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  |   Market Roundups


Europe Roundup: Sterling was largely unmoved against dollar, European shares gain, Gold slides over 1%,Oil gains as demand improves, supplies shrinks-June 14th,2021

Market Roundup

•Swiss May PPI (YoY) 3.2%,1.8% previous

•EU Apr Industrial Production (YoY)  39.3%,37.4% forecast,10.9% previous

•EU Apr Industrial Production (MoM)  0.8%,0.4% forecast, 0.1% previous

• Portuguese May CPI (MoM)  0.2%, 0.2% forecast, 0.4% previous

• Portuguese May CPI (YoY)  1.2%,1.2% forecast, 0.6% previous

Looking Ahead - Economic data ahead (GMT)

• 12:30 Canada April Manufacturing Sales (MoM)  -1.0% forecast, 3.5% previous

• 12:30 Canada New Motor Vehicle Sales (MoM) 173.0% previous

• 13:00 French 6-Month BTF Auction -0.641% previous

• 13:00 French 3-Month BTF Auction -0.643% previous

• 13:00 French 12-Month BTF Auction -0.636% previous

• 15:30 US 6-Month Bill Auction 0.040% previous

• 15:30 US 3-Month Bill Auction 0.025% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events


EUR/USD: The euro edged higher on Monday on bets  that European Central Bank is in no rush to reduce its aggressive emergency measures, backed by comments from its president. The eurozone economy is at a turning point, but its recovery needs to be firm and sustained before the central bank can discuss how to regain emergency support, ECB President Christine Lagarde said in an interview with Politico. Last week the ECB agreed to maintain a high rate of bond purchases to keep borrowing costs very low and policymakers had no questions about reducing support even as the economy recovered from the shock of COVID-19 crisis. Immediate resistance can be seen at 1.2134 (38.2%fib), an upside break can trigger rise towards 1.2148 (5DMA).On the downside, immediate support is seen at 1.2093 (Daily low), a break below could take the pair towards 1.2050(23.6% fib).

GBP/USD: Sterling was largely unmoved on Monday by news Britain is set to announce delay to end of COVID restrictions, as the government tries to slow a rapid rise in COVID-19 infections. Prime Minister Boris Johnson is expected to announce later a delay of four weeks to his February roadmap, under which his government signalled all social restrictions to control the spread of the disease would be lifted “no earlier” than June 21. Sterling, which has been one of the best performing currencies in 2021 as investors bet on a strong British economic rebound, hovered just below recent highs. Immediate resistance can be seen at 1.4112 (50% fib), an upside break can trigger rise towards 1.4133 (5 DMA).On the downside, immediate support is seen at 1.4061 (38.2%fib), a break below could take the pair towards 1.4000 (Psychological level).

USD/CHF: The dollar edged higher against the Swiss franc on Monday as traders cut their bearish bets on greenback before a much-anticipated Federal Reserve meeting that might signal a change in the outlook for U.S. monetary policy. The U.S. central bank begins a scheduled two-day policy meeting on Tuesday. Recent data pointing to a surge in inflation has raised concerns that price pressures following the post-COVID economic reopening could force policymakers into an earlier tapering of currency-depreciating stimulus. Immediate resistance can be seen at 0.9000 (Psychological level), an upside break can trigger rise towards 0.9020(38.2%fib).On the downside, immediate support is seen at 0.8968 (5DMA), a break below could take the pair towards 0.8932 (23.6% fib ).

USD/JPY: The dollar was little changed against the Japanese yen on Monday as trading was muted ahead of a Federal Reserve meeting this week. The U.S. central bank meeting on Wednesday will be key this week as financial markets look to see whether the Federal Reserve will reiterate that a recent rise in U.S. inflation is transitory. Investors are also eyeing the meeting to see whether the Fed could signal it is moving away from ultra-loose monetary policy earlier than expected. Strong resistance can be seen at 109.76 (38.2% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.57(5DMA), a break below could take the pair towards 109.28 (50% fib).

Equities Recap

European stocks hit a record on Monday as investors bet that global central banks would remain accommodating in their monetary policies even as the post-pandemic economic recovery accelerates.

At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading up at 0.17 percent, Germany's Dax was up by 0.10 percent, France’s CAC finished was up by 0.07 percent.

Commodities Recap

Gold prices fell more than 1% on Monday, weighed down by a stronger dollar and easing concerns about inflation, while investors awaited cues from the U.S. Federal Reserve’s policy meeting due later this week.

Spot gold was down 1.1% to $1,856.30 per ounce by 0908 GMT, after hitting its lowest since May 19 at $1,854.39. U.S. gold futures fell 1.1% to $1,858.20.

Oil prices rose on Monday, hitting their highest levels in more than two years supported by economic recovery and the prospect of fuel demand growth as vaccination campaigns in developed countries accelerate.

Brent was up 53 cents, or 0.7%, at $73.22 a barrel by 1050 GMT, its highest since May 2019.

U.S. West Texas Intermediate gained 44 cents, or 0.6%, to $71.35 a barrel, its highest since October 2018.

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