Juliana Calil
08/04/2021
HIGHLIGHTS
USAToday, Fed Vice President Richard Clarida suggested that the central bank could start cuttingbond purchases later this year, if the country’s economic recovery is faster thanone thought. In that case, the bank could start raising interest rates again in 2023,as long as inflation expectations remain well anchored to the long-term target of 2%.According to the ADP employment report, US private companies hired330,000 workers in July 2021, a number that disappointed the market, which estimated aincrease of 695,000 vacancies. It was the weakest pace of job creation since February, addingsigns of a slowdown in the recovery of the labor market, despite the record volume ofjob openings. The shortage of raw materials, especially in the automobile sector, ispointed out as the main responsible for this result. The service provision sector added318,000 jobs, led by leisure and hospitality, education and health, professional and business, andcommerce, transport and public services. The industrial sector created only 12 thousand jobs.The ISM Non-Manufacturing PMI rose to 64.1 in July 2021, well above the 60.5 estimated by theMarketplace. The reading pointed to the sharpest pace of expansion in the services sector since thebeginning of records, in 1997. The level of employment in the sector returned to grow, and the deliveries ofvendors steadily increased. Costs in the service sector increased at the highest rate of theselast 16 years. However, the ISM Manufacturing PMI fell to 59.5 in July, the weakest expansionin the manufacturing activity in the last six months.The civil construction market in the US remains very heated. The volume of purchase ordersdecreased reflecting a lack of inventory as the rapid appreciation of home prices continues to beobserved throughout the country
EuropeThe PMI survey showed that the growth of private sector activity in the euro zone accelerated inJuly the maximum observed in 15 years. The IHS Markit Eurozone Services PMI reached 59.8 in Julyof 2021, the highest rate of expansion in the service sector since June 2006. The new businessesincreased at the fastest pace in 14 years and the pace of job creation was the highest in almostthree years. However, operational capabilities have been tested, as evidenced by arecord increase in backlogs. In relation to prices, the inflation rates of theproduction cost and input cost remained high. The companies maintained aoptimistic view regarding future prospects, although the level of positive sentiment hasretreated to the lowest value of the last three months.Eurozone retail sales in June 2021 increased 1.5% month-on-monthprevious. June marked the second consecutive monthly increase in trade. Product salesnon-food products advanced 3.4%, despite a 2.9% drop in online commerce. the trade offuel increased by 3.8% and food sales decreased by 1.5%. Among the biggestbloc’s economies, Germany recorded the biggest monthly increase at 4.2%. In relation to the sameperiod in the previous year, the growth in European retail was 5.0%.
Payroll WeekThe US Labor Market Report for July 2021, which will be published next year.Friday, will provide an update on the country’s economic recovery and may providemore clues about when and to what extent the Fed will lower its monetary stimulus
PandemicIn the United States, an average of 72,000 new cases of COVI-19 were diagnosed per day inlast 7 days, maximum since February
ACTIVE
EURUSD The EUR has been strong, pulling thevalue of the pair upwards, with the economy ofEurozone growing more than theestimated in 2Q21, and projections of ainterest rate increase only afterof 2023. However, given the volatilitycommonly seen in week ofPayroll, the pair today closed down from0.27%, close to 1.1837.
DXY After testing a support levelclose to 91.80 at the beginning of the session oftoday, the index has rebounded to highsweekly at 92.30
Actions
After the S&P 500 reached the highest valuetop of your story in yesterday’s session, theDow Jones Industrial Average and the S&P 500closed today in fall, of 0.92%, 0.46%,respectively. Nasdaq closed in lighthigh of just 0.13%. The main exchangesEuropeans closed today’s session with thethird consecutive day of discharge throughstrong corporate profits and solid dataeconomical.
Bonds
US Treasury Bond Yieldmaturing in ten years, which monitors thecapital flow to the dollar, should close todayin slight high, of 0.68%, in 1.182.
Source:https://wintrademarkets.com/
