Market Roundup
•Spanish Unemployment Change -197.8K , -166.9K previous
•EU Jun PPI (MoM) 1.4%, 1.4% forecast, 1.3% previous
•EU Jun PPI (YoY) 10.2%,10.3% forecast, 9.6% previous
Looking Ahead – Economic Data (GMT)
•12:00 Brazil Jun Industrial Production (MoM) 1.7% forecast, 1.4% previous
• 12:00 Brazil Jun Industrial Production (YoY) 11.8% forecast, 24.0% previous
•12:00 US Redbook (YoY) 16.0% previous
•13:30 Canada Jul Manufacturing PMI 56.5 previous
•14:00 US IBD/TIPP Economic Optimism 54.3 previous
•14:00 US Jun Factory Orders (MoM) 1.0% forecast, 1.7% previous
•14:00 US Jun Durables Excluding Defense (MoM) 1.0% previous
•14:00 US Jun Factory orders ex transportation (MoM) 0.7% previous
•15:30 US GlobalDairyTrade Price Index-2.9% previous
Looking Ahead - Events, Other Releases (GMT)
•US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro strenthened against dollar on Tuesday as dollar was hurt by subdued U.S. economic data and rising cases of the Delta variant of the coronavirus. Data from the Institute for Supply Management on Monday showed U.S. manufacturing slowed in July for the second straight month. With little data coming out of the euro zone, focus was on June factory and durable goods orders data out of the U.S. due at 1400 GMT. Immediate resistance can be seen at 1.1904(38.2%fib), an upside break can trigger rise towards 1.1962(23.6%fib).On the downside, immediate support is seen at 1.1861 (50% fib), a break below could take the pair towards 1.1828(9DMA).
GBP/USD: Sterling strengthened against dollar on Tuesday, helped by recent falls in COVID-19 infections in Britain and optimism around Britain’s easing of lockdown restrictions. After most lockdown measures in England were dropped in July, the pound had a rebound, reaching as high as $1.39835 at the end of the month. Since then it has stayed mostly above $1.39.At 0801 GMT on Tuesday, sterling was up 0.2% on the day versus the dollar, at $1.39125. Immediate resistance can be seen at 1.3931(3rd Aug high),an upside break can trigger rise towards 1.4030(Higher BB).On the downside, immediate support is seen at 1.3917 (38.2%fib), a break below could take the pair towards 1.3827 (11DMA).
USD/CHF: The dollar declined against Swiss franc on Tuesday as dollar was dragged lower by soft U.S. manufacturing data and rising concerns about the coronavirus Delta variant. Market focus is also on U.S. non-farm payroll data due on Friday, an important parameter to determine the Fed's future policy stance.At 10:11 GMT, the dollar was trading 0.20 percent lower versus the Swiss franc at 0.9031.Immediate resistance can be seen at 0.9071(38.2%fib), an upside break can trigger rise towards 0.9111 (50%fib).On the downside, immediate support is seen at 0.9023 (23.6%fib), a break below could take the pair towards 0.9000 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Tuesday as dollar was on the back foot against the safe-haven yen following soft U.S. manufacturing data and rising concerns about the coronavirus Delta variant. U.S. manufacturing activity grew at a slower pace in July for the second straight month as raw material shortages persisted, though there are signs of some easing in supply-chain bottlenecks. At 10:11 GMT, the dollar was trading 0.20 percent lower versus the yen at 109.19.Strong resistance can be seen at 109.33(Daily high an upside break can trigger rise towards 109.44 (38.2%fib).On the downside, immediate support is seen at 109.09 (50%fib), a break below could take the pair towards 108.92(Lower BB).
Equities Recap
Strong earnings updates from oil major BP, banks and others drove European stocks to record highs on Tuesday even as concerns lingered over rising Delta variant cases and China’s regulatory moves.
At (GMT 10:17),UK's benchmark FTSE 100 was last trading up at 0.39 percent, Germany's Dax was up by 0.16 percent, France’s CAC was last up by 0.93 percent.
Commodities Recap
Gold prices were caught in a tight range on Tuesday as investors held back from making large bets ahead of U.S. jobs data later this week expected to shed more light on labour market health and the Federal Reserve’s tapering timeline.
Spot gold slipped 0.2% to $1,810.40 per ounce by 0859 GMT, while U.S. gold futures fell 0.4% to $1,814.10.
Oil rose on Tuesday on expectation of a continuous decline in U.S. oil inventories, recouping some losses from the previous session due to lingering concern over rising cases of the Delta coronavirus variant.
Brent , the international benchmark for oil prices, rose 60 cents, or 0.8%, to $73.49 a barrel, at 0905 GMT.
U.S. West Texas Intermediate (WTI) crude was up 63 cents, or 0.9%, at $71.89 a barrel.
