Market Roundup
- Gold steadies as dollar hovers near 3-month low
- Oil prices rise as easing of lockdowns lifted fuel demand
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Employment Change (YoY)(Q1)
- (0500 ET/0900 GMT) EZ Gross Domestic Product s.a. (QoQ)(Q1)
- (0500 ET/0900 GMT) EZ Gross Domestic Product s.a. (YoY)(Q1)
- (0500 ET/0900 GMT) EZ Employment Change (QoQ)(Q1)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index steadied near multi-month lows, as investors now seek further clarity on U.S. monetary policy after the Fed’s two-day policy meeting ends on Wednesday. The greenback against a basket of currencies traded flat at 96.76, having touched a low of 96.44 on Friday, its lowest since March 12.
EUR/USD: The euro consolidated within narrow ranges as investors remained cautious ahead of the release of Eurozone Q1 gross domestic product. The European currency traded flat at 1.1291, having touched a high of 1.1383 on Friday, its highest since March 10. Investors’ attention will remain on a series of data from Eurozone economies and EZ Q1 gross domestic product and employment change figures, ahead of U.S. JOLTS Job Opening and wholesale inventories. Immediate resistance is located at 1.1362, a break above targets 1.1390. On the downside, support is seen at 1.1264 (5-DMA), a break below could drag it below 1.1233.
USD/JPY: The dollar slumped to a 1-week trough as investors weighed the possibility of stepped-up bond-buying or even simply a very dovish outlook from the Fed, which meets on Tuesday and Wednesday. The major was trading 0.4 percent down at 107.99, having hit a high of 109.85 on Friday, its highest since March 26. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. JOLTS Job Opening and wholesale inventories. Immediate resistance is located at 108.66, a break above targets 108.98. On the downside, support is seen at 107.82 (21-DMA), a break below could take it near at 107.50.
GBP/USD: Sterling nudged lower after rising to a near 3-month peak earlier in the day, as talks on a future trade deal with the European Union after the UK’s exit fail to make progress. The major traded 0.1 percent down at 1.2711, having hit a high of 1.2755 earlier, it’s highest since March 12. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2770, a break above could take it near 1.2804. On the downside, support is seen at 1.2621 (5-DMA), a break below targets 1.2574. Against the euro, the pound was trading 0.1 percent down at 88.81 pence, having hit a high of 88.67 earlier, it’s highest since June 2.
AUD/USD: The Australian dollar declined, halting an 8-day winning streak, as markets wait for the outcome of the Fed Meeting. The Aussie trades 0.7 percent down at 0.6972, having hit a high of 0.7042 earlier, it’s highest since July 22. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.7075, a break above could take it near 0.7102. On the downside, support is seen at 0.6942, a break below targets 0.6904.
Equities Recap
Asian shares extended gains for the ninth consecutive session as the lifting of coronavirus lockdowns in many countries lifted investor hopes of a relatively quick global economic recovery.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 1.0 percent.
Tokyo's Nikkei eased 0.4 percent to 23,091.03 points, Australia's S&P/ASX 200 index surged 2.5 percent to 6,144.90 points. South Korea's KOSPI declined 0.05 percent to 2,184.57 points.
Shanghai composite index rose 0.4 percent to 2,949.42 points, while CSI 300 index traded 0.4 percent up at 4,038.50 points.
Hong Kong’s Hang Seng traded 1.7 percent higher at 25,194.05 points. Taiwan shares added 0.2 percent to 11,637.11 points.
Commodities Recap
Crude oil prices surged after declining from multi-month peaks in the prior session as the easing of coronavirus lockdown measures across the globe boosted trader hopes for a swift recovery in demand, although the spectre of persistent oversupply in the market limited gains. International benchmark Brent crude was trading 0.2 percent higher at $40.87 per barrel by 0526 GMT, having hit a high of $43.29 on Monday, its highest since March 9. U.S. West Texas Intermediate was trading 0.3 percent up at $38.33 a barrel, after rising as high as $40.42 on Monday, its highest since March 9.
Gold prices rose amid fears of a deep economic fallout from the coronavirus crisis, while investors focused on the U.S. Federal Reserve meeting for clues on policy measures. Spot gold was trading 0.05 percent up at $1,698.80 per ounce by 0547 GMT, having touched a low of $1,670.43 on Friday, its lowest since April 21. U.S. gold futures were flat at $1,705.60.
Treasuries Recap
The U.S. Treasury yields fell, with the 10-year note down 2.8 basis points at 0.8785 percent.
