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America’s Roundup: Dollar weakens, Wall Street closes at record highs,Gold gains,Oil prices rise over 2% as U.S. inventories decline-10th,July 2021

Market Roundup

• 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) 

•No data ahead

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Currency Summaries

EUR/USD: The euro strengthened against dollar on Friday as investors   took stock of the European Central Bank setting a new inflation target on Thursday after an 18-month strategy review. European Central Bank policymakers debated a cut in stimulus at their June 10 meeting as the recovery picked up pace but eventually found  broad agreement  to maintain an elevated level of support, the accounts of the meeting showed on Friday.The minutes came after the ECB announced on Thursday it would embark on a fundamental transformation of Europe’s most powerful financial institution, setting a new inflation target among other steps.The euro extended gains on top of a 0.45% jump on Thursday, rising 0.27% to $1.1876. 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 bounced back versus a weakening dollar on Friday and was set for its best day in a week as risk currencies tried to recover after being hurt by a broader shakeout in FX markets. A shakeout in foreign exchange markets on Thursday saw riskier currencies such as the pound fall and safe havens gain as a surge in cases of the Delta coronavirus variant hit global sentiment. Sterling rose to $1.3873 on Friday against a softening dollar. It was 0.3% up by 1525 GMT in a tentative move to cut losses from the previous session. Immediate resistance can be seen at 1.3919 (50%fib), an upside break can trigger rise towards 1.3985 (61.8%fib).On the downside, immediate support is seen at 1.3851 (38.2%fib), a break below could take the pair towards 1.3821 (5DMA).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, clawing back some of this week's decline, as domestic jobs data supported expectations for further reduction of the Bank of Canada's asset purchase program.Canada added 231,000 jobs in June, more than expected, bringing employment within 1.8% of pre-pandemic levels, as public health restrictions were eased in several regions of the country, Statistics Canada data showed. The Canadian dollar was trading 0.6% higher at 1.2455 to the greenback, or 80.29 U.S. cents. On Thursday, the currency hit a 2-1/2 month low at 1.2590, while it was down 1.1% for the week. Immediate resistance can be seen at 1.2481(38.2%fib), an upside break can trigger rise towards 1.2560 (23.6%fib).On the downside, immediate support is seen at 1.2417 (50%fib), a break below could take the pair towards 1.2359 (61.8%fib).

USD/JPY: The dollar strengthened against dollar on Friday as riskier currencies were favored, with the rally in U.S. Treasuries running out of steam and global stock markets steadying. The rise in yields supported riskier assets and currencies, with global stock markets rising and the commodity-linked Australian and New Zealand dollars catching a bid. The yen, perceived as a safe-haven currency, declined as risk appetite began to recover. The yen eased 0.39% to 110.18 , giving back some of its gains against the greenback from Thursday, when it had its biggest daily rise since November. Strong resistance can be seen at 110.06(50%fib), an upside break can trigger rise towards 110.43(61.8%fib).On the downside, immediate support is seen at 109.67(38.2%fib), a break below could take the pair towards 109.19 (23.6%fib).

Equities Recap  

European stocks jumped more than 1% on Friday, posting their best session in two months and erasing all of this week’s losses, as investors sought bargains after one of the worst sell-offs this year on global economic recovery worries.

UK's benchmark FTSE 100 closed up by 1.30 percent, Germany's Dax ended up  by 1.73 percent, France’s CAC finished the day down by 2.07 percent.

U.S. stocks rallied on Friday and the S&P 500 hit a record high as financials and other economically focused sectors rebounded after a selloff sparked by growth worries earlier in the week.

Dow Jones closed up by  1.30% percent, S&P 500 closed up by 1.13% percent, Nasdaq settled up by 0.98%  percent.

Treasuries Recap

Treasury yields extended their rise on Friday while the three major U.S. stock indexes rallied to record closing highs, as markets relaxed a bit from fears of a slowing pace of economic recovery from COVID-19 that dominated trading for much of the week.

The yield on 10-year Treasury notes rose 7.7 basis points to 1.365% on Friday.

Commodities Recap

Gold rose on Friday, heading for its best week in seven, bolstered by a weaker dollar and concerns that the spread of the Delta variant of the coronavirus could slow a global economic recovery.

Spot gold rose 0.5% to $1,810.99 per ounce by 2:44 p.m. (1844 GMT), and was up 1.4% for the week. U.S. gold futures settled 0.6% higher at $1,810.6.

Oil prices rose for a second day on Friday as the market reacted to falling U.S. inventories, and signs of strong Asian demand from both China and India added support.

Brent crude oil futures were up $1.43, 1.93%, at $75.55. U.S. West Texas Intermediate futures were up $1.62, or 2.2%, at $74.56.


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