Market Roundup
- Oil gains on tighter supply
- Gold hits 1-month peak amid rising virus fears
- RBA Lowe: Rising Australian dollar not a problem yet
Economic Data Ahead
- (0600 ET/1000 GMT) UK CBI Industrial Trends Survey - Orders (MoM)(Jun)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index eased but remained near recent peaks as investors awaited the U.S. consumer sentiment figures due later in the day to gauge whether encouraging signs of recovery from May can be sustained. The greenback against a basket of currencies traded 0.1 percent down at 97.56, having touched a high of 97.72 on Friday, its highest since June 2.
EUR/USD: The euro rose, halting a 4-day losing streak, as the greenback eased amid rising infections in the United States. The European currency traded 0.2 percent up at 1.1199, having touched a low of 1.1168 on Friday, its lowest since June 3. Investors’ attention will remain on a series of data from Eurozone economies, EZ consumer confidence, ECB De Guindos' and Lane's speech, ahead of U.S. existing home sales and Chicago Fed National Activity Index. Immediate resistance is located at 1.1241 (5-DMA), a break above targets 1.1276 (10-DMA). On the downside, support is seen at 1.1154, a break below could drag it below 1.1100.
USD/JPY: The dollar consolidated within narrow ranges, as investors refrained from taking big positions, amid renewed worries about the second wave of coronavirus infections globally and geopolitical tensions. On Sunday, the World Health Organization reported a record increase in global cases, while Beijing and Australia’s Victoria state re-introduced measures to control the virus. The major was trading flat at 106.89, having hit a low of 106.66 on Thursday, its lowest since June 12. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. existing home sales and Chicago Fed National Activity Index. Immediate resistance is located at 107.09 (5-DMA), a break above targets 107.29 (10-DMA). On the downside, support is seen at 106.58, a break below could take it near at 105.99.
GBP/USD: Sterling bounced back from a 3-week low as retail sales rebounded in May more strongly than expected. Data released on Friday showed British retail sales jumped 12 percent last month after a historic 18 percent slump in April. A separate survey showed, consumer confidence figures for May were the strongest since the lockdown began but overall remained weak. The major traded 0.3 percent up at 1.2377, having hit a low of 1.2335 earlier, it’s lowest since June 1. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2467, a break above could take it near 1.2506. On the downside, support is seen at 1.2290, a break below targets 1.2260. Against the euro, the pound was trading flat at 90.45 pence, having hit a low of 90.72 on Friday, it’s highest since March 27.
AUD/USD: The Australian dollar nudged higher on relief that Reserve Bank of Australia Governor Philip Lowe did not seem too concerned about its 24 percent surge from March lows. Lowe stated that the recent appreciation in the currency is not a problem at this point and impact of the COVID-19 pandemic would not be as bad as initially feared. The Aussie trades 0.3 percent up at 0.6854, having hit a low of 0.6807 earlier, it’s lowest since June 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6907 (10-DMA), a break above could take it near 0.6942. On the downside, support is seen at 0.6776, a break below targets 0.6750.
Equities Recap
Asian shares consolidated within narrow ranges amid worries that rising coronavirus cases in the U.S. could delay a quick economic rebound from the massive downturn triggered by the pandemic.
MSCI's broadest index of Asia-Pacific shares outside Japan traded flat.
Tokyo's Nikkei declined 0.07 percent to 22,463.90 points, Australia's S&P/ASX 200 index gained 0.05 percent to 5,944.50 points. South Korea's KOSPI tumbled 0.4 percent to 2,133.21 points.
Shanghai composite index eased 0.1 percent to 2,964.74 points, while CSI 300 index traded 0.05 percent down at 4,097.24 points.
Hong Kong’s Hang Seng traded 0.8 percent higher at 24,428.12 points. Taiwan shares added 0.2 percent to 11,572.93 points.
Commodities Recap
Crude oil prices surged on tighter supplies from major producers, although concerns that a record rise in coronavirus infections globally could stall a recovery in fuel demand limited upside. International benchmark Brent crude was trading 0.3 percent higher at $42.07 per barrel by 0535 GMT, having hit a high of $42.90 on Friday, its highest since June 8. U.S. West Texas Intermediate was trading 0.4 percent up at $39.60 a barrel, after rising as high as $40.49 on Friday, its highest since June 8.
Gold prices rallied to its highest in more than a month as investors sought the safe-haven metal after surging coronavirus cases intensified concerns over a delay in global economic recovery. Spot gold was trading 0.5 percent at $1,752.58 per ounce by 0538 GMT, having touched a high of $1,758.67 earlier, its highest since May 18. U.S. gold futures rose 0.8 percent to $1,766.90.
Treasuries Recap
On Friday, the benchmark 10-year note yields were little changed on the day at 0.699 percent. The yield curve between 2-year and 10-year notes was steady on the day at 51 basis points.
