Market Roundup
•German Exports (MoM) 0.5%,0.5%forecast,1.3% previous
•German Jul Imports (MoM) -3.8%,0.2% forecast, 0.6% previous
•German Jul Trade Balance 17.9B, 13.0B forecast, 13.6B previous
•Gemran Jul Current Account Balance n.s.a 17.6B, 22.5B previous
•Irish Aug CPI (MoM) 0.6%,0.4% previous
•Irish Aug HICP (YoY) 3.0%,2.2% previous
•Irish Aug CPI (YoY) 2.8%, 2.2% previous
•ECB Aug Interest Rate Decision 0.00%,0.00% previous
Looking Ahead –Economic Data (GMT)
•12:30 US Initial Jobless Claims 335K, 340K previous
•12:30 Jobless Claims 4-Week Avg 355.00K previous
•12:30 US Continuing Jobless Claims 2,744K forecast,2,748K previous
•14:30 Natural Gas Storage40B forecast, 20B previous
•15:00 Cushing Crude Oil Inventories 0.836M previous
•15:00 US Crude Oil Inventories -4.612M, -7.169M previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
•15:05 US FOMC Member Daly Speaks
•16:00 Canada BoC Gov Macklem Speaks
•17:00 FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro edged higher on Thursday before an expected reduction in the pace of the European Central Bank’s bond buying. The ECB holds a policy meeting on Thursday at which it is expected to announce a trimming of the pace of its asset purchases, taking a token step towards unwinding the emergency economic aid it has put in place during the pandemic. The euro rose 0.1% to $1.1825 following a three-day retreat from Friday’s two-month high of $1.1909.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 ticked higher on Thursday after British lawmakers backed Prime Minister Boris Johnson’s tax hikes and was set to end three straight days of losses. The pound had extended its fall on Tuesday after the announcement of a tax hike to fund health spending and social care. Higher taxes could theoretically ease pressure on the Bank of England to begin tightening monetary policy as they might slow down the pace of the economic recovery.A number of analysts and economists believe, however, that the impact of the measures will be limited and don’t amount to a game changer for the currency. 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 declined against the Swiss franc on Thursday as investors were worried about the combination of slowing global growth and the spread of the COVID-19 Delta variant. The cautious mood saw the safe-haven Swiss franc firming slightly against other major currencies. Focus was also on weekly U.S. initial jobless claim data at 1230 GMT, given the Fed’s recent emphasis on the labour market being an important determinant to tapering strategy.The franc gained 0.15% to 0.9204 per dollar. 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 Thursday as uncertainty over the pace of economic recovery decreased demand for dollar. Concerns are growing about the impact of rising coronavirus infections on economy due to spread the Delta variant . Markets are also still assessing data from last week which showed the U.S. economy created the fewest jobs in seven months in August, and wondering how the U.S. central bank will respond.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 hit a three-week low on Thursday, tracking Asian shares lower on concerns of slowing global growth, while expectations were running high for the European Central Bank to announce a timeline to start paring its bond purchases.
At (GMT 12:20),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 rose on Thursday after three straight sessions of losses as the dollar rally paused and investors’ focus turned to a European Central Bank (ECB) meeting expected to signal a tapering of its emergency economic support.
Spot gold rose 0.6% to $1,799.36 an ounce by 1130 GMT, bouncing off a two-week low touched on Wednesday.
Oil prices rose on Thursday as U.S. crude output remained largely offline after Hurricane Ida, though gains were capped by a clouded outlook for demand recovery owing to the spread of the Delta variant of the coronavirus.
Brent crude rose 59 cents, or 0.8%, to $73.19 a barrel by 1110 GMT and West Texas Intermediate (WTI) crude was up 54 cents, or 0.8%, at $69.84.
