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Europe Roundup: Sterling on the back foot amid UK recovery worries, Gold edges up, Oil at one-week high as U.S. supply concerns dominate-September 13th,2021

Market Roundup

•German Aug WPI (YoY) 12.3%, 11.3% previous 

•German Aug WPI (MoM) 0.5%,1.1% previous   

Looking Ahead –Economic Data (GMT)

•French 6-Month BTF Auction -0.668% previous

•French 3-Month BTF Auction-0.652% previous

•French 12-Month BTF Auction  -0.655% previous

Looking Ahead –Economic Data (GMT)

•13:00 US 3-Month Bill Auction 0.045% previous

•13:00 US 6-Month Bill Auction 0.050% previous

•13:00 US Aug Federal Budget Balance

Looking Ahead - Events, Other Releases (GMT)

•13:30 ECB President Lagarde Speaks

Fxbeat                                 

EUR/USD: The euro declined against dollar on Monday as market expectation builds that the Federal Reserve could taper its stimulus sooner rather than later despite a surge in COVID-19 cases. The dollar index rose 0.3% to 92.880 in early European trading hours, its highest level since Aug. 27. It was last up 0.2%.A flurry of U.S. economic data is due out this week, starting with U.S. consumer price data on Tuesday, which will give a broad picture of the economy’s progress ahead of the Federal Reserve’s meeting next week. Immediate resistance can be seen at 1.1835 (50%fib), an upside break can trigger rise towards 1.1865(38.2%fib).On the downside, immediate support is seen at 1.1809(Daily low), a break below could take the pair towards 1.1803 (61.8%fib).

GBP/USD: Sterling slipped on Monday, pulling back further from a one-week high against the dollar hit on Friday as investors wait for more data to assess the pace of the post-lockdown economic recovery and how soon interest rates could he hiked. Figures on July jobs are scheduled for Tuesday while inflation and retail sales data will be published on Wednesday and Friday respectively. The Bank of England expects inflation to rise sharply this year and hit a peak of 4%.At 0840 GMT, the pound was down 0.17% against the dollar at 1.3807. Immediate resistance can be seen at 1.3863(23.6%fib),an upside break can trigger rise towards 1.3891 (Higher BB).On the downside, immediate support is seen at 1.3797(38.2%fib), a break below could take the pair towards 1.3753(50%fib).

 USD/CHF: The dollar strengthened against the Swiss franc on Monday as investors awaited readings on U.S. consumer prices that could be crucial to the Federal Reserve's decision on when to exit its super-supportive policy. All eyes are now on U.S. consumer price index for August, due to be released on Tuesday, along with U.S. retail sales and production figures later in the week as they frame the world largest economy's progress in the lead-up to the Federal Reserve's Sept. 21-22 meeting. Immediate resistance can be seen at 0.9213 (23.6%fib), an upside break can trigger rise towards 0.9238 (Aug 13th high).On the downside, immediate support is seen at 0.9160(38.2%fib), a break below could take the pair towards 0.9117(50%fib).

USD/JPY: The dollar dipped against yen on Monday as investors awaited U.S. inflation readings later this week. Investors are now eying U.S. consumer price data due on Tuesday which could have a bearing on the timeline the Federal Reserve adopts to withdraw its economic support. The data comes on the heels of comments from several Fed officials that the central bank should begin tapering asset purchases this year. Strong resistance can be seen at 109.85(38.2%fib), an upside break can trigger rise towards 110.26(Higher BB).On the downside, immediate support is seen at 109.84(50%fib), a break below could take the pair towards 109.57(61.8%fib).

Equities Recap          

European stocks rose on Monday, with oil, banks and utility shares driving gains as investors hoped that a strong euro zone economic recovery would outweigh risks from a global slowdown.

At (GMT 11:20),UK's benchmark FTSE 100 was last trading down at 1.00% percent, Germany's Dax was down by 0.03%percent, France’s CAC finished was up by 0.11% percent.

Commodities Recap

Gold prices nudged up on Monday drawing some support from weaker U.S. bond yields but a resurgent dollar kept the metal on a tight leash as investors awaited U.S. inflation readings later this week.

Spot gold rose 0.1% to $1,788.51 per ounce by 0940 GMT, while U.S. gold futures fell 0.1% to $1,790.00.

Oil rose more than 1% on Monday, supported by concerns over shut output in the United States because of damage from Hurricane Ida, with analysts expecting prices to remain rangebound in a stable market over the coming months.

Brent crude rose 90 cents, or 1.2%, to $73.82 a barrel by 1049 GMT and U.S. West Texas Intermediate (WTI) crude was up 99 cents, or 1.4%, at $70.71.

 

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