Market Roundup
• US June NY Empire State Manufacturing Index -0.20, -27.50 forecast, -48.50 previous
• Canada April Manufacturing Sales (MoM) -28.5%, -18.7% forecast, -9.2% previous
• French 3-Month BTF Auction -0.510% , -0.514% previous
• French 6-Month BTF Auction -0.507%,-0.513% previous
• French 12-Month BTF Auction -0.496%,-0.488% previous
• US 6-Month Bill Auction 0.185%,0.185% previous
• US 3-Month Bill Auction 0.170%, 0.175% previous
Looking Ahead Economic Data
• 21:00 New Zeeland Westpac Consumer Sentiment (Q2) 104.2 previous
•:01:30 Australia House Price Index (QoQ) (Q1) 2.7% previous, 3.9% previous
Looking Ahead - Events, Other Releases (GMT)
•01:30 Australia RBA minutes
• 04:30 Japan BoJ Monetary Policy Statement
Currencies Summaries
EUR/USD: The euro rebounded against dollar on Monday after the Federal Reserve widened its program of buying corporate debt. The Fed and other major central banks have sparked a rapid recovery in equity markets from a steep plunge in March by enacting a number of fiscal and economic stimulus programs, but investors have been uncertain about the economic recovery. Fears of a second wave of COVID-19 infections had earlier rocked world markets Immediate resistance can be seen at 1.1338 (June 13h high), an upside break can trigger rise towards 1.1444 (Higher BB).On the downside, immediate support is seen at 1.1296 (23.6% fib), a break below could take the pair towards 1.1244 (14 DMA).
GBP/USD: Sterling declined against the dollar on Monday as fears of a second wave of coronavirus hit risk sentiment and global markets, with investors also nervous ahead of a key meeting on Brexit negotiations. A fresh coronavirus outbreak in China and rising infection numbers in the United States even as major economies have begun lifting lockdowns put financial markets on the back foot at the start of the week, with selling of stocks and risk currencies across the board. Immediate resistance can be seen at 1.2630 (11 DMA), an upside break can trigger rise towards 1.2781 (23.6%fib).On the downside, immediate support is seen at 1.2518 (38.2%fib), a break below could take the pair towards 1.2446 (21DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, with the currency rebounding from an earlier two-week low as a rally on Wall Street overshadowed domestic data showing a deeper-than-expected plunge in April factory sales. The loonie was trading 0.2% higher at 1.3557 to the greenback, or 73.76 U.S. cents. The currency, which fell 1.2% last week, touched its weakest intraday level since June 1 at 1.3685.Immediate resistance can be seen at 1.3676 (Higher BB), an upside break can trigger rise towards 1.3765 (30 DMA).On the downside, immediate support is seen at 1.3542 (5 DMA), a break below could take the pair towards 1.3500 (Psychological level).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as investors avoided making big bets before a Bank of Japan policy meeting ending Tuesday. No major changes are expected, but some investors may focus on Governor Haruhiko Kuroda’s views on growing interest in its yield curve control policy. The safe-haven Japanese yen held firm against the dollar and was little changed from Friday's close at 107.33. Strong resistance can be seen at 107.56 (30DMA), an upside break can trigger rise towards 100.05(38.2% fib).On the downside, immediate support is seen at 106.71 (50% fib), a break below could take the pair towards 106.43(Lower BB).
Equities Recap
European shares closed lower on Monday on concerns of a second wave of coronavirus infections after Beijing reported a record number of new cases.
The UK's benchmark FTSE 100 closed down by 0.66 percent. Germany's Dax ended down by 0.32 percent, and France’s CAC finished the down by 0.49 percent.
Wall Street closed higher on Monday following an announcement by the U.S. Federal Reserve regarding its corporate bond purchasing program that boosted investor confidence, which had been wavering amid a spike in new COVID-19 cases.
Dow Jones closed up by 0.62 percent, S&P 500 ended up 0.83 percent, Nasdaq finished the day up by 1.44 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as stocks recovered from earlier losses and after the Federal Reserve said it would expand its purchases of corporate bonds, boosting risk appetite.
Benchmark 10-year note yields gained one basis point to 0.708%. They have fallen from an 11-week high of 0.959% on June 5, when data showed that employers unexpected added jobs in May.
Commodities Recap
Gold fell more than 1% on Monday as the dollar hovered near a more than one-week high, but the metal held above $1,700 an ounce, buoyed by fears of a second wave of coronavirus infections.
Spot gold fell 0.6% to $1,719.67 per ounce by 12:47 p.m. ET (1647 GMT). U.S. gold futures was down 0.6% at $1,726.50 per ounce.
Oil prices rose more than 2% on Monday as signs that fuel demand was recovering, while OPEC+ members were complying with a production cut deal, outweighed fears that new coronavirus infections could further slow the global economy.
U.S. West Texas Intermediate crude rose 86 cents, or 2.4%, to settle at $37.12 a barrel. Brent crude gained 99 cents, or 2.6%, to settle at $39.72 a barrel.
