Menu

Search

  |   Market Roundups

Menu

  |   Market Roundups

Search

America’s Roundup: Dollar firms on reduced bets for deep US rate cut,Wall Street dips, Gold edges lower, Oil steadies as demand worries offset Iran's new nuclear threats-July 9th,2019

Market Roundup

• Markets reprice chance of big Fed cut after jobs data

• Traders shift focus to Fed's Powell 2-day testimony

• Sterling falls toward $1.25, close to six-month low

• Deutsche Bank shares fall on overhaul move

• Russia Jun CPI MoM, 0.0%, 0.1% forecast, 0.3% previous

• US June CB Employment Trends Index,109.50,-111.20 previous

Looking Ahead - Economic Data (GMT)

• 07:00 Australia Jun NAB Business Confidence  

Looking Ahead - Events, Other Releases (GMT)

• No major events are scheduled

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Monday, as dollar continued its march after news of a stronger-than-expected increase in U.S. jobs in June scaled back traders' expectations of a sharp Federal Reserve rate cut at the end of July. Traders await Fed Chairman Jerome Powell's two-day testimony before Congress, which starts on Tuesday for clues about a rate decrease. The euro was down 0.12 percent at $1.1210. An index that tracks the dollar versus a basket of six major currencies was up 0.27 at 97.40. Immediate resistance can be seen at 1.1256 (5 DMA), an upside break can trigger rise towards 1.1313 (11 DMA).On the downside, immediate support is seen at 1.1184 (Ichimoku Cloud Base), a break below could take the pair towards 1.1140 (Lower Bollinger Bands).

GBP/USD: The British pound hovered near a six-month low against the dollar on Monday, as investors continued to bet on lower British interest rates and added to their short positions on the currency.As major central banks around the world including the Fed shift towards monetary policy easing, investors are betting that the Bank of England will follow suit. Last week it fuelled investors’ expectations of a 25 basis point cut over the next 12 months, hurting the pound.Uncertainty over Britain’s departure from the European Union, as well as over who will become the new British prime minister and lead the country out of the bloc, added to sterling’s weakness. The pound declined  0.10 percent at $1.2510, not far from the $1.2481 low reached on Friday. Immediate resistance can be seen at 1.2556 (5 DMA), an upside break can trigger rise towards 1.2627 (11 DMA).On the downside, immediate support is seen at 1.2458 (Lower Bollinger Band), a break below could take the pair towards 1.2400 (Psychological level).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday, as the greenback broadly gained, but the loonie held near last week’s eight-month high ahead of an interest rate decision on Wednesday from the Bank of Canada. The U.S. dollar .DXY hovered at a three-week high against a basket of major currencies as traders awaited Fed Chairman Jerome Powell’s testimony this week before Congress for clues about a rate decrease.  The price of oil, one of Canada's major exports, was supported by tensions over Iran's nuclear program but gains were tempered by global economic growth concerns. At (2040 GMT), the Canadian dollar was trading 0.14% lower at 1.3096 to the greenback .Immediate resistance can be seen at 1.3108 (11 DMA), an upside break can trigger rise towards 1.3200 (21 DMA).On the downside, immediate support is seen at 1.3035 (July 4th low), a break below could take the pair towards 1.2931 (23.6% retracement level).

USD/JPY: The dollar strengthened against the Japanese yen on Monday, as strong U.S. job gains tempered expectations the Federal Reserve will deliver a large interest rate cut. Traders await Fed Chairman Jerome Powell’s two-day testimony before Congress, which starts on Wednesday for clues about a rate decrease. U.S. non-farm payrolls rebounded in June, rising the most in five months, the Labor Department said on Friday.The solid job gain slashed expectations of a 50 basis-point rate cut at the Fed’s July 30-31 policy meeting, although modest wage gains and other data showing the U.S. economy was losing steam point to a quarter-point rate cut.The dollar was 0.27  percent  lower versus the Japanese yen at 108.78. Strong resistance can be seen at 109.00 (50 DMA), an upside break can trigger rise towards 109.27 (Higher Bollinger Band).On the downside, immediate support is seen at 108.15 (5 DMA), a break below could take the pair towards 107.52 (July 3rd 2019). 

Equities Recap

Banks led European shares slightly lower on Monday as Deutsche Bank slid despite a major restructuring move, while fading hopes of a sharp interest-rate cut by the U.S. Federal Reserve weighed on broader markets.

The UK's benchmark FTSE 100 closed down by 0.05 percent, Germany's Dax ended down by 0.20 percent, and France’s CAC finished the down by 0.08 percent.

U.S. stocks fell on Monday, pressured by a drop in Apple Inc and declines in healthcare stocks as investors toned down expectations of an aggressive interest rate cut by the Federal Reserve later this month.

Dow Jones closed down by 0.43 percent, S&P 500 ended down 0.47 percent, Nasdaq finished the day down by 0.78 percent.

Treasuries Recap

The U.S. Treasury yield curve flattened on Monday, after stronger-than-expected employment data on Friday led traders to significantly reduce bets on an aggressive 50 basis point interest-rate cut in July.

The yield on the benchmark 10-year note was last down 2.4 basis points at 2.020%, with the 30-year yield 3.3 basis points lower at 2.515%. The 10-year yield was just off its open a week prior, after rising on Friday following the employment report.

Commodities Recap

Gold prices edged lower on Monday as increasing expectations that the U.S. Federal Reserve will not aggressively cut interest rates later this month boosted the dollar, making gold expensive for holders of other currencies.

Spot gold fell 0.37 % to $1,394.25 per ounce at (2026 GMT). U.S. gold futures settled at $1,400 per ounce.

Oil prices steadied on Monday as tensions over Iran’s nuclear program countered concerns about whether slowing global economic growth would hit oil demand.

Brent crude futures fell 12 cents to settle at $64.11 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 15 cents to settle at $57.66 a barrel.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

July 2 15:00 UTC Released

DKCurrency Reserves

Actual

449.6 Stale

Forecast

Previous

451.7 Stale

July 2 13:45 UTC Released

USISM NY Biz Conditions

Actual

50 %

Forecast

Previous

48.6 %

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 825928825928m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 825928825928m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 814108814108m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.