Market Roundup
• German March Industrial Production (MoM) -17.9%,-7.5% forecast, 0.3% previous
• Finnish April Trade Balance 0.19B, -0.27B previous
• French May Reserve Assets Total 217,404.0M, 219,697.0M previous
• EU June Sentix Investor Confidence -24.8, -22.5 forecast, -41.8 previous
Looking Ahead Economic Data
• 12:15 Canada May Housing Starts 155.0K forecast, 166.4K previous
• 12:15 Canada April Building Permits (MoM) -13.2% previous
• 13:00 French 3-Month BTF Auction -0.520% previous
• 13:00 French 6-Month BTF Auction-0.513% previous
• 13:00 French 12-Month BTF Auction -0.514% previous
• 14:00 US May CB Employment Trends Index 43.40 previous
• 15:30 US 3-Month Bill Auction 0.150% previous
• 15:30 US 6-Months Bill Auction 0.170% previous
• 15:30 US 3-Years Note Auction 0.230% previous
Looking Ahead - Events, Other Releases (GMT)
• 13:45 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday as dismissal German industrial output underlined the severe economic damage caused. German industrial output posted a record plunge in April as the coronavirus pandemic forced manufacturers in Europe’s largest economy to halt production, with firms expecting a bumpy road ahead despite a massive stimulus package. Industrial output dropped by 17.9% on the month, figures released by the Statistics Office showed . Immediate resistance can be seen at 1.1379 (Higher BB), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1260 (5 DMA), a break below could take the pair towards 1.1178 (9 DMA).
GBP/USD: Sterling edged higher against the dollar on Monday, as plans to ease coronavirus lockdowns in the UK and signs the economy may bounce back supported sterling. The pound has risen 2.8% against the dollar this month as several economies re-open from lockdowns, weakening demand for the U.S. currency. British Prime Minister Boris Johnson is planning to relax rules on outdoor dining and weddings, as well as speeding up government investment plans to limit the economic damage from the coronavirus, newspapers reported on Saturday .Immediate resistance can be seen at 1.2680 (Higher BB), an upside break can trigger rise towards 1.2772 (23.6% fib).On the downside, immediate support is seen at 1.2597 (5 DMA), a break below could take the pair towards 1.2501 (38.2 % fib).
USD/CHF: The dollar gained against the Swiss franc on Monday as better-than-expected U.S. employment data raised expectations for a quicker global economic revival on Friday. Investors are now waiting for more information about a European Union recovery fund proposed last month - a 750 billion-euro plan to prop up European economies hammered by the coronavirus pandemic.. Immediate resistance can be seen at 0.9652 (38.2 % fib), an upside break can trigger rise towards 0.9666 (21 DMA).On the downside, immediate support is seen at 0.9607 (5 DMA), a break below could take the pair towards 0.9572 (50% fib ).
USD/JPY: The dollar declined against the Japanese yen on Monday as investors awaited the outcome of a two-day U.S. Federal Reserve meeting ending on Wednesday. Sentiment has improved dramatically in the currency market as traders focus on signs of a rebound from the coronavirus outbreak as economies reopen from lockdowns, which has hurt the dollar and driven money into so-called risk-on trades. Strong resistance can be seen at 109.70 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.11 (5 DMA), a break below could take the pair towards 108.48 (9 DMA).
Equities Recap
European shares pulled back from three-month highs on Monday, with losses in healthcare and technology stocks stopping a recent rally on hopes of a post-coronavirus economic recovery.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 0.14 percent, Germany's Dax was up by 0.06 percent, France’s CAC was last down by 0.05 percent.
Commodities Recap
Gold rose on Monday, helped by technical buying after the previous session’s steep fall, while investors await the U.S. Federal Reserve’s monetary policy meeting following a surprise rise in employment numbers.
Spot gold rose 0.6% to $1,695.70 an ounce by 1002 GMT. U.S. gold futures climbed 1% to $1,699.90.
Oil climbed on Monday after major producers agreed to extend a deal on record output cuts to the end of July and as China’s crude imports hit an all-time high in May.
Brent crude was up 49 cents, or 1.2%, at $42.79 per barrel, by 1040 GMT, while U.S. West Texas Intermediate (WTI) crude rose 27 cents, or 0.7%, to $39.82 a barrel.
