Market Roundup
• French 12-Month BTF Auction 0.637%,-0.640% previous
• French 3-Month BTF Auction-0.647%,-0.648% previous
• French 6-Month BTF Auction -0.641%,-0.643% previous
• US 3-Month Bill Auction 0.050%,0.050% previous
• US 6-Month Bill Auction 0.426%, 0.050% previous
Looking Ahead - Economic Data (GMT)
•00:00 Australia HIA New Home Sales (MoM) 15.2% previous
•01:30 Australia June NAB Business Survey 37 previous
•01:30 Australia June NAB Business Confidence 20 previous
•03:00 China Jun Exports (YoY) 23.1% forecast, 27.9% previous
•03:00 China Jun Trade Balance (USD) 44.20B forecast, 45.54B previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Monday as concerns about pandemic pushed investors to seek safety in dollar, while investors watched for clues from central bankers ahead of Tuesday's U.S. inflation print. Investors will look to U.S. inflation data on Tuesday and Federal Reserve Chair Jerome Powell's economic testimony on Wednesday and Thursday as they gauge expectations for the Fed to dial back on stimulus. Immediate resistance can be seen at 1.1871 (38.2%fib), an upside break can trigger rise towards 1.1929 (50%fib).On the downside, immediate support is seen at 1.1837 (5DMA), a break below could take the pair towards 1.1799(23.6%fib).
GBP/USD: Sterling edged higher on Monday as England is expected to confirm plans to remove nearly all remaining COVID-19 restrictions from July 19, despite a surge of cases to levels unseen for months. Johnson will announce his final decision to ease lockdown measures at a news conference on Monday. He is expected to eliminate rules on mask-wearing and social contact, and the instruction to work from home. Sterling edged higher 0.05% to $1.3886 against the dollar, after hitting daily low at $1.3836. Immediate resistance can be seen at 1.3911 (38.2% fib), an upside break can trigger rise towards 1.3974 (50%fib).On the downside, immediate support is seen at 1.3825 (23.6%fib), a break below could take the pair towards 1.3749 (July 9th Low).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday as weaker oil prices and fears that rising cases of the Delta coronavirus variant could derail the global economic recovery kept investors cautious. Markets are jittery at the start of an eventful week that will see the U.S. second-quarter earnings season kick off, the release of inflation data in several countries, and testimony by Federal Reserve Chair Jerome Powell which will be scrutinised for any talk of tapering. The Canadian dollar was trading 0.01% lower at 1.2454 to the greenback. Immediate resistance can be seen at 1.2477 (23.6%fib), an upside break can trigger rise towards 1.2556 (9Th July high).On the downside, immediate support is seen at 1.2477 (38.2%fib), a break below could take the pair towards 1.2378 (21DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Monday as concerns about the pandemic encouraged investors to seek a safe haven, and as they awaited more clues about the global economic recovery. Investors will focus on a U.S. consumer price index report on Tuesday, and Powell’s testimony on Wednesday and Thursday for cues on the timeline for policy tightening. Economists polled expect U.S. consumer price for June to have risen 0.4% from May and 4.0% from a year earlier after two straight months of sharp gains in prices. Strong resistance can be seen at 110.25 (50%fib), an upside break can trigger rise towards 110.53 (21DMA).On the downside, immediate support is seen at 109.86 (38.2%fib), a break below could take the pair towards 109.38 (23.6% fib).
Equities Recap
European stocks scaled new highs on Monday on broad-based gains, but worries about the pace of economic recovery made defensive sectors the best bid while travel stocks slumped with the Delta variant of coronavirus becoming dominant.
UK's benchmark FTSE 100 closed up by 0.05 percent, Germany's Dax ended up by 0.65 percent, France’s CAC finished the day up by 0.46 percent.
The S&P 500 hit a record high on Monday, lifted by Tesla and bank stocks as investors awaited the start of the second-quarter earnings season and a batch of economic data.
Dow Jones closed up by 0.36 percent, S&P 500 closed up by 0.35 percent, Nasdaq settled up by 0.21% percent.
Treasuries Recap
U.S. Treasury yields edged lower on Monday after the Treasury Department saw solid demand for sales of new three-year and 10-year notes, and before a highly anticipated inflation release on Tuesday.
Benchmark 10-year note yields were at 1.344%, after falling as low as 1.25% on Thursday, the lowest since Feb. 16. Thirty-year bond yields were 1.967%, after reaching 1.856% on Thursday, the lowest since Feb. 2.
Commodities Recap
Gold fell on Monday in step with a stronger dollar as investors cautiously looked forward to U.S. inflation data that could influence the Federal Reserve’s timeline for easing its bond purchases.
Spot gold was down 0.2% to $1,804.80 per ounce by 1:50 p.m. EDT. U.S. gold futures settled 0.3% lower at $1,805.90.
Oil slumped on Monday over concerns about spreading COVID-19 variants derailing the global economic recovery that has brought fuel demand to near pre-pandemic levels, while tight crude supplies kept prices from falling lower.
Brent crude for September settled at $75.16 a barrel, losing 39 cents, or 0.5%. U.S. West Texas Intermediate crude for August settled at $74.10 a barrel, down 46 cents, or 0.6%.
