US Open Note – Dollar fizzles despite tapering hints; European stocks at fresh record highs



Delta fears 

The rest of the day will be quiet in terms of data releases but there are enough things happening globally to keep investors busy in the next sessions.

The delta outbreak has stretched to China, which has been out of the Covid headlines for a while, forcing authorities to halt flights and other public transports towards Beijing. With the second biggest economy of the world teaming up with other Asian economies to fight against the troubling new Covid variant, there are growing fears that the “transitory phase” of supply constraints and therefore high inflation could last for longer, consequently weighing on economic growth.

The above is somewhat justifying the increased demand for safe-havens such as government bonds, which pressed the 10-year Treasury yield closer to its previous low of 1.1218% and sent the German equivalent to a fresh low of -0.486% today.

Safe havens outperform dollar despite tapering headlines

However, the calm response from central banks is showing that there is no big anxiety in the financial world over the new wave of infections as the vaccination programs are said to have built a net of safety in several regions, and the previous months have proven that economies can quickly bounce back after a period of restrictions.

The RBA was one of the central banks to keep its bond tapering commitment in place early today despite the fast-growing but not so vigorous infections in Australia, helping aussie/dollar to crawl up to the 0.7400 resistance area and become one of the best performing pairs of the day after kiwi/dollar.

Comments from Fed speakers also reminded investors that bond tapering plans are underway in the US ahead of Friday’s Nonfarm payrolls report, with Fed officials Brainard and Waller providing new hints that the central bank could start reducing its bond purchases as soon as October this year. Specifically, the former believes that September’s employment figures due in early September could be critical to determine the need for bond purchase reductions, while the latter said that an employment increase of 1.6 – 2.0 million in July and August could be enough to put tapering plans into action. Investors will be also interested to hear Fed board member Bowman’s speech today at 18:00 GMT.

Nevertheless, the US dollar could not reclaim any ground from the traditional safe-haven currencies during the European trading hours, sliding lower to test the 109.00 support region against the yen and printing a new two-month low of 0.9022 versus the Swiss franc.

Watch out option expiries

In European currencies, euro/dollar is pushing for some gains, but it continues to face a ceiling around the 1.1880 number. Some 1.3 billion euros' worth of options are set to expire around 1.1850 today at 10:00 am New York time, while another 1.2 billion euros will be off on Thursday around 1.1800. Hence, downside pressures could face some limitations but not for long if the Fed opens the door for monetary tightening at the Jackson Hole symposium in late August.

Pound/dollar is also heading for a soft but positive close, though whether it can breach the 50-day simple moving average, which is currently capping bullish actions at 1.3930 remains to be seen.

Earnings boost European stocks; commodities on the back foot

Turning to stock markets, another flow of upbeat earnings results from the energy and banking sectors boosted the pan-European STOXX 600 index to fresh record highs, while US futures tacking the S&P 500, Nasdaq 100 and Dow Jones are pointing to a mildly positive open on Wall Street following yesterday’s cautious trading.

In commodities, WTI crude price is falling for the second consecutive day, set to close below the $70.00 level. Gold continues its consolidation phase within the $1,830 – 1,797 region.

Pinakabagong Balita

Eurozone economic sentiment on the radar; euro flirting with $1.17 – Forex News Preview



US Open Note – Dollar gains notable ground; oil continues the rise  



Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.