Market Roundup
• German June WPI (YoY) -3.3% , -4.3% previous
• German June WPI (MoM) 0.6%,-0.6% previous
Looking Ahead - Economic Data (GMT)
• 13:00 French 3-Month BTF Auction -0.551% previous
• 13:00 French 6-Month BTF Auction -0.557% previous
• 13:00 French 12-Month BTF Auction -0.559% previous
• 15:30 US 6-Month Bill Auction 0.165% previous
• 15:30 US 3-Month Bill Auction 0.150% previous
•18:00 US June Federal Budget Balance -863.0B forecast, -399.0B previous
Looking Ahead - Economic events and other releases (GMT)
•17:00 US FOMC Member Kaplan Speaks
• 15:30 UK BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro gained against dollar on Monday as investor’s awaited European Union summit at the end of the week. Investors hope the EU 27 will make progress in agreeing a 750 billion euro ($848.78 billion) COVID-19 recovery fund. Markets have moved in support of the fund, most of which has been proposed as grants to the worst-hit states such as Italy, sending that country’s debt rallying in recent weeks. At (GMT 12:00), the euro was last trading up 0.4% at $1.0880. Immediate resistance can be seen at 1.1333 (Higher BB), an upside break can trigger rise towards 1.1369 (July 9th high).On the downside, immediate support is seen at 1.1300 (23.6% fib), a break below could take the pair towards 1.1262 (21 DMA).
GBP/USD: Sterling declined against dollar on Monday as market sentiment remained cautious amid a resurgence of new coronavirus cases globally, particularly in the United States. U.S. coronavirus cases surged over the weekend, as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state, surpassing a peak hit in New York in April. Britain’s imminent exit from the European Union, however, still weighed on investors’ minds. Immediate resistance can be seen at 1.2668 (Higher BB), an upside break can trigger rise towards 1.2800(Psychological level).On the downside, immediate support is seen at 1.2578 (38.2% fib), a break below could take the pair towards 1.2438 (21 DMA).
USD/CHF: The dollar rose against the Swiss franc on Monday as investors bought into risk-sensitive currencies on bets that the worst of the pandemic’s sweeping impact was over. Hopes for development of drugs and vaccines for the disease are also supporting risk sentiment. So are economic indicators that have so far shown a recovery from lockdowns. U.S. consumer inflation figures for June are due on Tuesday while retail sales, a key gauge of consumption, are released on Thursday. At (GMT 12:20), Greenback gained 0.27% versus the Swiss franc to 0.9725. Immediate resistance can be seen at 0.9437 (Daily high), an upside break can trigger rise towards 0.9463 (38.2 %fib).On the downside, immediate support is seen at 0.9383 (Lower BB ), a break below could take the pair towards 0.9361 (23.6% fib ).
USD/JPY: The dollar gained against the Japanese yen on Monday as worries over Increasing coronavirus cases around the world supported greenback. More than 12.83 million people have been reported to be infected by the novel coronavirus globally and 565,626 have died. Florida reported a record increase of more than 15,000 new cases in 24 hours on Sunday, as the Trump administration renewed its push for schools to reopen and anti-mask protests were planned in Michigan and Missouri. Strong resistance can be seen at 107.23(50% fib), an upside break can trigger rise towards 107.84 (Higher BB).On the downside, immediate support is seen at 106.60(Lower BB), a break below could take the pair towards 106.25 (38.2 %fib ).
Equities Recap
European shares rose on Monday, with cyclical sectors leading gains as investors hoped the upcoming earnings season and stimulus talks will feed into an economic recovery from the coronavirus-induced downturn.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.10 percent, Germany's Dax was up by 0.87 percent, France’s CAC was last up by 1.27 percent.
Commodities Recap
Gold prices firmed above the key $1,800 an ounce level on Monday, supported by uncertainty over the impact of surging coronavirus cases and a subdued dollar.
Spot gold was up 0.6% to $1,808.25 per ounce at 0933 GMT. U.S. gold futures were up 0.6% at $1,813.30.
Oil prices dropped on Monday on a record daily rise in global coronavirus cases with big spikes in infections over the weekend in the United States, while traders await an OPEC technical meeting expected to recommend an easing of supply cuts.
Brent crude fell 61 cents, or 1.4%, to $42.63 a barrel by 1127 GMT, though prices have been hovering around $42 for a couple of weeks. U.S. crude was down 64 cents, or 1.6%, at $39.91.
Treasuries Recap
Italy’s 10-year government bond yield rose to its highest in over a week on Monday, as investors stayed cautious ahead of a European Union summit at the end of the week.
Italy’s 10-year yield rose to its highest since July 3 at 1.33% in early trade. It was last up 2 basis points (bps) at 1.31%
