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America’s Roundup: Dollar dips as traders assess the impact of a surge in U.S. inflation, Gold gains, Oil gains near $70 a barrel as demand outlook improves-June 1st,2021

Market

•Canada Apr RMPI (YoY)  56.4%                ,34.7% previous

•Canada Apr RMPI (MoM) 1.0%, 2.3% previous

•Brazil Apr Budget Balance  30.000B,-44.528B previous

•Canada Apr IPPI (YoY)  14.3%,10.0% previous

•Brazil Apr Budget Surplus 24.300B,  16.750B forecast, 4.981B previous

•Brazil Apr Debt-to-GDP ratio 60.5%,  61.3% previous

•Canada Current Account (Q1) 1.2B, -8.3B forecast, -7.3B previous

• French 12-Month BTF Auction-0.641%, -0.632% previous

•French 3-Month BTF Auction-0.645%. -0.635% previous

Looking Ahead - Economic Data (GMT)

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Looking Ahead - Economic events and other releases (GMT)

• No events ahead

Currency Summaries

EUR/USD: The euro edged higher against dollar on Monday after Germany’s inflation data ,but gains were limited ahead of broader euro zone data on Tuesday. German inflation in May rose 2.5% year-on-year, the highest since 2011, data showed on Monday, accelerating further above the ECB’s “close to but below 2%” target and above expectations. Trading is was lite with traders in the United Kingdom and United States on public holiday. Focus this week is on the European Union, which is expected soon to reveal details about the funding plan for its coronavirus recovery fund after all member states backed the ratification of a law that will allow the EU to start borrowing on the market. Immediate resistance can be seen at 1.2242 (23.6% fib), an upside break can trigger rise towards 1.2283 (Higher BB).On the downside, immediate support is seen at 1.2183 (38.2% fib), a break below could take the pair towards 1.2135(50%fib).

GBP/USD: Sterling was little changed against dollar on Monday as slew of European and U.S. data this week that will provide a clearer picture on the global economy’s recovery path. The main event of the week will be U.S. payrolls on Friday with median forecasts at 650,000 but the outcome is uncertain following April’s shockingly weak 266,000 gain. Although U.S. inflation data last week was above estimates, another big miss on the jobs front would heap pressure on the Fed to postpone plans to wind down its stimulus. Immediate resistance can be seen at 1.4224 (23.6%fib),an upside break can trigger rise towards 1.4283 (Higher BB).On the downside, immediate support is seen at 1.4162 (5DMA), a break below could take the pair towards 1.4089(38.2%fib).

USD/CAD: The Canadian dollar was little changed against the greenback on Monday, notching its fourth straight monthly gain as oil rose and a recent surge in the administration of COVID-19 vaccines to Canadians bolstered the outlook for the domestic economy. With London and New York markets closed for holidays, the Canadian dollar was trading nearly unchanged at 1.2064 to the greenback, or 82.89 U.S. cents. For May, it was up 1.9%, extending a string of monthly gains that started in February. Canada's GDP data for the first quarter is due on Tuesday and the May jobs report is due on Friday, which could offer clues on the Bank of Canada's policy outlook. Immediate resistance can be seen at 1.2071(5DMA), an upside break can trigger rise towards 1.2142  (38.2%fib).On the downside, immediate support is seen at 1.2039 (23.6%fib), a break below could take the pair towards 1.1997(Lower BB).

USD/JPY: The dollar came under pressure against yen on Monday, as traders assessed the impact of a surge in U.S. inflation before monthly jobs data later this week. In holiday-thinned trade, investors weighed the impact on U.S. assets of rising price pressures and a dovish Fed. Despite rising inflation, markets don't expect a rate hike well into the back end of 2022.The core PCE price index vaulted 3.1% on Friday, the largest annual gain since July 1992, due to a recovery from the pandemic and various supply disruptions. Strong resistance can be seen at 109.91 (Higher BB), an upside break can trigger rise towards 110.26 (23.6%fib).On the downside, immediate support is seen at 109.48 (Daily low), a break below could take the pair towards 109.18(50%fib).

Equities Recap

European stocks slipped from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery helped the STOXX 600 index mark its fourth straight month of gains.

Spains IBEX 35 closed down by 0.82 percent , Italy's FTSE MIB closed by 0.00%, France’s CAC finished the day up by 0.57 percent.              

U.S. stock markets were closed on Monday due to public holidays.

Treasuries Recap             

U.S. Bond markets were closed on Monday due to public holidays.

 Commodities Recap

Gold firmed on Monday and was on course for its biggest monthly jump since July 2020, as the U.S. dollar headed for a second month of decline while growing inflationary pressures also lifted bullion’s appeal.

Spot gold was up 0.3% at $1,907.90 per ounce by 0538 GMT, while U.S. gold futures rose 0.2% to $1,909.50. Spot prices have climbed nearly 7.9% so far this month.

Oil prices firmed on Monday, with Brent trading near $70 a barrel on growing optimism that fuel demand will grow in the next quarter, while investors looked ahead to see how producers will respond at this week's OPEC+ meeting.

Brent crude futures settled up 60 cents, or 0.9%, at $69.32 a barrel, off the a session high of $69.82. U.S. West Texas Intermediate crude rose 0.9% and last traded at $66.91 a barrel.

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