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Europe Roundup: Euro steadies against dollar as investors eye German inflation data, European stocks gains, Gold prices ease, Oil drops as Hurricane Ida weakens, OPEC in focus-August 30th,2021

Market Roundup

 •Spanish CPI (YoY) 3.3%,2.9% previous

•Spanish CPI (MoM) 0.4%,-0.8% previous

•Spanish Aug HICP (YoY)  3.3%,2.9%forecast, 2.9% previous

•Belgian GDP (QoQ) (Q2)1.7, 1.4% previous

•EU Aug Consumer Confidence-5.3,  -5.3 forecast, -5.3 previous

•EU Aug Services Sentiment  16.8,18.8 forecast, 19.3 previous

•EU Aug Industrial Sentiment 13.7, 13.4 forecast, 14.6 previous

•EU Aug Business and Consumer Survey 117.5,117.9, 119.0 previous

Looking Ahead –Economic Data (GMT)

•11:30 German Aug HICP (YoY) 3.4% forecast, 3.1% previous

•11:30 German Aug CPI (MoM) 0.1% forecast, 0.9% previous

•11:30 German Aug HICP (MoM) 0.1% forecast,0.5% previous

•12:30 Canada Current Account (Q2) 3.4B forecast, 1.2B previous

•13:00 French 6-Month BTF Auction -0.691% previous

•13:00 French 12-Month BTF Auction -0.651% previous

•14:00 US Jul Pending Home Sales Index  112.8 previous

•14:00 US Jul Pending Home Sales (MoM)  0.4% forecast, -1.9% previous

•14:00 US Aug Dallas Fed Mfg Business Index  27.3 previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events


EUR/USD: The euro strengthened against dollar on Monday ahead of the release of German inflation data. Focus was on German inflation data due at 1200 GMT, ahead of a euro area reading on Tuesday.According to forecast the German EU harmonized national figure, which will follow a number of regional releases, will slow to 0.1% month-on-month and increase to 3.4% year-on-year in August. The euro was trading at $1.1798, steady on the day but close to a three-week high touched in Asian trade at $1.1810.Immediate resistance can be seen at 1.1802(38.2%fib), an upside break can trigger rise towards 1.1844(23.6%fib).On the downside, immediate support is seen at 1.1779 (30DMA), a break below could take the pair towards 1.1768 (50%fib)

GBP/USD: Sterling was little changed on Monday as investors were on sidelines on lacking direction as investors weighed up COVID-19 data. Risk appetite was mixed, with riskier currencies such as the British pound little changed at the start of the week, but any gains limited by concerns about the Delta variant.At 1413 GMT, the pound was higher 0.1% against a slightly stronger dollar at $1.3758.Immediate resistance can be seen at 1.3771(38.2%fib),an upside break can trigger rise towards 1.3800 (30DMA).On the downside, immediate support is seen at 1.3742(5DMA), a break below could take the pair towards 1.3684(23.6%fib).

 USD/CHF: The dollar strengthened against the Swiss franc on Monday, recovering from Friday’s lows after U.S. Federal Reserve Chairman Jerome Powell struck a more dovish tone. Powell said in a speech at a U.S. central banking conference that tapering of asset purchases could begin this year but that it would not directly signal higher rates, as hiking would need the economy to pass a substantially more stringent test. The next big event on traders' calendars is U.S. nonfarm payroll figures for August due to be published Friday, as Powell has suggested an improvement in the labour market is one major remining prerequisite for action.Immediate resistance can be seen at 0.9140 (38.2%fib), an upside break can trigger rise towards 0.9191 (23.6%fib).On the downside, immediate support is seen at 0.9096(50%fib), a break below could take the pair towards 0.9056 (61.8%fib).

USD/JPY: The dollar dipped against yen on Monday as dollar was weighed down by the message from the U.S. Federal Reserve chief that there is no hurry to dial back massive stimulus. The allure of the greenback has taken a knock since Friday when Fed Chair Jerome Powell said that tapering could begin this year, but added that the central bank would remain cautious. Japan's yen rose to its strongest since last Wednesday at 109.70 per dollar. Strong resistance can be seen at 109.92(38.2%fib), an upside break can trigger rise towards 110.28(23.6%fib).On the downside, immediate support is seen at 109.69(50%fib), a break below could take the pair towards 109.30(61.8%fib).

Equities Recap          

European stocks held firm on Monday near record highs scaled earlier this month, as hopes that continued central bank support would sustain an economic recovery offset woes over rising Delta COVID-19 variant cases.

At (GMT 09:41),UK's benchmark FTSE 100 was last trading up at 0.32%percent, Germany's Dax was up by 0.18 %percent, France’s CAC finished was up by 0.13% percent.

Commodities Recap

Gold prices edged lower on Monday, as risk appetite got a boost after U.S. Federal Reserve chief Jerome Powell assuaged market fears of a quick withdrawal of pandemic-era stimulus, dampening bullion’s safe-haven appeal.

Spot gold was down 0.2% at $1,813.76 per ounce, as of 0727 GMT. Earlier in the session, bullion scaled to its highest since Aug. 4 at $1,822.92.U.S. gold futures edged 0.2% lower to $1,816.50.

Oil prices dropped from a four-week high on Monday as Hurricane Ida weakened after forcing precautionary shutdowns of U.S. Gulf oil production, and attention turned to an OPEC meeting on Wednesday to discuss a further output boost.

Brent crude was down 35 cents or 0.5% at $72.35 by 0815 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S. crude fell 69 cents or 1% to $68.05, having earlier touched $69.64, the highest since Aug. 6.

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