Market Roundup
- Oil prices ease on demand worries
- Gold set for best quarter in 4 years
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Consumer Price Index - Core (YoY)(Jun) PREL
- (0500 ET/0900 GMT) EZ Consumer Price Index (YoY)(Jun) PREL
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index rose to a 1-week peak as hopes of an economic turnaround boosted investor appetite, although concerns over rising coronavirus cases limited upside. The greenback against a basket of currencies traded 0.2 percent higher at 97.70, having touched a low of 96.39 last week, its lowest since June 11.
EUR/USD: The euro declined, reversing most of its previous session gains, as the greenback surged on data that showed contracts to buy U.S. previously owned homes rebounded by the most on record in May. The European currency traded 0.2 percent down at 1.1216, having touched a high of 1.1348 last week, its highest since June 16. Investors’ attention will remain on a series of data from Eurozone economies, and EZ consumer price index, ahead of U.S. consumer confidence, Chicago Purchasing Managers' Index, Treasury Sec Mnuchin speech, Fed Brainard and Chairman Powell's speech. Immediate resistance is located at 1.1290, a break above targets 1.1332. On the downside, support is seen at 1.1168, a break below could drag it below 1.1134.
USD/JPY: The dollar rallied, extending gains for the fifth straight session, as an upbeat U.S. data spurred fresh optimism on the world's largest economy and boosted investor sentiment. U.S. pending home sales surged 44.3 percent, compared to economists’ forecast for a 18.9 percent rise. Investors now await U.S. jobs data due on Thursday, which is expected to show U.S. employers added 3 million jobs in June. The major was trading 0.1 percent up at 107.65, having hit a high of 107.88 on Monday, its highest since June 9. Investors’ will continue to track the broad-based market sentiment, ahead of U.S. consumer confidence, Chicago Purchasing Managers' Index, Treasury Sec Mnuchin speech, Fed Brainard and Chairman Powell's speech. Immediate resistance is located at 107.94, a break above targets 108.30. On the downside, support is seen at 107.33, a break below could take it near at 107.05 (10-DMA).
GBP/USD: Sterling declined, hovering towards a 4-1/2 week low hit in the prior session, amid concerns about how Britain's government will pay for its planned infrastructure program following Prime Minister Boris Johnson's promise to increase spending. The major traded 0.2 percent down at 1.2276, having hit a low of 1.2251 on Monday, it’s lowest since May 28. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2347, a break above could take it near 1.2404. On the downside, support is seen at 1.2210, a break below targets 1.2160. Against the euro, the pound was trading 0.05 percent up at 91.28 pence, having hit a low of 91.75 on Monday, it’s lowest since March 26.
AUD/USD: The Australian dollar eased as risk sentiment slightly weakened as confirmed COVID-19 cases worldwide exceeded 10 million and deaths surpassed 500,000 over the weekend. The Aussie trades 0.1 percent down at 0.6855, having hit a high of 0.6974 last week, it’s highest since June 16. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6900 (21-DMA), a break above could take it near 0.6929. On the downside, support is seen at 0.6828 a break below targets 0.6776.
Equities Recap
Asian shares surged after data showed China’s manufacturing sector grew more than expected in June, supporting investor risk sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent.
Tokyo's Nikkei surged 1.3 percent to 22,288.14 points, Australia's S&P/ASX 200 index gained 1.4 percent to 5,897.90 points. South Korea's KOSPI jumped 0.7 percent to 2,108.33 points.
Shanghai composite index rose 0.8 percent to 2,984.67 points, while CSI 300 index traded 1.3 percent up at 4,163.96 points.
Hong Kong’s Hang Seng traded 0.4 percent higher at 24,388.48 points. Taiwan shares added 0.7 percent to 11,621.24 points.
Commodities Recap
Crude oil prices consolidated within narrow ranges as investors awaited more signs of a demand recovery in data due on Tuesday from the American Petroleum Institute industry group, and from the U.S. government on Wednesday. International benchmark Brent crude was trading flat at $41.60 per barrel by 0606 GMT, having hit a low of $39.45 on Thursday, its lowest since June 16. U.S. West Texas Intermediate was trading 0.6 percent low at $39.42 a barrel, after falling as low as $37.07 on Thursday, its lowest since June 16.
Gold prices steadied and were heading for their biggest quarterly rise in more than four years amid growing fears over rising coronavirus cases around the world. Spot gold was trading flat at $1,771.64 per ounce by 0608 GMT, having touched a high of $1,779.44 on Wednesday, its highest since October 2012. The safe-haven metal gained more than 12 percent this quarter, putting it on track for its best quarter since end-March 2016, while it was also headed for its third straight monthly gain. U.S. gold futures were flat at $1,781.20.
Treasuries Recap
The U.S. Treasury yields edged up, with the benchmark 10-year note yield trading at 0.628 percent.
