EUR/CHF hits 2021 low in haven FX rally

HEADLINES

 

 

• Swiss Franc and Yen Climb to Multi-Month Highs Amid Haven Bets
• Dollar Index's "Golden Cross" Keeps EUR/USD Bears Keen as Big Bang Job Report Looms
• XAU/USD remains indecisive above $1,800
• Stocks Rise as Earnings Offset Virus
• Robinhood spikes 24%, holds well above IPO price
• Bitcoin in Pullback Mode as Regulatory Concerns Rise
• USD/CNY: Upside bias on divergent monetary policy between China and US – MUFG

 

 

FOREX

 

 

Swiss Franc and Yen Climb to Multi-Month Highs Amid Haven Bets

 

The Swiss franc climbed to its strongest level against the euro this year while the yen rallied to its highest since May, underscoring persistent demand for havens as the spread of the Covid-19 delta variant threatens global growth.

The Swiss currency gained to 1.0722 per euro, the strongest level since November. It also rallied for a seventh session against the dollar, its longest streak since April. The yen, meanwhile, advanced to 108.88, its strongest rate since May.

 

Dollar Index's "Golden Cross" Keeps EUR/USD Bears Keen as Big Bang Job Report Looms

 

The Dollar Index has entered the new month on its back foot ahead of a landmark American jobs report, although strategists at BofA Global Research have flagged a “golden cross” formation on the daily charts as a bullish technical indicator for the benchmark and a bearish omen for EUR/USD.

Tuesday saw the Dollar Index quoted one tenth of a percent lower, which deepened its one week decline to -0.5% and left the highly concentrated barometer of the U.S. currency close to major technical support levels that are important for perceptions of the overall trend in the benchmark.

 

 

COMMODITIES

 

 

XAU/USD remains indecisive above $1,800

 

Gold failed to make a decisive move in either direction on Monday and closed the day virtually unchanged at $1,814. On Tuesday, the XAU/USD pair continues to move up and down in a narrow range as investors wait for the next significant catalyst. On Wednesday, the ADP Employment Change data and the ISM's Services PMI will be looked upon for fresh impetus. However, the market reaction to these data could remain muted ahead of Friday's highly anticipated Nonfarm Payrolls report.

 

 

STOCKS

 

 

Stocks Rise as Earnings Offset Virus

 

U.S. equities gained on Tuesday as mostly positive earnings were able to offset fresh concerns about China’s technology clampdown and the delta virus variant.

The S&P 500 rose to a record as Ralph Lauren Corp., Gartner Inc. and Under Armour Inc. gained after earnings. Meanwhile, the Nasdaq 100 also recovered from earlier losses after the Chinese state media criticized the “spiritual opium” of gaming and the U.K. was said to be considering a block on Nvidia Corp.’s $40 billion deal to acquire Arm Ltd.

 

Robinhood spikes 24%, holds well above IPO price

 

Robinhood (HOOD) soared to new highs on Tuesday in a stark contrast from its public debut last week. The investing platform's stock spiked as much as 18% by mid-session and soared even higher later in the day. Shares were up 24% at market close and trading at $46.80 a piece, holding well above their IPO price of $38.

 

 

CRYPTO

 

 

Bitcoin in Pullback Mode as Regulatory Concerns Rise

 

Bitcoin extended its pullback on Tuesday as buyers continue to take profits from the $40,000 resistance level. The cryptocurrency was trading around $38,000 at press time and is down about 4% over the past week. Ongoing regulatory concerns in the U.S. and China have kept some bitcoin buyers on the sidelines, with lower support seen around $34,000 to $36,000.

 

 

ANALYSIS

 

 

USD/CNY: Upside bias on divergent monetary policy between China and US – MUFG

 

“The weaker growth outlook and recently increased market volatility will weigh on CNY against USD in near term. Another theme that would work against CNY against USD dollar for the rest of H2, is the divergence between China’s and US’ monetary policies.”

“According to our rate strategist, the latest FOMC meeting suggests that the risk for a Sept FOMC launch of taper has come down a tad, as the Fed would still wait to see more date be certain about the ‘substantial further progress’ on the jobs front, but it is possible that tapering could be a November/December event instead.”

 

 

CHART

 

 

Germany Dax index - Daily Candlesticks

Source: GKFX Prime Metatrader 4

DAX30 is in an uptrend supported by a rising trendline. Another test of this trendline could offer support but a break lower has been made more likely by a double top at 15,800. - 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/usd-cny-upside-bias-on-divergent-monetary-policy-between-china-and-us-mufg-202108030913
https://www.fxstreet.com/news/gold-price-forecast-xau-usd-remains-indecisive-above-1-800-202108031706
https://finance.yahoo.com/news/asia-stocks-set-dip-growth-220627299.html
https://finance.yahoo.com/news/swiss-franc-yen-climb-multi-205614108.html
https://www.coindesk.com/market-wrap-bitcoin-pullback-mode-regulatory-concerns
https://finance.yahoo.com/news/robinhood-spikes-18-holds-well-above-ipo-price-180343832.html