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America’s Roundup: Dollar little changed as fears of rate hikes subside, Gold inches higher, Oil prices rise as OPEC+ calls off output talks-July 6th,2021

Market Roundup

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Looking Ahead - Economic Data (GMT)

• 23:30 Japan May Overtime Pay (YoY)  5.40% previous

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Looking Ahead - Economic events and other releases (GMT)

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EUR/USD: The euro strengthened against dollar on Monday as euro  was supported by upbeat Euro zone business activity data. Euro zone businesses expanded activity at the fastest rate in 15 years in June as the easing of more coronavirus restrictions brought life back to the bloc’s dominant service industry, a survey showed on Monday. IHS Markit’s final composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, jumped to 59.5 last month from May’s 57.1, its highest level since June 2006. Immediate resistance can be seen at 1.1901 (11DMA), an upside break can trigger rise towards 1.1920 (38.2%fib).On the downside, immediate support is seen at 1.1835 (23.6%fib), a break below could take the pair towards 1.1804 (June 2nd low).

GBP/USD: The British pound rose on Monday as investors expected UK government to announce that it will continue its plans to fully reopen the UK economy later this month despite an increase in COVID19 cases. The PMI index for UK service companies has been down since May but was slightly above a preliminary level for June. Meanwhile, price pressures in the industry rose to its highest level, reinforcing signs of further inflation spike in the future.After falling to its lowest level since mid-April at $1.3733 last week, the pound was 0.02% higher against the dollar at $1.3841 by 18:55 GMT.Immediate resistance can be seen at 1.3856(38.2% fib), an upside break can trigger rise towards 1.3876 (14DMA).On the downside, immediate support is seen at 1.3810(5DMA), a break below could take the pair towards 1.3751 (23.6%fib).

 USD/CAD: The Canadian dollar fell slightly against its US counterpart on Monday but regained much of its previous decline as oil prices rose and a Bank of Canada survey showed that business confidence in Canada continues to improve. The price of oil, one of Canada's top exports, rose 1.6 from three OPEC + countries that have suspended talks on production levels, meaning no deal has been reached to increase production. The loonie was trading 0.1% lower at 1.2330 to the greenback, or 81.10 U.S. cents, recovering from an intraday low of 1.2371.Immediate resistance can be seen at 1.2376(38.2%fib), an upside break can trigger rise towards 1.2459(23.6%fib).On the downside, immediate support is seen at 1.2302(5 DMA), a break below could take the pair towards 1.2232 (23.6%fib).

USD/JPY: The dollar was little changed against yen on Monday as U.S. jobs report signalled the economic recovery remained intact but didn't yet warrant any immediate withdrawal of Federal Reserve stimulus. U.S. nonfarm payrolls increased by a bigger-than-expected 850,000 jobs last month. But the unemployment rate unexpectedly ticked up to 5.9% from 5.8%.The dollar index was   flat on Monday after dropping from a three-month high at the end of last week, pressured by the weaker details of the U.S. nonfarm payrolls report.The greenback was little changed at 110.93  yen. Strong resistance can be seen at 111.18(38.2%fib), an upside break can trigger rise towards 111.76 (23.6%fib).On the downside, immediate support is seen at 110.85(11DMA), a break below could take the pair towards 110.64 (50%fib).

Equities Recap

Optimistic business activity in the eurozone caused European stocks to reverse their losses on Monday, pushing them just half a percent off their all-time highs, while a nearly 12% rise in Morrison's sent  London mid caps to record highs.

UK's benchmark FTSE 100 closed up by 0.58 percent, Germany's Dax ended up by 0.08 percent, France’s CAC finished the day up by 0.22 percent.

U.S.  stocks markets were closed on Monday for the Independence Day holiday.

Commodities Recap

Gold prices inched higher on Monday as a subdued dollar and lower bond yields amid a mixed bag of U.S. labour data allayed investor concerns about a faster policy tightening, helping the metal rise towards the $1,800 level once again.

Spot gold was up 0.2% at $1,790.70 per ounce by 10:31 am EDT (1431 GMT), after hitting its highest since June 18 at $1,794.86 on Friday.

Oil prices rose on Monday after OPEC + nations suspended talks on production levels, meaning no agreement was reached to increase production.

Brent was up 94 cents, or 1.2%, at $77.11 a barrel by 1652 GMT, trading around 2-1/2 year highs. U.S. oil gained $1.11, or 1.5%, to $76.27 a barrel.

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