Market Roundup
• UK June CBI Industrial Trends Orders -58, -62 previous
• Portuguese April Current Account -1.579B, -1.119B previous
• US Chicago May Fed National Activity 2.61, -16.74 previous
• French 12-Month BTF Auction-0.526%,-0.496% previous
• French 6-Month BTF Auction -0.529%,-0.507% previous
• French 3-Month BTF Auction -0.551%,-0.510% previous
• EU June Consumer Confidence -14.7, -15.0 forecast, -18.8 previous
• US May Existing Home Sales (MoM) -9.7%,-3.0% forecast, -17.8% previous
• US May Existing Home Sales 3.91M, 4.12M forecast, 4.33M previous
Looking Ahead - Events, Other Releases (GMT)
• 15:30 US 6-Month Bill Auction 0.185% previous
• 15:30 US 3-Month Bill Auction 0.175% previous
Looking Ahead - Events, Other Releases (GMT)
• 16:30 EU ECB's Lane Speaks
• 22:30 US FOMC Member Kashkari Speaks
Fxbeat
EUR/USD: The euro gained against dollar on Monday as investors shrugged off worries that rising coronavirus infections in parts of Europe and the United States over the weekend could scupper a quick economic rebound. Torn between record stimulus and growing fears of a second wave of infections, stocks have been moving sideways in recent weeks after rising more than 40% from March lows on hopes the worst of the pandemic was over. Immediate resistance can be seen at 1.1261 (23.6% fib), an upside break can trigger rise towards 1.1289 (23.6% fib).On the downside, immediate support is seen at 1.1164 (38.2% fib), a break below could take the pair towards 1.1100(Psychological level).
GBP/USD: Sterling rose against dollar on Monday, recovering from a three-week low during Asian trading, helped by a weaker dollar, hopes of a Brexit trade deal and expectations of better economic data. Britain has until the end of the year to sign a new trade agreement with the European Union, when a transition period following its exit from the bloc comes to an end. Although much remains to be discussed, both parties have signalled progress. The pound was last up 0.3% at $1.2386, having fallen earlier to $1.2337, its lowest since June 1. Against the euro, sterling was flat at 90.46 pence. Immediate resistance can be seen at 1.2462 (5 DMA),an upside break can trigger rise towards 1.2523 (38.2% fib)On the downside, immediate support is seen at 1.2311 (50% fib), a break below could take the pair towards 1.2228 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Monday as rising coronavirus infections in parts of Europe and the United States increased demand for safe-haven assets. The pandemic is accelerating globally with the World Health Organization reporting a record increase in global coronavirus cases on Sunday. Immediate resistance can be seen at 0.9534 (50% fib), an upside break can trigger rise towards 0.9560 (21DMA).On the downside, immediate support is seen at 0.9444 (38.2% fib), a break below could take the pair towards 0.9416 (Lower BB).
USD/JPY: The dollar dipped against the Japanese yen Monday as demand for safe haven yen increased after the World Health Organization reported a record global increase in COVID-19 cases . New U.S. cases on Saturday hit the highest since early May, while the WHO reported on Sunday total cases rose by 183,020 in a 24-hour period. Fears of a second wave have also spurred safe-haven demand. Strong resistance can be seen at 107.05 (9 DMA), an upside break can trigger rise towards 107.23 (21DMA ).On the downside, immediate support is seen at 106.72 (50% fib ), a break below could take the pair towards 106.12(Lower BB).
Equities Recap
European shares slipped on Monday as signs of a resurgence in coronavirus cases in Germany and elsewhere unnerved investors who were hoping for a swift economic recovery from the crisis.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading down at 0.57 percent, Germany's Dax was down by 0.69 percent, France’s CAC finished was down by 0.54 percent.
Commodities Recap
Oil prices were steady on Monday, supported by tighter supplies from major producers but held in check by concerns about a record rise in global coronavirus infections that could stall a recovery in fuel demand.
Brent crude was down 8 cents, or 0.2%, at $42.11 a barrel by 1102 GMT. The West Texas Intermediate crude contract (WTI) for August , which became the day’s more active contract, fell 13 cents, or 0.3%, at $39.70.
Gold jumped to its highest in more than a month on Monday as investors sought the safe-haven metal after surging coronavirus cases intensified concerns over a delay in global economic recovery.
Spot gold was up 0.5% at $1,751.63 per ounce by 0650 GMT after hitting its highest since May 18. U.S. gold futures rose 0.7% to $1,764.50.
Treasuries Recap
Euro zone government bond yields were little changed on Monday, with the market supported by news of rising coronavirus cases and hopes that changes to the composition of Germany’s top court could lead to less confrontation with the European Central Bank.
In early trade, yields on higher-rated euro zone bonds such as Germany, France and the Netherlands were all little changed on the day .Germany’s benchmark 10-year Bund yield traded at -0.42%, not too far off recent three-week lows.
