Market Roundup
• German Current Assessment 84.5, 85.0 forecast, 81.3 previous
• EU June M3 Money Supply (YoY) 9.2%,9.3% forecast, 8.9% previous
• EU June Loans to Non Financial Corporations 7.1% , 7.3% previous
• German July Ifo Business Climate Index 90.5, 89.3 forecast, 86.2 previous
• German July Business Expectations 97.0, 93.7 forecast, 91.4 previous
• France Jobseekers Total 3,964.7K, 4,167.4K previous
Looking Ahead - Economic Data (GMT)
• 12:30 US June Durable Goods Orders (MoM) 7.2% forecast ,15.7% previous
• 12:30 US June Durables Excluding Defense (MoM) 15.3% previous
• 12:30 US June Core Durable Goods Orders (MoM) 3.5% forecast,3.7% previous
• 12:30 US June Goods Orders Non Defense Ex Air (MoM) 2.3% forecast, 1.6% previous
• 13:00 French 3-Month BTF Auction -0.569% previous
• 13:00 French 6-Month BTF Auction-0.576% previous
• 13:00 French 12-Month BTF Auction -0.564% previous
• 14:30 US July Dallas Fed Mfg Business Index -6.1 previous
• 15:30 US 3-Month Bill Auction 0.120% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro rose against dollar on Monday as deteriorating U.S.-China relations and concerns about the U.S. economy weakened dollar across the board. U.S. Secretary of State Mike Pompeo said Washington and its allies must use “more creative and assertive ways” to make the Chinese Communist Party change its ways. With domestic economic concerns trumping its role as a safe-haven currency, the dollar index fell overnight, steadied in the early hours of the morning, then continued its descent. At 1210 GMT, the dollar index was at 93.777, down 0.6% on the day Immediate resistance can be seen at 1.1760 (Higher BB), an upside break can trigger rise towards 1.1833 (23.6% fib).On the downside, immediate support is seen at 1.1714 (38.2% fib), a break below could take the pair towards 1.1620 (50%fib).
GBP/USD: Sterling was pushed up by a broadly weaker U.S. dollar on Monday, as uncertainty over Brexit and Britain’s economic prospects kept most investors on the sidelines. Britain and the European Union clashed last week over the chances of securing a free trade agreement, with Brussels deeming it unlikely but London holding out hope one could be reached in September. The pound was last up 0.3% versus the dollar at $1.2827 , but as the euro rose above $1.17, sterling fell against the common currency, trading last down 0.2% at 91.27 pence. Immediate resistance can be seen at 1.2890 (Higher BB), an upside break can trigger rise towards 1.2984 (23.6% fib ).On the downside, immediate support is seen at 1.2770 (Daily low), a break below could take the pair towards 1.2710 (38.2 % fib).
USD/CHF: The dollar declined against the Swiss franc on Monday as the rapid spread of the coronavirus and tensions between the United States and China kept investors cautious. Key for markets this week will be the U.S. Federal Reserve’s latest meeting, U.S. gross domestic product figures and earnings releases from the world’s main tech companies, including Facebook on Wednesday and Amazon, Apple and Google on Thursday. Hopes for a quick U.S. economic recovery are fading as coronavirus infections showed few signs of slowing. At (GMT 12:15), Greenback gained 0.20% versus the Swiss franc to 0.9216. Immediate resistance can be seen at 0.9242 (38.2% fib), an upside break can trigger rise towards 0.9302 (50% fib).On the downside, immediate support is seen at 0.9167 (23.6% fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Monday as the dollar weakened on growing bets of a more accommodative stance from the U.S. Federal Reserve this week. The reserve currency of the world slipped against a basket of currencies, with focus shifting to a two-day Fed meeting starting on Tuesday. Expectations are that policymakers may begin laying the groundwork for more action in September or the fourth quarter. Strong resistance can be seen at 106.10 (Daily high), an upside break can trigger rise towards 106.46 (38.2% fib).On the downside, immediate support is seen at 105.21 (23.6% fib), a break below could take the pair towards 105.00 (Psychological level).
Equities Recap
European shares slipped on Monday with travel stocks leading the declines after Britain imposed a quarantine on travellers returning from Spain, where cases of the novel coronavirus have surged in the last few weeks.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading lower at 0.30percent, Germany's Dax was down by 0.01 percent, France’s CAC was last down by 0.37 percent.
Commodities Recap
Gold surged to record highs on Monday as an intensifying U.S.-China row and a weaker dollar sent investors scurrying to the safety of bullion to hedge against the risks to a global economy already reeling from the COVID-19 pandemic.
Spot gold rose 1.7% to $1,934.06 per ounce by 0802 GMT after hitting a record high of $1,943.93. U.S. gold futures gained 1.7% to $1,929.40.
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors towards safe-haven assets.
Brent crude dipped 20 cents, or 0.5%, to $43.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude dropped to $41.15 a barrel, down 14 cents, or 0.4%.
