Market Roundup
•Italian May Trade Balance EU 0.25B, -0.96B previous
•Italian May Trade Balance -0.012B, -3.666B previous
• Spanish Trade Balance -4.76B, -6.40B previous
Looking Ahead - Economic Data (GMT)
•13:00 French 12-Month BTF Auction 0.450% previous
•13:00 French 3-Month BTF Auction -0.286% previous
•13:00 French 6-Month BTF Auction 0.037% previous
•14:00 US Jul NAHB Housing Market Index 66 forecast, 67 previous
•15:30 US 3-Month Bill Auction 2.110% previous
•15:30 US 6-Month Bill Auction 2.685% previous
Looking Ahead - Economic events and other releases (GMT)
•German Buba Balz Speaks
Fxbeat
EUR/USD: The euro firmed to a one-week high on Monday, benefiting from the dollar's slide after several Federal Reserve officials signaled they would not favor accelerating rate hikes. The comments late last week knocked the dollar off two-decade highs and boosted global stocks and non-dollar currencies, especially the euro. The mood was also broadly helped by stimulus support signals from China. The euro firmed 0.7% at $1.016, having plunged last week below parity to the dollar . Immediate resistance can be seen at 1.0139 (11DMA), an upside break can trigger rise towards 1.0205(38.2% fib).On the downside, immediate support is seen at 1.0062 (5DMA), a break below could take the pair towards 0.9979 (23.6%fib).
GBP/USD: Sterling rose against weakening US dollar on Monday as markets trimmed some of their bets on US Federal Reserve rate hikes, but the British currency's rally was capped by political risks and ongoing recession fears in the UK. The focus will turn to UK data later in the week, with jobs and inflation figures expected on Tuesday and Wednesday, which could give more clues to how the Bank of England will act to try to tame surging inflation. Sterling hit a more than two-year low of $1.1761 on Thursday, but buoyed mainly by dollar weakness, the pound was up 0.6% to $1.1944 by 0855 GMT after hitting its lowest level since March 2020 would have. The British pound is up 0 against the euro.3% at 84.76pence Immediate resistance can be seen at 1.1983(14DMA), an upside break can trigger rise towards 1.2044(38.2%fib).On the downside, immediate support is seen at 1.1834(23.6% fib), a break below could take the pair towards 1.1747 (Lower BB).
USD/CHF: The dollar was little changed against the Swiss franc on Monday as dollar after several Federal Reserve officials signaled they would not favor accelerating rate hikes. Waller and St Louis Fed governor James Bullard said they preferred a 75-basis-point interest rate increase at the Fed's July 26-27 meeting, rather than the 100 bps move some had pencilled in following an above-forecast inflation reading. Focus also remains on the European Central Bank’s meeting later this week where it is expected to raise rates by 25 bps. Immediate resistance can be seen at 0.9834(15th July high), an upside break can trigger rise towards 0.9868(38.2%fib).On the downside, immediate support is seen at 0.9737(50%fib), a break below could take the pair towards 0.9673(21DMA).
USD/JPY: The dollar dipped against the Japanese yen on Monday as the safe-haven dollar nudged down after several Federal Reserve officials signaled they would not favor accelerating rate hikes. The greenback has soared this year thanks to a combination of rising U.S. interest rates and wobbling economies in Europe and China. The Bank of Japan meets on Thursday, too, though no policy changes are expected which could mean more pain for the beleaguered yen, while Japan has struck a lonely figure in pinning interest rates near zero. Strong resistance can be seen at 138.63 (Higher BB), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.86 (38.2%fib), a break below could take the pair towards 136.97 (11DMA).
Equities Recap
European stocks edged higher on Monday ahead of this week's ECB meeting and the expected resumption of an important gas pipeline that is currently closed for maintenance.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.96% percent, Germany's Dax was up by 0.80% percent, France’s CAC was up by 1.07%percent.
Commodities Recap
Gold prices firmed on Monday, as a pullback in the dollar helped bullion recover some of its recent losses, while easing fears of a 100-basis-point rate hike by the U.S. Federal Reserve also supported bullion.
Spot gold rose 0.4% to $1,714.08 per ounce by 1133 GMT, after falling to its lowest in nearly a year last week. U.S. gold futures gained 0.6% to $1,713.10.
Oil prices extended gains on Monday, boosted by a weaker dollar and tight supplies that offset concerns about a recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand.
Brent crude futures for September settlement rose by $2.14, or 2.1%, to $103.30 a barrel by 1100 GMT, having gained 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery were up $1.72, or 1.8%, at $99.31 after rising by 1.9% in the previous session.
