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  |   Market Roundups


America’s Roundup: Dollar steadies as investors wait for information on Fed policy, Wall ends mixed, Gold slips, Oil marches to multi-year highs as economies reopen-June 15th,2021

Market Roundup

• Canada April Manufacturing Sales (MoM)  -2.1%,-1.0% forecast, 3.5% previous

• Canada New Motor Vehicle Sales (MoM) 167.0%,173.0% previous

• French 6-Month BTF Auction -0.649%,-0.641% previous

• French 3-Month BTF Auction-0.656%, -0.643% previous

• French 12-Month BTF Auction-0.647%  , -0.636% previous

• US 6-Month Bill Auction 0.025%,0.040% previous

• US 3-Month Bill Auction 0.040%, 0.025% previous

Looking Ahead - Economic Data (GMT)

•22:45 New Zealand May FPI (MoM)  1.1% previous

•22:45 Australia House Price Index (QoQ) (Q1)  5.5%,3.0% previous

•04:30   Japan Tertiary Industry Activity Index (MoM) 1.1% previous

Looking Ahead - Economic events and other releases (GMT)

•01:30 Australia RBA Meeting Minutes

Currency Summaries

EUR/USD: The euro edged higher against dollar on Monday as upbeat Euro zone production data  supported euro. Eurozone industrial production was stronger than expected in April, fueled by more than doubling the production of consumer staples year-over-year as economies steadily reopened after the COVID-19 pandemic lockdowns, data showed on Monday. Eurostat reported that industrial production in the 19 countries that use the euro increased by 0.8% month-on-month and 39.3% year-on-year.   Immediate resistance can be seen at 1.2134 (38.2%fib), an upside break can trigger rise towards 1.2158 (30DMA).On the downside, immediate support is seen at 1.2099 (50DMA), a break below could take the pair towards 1.2050(23.6% fib).

GBP/USD: Sterling was little changed on Monday after Britain announced delay to end of COVID restrictions, as the government tries to slow a rapid rise in COVID-19 infections. British Prime Minister Boris Johnson on Monday postponed plans to remove most of the remaining COVID-19 restrictions for one month and warned that if he does nothing, the more contagious Delta variant is spreading rapidly , thousands of people may die. That much-anticipated step was pushed back to July 19. Immediate resistance can be seen at 1.4112 (50% fib), an upside break can trigger rise towards 1.4133 (5 DMA).On the downside, immediate support is seen at 1.4061 (38.2%fib), a break below could take the pair towards 1.4000 (Psychological level).

USD/CAD: The loonie rose slightly against its US counterpart on Monday as investors ignored national data on a decline in factory sales and waited for a Federal Reserve policy decision this week, and the loonie bounced back somewhat from the fall on Friday . Canadian factory sales were down 2.1% in April from March, according to Statistics Canada, but sales excluding vehicles and parts rose 1.1%.The Canadian dollar, this year's top performing G10 currency, was trading 0.2% higher at 1.2143 to the greenback. Immediate resistance can be seen at 1.2180 (38.2%fib), an upside break can trigger rise towards 1.2243(50%fib).On the downside, immediate support is seen at 1.2109(9DMA), a break below could take the pair towards 1.2078(23.6%fib).

USD/JPY: The dollar rose against the yen on Monday as traders waited for the highly anticipated Fed meeting later this week, which may herald a change in the outlook for US monetary policy.The Fed begins a scheduled two-day monetary policy meeting on Tuesday. Recent data suggested rising inflation has raised concerns that price pressures following the post-COVID-19 economic reopening could force policymakers to reduce currency depreciating stimulus. Strong resistance can be seen at 110.33 (23.6% fib), an upside break can trigger rise towards 110.57 (April 6th high).On the downside, immediate support is seen at 109.75(38.2%fib), a break below could take the pair towards 109.28 (50% fib).

Equities Recap

European stocks closed at a record high on Monday as energy stocks in the oil market rose sharply while expectations for  accommodative monetary policy grew despite the global economic recovery accelerating.

UK's benchmark FTSE 100 closed up by 0.18 percent, Germany's Dax ended down  by 0.13 percent, France’s CAC finished the day up by 0.24percent.

The S&P 500 and Nasdaq eked out record high finishes on Monday, despite most traders being focused on this week's Federal Reserve meeting and not on adding to existing positions.

Dow Jones closed down  by  0.25% percent, S&P 500 closed up by 0.18% percent, Nasdaq settled up by 0.74%  percent.

Treasuries Recap

U.S. Treasury yields rose from three-month lows on Monday as investors waited on the Federal Reserve’s meeting statement on Wednesday for new indications on when the U.S. central bank is likely to begin paring back its unprecedented monetary stimulus.

Benchmark 10-year yields rose one basis point on Monday to 1.47%, after falling to a three-month low of 1.43% on Friday.

Commodities Recap

The price of gold fell as much as 1.7% on Monday as some investors feared that the US Federal Reserve could show a way to reduce its expansionary monetary policy in a two-day meeting this week.

Spot gold fell 0.7% to $1,863.98 per ounce by 1:43 p.m EDT (1743 GMT) after hitting its lowest level since May 17 at $1,848.49. U.S. gold futures settled 0.7% down at $1,865.9.

Oil prices ended unchanged on Monday after hitting their highest level in more than two years as soaring US crude oil production and the UK's delayed reopening of COVID-19 lowered fuel demand growth expectations and tighter supplies.

Brent closed 17 cents at $ 72.86 a barrel; At the start of the session it hit $ 73.64 a barrel, its highest level since April 2019.

 West Texas Intermediate fell 3 cents to $ 70.88 a barrel after previously hitting $ 71.78 a barrel, its highest level since October 2018.

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