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Europe Roundup: Euro dips as investors focus shifts to Thursday's ECB meeting, European shares gain, Gold eases, Oil extends gains despite rise in U.S. inventories-21st July, 2021

Market Roundup

•UK June Public Sector Net Borrowing  22.02B,23.61B previous

•UK June Public Sector Net Cash Requirement 11.254B, 21.710B previous

•Greek May Current Account (YoY)  -1.403B, -2.079B previous

•Italian May Industrial Sales (YoY)  40.20%,105.10% previous

•Italian May Industrial Sales (MoM)  -1.00%,3.30% previous

•US Mortgage Refinance Index 3,267.6,3,361.5 previous

•US Mortgage Market Index 698.3,727.5 previous

•US MBA Purchase Index 255.8,273.3 previous

Looking Ahead –Economic Data (GMT)

•12:30 Canada June New Housing Price Index (MoM)  1.4% previous

•14:30 US Gasoline Inventories -1.043M forecast, 1.039M previous

•14:30 US Crude Oil Inventories -4.466M forecast, -7.897M previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


EUR/USD: The euro dipped against dollar on Wednesday as investors focus shifted to ECB meeting on Thursday. In a quiet day for economic data, currency markets are looking ahead to the European Central Bank (ECB) meeting. A dovish tone is expected after ECB President Christine Lagarde foreshadowed a guidance tweak during an interview last week. The euro was down 0.2% against the dollar at 0731 GMT, at $1.1771, close to its lowest since early April. Immediate resistance can be seen at 1.1793(5DMA), an upside break can trigger rise towards 1.1824 (38.2% fib).On the downside, immediate support is seen at 1.1754 (23.6% fib), a break below could take the pair towards 1.1700 (Psychological level).

GBP/USD: Sterling edged lower on Wednesday and was set for its fifth consecutive daily decline versus the dollar amid rising numbers of COVID Delta variant cases in Britain and confusion around the lifting of restriction in England. The pound this week fell to its lowest point since February 4 of $1.3572 after Prime Minister Boris Johnson lifted most COVID-19 restrictions in England in what local media dubbed Freedom Day. Sterling was last down 0.2% versus the dollar at $1.3608. Immediate resistance can be seen at 1.3644 (Daily high),an upside break can trigger rise towards 1.3696 (38.2%fib).On the downside, immediate support is seen at 1.3601 (23.6%fib), a break below could take the pair towards 1.3572 (20th July low).

USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors switched to safety of dollar as worries persisted over the Delta variant's negative impact on economic growth. Investors favoured safe-haven assets like the U.S. dollar and Treasuries as most major nations remained under lockdowns, curtailing economic activity. At (GMT 11:03), greenback gained 0.03% versus the Swiss franc to 0.9215. Immediate resistance can be seen at 0.9234 (Daily high), an upside break can trigger rise towards 0.9267 (23.6%fib).On the downside, immediate support is seen at 0.9194 (38.2%fib), a break below could take the pair towards 0.9176 (11 DMA).

USD/JPY: The dollar rose against the Japanese yen Wednesday as greenback was firm on concerns over the impact of a fast-spreading coronavirus variant. The Delta variant have raised fears that further lockdowns and other restrictions could upend the worldwide economic recovery, pushing investors to safe bets. At 11:03 GMT, the dollar was trading 0.02 percent higher versus the yen  at 110.10.Strong resistance can be seen at 110.13(38.2%fib), an upside break can trigger rise towards 110.41 (21 DMA).On the downside, immediate support is seen at 109.69 (38.2%fib), a break below could take the pair towards 109.11(23.6%fib).

Equities Recap

A slew of upbeat updates from European blue-chip firms helped the region’s benchmark index rise on Wednesday and further recover from Monday’s sharp losses, while travel stocks roared back after weeks of declines.

At (GMT 11:08),UK's benchmark FTSE 100 was last trading up at 1.66 percent, Germany's Dax was up by 0.83 percent, France’s CAC was last up by 1.30 percent.

Commodities Recap

Gold prices eased on Wednesday and were on track for a second session of declines as a stronger dollar and rebound in U.S. Treasury yields contended with the metal’s safe-haven status amid worries of a pandemic resurgence.

Spot gold fell 0.3% to $1,805.60 per ounce by 1007 GMT. U.S. gold futures slipped 0.4% to $1,804.30.

Oil prices rose on Wednesday, extending gains from the previous session as improved risk appetite provided support despitedata showing an unexpected rise in U.S. oil inventories last week and a weaker demand outlook due to rising COVID-19 infections.

Brent crude futures gained 84 cents, or 1.2%, to $70.19 a barrel at 0840 GMT, having hit a session low of $68.63 a barrel.

U.S. West Texas Intermediate (WTI) crude futures rose by 84 cents, or 1.3%, to $68.04 a barrel, after falling to $66.44 a barrel earlier on Wednesday.

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