Market Roundup
• Swiss May PPI (MoM) -0.5%,-1.3% previous
• Swiss May PPI (YoY) -4.5%,-4.0% previous
• Italian May HICP (MoM) -0.3%,-0.2% forecast, 0.5% previous
• Italian May CPI (YoY) -0.2%,-0.1% forecast, 0.0% previous
•Italian May CPI (MoM) -0.2%,-0.1% forecast, 0.1% previous
•Italian May CPI Ex Tobacco (MoM) -0.4%,-0.1% previous
•EU April Trade Balance 2.9B, 28.2B previous
•EU May Reserve Assets Total 895.81B, 909.92B previous
•US June NY Empire State Manufacturing Index -27.50 forecast, -48.50 previous
• Canada April Manufacturing Sales (MoM) -18.7% forecast, -9.2% previous
• 13:00 French 3-Month BTF Auction -0.514% previous
• 13:00 French 6-Month BTF Auction -0.513% previous
•13:00 French 12-Month BTF Auction -0.488% previous
Looking Ahead - Events, Other Releases (GMT)
• 15:30 US 6-Month Bill Auction 0.185% previous
• 15:30 US 3-Month Bill Auction 0.170% previous
•16:00 Russia May Budget Balance % of GDP 0.40% previous
• •US April US April Overall Net Capital Flow 349.90B previous
••US April US April Foreign Buying, T-bonds -299.30B previous
•20:00 US April TIC Net Long-Term Transactions
Looking Ahead - Events, Other Releases (GMT)
• 15:00 US FOMC Member Kaplan Speaks
• 15:30 US FOMC Member Daly Speaks
Fxbeat
EUR/USD: The euro traded little changed against dollar on Monday as fears of a second wave of the coronavirus in Beijing kept invrstors cautious. Traders are also monitoring a spike in coronavirus cases in the United States, as fears grow that another outbreak could inflict greater damage on the global economy. The global economy has only just regained its footing after the pandemic slammed the breaks on business activity earlier this year.Another large outbreak could roil financial markets, which had been rallying recently on hopes for economic recovery. Immediate resistance can be seen at 1.1287 (23.6% fib), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1223 (Daily low), a break below could take the pair towards 1.1164 (38.2 %fib).
GBP/USD: Sterling declined against the dollar on Monday as fears of a second wave of coronavirus hit risk sentiment and global markets, with investors also nervous ahead of a key meeting on Brexit negotiations. A fresh coronavirus outbreak in China and rising infection numbers in the United States even as major economies have begun lifting lockdowns put financial markets on the backfoot at the start of the week, with selling of stocks and risk currencies across the board. The pound took a beating, falling for a third straight session, and down 0.1% against the dollar at $1.2542 by 1230 GMT. Immediate resistance can be seen at 1.2556 (Daily high), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2528 (38.2%fib), a break below could take the pair towards 1.2443 (50% fib).
USD/CHF: The dollar dipped against the Swiss franc on Monday as fears of a second wave of coronavirus infections in China sent investors scurrying for safe-havens. Risk sentiment took a knock after Beijing recorded dozens of new COVID-19 cases in recent days, all linked to a major wholesale food market. Investors are also fretting over a spike in cases in the United States. Another large coronavirus outbreak could roil financial markets, which had been rallying recently on hopes for economic recovery. Immediate resistance can be seen at 0.9547 (50% fib), an upside break can trigger rise towards 0.9600 (Psychological level).On the downside, immediate support is seen at 0.9461(38.2% fib), a break below could take the pair towards 0.9362 (23.6%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as investors avoided making big bets before a Bank of Japan policy meeting ending Tuesday. No major changes are expected, but some investors may focus on Governor Haruhiko Kuroda’s views on growing interest in its yield curve control policy. The safe-haven Japanese yen held firm against the dollar and was little changed from Friday's close at 107.41. Strong resistance can be seen at 107.57(Daily high), an upside break can trigger rise towards 107.66 (38.2).On the downside, immediate support is seen at 106.98 (Daily low), a break below could take the pair towards 106.00 (Psychological level).
Equities Recap
European shares tumbled on Monday as concerns of second wave of corona virus infections grew with Beijing reporting record number of news cases ,while underwhelming economic data from china also weighed on sentiment.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading down at 1.08 percent, Germany's Dax was down by 1.15 percent, France’s CAC finished was down by 1.17 percent.
Commodities Recap
Gold slipped on Monday as the dollar lingered near a more than one-week high, but the decline was limited by fears of a second wave of coronavirus infections in Beijing.
Spot gold was down 0.7% at $1,718.13 per ounce as of 0929 GMT. U.S. gold futures slipped 0.8% to $1,722.70.
Oil prices fell on Monday as new coronavirus infections hit China, Japan and the United States, adding to concerns that a resurgence of the virus could hamper a recovery in fuel demand.
Brent crude was down 15 cents, or 0.4%, at $38.58 a barrel by 0959 GMT. U.S. West Texas Intermediate crude was down 49 cents, or 1.3%, at $35.77.
