloffs this year on global economic recovery worries.

At (GMT 14:52),UK's benchmark FTSE 100 was last trading higher at 0.94 percent, Germany's Dax was up by 1.55% percent, France’s CAC was trading up by 2.05%% percent.

Commodities Recap

Gold wiggled in a tight range on Friday as concerns over the Delta variant of COVID-19 were offset by a slight bounce in the U.S. Treasury yields, though the safe-haven metal remained on track for a third straight weekly gain.

Spot gold edged down by 0.1% to $1,800.86 an ounce by 1114 GMT but was up 0.8% on the week. U.S. gold futures rose 0.1% to $1,801.60.

Oil prices rose for a second day on Friday as data showed a draw in U.S. inventories but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse.

Brent crude oil futures were up $1.19, or 1.6%, at $75.31 a barrel by 1355 GMT. U.S. West Texas Intermediate futures were up $1.41, or 1.9%, at $74.35.