Market Roundup
• French 12-Month BTF Auction -0.636% ,-0.641% previous
• French 3-Month BTF Auction -0.643% ,-0.633% previous
• French 6-Month BTF Auction -0.641% ,-0.645% previous
• US May CB Employment Trends Index 107.40, 105.40 previous
• US 3-Month Bill Auction 0.025% ,0.020% previous
• US 6-Month Bill Auction 0.040% ,0.035% previous
• US Apr Consumer Credit 18.61B ,22.00B forecast, 25.84B previous
Looking Ahead - Events, Other Releases (GMT)
•23:30 Japan Average Cash Earnings (YoY) 0.2% previous
•23:30 Japan Apr Overtime Pay (YoY ) -5.00% previous
•23:50 Japan GDP (QoQ) (Q1) -1.2% forecast,2.8% previous
•23:50 Japan GDP (YoY) (Q1) -4.8% forecast,11.7% previous
•23:50 Japan Apr Current Account n.s.a. 1.501T forecast, 2.650T previous
•23:50 Japan Adjusted Current Account 1.70T previous
•00:00 Australia HIA New Home Sales (MoM) -54.4% previous
•01:30 Australia May NAB Business Survey 32 previous
•01:30 Australia May NAB Business Confidence 26 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency summaries
EUR/USD: The euro edged higher against dollar on Monday as impending gathering of the European Central Bank on Thursday kept investors wary. Toward the start of the new week, trading was subdued ahead of a European Central Bank meeting on Thursday. The European Central Bank will adjust its pace of buying bank bonds in March to avoid rising borrowing costs and hindering economic recovery. Immediate resistance can be seen at 1.2176 (5DMA), an upside break can trigger rise towards 1.2198 (23.6%fib).On the downside, immediate support is seen at 1.2136(38.2%fib), a break below could take the pair towards 1.2096 (61.8%fib).
GBP/USD: The British pound strengthened against the dollar on Monday, despite doubts about the government's sticking to its plan, quarantine restrictions on COVID-19 in England will be lifted completely on June 21st. The rapid rollout of vaccines in the UK raised expectations for a quick reopening of the economy, but those hopes have diminished somewhat in recent weeks as cases of the Delta variant of COVID-19, first discovered in India, have led to calls from some scientists to push back the reopening date. Immediate resistance can be seen at 1.4196 (23.6%fib),an upside break can trigger rise towards 1.4248 (June 1st high).On the downside, immediate support is seen at 1.4142 (5DMA), a break below could take the pair towards 1.4071(38.2%fib).
USD/CAD: The loonie was down slightly against its US counterpart on Monday as oil prices fell and investors waited for a Bank of Canada rate decision later in the week. The Bank of Canada is expected keep its interest rate on hold on Wednesday. Oil, one of Canada’s main exports, has fallen after reaching its highest level since October 2018 of US$70 per barrel. The currency, which hit its six-year high at 1.2007 last Tuesday, traded in a range of 1.2065 to 1.2106 .Immediate resistance can be seen at 1.2106 (Daily high), an upside break can trigger rise towards 1.2144 (23.6%fib).On the downside, immediate support is seen at 1.2072 (11 DMA), a break below could take the pair towards 1.2033 (23.6%fib).
USD/JPY: The dollar declined against yen on Monday as markets digested Friday’s disappointing U.S. jobs report. The jobs data was seen as a relief for markets because it showed a pick-up in job growth was not strong enough to raise expectations for the U.S. Federal Reserve to tighten its monetary policy any sooner, hurting the dollar. Now investors pay attention to the US consumer price report due on Thursday, where the risk is of another high number, although the Fed is still argue the spike is temporary. The dollar was back at 109.26 yen from a peak of 110.62. Strong resistance can be seen at 109.62(38.2%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.04(21DMA), a break below could take the pair towards 108.82(61.8%fib).
Equities Recap
European stock markets hit a record high on Monday, as automakers’ consecutive profits exceeded the impact of early morning declines in commodity-related stocks, coupled with the decline in China’s export data.
UK's benchmark FTSE 100 closed up by 0.12 percent, Germany's Dax ended down by 0.10 percent, France’s CAC finished the day up by 0.43 percent.
Wall Street's opening performance on Monday was mixed, as the news of low global corporate tax rates and continued inflation concerns kepy investors cautious.
Dow Jones closed down by 0.36% percent, S&P 500 closed down by 0.08 % percent, Nasdaq settled up by 0.49% percent.
Treasuries Recap
U.S. Treasury yields was little changed on Monday as investors waited on the results of upcoming government bond auctions .
The benchmark 10-year yield was up less than a basis point at 1.567% in afternoon trading on Monday.
Commodities Recap
Gold gained on Monday, as the dollar slipped and investors waited for US inflation data later this week to get clarity on when the Federal Reserve might begin tapering economic support measures.
Spot gold rose 0.3% to $1,895.77 per ounce by 01:42 p.m. EDT (1742 GMT). U.S. gold futures settled up 0.4% at $1,898.80.
Oil prices fell after reaching a two-year high on Monday on expectations of continued supply constraints in OPEC oil-producing countries and improved demand .
Brent crude settled at $71.49 a barrel, falling 40 cents after hitting $72.27 a barrel, its highest since May 2019.
U.S. West Texas Intermediate settled at $69.23 a barrel after touching $70 for the first time since October 2018.
