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Europe Roundup: Euro dips as safety flows extend dollar rally ahead of Fed, European shares slide,Gold little changed, Oil falls below $75 on risk-averse mood, U.S. Gulf output-September 20th,2021

Posted at 20 September 2021 / Categories Market Roundups


Market Roundup

•German Aug PPI (YoY) 12.0%, 11.4%forecast 10.4% previous

•German Aug PPI (MoM) 1.5%, 0.8% forecast, 0.19 % previous

•Greek Jul Current Account (YoY) 0.538B, -1.338B previous    

Looking Ahead Economic Data (GMT)

•13:00 French 6-Month BTF Auction-0.675% previous

•13:00 French 3-Month BTF Auction -0.651% previous

•13:00 French 12-Month BTF Auction -0.649% previous

•14:00 US Sep NAHB Housing Market Index 74 forecast, 75 previous

•15:30 US 3-Month Bill Auction 0.040% previous

•15:30 US 6- Month Bill Auction 0.050% previous

Looking Ahead - Events, Other Releases (GMT)

•11:35 ECB's Schnabel Speaks ECB's Schnabel Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Monday as dollar firmed ahead of a week packed with global central bank meetings. Ahead this week, no fewer than a dozen central banks hold meetings, but traders' top focus is on the Fed where expectations for a tapering signal are keeping the dollar bid.The Fed concludes a two-day meeting on Wednesday and consensus is that it will stick with broad plans for tapering this year but will hold off providing details or a timeline for a at least a month. Immediate resistance can be seen at 1.1738 (50%fib), an upside break can trigger rise towards 1.1771(61.8%fib).On the downside, immediate support is seen at 1.1697(38.2%fib), a break below could take the pair towards 1.1650 (23.6%fib).

GBP/USD: Sterling hit a one-month low against the dollar on Monday as a global sell-off prompted by China's struggling Evergrande hit risk-oriented currencies while uncertainties about the Bank of England's monetary policy and surging gas prices also weighed. At 0827 GMT, the pound was about 0.5% lower against the dollar at $1.3662, its lowest level since Aug. 23. Versus the euro , sterling was down 0.32% at 0.8561 pence, a low not reached since Sept. 9. Immediate resistance can be seen at 1.3697(50%fib),an upside break can trigger rise towards 1.3741 (38.2%fib).On the downside, immediate support is seen at 1.3664(Lower BB), a break below could take the pair towards 1.3648(61.8%fib).

USD/CHF: The dollar held near recent highs against the Swiss franc on Monday as investors braced for the Federal Reserve to take another step towards tapering this week. The Fed concludes a two-day meeting on Wednesday and consensus is that it will stick with broad plans for tapering this year but will hold off providing details or a timeline for a at least a month. At (GMT 09:16), Greenback gained 0.02% versus the Swiss franc to 0.9324. Immediate resistance can be seen at 0.9331 (23.6%fib), an upside break can trigger rise towards 0.9400 (Psychological level).On the downside, immediate support is seen at 0.9301(20DMA), a break below could take the pair towards 0.9227(38.2%fib).

USD/JPY: The dollar dipped against yen on Monday as investors stayed cautious ahead of a week packed with local and global economic indicators. Investors turned risk averse amid concerns around debt-laden Chinese developer Evergrande's inability to pay part of its huge debt due on Thursday. The market will also track  the U.S. Federal Reserve's policy meeting, due to end on Wednesday, for indications on when it will start tapering its bond purchase programme.Strong resistance can be seen at 110.02(23.6%fib), an upside break can trigger rise towards 110.28(Higher BB).On the downside, immediate support is seen at 109.62(38.2%fib), a break below could take the pair towards 109.33(50%fib).

Equities Recap          

European shares fell to a near two-month low on Monday and Germany’s benchmark index sank 2%, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programmes at various meetings this week.

At (GMT 09:30),UK's benchmark FTSE 100 was last trading down at 1.58% percent, Germany's Dax was down by 2.20 %percent, France’s CAC  was last down by 2.22% percent.

Commodities Recap

Gold prices were pressured on Monday, hurt by a stronger dollar and concerns the U.S. Federal Reserve might hint at when it intends to begin tapering its asset purchases in its upcoming meeting.

Spot gold was little changed at $1,755.84 per ounce by 0847 GMT, having earlier touched its lowest level since Aug. 12 at $1,741.86.

Oil dropped more than $1 a barrel to below $75 on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, while more U.S. Gulf oil output came back online in the wake of two hurricanes.

Brent crude fell 76 cents, or 1%, to $74.58 at 0815 GMT, having dropped as low as $74.26 earlier in the session. U.S. West Texas Intermediate (WTI) declined 89 cents, or 1.2%, to $71.08.


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