Market Update 31/08/2021
Post Jackson Hole last week the EUR/USD has gained short term upward momentum, breaking the 1.1800 resistance, this is mainly due to US Dollar weakness. With the greenback losing value vs other major currencies. The focus for this week will be on the NFP figures this Friday. With the next level of resistance standing at the 1.1900 handle. Will we see the pair test or maybe break these levels this week? Our support level can be found around the 1.1660 - 1.1670 range which was last visited on the 19th – 20th of August.
For now, the market seems to be sticking with the post-Jackson Hole narrative, but this may all change with US non-farm payrolls report on Friday which could shake things up to kick start the September trading.
5 Hour Currency Heatmap
On the 5 Hour currency Heatmap we can see the continuation in the strength of the New Zealand Dollar, Australian Dollar and Canadian Dollar. The Swiss Franc & the US Dollar is showing the most weakness against the other pairs in the recent days.
Gold prices rose back towards the previous session’s four-week high on Tuesday, supported by a weaker dollar and a fall in U.S. Treasury yields, as investors awaited August U.S. non-farm payrolls data due later this week. Spot gold was up 0.3% at $1,815.11 per ounce by 08:48 GMT, after hitting its highest since Aug. 4. We have also seen the precious metal break the $1800 key psychological level for Gold, which is now trading at $1814.77. The $1795 area serves as our short-term support. The key level of resistance is the $1832 level; a break of this may see gold rise in the longer term. In the short term will gold retest the $1795 level, before trying to move higher?
Again the focus will be on the reaction to the NFP results on Friday.
This downward trend in the volatility has continued since August although, with the US Non-Farm Payrolls this week will there be a likely change in this trend in the build up to the announcement as shown by looking at historical data.
USD/INR - The US Dollar (USD) against the Indian Rupee (INR) belongs in the exotic pairs group. The USD/INR pair is monitored by the Reserve Bank of India. It is characterized by a managed floating rate, other currency pairs against the Indian Rupee (including the Euro) have a market-determined or floating exchange rate.
USD/INR takes offers around 73.22, down 0.27% intraday during a three-day south-run ahead of Tuesday’s European session. In doing so, the Indian rupee (INR) pair remains pressured towards the lowest levels since mid-June.
Stocks to Watch
Earnings: Below are the stocks to monitor for the rest of the week will announce their earnings.
|Monday, August 30, 2021||Stock||EPS Forecast||Revenue Forecast||Market Cap||Time|
|US||Zoom Video (ZM)||1.16||991.21M||103.25B||--|
|UK||Land Securities (LAND)||--||--||5.29B||--|
|UK||British Land Company (BLND)||--||--||4.92B||--|
|Tuesday, August 31, 2021||Stock||EPS Forecast||Revenue Forecast||Market Cap||Time|
|US||Bunzl (BNZL)||0.30||4,732M||8.96B||Before Market Open|
|US||Johnson Matthey (JMPLY)||--||--||7.93B||--|
|Wednesday, September 1, 2021||Stock||EPS Forecast||Revenue Forecast||Market Cap||Time|
|UK||Imperial Brands (IMB)||--||--||14.34B||Before Market Open|
|US||888 Holdings (888)||--||--||1.53B||Before Market Open|
|Thursday, September 2, 2021||Stock||EPS Forecast||Revenue Forecast||Market Cap||Time|
|US||Cooper (COO)||3.29||726.78M||22.13B||After Market Close|
|UK||Barratt Developments (BDEV)||32.00||1,966M||7.46B||Before Market Open|
|Friday, September 3, 2021||Stock||EPS Forecast||Revenue Forecast||Market Cap||Time|
|UK||Ashmore (ASHM)||12.34||141.59M||2.61B||Before Market Open|
Dividends: The following stocks will be paying dividends over this week.
|Monday, August 30, 2021||Stock||Ex Div Date||Dividend||Type||Yield|
|US||Barrick Gold (GOLD)||30-Aug||0.09||Quarterly||1.80%|
|US||Brookfield Business (BBU)||30-Aug||0.0625||Quarterly||0.58%|
|Tuesday, August 31, 2021||Stock||Ex Div Date||Dividend||Type||Yield|
|US||Fox Corp A (FOXA)||31-Aug||0.12||Quarterly||1.29%|
|US||Lockheed Martin (LMT)||31-Aug||2.6||Quarterly||2.87%|
|Wednesday, September 1, 2021||Stock||Ex Div Date||Dividend||Type||Yield|
|US||Home Depot (HD)||1-Sep||1.65||Quarterly||2.04%|
|Thursday, September 2, 2021||Stock||Ex Div Date||Dividend||Type||Yield|
|UK||BHP Group (BHPB)||2-Sep||211.97||12 Month Trailing||9.30%|
|US||Linde PLC (LIN)||2-Sep||1.06||Quarterly||1.35%|