Market Roundup
•Sweden Jul Services PMI (MoM) 69.1 ,67.4 previous
•French Jun Government Budget Balance -131.3B, -118.8B previous
•Italian Jul Composite PMI 58.6 ,58.3 previous
•Italian Jul Services PMI 58.0 ,58.3 forecast, 56.7 previous
•French Jul Services PMI 56.8 ,57.0 forecast, 57.0 previous
•German Jul Composite PMI 62.4, 62.5 forecast, 62.5 previous
•German Jul Services PMI 61.8 ,62.2 forecast, 62.2 previous
•EU Jul Markit Composite PMI 60.2,60.6 forecast, 60.6 previous
•EU Jul Services PMI 59.8 ,60.4 forecast, 60.4 previous
•UK Jul Services PMI 59.6 ,57.8 forecast, 57.8 previous
•UK Jul Composite PMI 59.2 ,57.7 forecast, 62.2 previous
•EU Jun Retail Sales (MoM) 1.5% ,1.7% forecast, 4.6% previous
Looking Ahead – Economic Data (GMT)
•12:15 US Jul ADP Nonfarm Employment Change 695K forecast, 692K previous
•12:30 Canada Jun Building Permits (MoM) 5.5% forecast, -14.8% previous
•13:45 US Jul Markit Composite PMI 59.7 previous
•13:45 US Jul Services PMI 59.8 previous
•14:00 US Jul ISM Non-Manufacturing Business Activity 60.6 forecast, 60.4 previous
•14:00 US Jul ISM Non-Manufacturing PMI 60.5 forecast, 60.1 previous
•14:00 US Jul ISM Non-Manufacturing Prices 79.5 previous
•14:00 US Jul ISM Non-Manufacturing Employment 49.3 previous
•14:30 US Gasoline Inventories -1.780M forecast, -2.253M previous
•14:30 US Crude Oil Inventories -3.102M forecast, -4.089M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US FOMC Member Clarida Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as investors awaited U.S. jobs data for a guide on the interest rate outlook. On the data front, Euro zone business activity roared in July, expanding at its fastest pace in 15 years, as the lifting of more coronavirus restrictions and an accelerated vaccine drive injected life into the bloc’s dominant service industry, a survey showed. IHS Markit’s final composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, climbed to 60.2 last month from June’s 59.5, its highest level since June 2006 .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 1.1841 (50% fib), a break below could take the pair towards 1.1828(9DMA).
GBP/USD: Sterling strengthened against dollar on Wednesday as optimism around Britain's lockdown easing and market anticipation of hawkish signals when the Bank of England meets on Thursday supported sterling. The pound had a rebound after most lockdown measures in England were dropped on July 19, reaching as high as $1.3951. Since then it has stayed mostly above $1.39. .The currency was up 0.14% versus the dollar, at $1.3933 by 1435 GMT Immediate resistance can be seen at 1.3956(Daily 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 strengthened against Swiss franc on Wednesday as investors awaited U.S. jobs data for a guide on the outlook for interest rates. All eyes will be on the latest U.S. non-farm payroll numbers on Friday. The last before U.S. central bankers convene at Jackson Hole to discuss policy - markets are also set to take a hint from Wednesday's U.S. ADP employment survey. At 10:54 GMT, the dollar was trading 0.20 percent higher versus the Swiss franc at 0.9047.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 gained against the Japanese yen on Wednesday as investors wait for U.S. employment data to provide clues to the pace of monetary tightening in the world’s biggest economy. Ahead of the data, the U.S. dollar was up 0.1% against a basket of currencies while benchmark Treasury yields were up 1 basis point at 1.182%. While, the dollar was trading 0.20 percent higher 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
European shares notched fresh highs on Wednesday as investors focused on upbeat quarterly earnings and a strong rebound in merger activity despite concerns about the global spread of the Delta variant of coronavirus.
At (GMT 10:17),UK's benchmark FTSE 100 was last trading up at 048 percent, Germany's Dax was up by 0.84 percent, France’s CAC was last up by 0.59 percent.
Commodities Recap
Gold edged higher on Wednesday, propped up by a subdued dollar, although prices lingered in a narrow range as investors focused on U.S. jobs data due later this week to gauge economic recovery.
Spot gold rose 0.2% to $1,813.78 per ounce by 0652 GMT, while U.S. gold futures were up 0.1% at $1,816.50.
Oil prices slipped on Wednesday as the spread of the coronavirus Delta variant in top consuming countries outweighed Mideast geopolitical tensions and a fall in U.S. inventories.
Brent crude oil futures were down 26 cents, or 0.4%, to $72.15 a barrel by 1031 GMT. U.S. West Texas Intermediate (WTI) crude fell42 cents, or 0.6%, to $70.14 a barrel.
