America’s Roundup: Dollar hits 2-months low against a basket of currencies,Wall Street gains, Gold slips 1%,Oil up more than 3% ahead of OPEC+ meeting and on easing lockdowns-June3rd 2020

Market Roundup

• S&P 500, Dow Jones indexes hit 3-month highs

• US Redbook (YoY) -1.4%, -5.5% previous

• US Redbook (MoM) -7.2%,-1.5% previous

• French 12-Month BTF Auction -0.514%, -0.517% previous

• US May ISM NY Business Conditions 19.5%, 4.3% previous

• 13:00 US May ISM-New York Index 811.3, 826.5 previous

• New Zealand GlobalDairyTrade Price Index 1.0% forecast ,1.0% previous

Looking Ahead Economic Data

• 22:30 Australia May AIG Construction Index 21.6 previous

• 22:30 Australia Services PM I 25.5,  19.5 previous

• 00:00 Australia HIA New Home Sales (MoM) -23.2% previous

• 00:30  Japan May Services PMI  25.3 forecast, 21.5 previous  
 
• 13:30 Australia GDP (QoQ) (Q1) -0.3%,0.5% previous    

• 13:30 Australia GDP Chain Price Index (Q1) -1.2% previous   

• 13:30 Australia Building April 2020 Approvals (MoM) -15.0%

• 13:30 Australia April Private House Approvals  -1.2% previous   

• 13:30 Australia GDP Capital Expenditure (Q1) -1.0% previous   

• 13:30 Australia GDP (YoY) (Q1) 1.4, 2.2% previous  
 
•14:00 China May  Caixin Services PMI  44.4 previous   

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency summaries

EUR/USD: The euro reached an 11-week high on Tuesday as the dollar lost ground, with investors maintaining their hopes for a global economic recovery. The optimism persisted within markets despite growing concern over U.S.-China tensions and mass protests across the United States over the death of a black man in police custody. Traders remain hopeful that central banks will continue to buy government bonds and other financial assets to protect their economies from the coronavirus pandemic. Immediate resistance can be seen at 1.1196 (61.8% fib), an upside break can trigger rise towards 1.1235 (March 16th high).On the downside, immediate support is seen at 1.1106 (50 % fib), a break below could take the pair towards 1.1060 (38.2% fib).

GBP/USD: Sterling climbed above $1.25 to its highest in a month against the dollar on Tuesday, as signs Britain might be willing to compromise on sticking points in a fresh round of Brexit negotiations with the European Union provided support. Britain is expected to indicate flexibility over fisheries and trade rules if the European Union agrees to lessen its “maximalist” demands regarding regulatory alignment and fishing access, the Times newspaper reported on Tuesday, as a new round of talks kicks off. Britain has until July 1 to ask for an extension to the current transition period, which ends in December. Immediate resistance can be seen at 1.2576 (61.8% fib), an upside break can trigger rise towards 1.2657 (200 DMA).On the downside, immediate support is seen at 1.2531 (5 DMA), a break below could take the pair towards 1.2389 (5 DMA).

USD/CAD: The Canadian dollar strengthened to a near three-month high against its U.S. counterpart on Tuesday as investors bet on global economic recovery and ahead of an interest rate decision by the Bank of Canada on Wednesday. U.S. crude oil futures settled 3.9% higher at $36.81 a barrel on hopes that major crude producers will agree to extend output cuts and as countries and U.S. states begin to reopen after coronavirus lockdowns. The loonie was trading 0.4% higher at 1.3517 to the greenback. The currency touched its strongest intraday level since March 9 at 1.3483.Immediate resistance can be seen at 1.3606 (23.6% fib)any upside break can trigger rise towards 1.3634 (21 DMA).On the downside, immediate support is seen at 1.3457 (200 DMA), a break below could take the pair towards 1.3400 (Psychological level).

USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as risk appetite grew on optimism that the worst of the economic downturn from the spread of the coronavirus is in the past. U.S. stocks gained as cheer over business reopenings overcame concerns about U.S.-China tensions and mass protests across the United States over the death of an African-American man in police custody. The greenback gained 1.06% against the Japanese yen JPY= to 108.72 yen, the highest since April 9.Strong resistance can be seen at 107.90 (38.2% fib), an upside break can trigger rise towards 108.53 (Higher BB).On the downside, immediate support is seen at 107.25 (21 DMA), a break below could take the pair towards 106.91 (61.8% fib).

Equities Recap

European shares gained on Tuesday as signs of a global economic recovery from the coronavirus pandemic offset concerns over the worst civil unrest in the United States in decades.

The UK's benchmark FTSE 100 closed up by 0.87 percent, Germany's Dax ended down by 3.75 percent, and France’s CAC finished the up by 2.02 percent.

U.S. stocks posted modest gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on lifting lockdown restrictions and signs of economic recovery.

Dow Jones closed up by 1.05 percent, S&P 500 ended up 0.82 percent, Nasdaq finished the day up by 0.59 percent.

Treasuries Recap

Longer-term U.S. Treasury yields were higher on Tuesday as investors looked for more bonds to be issued in response to the ongoing economic crisis.

The benchmark 10-year yield was up 1.8 basis point at 0.6803%. 

Commodities Recap

Gold retreated 1% on Tuesday as investors booked profits and Wall Street rallied on optimism over economies emerging from coronavirus-led shutdowns.

Spot gold fell 0.7% to $1,727.23 per ounce by 2:54 p.m. ET, giving up some gains from earlier in the session. U.S. gold futures settled down 0.9% at $1,734.

Oil prices climbed by more than $1 a barrel on Tuesday on hopes that major crude producers will agree to extend output cuts during a video conference expected to be held this week and as countries and U.S. states begin to reopen after coronavirus lockdowns.

Brent crude  settled at $39.57 a barrel, rising $1.25, or 3.3%. U.S. West Texas Intermediate crude (WTI)  settled at $36.81 a barrel, jumping $1.37, or 3.9%.