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EUR/USD 1-month high on inflation shock

If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota

 

 

HEADLINES

 

 

 

  • Dollar weakens after ADP miss, euro hits fresh one-month high
  • Euro settles near one-month high after inflation jolt
  • U.S. oil prices finish with a slight gain as OPEC+ keeps plan to boost output in place
  • Gold futures ease back as investors await jobs report
  • Shares scale new highs, dollar falls on Delta anxiety
  • China gaming stocks rally despite regulators limiting kids’ playing time
  • Ethereum price breaks $3,500 and hits 3-month highs against Bitcoin

 

 

FOREX

 

 

Dollar weakens after ADP miss, euro hits fresh one-month high

 

The dollar fell against a basket of major currencies on Wednesday after a report on the U.S. labor market fell well short of expectations, while the euro held near a one-month high on inflation worries. The greenback added to losses after the ADP National Employment Report showed private payrolls rose by 374,000 in August, up from 326,000 in July but well short of the 613,000 forecast.

 

Euro settles near one-month high after inflation jolt

 

The euro consolidated gains below a near one-month high on Wednesday as a higher-than-expected inflation reading pumped up bond yields, forcing investors to cover their bearish bets on the single currency. Data on Tuesday showed euro zone inflation increased to 3% year-on-year in August, the highest in a decade, above the European Central Bank's 2% target and a 2.7% forecast in a Reuters poll.

 

 

COMMODITIES

 

 

U.S. oil prices finish with a slight gain as OPEC+ keeps plan to boost output in place

 

U.S. oil futures on Wednesday finished with a slight gain, but global prices posted a modest loss, after major oil producers made no changes to their plan to gradually increase crude production. The Organization of the Petroleum Exporting Countries and its allies, a group collectively known as OPEC+, announced Wednesday that it would stick to the plan it reached in July to increase oil production by 400,000 barrels a day each month from August.

 

Gold futures ease back as investors await jobs report

 

Gold futures ended lower on Wednesday, with a weaker-than-expected U.S. private-sector jobs data only providing a temporary boost to prices for the haven metal, as investors expected the jobs report due on Friday to provide more definitive direction guidance for gold.

Prices for the metal continued to trade lower after the IHS Markit reading of manufacturing activity for August showed a climb to 59.9% from 59.5% in the prior month. Economists polled by MarketWatch had forecast a reading of 58.6%.

 

 

STOCKS

 

 

Shares scale new highs, dollar falls on Delta anxiety

 

MSCI's all-country world index IACWI climbed to its fourth intraday high in a row, while the Nasdaq Composite IXIC hit a fresh high. The Euro STOXX 600 .STOXX came close to breaching an all-time peak reached three weeks ago and the S&P 500 SPX toyed with touching a new intraday high.

The upbeat tone for equities came despite signs that Asia's factory activity lost momentum in August and that U.S. private employers hired far fewer workers than expected last month, likely due to a resurgence in COVID-19 infections.

 

China gaming stocks rally despite regulators limiting kids’ playing time

 

Major Chinese gaming stocks rallied on Wednesday despite new rules restricting gaming time for children under 18 years old. Hong Kong-listed shares of Bilibili closed 6.25% higher and NetEase was up 6.42% on Wednesday. Meanwhile, Tencent rose 1.5% for the day. Huya’s shares, which are listed in the U.S., closed 7% higher on Tuesday.

 

 

CRYPTO

 

 

Ethereum price breaks $3,500 and hits 3-month highs against Bitcoin

 

Ethereum’s native asset, Ether (ETH), has extended its rally on Wednesday to log multi-month highs against Bitcoin (BTC) and the United States dollar. The ETH/BTC exchange rate rose 3.13% to hit 0.07475 for the first time since June 9. Meanwhile, bids for ETH/USD climbed 3.4% to $3,546, the highest since May 18, showcasing a renewed upside sentiment in the second-largest cryptocurrency market after it consolidated sideways for more than three weeks.

 

 

CHART

 

 

Euro / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD has risen up to critical resistance formed by long term downtrend line and the supply area formed by the start of the early August sell-off around 1.185. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE


https://www.fxstreet.com/economic-calendar
https://www.marketwatch.com/story/oil-edges-higher-ahead-of-opec-meeting-11630495200
https://www.marketwatch.com/story/oil-edges-higher-ahead-of-opec-meeting-11630495200
https://www.marketwatch.com/story/gold-prices-edge-lower-on-wednesday-11630497158
https://cointelegraph.com/news/ethereum-price-breaks-3-500-and-hits-3-month-highs-against-bitcoin
https://www.reuters.com/world/asia-pacific/dollar-weakens-after-adp-miss-euro-hits-fresh-one-month-high-2021-09-01
https://www.reuters.com/article/global-forex/forex-euro-settles-near-one-month-high-after-inflation-jolt-idUSL4N2Q31SM

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