Market Roundup
•EU French 3-Month BTF Auction-0.457%
•EU French 6-Months BTF Auction-0.178%
•EU French 12-Month BTF Auction 0.531%
Looking Ahead Economic Data(GMT)
• 03:35 Japan 5-Year JGB Auction 0.183% previous
Looking Ahead - Events, Other Releases (GMT)
• Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro rose on Monday as markets focused on the European Central Bank's tools to fight fragmentation in the currency bloc, even as French President Emmanuel Macron lost an absolute majority in the country's parliamentary election.Macron's centrist Ensemble coalition secured the most seats in the National Assembly but fell well short of an absolute majority needed to control parliament, final results showed. Traders shrugged off the election results, with the euro rising 0.2% against the dollar to $1.0524, as Macron was expected to stick with his pro-Europe agenda despite the election result. Immediate resistance can be seen at 1.0524(50%fib),an upside break can trigger rise towards 1.0612(61.8%fib).On the downside, immediate support is seen at 1.0479(5DMA), a break below could take the pair towards 1.0444(61.8%fib).
GBP/USD: The pound edged higher on Monday, breaking a three-week losing streak versus the broadly struggling U.S. dollar as hawkish comments from policymakers supported the currency. While the Bank of England raised interest rates by just a quarter point last week lagging more robust action from the U.S. Federal Reserve and other central banks, markets are putting a 80% chance on a half-point rise in July and expect almost 100 basis points of tightening by September. The BoE’s new message that it may have to act “forcefully” on interest rates is not unconditional and depends on the persistence of inflation pressures, the central bank’s chief economist said on Friday. The pound is up 0.1% at $1.2262 against the U.S. dollar ,after three consecutive weeks of losses. Immediate resistance can be seen at 1.2297(38.2%fib),an upside break can trigger rise towards 1.2386 (50%fib).On the downside, immediate support is seen at 1.2208(50%fib), a break below could take the pair towards 1.2120(61.8%fib).
USD/CAD : The Canadian dollar strengthened against its U.S. counterpart on Monday as the recent selloff in risk-sensitive assets paused and ahead of domestic data this week that could show inflation climbing to a new multi-decade high. Canada's consumer price index data for May, due on Wednesday, is expected to show inflation climbing to 7.4%.Oil, one of Canada's major exports, was up 0.7% at $110.27 a barrel. The Canadian dollar was trading 0.2% higher at 1.30 to the greenback, or 76.92 U.S. cents, after trading in a range of 1.2979 to 1.3038. On Friday, it touched its weakest since November 2020 at 1.3078.Immediate resistance can be seen at 1.2992 (38.2%fib), an upside break can trigger rise towards 1.3067 (23.6%fib).On the downside, immediate support is seen at 1.2933 (50%fib), a break below could take the pair towards 1.2878 (61.8%fib).
USD/JPY: The dollar held near a 24-year high against Japanese yen on Monday after the Bank of Japan last week renewed its commitment to ultra-easy policy and bucked the trend among global peers to rapidly raise interest rates. The U.S. dollar paused for breath following a volatile week that saw it retreat sharply. However, it recovered half of that by the end of last week as investors continue to assess the outlook for U.S. monetary policy and the risk of recession following the Federal Reserve’s biggest rate increase since 1995. host of central bankers will be speaking this week, led by a likely hawkish testimony from Fed Chair Jerome Powell’s to the House on Wednesday and Thursday. Strong resistance can be seen at 135.69 (23.6%fib), an upside break can trigger rise towards 137.22(Higher BB).On the downside, immediate support is seen at 134.28(5DMA), a break below could take the pair towards 133.84(38.2%fib).
Equities Recap
European stocks rose strongly on Monday after a sharp selloff last week on recession worries, while gains in French shares were capped after President Emmanuel Macron lost an absolute majority in the country's parliamentary election.
UK's benchmark FTSE 100 closed up by 1.50 percent, Germany's Dax ended up by 1.06 percent, France’s CAC finished the day up by 0.64 percent.
US stock market was closed on account of Juneteenth National Independence Day.
Commodities Recap
Gold prices steadied on Monday as an easing dollar and global economic worries countered concerns around aggressive monetary tightening by the U.S. Federal Reserve, with focus being on several central bankers’ views this week.
Spot gold was little changed at $1,838.36 per ounce by 1119 GMT, after falling 1.7% last week its biggest since mid-May. U.S. gold futures rose 0.1% to $1,841.60.
Oil prices swung higher in volatile trading on Monday, as traders focused on tight supplies over slowing global economic growth.
Brent crude futures settled up $1.01, or 0.9%, at $114.13 a barrel. The global benchmark tumbled 7.3% last week for its first weekly fall in five.
