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America’s Roundup: Dollar bounces after U.S. consumer spending rises strongly in June ,Wall Street falls, Gold retreats, Oil climbs, notches fourth monthly gain on growing demand-July 31st,2021

Market Roundup

• Canada Jun IPPI (MoM) 0.0%, 2.7% previous

• US Employment Cost Index (QoQ) (Q2) 0.7%,0.9% forecast, 0.9% previous

•Canada Jun RMPI (YoY)  38.1%,40.1% previous

•Canada Jun RMPI (MoM) 3.9%, 3.2% previous

•Canada Jun IPPI (YoY) 16.8%, 16.4% previous

•US Employment Wages (QoQ) (Q2) 0.90%, 1.00% previous

•US Employment Benefits (QoQ) (Q2) 0.40%, 0.60% previous

• US Jun Personal Income (MoM)  0.1%,-0.3% forecast, -2.0% previous

• US Jun Real Personal Consumption (MoM) 0.5%, -0.4% previous

• US Jun PCE price index (MoM)  0.5%,0.4% previous

• US Jun PCE Price index (YoY)  4.0,3.9 previous

• US Jun Personal Spending (MoM)  1.0%,0.7% forecast, 0.9% previous

• Canada May GDP (MoM)  -0.3%,-0.3% forecast, -0.3% previous

• US Jul Chicago PMI  73.4, 64.6 forecast, 66.1 previous

• US Jul Michigan Consumer Sentiment 81.2,80.8 forecast, 85.5 previous

• US Michigan Current Conditions 84.5,90.7, 84.5 previous

• US Jul Michigan Consumer Expectations  79.0, 78.4 forecast, 83.5 previous

• US Jul Michigan Inflation Expectations  4.7%,4.8% forecast, 4.2% previous

• US Jul Michigan 5-Year Inflation Expectations  2.80%,2.90% forecast, 2.80% previous

• Canada May Budget Balance (YoY) -23.76B,-314.00B previous

• Canada May Budget Balance -13.98B, -31.44B previous

•US Dallas Jun Fed PCE 2.30% , 2.80% previous

• U.S. Baker Hughes Oil Rig Count 385, 380 previous

• U.S. Baker Hughes Total Rig Count 488,484 previous

Looking Ahead –Economic Data (GMT)

•No data ahead

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Currency Summaries

Currency Summaries

EUR/USD: The euro dipped against dollar on Friday as upbeat U.S. economic data helped reverse some of its earlier losses. Data showed a higher-than-expected rise in U.S. consumer spending in June as COVID-19 vaccinations boosted demand for travel-related services and recreation, even though part of the increase reflected higher prices, with annual inflation accelerating further above the Fed’s 2% target. The euro eased 0.26% against the greenback but remained near a 1-month high. Immediate resistance can be seen at 1.1911(38.2%fib),an upside break can trigger rise towards 1.1966 (23.6%fib).On the downside, immediate support is seen at 1.1863 (50%fib), a break below could take the pair towards 1.1828 (61.8%fib).

GBP/USD: Sterling declined versus the dollar on Friday as upbeat economic data helped dollar reverse some of the losses from earlier this week when dovish remarks by the Federal Reserve scuttled a month-long rally in the U.S. currency. Data showed the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.4% in June, or 3.5% in the 12 months through June. Economists polled had forecast the monthly core PCE price index, the Fed's preferred inflation measure, to rise 0.6% and surge 3.7% year-on-year. Immediate resistance can be seen at 1.3941(50DMA),an upside break can trigger rise towards 1.3994 (23.6%fib).On the downside, immediate support is seen at 1.3888 (38.2%fib), a break below could take the pair towards 1.3833 (30DMA).

USD/CAD : The Canadian dollar fell against its broadly stronger U.S. counterpart on Friday but held on to much of this week's gains as oil prices rose and a preliminary estimate showed Canada's economy rebounding in June. The Canadian economy most likely expanded by 0.7% in June as businesses reopened after shutdowns imposed to help fight the coronavirus pandemic, Statistics Canada said. The economy shrank by 0.3% in May, matching a forecast. The loonie  was last trading 0.1% lower at 1.2469 to the greenback, after trading in a range of 1.2423 to 1.2492. Immediate resistance can be seen at 1.2484 (38.2%fib), an upside break can trigger rise towards 1.2517 (5DMA).On the downside, immediate support is seen at 1.2425 (50%fib), a break below could take the pair towards 1.2370 (61.8%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Friday as dollar bounced from its lows after data showed consumer spending increased  in June.Consumer spending spiked in June as COVID19 vaccines boosted demand for travel-related services, but part of the increase reflected higher prices, with annual inflation continuing to rise above the Federal Reserve's 2% target. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rebounded 1.0% last month after dipping 0.1% in May, the Commerce Department said. Economists polled   had forecast consumer spending rising 0.7%. Strong resistance can be seen at 109.78(38.2%fib), an upside break can trigger rise towards 109.96 (14DMA).On the downside, immediate support is seen at 109.38 (50%fib), a break below could take the pair towards 109.04(61.8%fib).

Equities Recap

European stocks fell from record highs on Friday as concerns about the fast-spreading Delta variant and regulatory actions in China outweighed optimism around the quarterly earnings season and an economic recovery.

UK's benchmark FTSE 100 closed up by  1.83 percent, Germany's Dax ended up by 1.84 percent, France’s CAC finished the day up by 2.03 percent.                

Wall Street's main indexes fell on Friday following a glum quarterly earnings report from, while data showing a strong rise in June consumer spending reinforced optimism about a steady economic rebound.

Dow Jones closed down by 2.44%percent, S&P 500 closed down by 1.79% percent, Nasdaq settled down  by  1.03 % percent.

Treasuries Recap

U.S. Treasury yields fell on Friday, as softer-than-expected inflation data fed the view that the Federal Reserve could delay its exit from quantitative easing, while investors also worried about the raging Delta coronavirus variant.

In afternoon trading, the U.S. 10-year Treasury yield was down at 1.238%, compared with 1.269% late on Thursday.U.S. 30-year yields fell to 1.894% from Thursday's 1.916%.

Commodities Recap

Gold prices eased on Friday, with a firmer dollar curtailing the precious metal’s brief rally spurred by U.S. Federal Reserve Chair Jerome Powell’s reassurance that a rate hike was not on the cards for the time being.

Spot gold slipped 0.8% to $1,814.00 per ounce by 1:48 pm EDT. U.S. gold futures settled 1% down at $1,817.20.

Oil prices edged higher on Friday, with global benchmark Brent posting a fourth monthly gain, with demand growing faster than supply and vaccinations expected to alleviate the impact of a resurgence in COVID-19 infections across the world.

Brent crude futures for September , which expired on Friday, rose 28 cents, or 0.4%, to settle at $76.33 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.5%, to end the session at $73.95 a barrel.

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