Market Roundup
•German June WPI (YoY) 10.7%, 9.7%previous
•German June WPI (MoM) 1.5%, 1.5% previous
•Portuguese June CPI (MoM) 0.2%, 0.1% previous
•Portuguese June CPI (YoY) 0.5%,0.5% previous
Looking Ahead - Economic Data (GMT)
•13:00French 12-Month BTF Auction-0.640% previous
•13:00French 3-Month BTF Auction-0.648% previous
•13:00French 6-Month BTF Auction-0.643% previous
•15:30US 3-Month Bill Auction0.050% previous
•15:30 US 6-Month Bill Auction 0.050% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped against dollar on Monday as euro was weighed down by dovish European Central Bank commentary, as investors watched for clues from central bankers on both sides of the Atlantic ahead of Tuesday’s U.S. inflation print. The ECB will change its guidance on policy steps at its next meeting to reflect its new strategy and show it is serious about reviving inflation, ECB President Christine Lagarde said on Monday The focus will be on speech from ECB board member Luis de Guindos at 0900 GMT and U.S. Federal Reserve speakers expected at 1330 GMT and 1600 GMT. Immediate resistance can be seen at 1.1871 (38.2%fib), an upside break can trigger rise towards 1.1929 (50%fib).On the downside, immediate support is seen at 1.1837 (5DMA), a break below could take the pair towards 1.1799(23.6%fib).
GBP/USD: Sterling nudged lower on Monday as British Prime Minister Boris Johnson is expected to confirm plans to remove nearly all remaining COVID-19 restrictions in England from July 19, despite a surge of cases to levels unseen for months. Johnson will announce his final decision to ease lockdown measures at a news conference on Monday. He is expected to eliminate rules on mask-wearing and social contact, and the instruction to work from home. Sterling fell 0.38% to $1.3850 against the dollar by 10:38 GMT, after jumping to above $1.39 on Friday. Versus the single currency, it edged 0.3% lower at 85.65 pence. Immediate resistance can be seen at 1.3911 (38.2% fib), an upside break can trigger rise towards 1.3974 (50%fib).On the downside, immediate support is seen at 1.3825 (23.6%fib), a break below could take the pair towards 1.3749 (July 9th Low).
USD/CHF: The dollar was little changed against the Swiss franc on Monday as concerns about the pandemic made investors cautious, while they also waited for more clues about the global economic recovery before making their next moves. With markets hyper-sensitive to any talk of early tapering, U.S. inflation data on Tuesday will be closely watched ahead of a testimony by Federal Reserve Chair Jerome Powell on Wednesday and Thursday. At 10:37 GMT, the dollar was 0.2 percent higher versus the Swiss franc at 0.9159. Immediate resistance can be seen at 0.9172 (21DMA), an upside break can trigger rise towards 0.9186 (38.2%fib).On the downside, immediate support is seen at 0.9132 (50%fib), a break below could take the pair towards 0.9080 (61.8% fib).
USD/JPY: The dollar was little changed against the Japanese yen Monday as concerns about the pandemic made investors cautious, while they also waited for more clues about the global economic recovery before making their next moves. Investors will focus on a U.S. consumer price index report on Tuesday, and Powell’s testimony on Wednesday and Thursday for cues on the timeline for policy tightening. Economists polled expect U.S. consumer price for June to have risen 0.4% from May and 4.0% from a year earlier after two straight months of sharp gains in prices. Strong resistance can be seen at 110.25 (50%fib), an upside break can trigger rise towards 110.53 (21DMA).On the downside, immediate support is seen at 109.86 (38.2%fib), a break below could take the pair towards 109.38 (23.6% fib).
Equities Recap
European stocks fell slightly on Monday as investors sold economically sensitive sectors on worries that the spread of new coronavirus variants was stalling a global economic recovery.
At (GMT 10:40 ),UK's benchmark FTSE 100 was last trading down at 0.26 percent, Germany's Dax was down by 0.30 percent, France’s CAC finished was down by 0.59 percent.
Commodities Recap
Gold prices were a tad weaker on Monday as an uptick in the dollar made bullion more expensive for holders of other currencies, while investors await U.S. inflation data and Federal Reserve Chairman Jerome Powell’s testimony this week.
Spot gold was down 0.3% at $1,802.90 per ounce by 0906 GMT. U.S. gold futures slipped 0.5% to $1,801.90 per ounce.
Crude futures slipped on Monday as concerns over slowing global growth outweighed the prospect of tightening supply after talks among key producers to raise output in coming months stalled.
Brent crude for September fell 73 cents, or 1%, to $74.82 a barrel by 0900 GMT while U.S. West Texas Intermediate crude for August was at $73.81 a barrel, down 75 cents, or 1%.
