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America’s Roundup: Dollar gains as U.S. yields rise before ECB meeting, Wall Street falls, Gold retreats, Oil slides on demand concerns-September 8th,2021

Market Roundup

•US Aug CB Employment Trends Index 110.37, 109.80 previous

•US 6-Month Bill Auction 0.050%, 0.055% previous

•US 52-Week Bill Auction 0.075%, 0.080% previous

•New Zealand GlobalDairyTrade Price Index 4.0%, 0.3% previous

Looking Ahead –Economic Data (GMT)

•01:30 Australia Aug NAB Business Confidence  -8 previous

•05:00 Japan Aug Economy Watchers Current Index 48.4 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


EUR/USD: The dipped against dollar on Tuesday as investors awaited a European Central Bank meeting and U.S. data to gauge the policy outlook. The ECB is seen debating a cut in stimulus with analysts expecting purchases under the ECB’s Pandemic Emergency Purchase Programme (PEPP) falling possibly as low as 60 billion euros a month from the current 80 billion. The euro changed hands at $1.1841, a tad below Friday's one-month peak of $1.1909.Immediate resistance can be seen at 1.1886 (Daily high), an upside break can trigger rise towards 1.1908(23.6%fib).On the downside, immediate support is seen at 1.1860(38.2%fib), a break below could take the pair towards 1.1833 (50%fib)

GBP/USD: The pound dipped for a second consecutive day against a broadly stronger dollar on Tuesday, with most of the losses coming after the British government set out a plan to raise taxes. Prime Minister Boris Johnson unveiled plans to raise taxes on workers, employers and some investors to try to fix the health and social care system, angering some in his governing party by breaking an election promise. Sterling, already trading lower on the day, dropped as much as 0.5% against the dollar to $1.3768. By 1452 GMT, it traded down 0.4% at $1.3782.Immediate resistance can be seen at 1.3824(38.2%fib),an upside break can trigger rise towards 1.3884 (23.6%fib).On the downside, immediate support is seen at 1.3772(50%fib), a break below could take the pair towards 1.3723 (61.8%fib).

 USD/CAD: The Canadian dollar on Tuesday weakened against its U.S. counterpart as oil prices fell and investors weighed prospects of the Bank of Canada turning more dovish at an interest rate decision this week. The Bank of Canada is expected to keep interest rates on hold at a record low of 0.25% on Wednesday and to wait until October before cutting its bond purchases further. The loonie  was trading 0.9% lower at 1.2647 to the greenback, the biggest decline among G10 currencies. The loonie touched its weakest intraday level since Aug. 31 at 1.2652. .Immediate resistance can be seen at 1.2667 (38.2%fib), an upside break can trigger rise towards 1.2740(50%fib).On the downside, immediate support is seen at 1.2573 (23.6%fib), a break below could take the pair towards 1.2515 (Daily low).

USD/JPY: The dollar strengthened against yen on Tuesday as softer Treasury yields and upbeat Chinese economic data boosted sentiment. While trading ranges remained narrow thanks to a U.S. holiday, broader sentiment was unmistakably upbeat as traders bet weak U.S. data would keep the Federal Reserve from unwinding its tapering plans. Against a basket of its rivals, the dollar steadied at 92.23 and within striking distance of an early August low of 91.941 hit on Friday. Strong resistance can be seen at 110.06(38.2%fib), an upside break can trigger rise towards 110.42(23.6%fib).On the downside, immediate support is seen at 109.78(50%fib), a break below could take the pair towards 109.45(61.8%fib).

Equities Recap          

European stocks ended lower on Tuesday as caution kicked in ahead of a European Central Bank meeting later this week, while focus turned to a flurry of telecom deals led by Deutsche Telekom.

UK's benchmark FTSE 100 closed down by  0.53 percent, Germany's Dax ended down by 0.56 percent, France’s CAC finished the day down by 0.26 percent.                

The S&P 500 closed lower on Tuesday while the Nasdaq edged up to a record high, as investors balanced worries about the slowing pace of economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy.

Dow Jones closed down  by  0.76% percent, S&P 500 closed down by 0.34% percent, Nasdaq settled up by 0.07%  percent.

Treasuries Recap

U.S. government bond yields rose for a second straight day on Tuesday, building on Friday's climb in the wake of the government's jobs report and ahead of this week's host of scheduled Treasury auctions.

The yield on 10-year Treasury notes was up 4.8 basis points at 1.370% after touching 1.385% shortly after the three-month and six-month auctions.

Commodities Recap

Gold retreated over 1.5% on Tuesday and is on course for its biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal.

Spot gold dropped 1.6% to $1,794.57 per ounce by 1:45 pm EDT (1745 GMT), and was set for its worst day since Aug. 9.U.S. gold futures settled 1.9% lower at $1,798.5 an ounce.

Oil prices fell on Tuesday, pressured by a strong U.S. dollar and concerns about weak demand in the United States and Asia, although ongoing production outages on the U.S. Gulf Coast capped losses.

U.S. West Texas Intermediate crude settled down 94 cents or 1.4% from Friday's close at $68.35 a barrel, and touched a session low of $67.64.

Brent crude futures settled down 53 cents, or 0.7%, a $71.69 a barrel, after falling 39 cents on Monday.

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