Market Roundup
• ISM non-manufacturing index jumps to highest since February
• Gold hovering close to $1,788.96 peak hit last week
• Aussie in focus before Reserve Bank of Australia meeting
• Brazil Auto Sales (MoM) 113.6%, 11.6% previous
• Brazil Auto Production (MoM) 129.1%, 2,232.4% previous
• US June Services PMI 47.9, 46.7 forecast, 37.5 previous
• US June Markit Composite PMI 47.9, 46.8 forecast, 37.0 previous
• US June ISM Non-Manufacturing Business Activity 66.0, 49.0, 41.0 previous
• US June CB Employment Trends Index 49.00, 46.28 previous
• US June ISM Non-Manufacturing Employment 43.1, 31.8 previous
• US June ISM Non-Manufacturing PMI 57.1, 50.1 forecast, 45.4 previous
• US June ISM Non-Manufacturing New Orders 61.6, 41.9 previous
• US June ISM Non-Manufacturing Prices 62.4, 55.6 previous
Looking Ahead – Economic Data (GMT)
• 23:50 Japan Average Cash Earnings (YoY) -0.6% previous
• 23:50 Japan May Household Spending (MoM) 1.8% forecast , -6.2% previous
• 23:50 Japan May Overtime Pay (YoY) -12.80% previous
• 23:50 Japan May Household Spending (YoY) -12.2% forecast , -11.1% previous
• 23:50 Japan May Overall wage income of employees -0.7% previous
• 23:50 Japan June Foreign Reserves 1,378.2B previous
• 05:00 Japan Leading Index 77.7 previous
• 05:00 Japan May Leading Index (MoM) -7.4% previous
Looking Ahead - Economic events and other releases (GMT)
• 04:30 Australia RBA Interest Rate Decision 0.25% forecast, 0.25% previous
• 04:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro rose against dollar on Monday as euro was boosted after data showed Euro zone retail sales rose in May. Consumers in the euro zone returned en masse to shops in May as lockdowns were eased in the bloc, estimates from the EU statistics agency showed on Monday, signalling a sharp recovery of sales after record drops in March and April. Sales in the 19 countries sharing the euro zone rose by 17.8% in May from April, Eurostat said, in the steepest increase since euro zone records for retail sales began in 1999.The rise was higher than market expectations of a 15% rise on the month. Immediate resistance can be seen at 1.1348 (Higher BB), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1292 (23.6% fib), a break below could take the pair towards 1.1270 (5 DMA).
GBP/USD: Sterling strengthened against the dollar on Monday as traders looked ahead to this month’s Brexit negotiations and more government support measures expected later this week. Traders expect more clarity by the end of July on whether Britain will agree a trade deal with the European Union. Britain left the EU in January, but it has full access to the bloc during a transition that runs until the end of December. Sterling also gained after showed British construction companies returned to growth in June for the first time since the coronavirus lockdown began, albeit from low levels. Immediate resistance can be seen at 1.2535 (38.2% fib), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2479 (5 DMA), a break below could take the pair towards 1.2434 (11DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, holding near an earlier 13-day high as stocks rallied globally and ahead of the release of a Bank of Canada business survey. Global stock markets rallied to four-week highs as investors counted on a revival in China to boost global growth, even as surging coronavirus cases delayed business reopenings across the United States. The loonie was last trading nearly unchanged at 1.3539 to the greenback. The currency touched its strongest intraday level since June 23 at 1.3520. Immediate resistance can be seen at 1.3555 (5 DMA), an upside break can trigger rise towards 1.3622 (38.2% fib) On the downside, immediate support is seen at 1.3470 (23.6% fib), a break below could take the pair towards 1.3409 (Lower BB).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as surging coronavirus cases dented optimism on economic recovery from the pandemic. A steady rise of new coronavirus infections in the United States has discouraged some investors from taking big positions in the currency market. The dollar edged up to 107.74 yen on Monday following a 0.3% gain last week. Market activity was subdued following the July 4 long weekend holiday in the United States. Strong resistance can be seen at 107.77(Higher BB), an upside break can trigger rise towards 108.03 (Higher BB).On the downside, immediate support is seen at 107.28 (50% fib ), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares closed at their highest in nearly a month on Monday, as upbeat economic data tied in with a rally in China’s markets on hopes of recovery from a coronavirus-induced slump.
UK's benchmark FTSE 100 closed up by 1.64 percent, Germany's Dax ended up by 2.09 percent, France’s CAC finished the day up by 1.49 percent.
Wall Street’s major indexes climbed on Monday as data showing unexpected growth in the U.S. services sector last month and optimism over China’s economic revival helped investors look past a surge in new cases of COVID-19 at home.
Dow Jones closed up by 1.78 percent, S&P 500 closed up by 1.59 percent, Nasdaq settled up by 2.21 percent.
Treasuries Recap
U.S. Treasury yields edged higher on Monday as investors focused on an eventual economic rebound from the coronavirus, and as traders priced in auctions this week that will increase the supply of the low-risk debt.
The benchmark 10-year yield was up 2.5 basis points in afternoon trading at 0.6956%.
Commodities Recap
Gold on Monday edged toward a near 8-year high hit last week as a spike in coronavirus cases kept safety demand elevated, although robust equities and positive U.S. services sector data limited the metal’s advance.
Spot gold rose 0.5% to $1,783.75 by 1:41 p.m. EDT (1741 GMT). U.S. gold futures settled up 0.2% at $1,793.50 per ounce.
Oil futures ended largely steady on Monday as positive economic data supported prices, while a spike in coronavirus cases in the United States that could curb fuel demand pressured prices.
Brent crude settled at $43.10 a barrel, up 30 cents. U.S. West Texas Intermediate (WTI) crude settled at $40.63 a barrel, down 2 cents.
