EUR/GBP lowest since Feb 2020

“Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments.” – J. Paul Getty

 

 

HEADLINES

 

 

• Dollar index edges up on upbeat data; virus worries linger
• USD/CAD continues to push higher toward 1.2600 on USD strength, oil selloff
• Oil ends at 3-week low as China steps up efforts to contain delta variant outbreak
• Oil stocks pull S&P 500, Dow lower as virus fears weigh
• Bitcoin retakes $46,000 as rebound continues
• EUR/USD: Very dovish ECB to keep the pair vulnerable towards 1.17 – ING

 

 

FOREX

 

 

Dollar index edges up on upbeat data; virus worries linger

 

The U.S. dollar edged up on Monday to touch the highest in more than two weeks against a basket of currencies, buoyed by upbeat U.S. data, even as traders kept a close watch on the spread of COVID-19 cases in the United States. Data Monday showed U.S. job openings jumped to a record high in June and hiring increased. That came on the heels of Friday’s U.S. monthly jobs report that showed U.S. employers hired the most workers in nearly a year in July and continued to raise wages.

 

USD/CAD continues to push higher toward 1.2600 on USD strength, oil selloff

 

After dropping toward 1.2530 earlier in the day, the USD/CAD pair regained its traction and reached its highest level since July 28 at 1.2587. After dropping toward 1.2530 earlier in the day, the USD/CAD pair regained its traction and reached its highest level since July 28 at 1.2587.

 

 

COMMODITIES

 

 

Oil ends at 3-week low as China steps up efforts to contain delta variant outbreak

 

Oil futures ended lower Monday, extending last week’s tumble as China took additional steps to limit the spread of the delta variant of the coronavirus that causes COVID-19, underlining fears about global crude demand. Health authorities in Beijing last week canceled all large-scale exhibitions and events for August. The country has also reimposed travel restrictions, including flight cancellations and warnings by dozens of cities against travel and limits on travel by taxi and other transportation, according to news reports.

 

 

STOCKS

 

 

Oil stocks pull S&P 500, Dow lower as virus fears weigh

 

The S&P and the Dow indexes retreated from record highs on Monday as energy and other sectors sensitive to economic growth tumbled on concerns over rising COVID-19 cases. Energy shares down 1.2%, bore the brunt of selling tracking a slump in crude as an increase in coronavirus cases, particularly in China, raised fears of new curbs that could hurt oil demand.

 

 

CRYPTO

 

 

Bitcoin retakes $46,000 as rebound continues

 

The price of bitcoin broke past $46,000 on Monday morning after a high stakes weekend for the crypto industry as the Senate continued debating the details of its part in the still yet-to-be-passed infrastructure bill. Bitcoin traded as high as $46,465. That marks its highest level since May 16, when it hit $49,770.33, according to Coin Metrics.

 

 

ANALYSIS

 

EUR/USD: Very dovish ECB to keep the pair vulnerable towards 1.17 – ING

 

“EUR/USD has come under steady pressure after the ECB shifted to a symmetrical 2.0% inflation target in late July. This comes at a time when the Fed is preparing to normalise policy. Recent comments from Vice Chair Clarida suggest the Fed could be ready to tighten in early 2023.”

“With US jobs numbers likely to improve into September, the US dollar can stay bid, EUR/USD pressing 1.17… Our preference is for a 1.17-1.23 range into year-end (the dollar is seasonally weak at end of the year), but risks are clearly skewed lower.”

 

 

CHART

 

 

Euro / British pound – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/GBP just touched its weakest since February 2020. This could be a double bottom but the false break above the 100 DMA suggests new lows will be formed. - 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/eur-usd-very-dovish-ecb-to-keep-the-pair-vulnerable-towards-117-ing-202108091427
https://www.reuters.com/business/sp-dow-futures-retreat-commodity-losses-weigh-2021-08-09/
https://www.marketwatch.com/story/oil-prices-plunge-as-china-steps-up-efforts-to-contain-delta-variant-outbreak-11628512851?mod=mw_latestnews
https://www.cnbc.com/2021/08/09/bitcoin-retakes-46000-as-rebound-continues.html