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America's Roundup:Dollar hits three-month lows on U.S. rate cut bets,Wall Street edges down,Gold at 6-yr high,U.S. oil prices soar 10% in the week on fears of U.S.-Iran conflict-June 22nd,2019

Market Roundup

• Trump says he aborted retaliatory strike to spare Iranian lives

• Fed officials face weak inflation, but split over what it means

• US June Markit Comp Flash PMI, 50.6, 50.9 previous

• US June Markit Mfg PMI Flash, 50.1, 50.4 forecast, 50.5 previous

• US June Markit Svcs PMI Flash, 50.7, 51.0 forecast, 50.9 previous

• US May Existing Home Sales, 5.34 mln, 5.25 mln forecast, 5.19 mln previous

• US May Exist. Home Sales % Chg, 2.5%, 1.2% forecast, -0.4% previous

• CA April Retail Sales MM, 0.1%, 0.2% forecast, 1.1% previous

• N.Y. Fed's model lowers U.S. Q3 GDP view to 1.3%

• U.S. oil soars 10% in week on fears of U.S.-Iran conflict

• Gold hits 6-year peak on Fed rate cut signals, U.S.-Iran unrest

Looking Ahead - Economic Data (GMT)

• No major economic data scheduled

Looking Ahead - Events, Other Releases (GMT)

• 23:50 Bank of Japan to release Minutes of Monetary Policy Meeting held on April 24 and 25 in Tokyo

Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Friday, as bets the Federal Reserve would start lowering interest rates weighed on dollar. The greenback's weakness propelled the euro  to three-month highs. The single currency was also buoyed by stronger-than-forecast survey data on French and German business activity.  The dollar extended its losses for three straight sessions since the Federal Reserve on Wednesday signaled it was prepared to lower interest rates later this year. The Fed and the European Central Bank this week hinted they were open to ease policies to counter a global economic slowdown, exacerbated by global trade tensions. The euro was up 0.68 percent at $1.1368. Immediate resistance can be seen at 1.1375 (Higher Bollinger Band), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1274 (11 DMA), a break below could take the pair towards 1.1237 (21 DMA).

GBP/USD: The Sterling strengthened against the dollar on Friday, as Brexiteer Boris Johnson moved closer to becoming British prime minister. Johnson faces foreign minister Jeremy Hunt in a contest to succeed Theresa May as party leader and prime minister, with Johnson the odds-on favourite to secure a majority of votes from Conservative Party members. The new leader will be chosen by a ballot of party members with the result due next month. Sterling remained on course for a positive week against the dollar after the Bank of England stuck to its message that interest rates would need to rise, contrasting with other policymakers that may ease policy.After a busy week for monetary policy, sterling traders will turn their attention back to British politics and the Conservative Party leadership contest.The pound was last trading 0.32% percent higher on the day. Immediate resistance can be seen at 1.2794 (Higher Bollinger Band), an upside break can trigger rise towards 1.2854 (Ichimoku Clould Top).On the downside, immediate support is seen at 1.2657 (11 DMA), a break below could take the pair towards 1.2600 (Psychological level).

USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, after notching a three-month high the day before, as a smaller-than-expected gain for domestic retail sales in April sparked some profit taking by investors. Canadian retail sales grew by 0.1% in April from March, led by higher sales at gasoline stations, Statistics Canada said. The April increase was less than the 0.2% advance that analysts had expected, although March's already large gain was revised higher to 1.3%. At   (1957 GMT), the Canadian dollar was trading 0.15% lower at 1.3210 to the greenback, or 75.70 U.S. cents. Immediate resistance can be seen at 1.3291 (5 DMA), an upside break can trigger rise towards 1.3367 (20 DMA).On the downside, immediate support is seen at 1.3150 (Daily low), a break below could take the pair towards 1.3100 (Psychological level).

USD/JPY: The dollar weakened against the Japanese yen on Friday, as rising tensions between the United States and Iran increased demand for safe haven yen. Iranian officials told on Friday that Tehran had received a message from U.S. President Donald Trump warning that a U.S. attack on Iran was imminent but saying he was against war and wanted talks on a range of issues.News of the message, delivered through Oman overnight, came shortly after the New York Times said Trump had approved military strikes against Iran on Friday over the downing of a U.S. surveillance drone, but called them off at the last minute. The dollar was 0.06 percent  lower versus the Japanese yen at 107.34 .Strong resistance can be seen at 107.90 (5 DMA), an upside break can trigger rise towards 108.50 (21 DMA).On the downside, immediate support is seen at 107.33 (Lower Bollinger Band), a break below could take the pair towards 107.00 (Psychological level). 

Equities Recap

European shares retreated on Friday, led by healthcare and media companies, at the end of a third week of gains dominated by signs that the world's big central banks are on the verge of another round of action to support growth.

UK's benchmark FTSE 100 closed down by 0.6 percent, the pan-European FTSEurofirst 300 ended the day down by 0.54 percent, Germany's Dax ended down by 0.3 percent, France’s CAC finished the day down by 0.3 percent.

Wall Street closed slightly lower on Friday as U.S. Vice President Mike Pence's decision to defer a speech on China policy increased optimism on upcoming trade talks between Washington and Beijing, while tensions between the United States and Iran undercut sentiment.

Dow Jones closed down by 0.10 percent, S&P 500 ended down by 0.12 percent, Nasdaq finished the down up by 0.25 percent.

Treasuries Recap

U.S. Treasury prices fell sharply on Friday, as investors cashed in on steep gains the last two days that saw yields drop to multi-year lows in the wake of a Federal Reserve statement that flagged interest rate cuts this year.

In afternoon trading, U.S. 10-year note yields rose to 2.064%  from 2.0% late on Thursday. Yields on U.S. 30-year bonds advanced to 2.591%  , from 2.527% on Thursday.At the short end of the curve, U.S. 2-year yields were up at 1.778%, from Thursday's 1.728%

Commodities Recap

Gold prices surpassed $1,400 on Friday before retreating, still holding near a six-year high on the U.S. central bank's dovish stance on monetary policy.

Spot gold rose 0.6% to $1,396.34 per ounce as of 1:50 p.m. EDT (1750 GMT). U.S. gold futures settled 0.2% higher at $1,400.10 per ounce.

Oil futures rose 1% on Friday, with U.S. crude up 10% in the week and global benchmark Brent gaining 5%, on fears the United States could attack Iran and disrupt flows from the Middle East, which provides more than a fifth of the world's oil output.

Brent  futures were up 72 cents, or 1.1%, to $65.17 a barrel by 1:20 p.m. EDT (1720 GMT), while the most active U.S. West Texas Intermediate (WTI) crude   contract was up 47 cents, or 0.8%, at $57.54.

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