America’s Roundup: Dollar Gains As Soaring Energy Prices Raise Inflation Concerns, Wall Street Rises, Gold Companies, Oil Pulls Back From Multi-Year Highs After U.S. Stocks Build Up on 7 October 2021


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Market overview

• Non-farm employment change in US in September ADP 568K, forecast 428K, previous 374K

• 2:30 pm US gasoline inventories 3.256M, -0.279M forecast, previous 0.193M

• 2:30 PM US crude oil stocks 2.346M, forecast -0.418M, previous 4.578M

Future Outlook Economic Data (GMT)

• 23:50 Japan Seven Foreign reserves (USD) 1,424.3 billion previous

• 23:50 Foreign bonds of Japan buying 440.3 billion previous

• 23:50 Japanese foreign investment in Japanese stocks -229.4B previous

• 05:00 Japan Leading Index 104.1 previous

• 05:00 Japan August Coincident indicator (MoM) -0.2% previous

• 05:00 Japan August leading index (MoM) -0.1% previous

Future prospects – Events, other versions (GMT)

• 01h00, the governor of the BoJ of Japan, Kuroda, speaks

Currency Summaries

EUR / USD: The euro fell against the dollar on Wednesday after data showed German industrial orders fell more than expected in August. Figures released by the Federal Statistical Office showed that orders for “Made in Germany” products were down 7.7% on the month in seasonally adjusted terms. A survey of analysts had pointed to a decline of 2.1% over the month. Immediate resistance can be seen at 1.1562 (38.2% fib), a bullish breakout can trigger a rise towards 1.1593 (50% fib). 1.1500 (Psychological level).

GBP / USD: The British pound fell against the dollar on Wednesday as surging energy prices and surging bond yields hit the pound. Soaring energy prices have encouraged investors to look to the dollar, pushing it near the one-year high reached last week against a basket of currencies. This sent the pound down 0.4% to $ 1.3565, although it stayed away from the lows reached last week. The prospect of imminent rate hikes, signaled by the Bank of England, was not enough to support the pound Immediate resistance is visible at 1.3625 (50% fib), a breakout bullish may trigger a rise towards 1.3687 (61.8% fib). , immediate support is seen at 1.3552 (38.2% fib), a break below could take the pair towards 1.3469 (23.6% fib).

USD / CAD: The Canadian dollar weakened against the greenback on Wednesday as fears that soaring energy prices would spur inflation contributed to a massive sell off in global equity markets, the loonie hitting withdrawing from a four-week high reached the day before. Stocks fell globally and the safe haven US dollar appreciated against a basket of major currencies as oil prices hit their highest level in seven years, fueling concerns about rising inflation. Investors fear that accelerating inflation will force central banks to tighten policy sooner than expected. ), a breakout may trigger a rise towards 1.2639 (11DMA). On the downside immediate support is seen at 1.2578 (50% fib), a break below could take the pair towards 1.2530 (61.8% fib).

USD / JPY: The dollar edged up against the yen on Wednesday as surging energy prices fueled concerns about inflation and interest rate hikes, increasing investor appetite for the dollar . Rising inflationary pressures could hamper growth and have implications for how quickly the Federal Reserve can raise interest rates. The weekend U.S. payroll report, which could provide clues to the U.S. Federal Reserve’s next move, remains a point of interest for investors. The US dollar index, which measures the greenback against a basket of six currencies, was up 0.3% to 94.228. The index hit a one-year high at 94.504 last week. Strong resistance can be seen at 111.75 (23.6% fib), a bullish breakout can trigger a rise towards 111.93 (higher BB). 111.03 (11DMA).

Summary of actions

Shares of automakers, retail and travel fell more than 2.5% on Wednesday, leading to declines in all major sectors in Europe as surging oil and gas prices intensified fears that inflation does not undermine economic growth.

The UK benchmark FTSE 100 closed down 1.15%, the German Dax ended down 1.46%, the French CAC ended the day down 1.27%.

U.S. stock indexes rose on Wednesday, turning positive after early losses, as investors became more optimistic that Democrats and Republicans in Congress could reach a deal to avoid a default on public debt.

The Dow Jones closed 0.30% higher, the S&P 500 0.41% and the Nasdaq 0.47%.

Summary of treasury bills

Yields at the shorter end of the U.S. Treasury curve fell on Wednesday after the Senate’s top Republican said his party would support an extension of the federal debt ceiling until December, a move that would avoid a historic default later this month.

The 10-year benchmark yield, which previously peaked at 1.573% in the session, lost 1 basis point to 1.5206% after falling from June highs as well as bond yields at 20 and 30. years.

Summary of commodities

Gold rose in close trading on Wednesday on lower US Treasury yields, although a stronger dollar limited the safe-haven metal’s gains, as investors waited for expected US labor market data later this week.

Spot gold was up 0.1% at $ 1,760.78 an ounce at 1:38 p.m. EDT (5:38 p.m. GMT), reversing from the previous session’s low of 1,744.84 $. US gold futures were up 0.1% to $ 1,761.8.

Oil prices fell nearly 2% on Wednesday, retreating from multi-year highs, as an unexpected increase in US crude inventories prompted buyers to pause after recent sizzling gains.

Brent crude hit $ 83.47 per barrel, its highest level since October 2018, but stood at $ 81.08, down $ 1.48 per barrel, or 1.8%. U.S. crude climbed to $ 79.78, its highest since November 2014, before falling to $ 77.43 for a daily decline of $ 1.50 or 1.9%.

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