European stocks slide before ECB

“You will come to know that what appears today to be a sacrifice will prove to be the greatest investment that you will ever make.” Gordon B. Hinkley

 

 

HEADLINES

 

 

• Dollar gains as yields hold near recent highs before ECB meeting
• Gold dips to two-week low as dollar extends gains
• Oil Advances with Ida’s Impact on U.S. Supply Lingering
• Wall Street stocks follow Europe lower ahead of ECB meeting
• Apple is facing a mountain of controversies, but investors don't seem to care
• Bitcoin trading subdued after chaotic debut in El Salvador; Coinbase faces lawsuit
• AUD/USD to be capped around the 0.75 level – DBS Bank

 

 

FOREX

 

 

Dollar gains as yields hold near recent highs before ECB meeting

 

The dollar hit a one-week high against peers on Wednesday as U.S. Treasury yields held near the upper end of their recent range and as the euro weakened a day ahead of a European Central Bank policy decision. The euro dipped before the European Central Bank meeting set for Thursday. The ECB could tighten policy sooner than many anticipate as inflationary pressures could prove to be persistent, ECB policymaker Robert Holzmann said in a contribution to Eurofi Magazine on Wednesday.

 

 

COMMODITIES

 

 

Gold dips to two-week low as dollar extends gains

 

Gold slipped to a two-week low on Wednesday as strength in the dollar and higher U.S. Treasury yields outweighed the boost to bullion from deepening concerns about global economic growth. Worries about a Delta variant-driven slowdown in economic growth have shaken equities this week, but flows into gold have been limited by firmer bond yields and a rise in the dollar that has made bullion costlier for holders of other currencies.

 

Oil Advances with Ida’s Impact on U.S. Supply Lingering

 

Oil gained amid a slow return of U.S. production after Hurricane Ida hit south-east Louisiana. Futures in New York rose as much as 2.1% on Wednesday to top $69 a barrel. More than a week after the Category 4 storm made landfall, about 79% of Gulf of Mexico offshore oil output and 78% of gas production remains shut-in, according to the Bureau of Safety and Environmental Enforcement.

 

 

STOCKS

 

 

Wall Street stocks follow Europe lower ahead of ECB meeting

 

Stock markets on both sides of the Atlantic fell on Wednesday as investors anticipated the unwinding crisis-fighting stimulus that has helped prop up markets throughout the pandemic. The continent-wide Stoxx Europe 600 index closed down 1.1 per cent for its steepest fall in three weeks. At its meeting on Thursday, analysts expect the European Central Bank to announce a slowdown of its bond purchases because of the brightening economic outlook in the bloc.

 

Apple is facing a mountain of controversies, but investors don't seem to care

 

Apple (AAPL) on Tuesday said it will host its annual fall event on Sept. 14, where it’s widely expected to launch the iPhone 13, a new Apple Watch, and AirPods. But the widely anticipated event comes just when Apple is navigating controversies that could hinder how it operates for years to come.

Most pressing is Apple’s legal battle with “Fortnite” maker Epic Games over its App Store fees and mandate that certain developers use Apple’s proprietary payment system. Apple is also reportedly facing probes by the Department of Justice and the European Union’s European Commission.

 

 

CRYPTO

 

 

Bitcoin trading subdued after chaotic debut in El Salvador; Coinbase faces lawsuit

 

Volatility in bitcoin eased on Wednesday, a day after El Salvador adopted the crypto asset as legal tender, but the threat of a U.S. lawsuit against crypto exchange Coinbase Global Inc underscored the rocky road ahead for cryptocurrencies. The Securities and Exchange Commission issued Coinbase with a Wells notice, indicating the U.S. regulator will sue if the crypto exchange goes ahead with the launch of its interest-bearing “Lend” product for crypto assets.

 

 

ANALYSIS

 

 

AUD/USD to be capped around the 0.75 level – DBS Bank

 

“According to our model, AUD/USD is likely to be capped around 0.7510 or two standard deviations from its mean trend value.”

“The Australian economy is expected to contract in 3Q21 from strict lockdowns to contain its most serious wave of infections.”

“A double-dip recession is possible if 70% of the population are not fully inoculated by late October or early November, a condition for reopening the economy.”

 

 

CHART

 

 

British pound / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD has put in a large bullish pin-bar (hammer) reversal after a false break below 1.373 support as well as the 20 DMA. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/aud-usd-to-be-capped-around-the-075-level-dbs-bank-202109080939
https://www.ft.com/content/2a8abe9b-6539-4d1f-b44c-9c1bc0b61398
https://www.reuters.com/article/global-precious/precious-gold-dips-to-two-week-low-as-dollar-extends-gains-idUSL4N2QA308
https://www.reuters.com/article/fintech-cryptocurrency-bitcoin/update-2-bitcoin-trading-subdued-after-chaotic-debut-in-el-salvador-coinbase-faces-lawsuit-idUSL1N2QA13R
https://finance.yahoo.com/news/oil-steadies-two-day-decline-000754201.html
https://www.investing.com/news/economy/dollar-near-oneweek-top-amid-rise-in-yields-caution-before-ecb-2610059