Posted at 13 June 2023 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction 3.429%, 3.430% previous
• French French 3-Month BTF Auction 3.323%,3.267% previous
• French 6-Month BTF Auction 3.410%,3.394% previous
•US Consumer Inflation Expectations 4.1%,4.4% previous
•US 6-Month Bill Auction 5.155%,5.250% previous
•US 3-Year Note Auction 4.202%,3.695% previous
•US 3-Month Bill Auction 5.150%,5.220% previous
•US 10-Year Note Auction 3.791%, 3.448% previous
Looking Ahead Economic Data(GMT)
•1:30 Australia May NAB Business Survey 10 forecast,14 previous
•1:30 Australia May NAB Business Confidence 0 forecast,0 previous
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday ahead of key inflation data and U.S. Federal Reserve and European Central Bank meetings later in the week. The Fed will end its two-day meeting on Wednesday, while the European Central Bank will deliver rate decisions on Thursday .Analysts expect the ECB to raise rates by 25 basis points (bps) and to signal that there is more ground to cover, as it wants to avoid delivering dovish signals which might prompted an unwanted easing of financial conditions. The euro rose 0.2% to $1.0768, having risen 0.4% last week, its first weekly gain in roughly a month. Immediate resistance can be seen at 1.0792(38.2%fib), an upside break can trigger rise towards 1.0818(May 23rd high).On the downside, immediate support is seen at 1.0736(5DMA), a break below could take the pair towards 1.0708(23.6%fib).
GBP/USD: Sterling held mostly steady on Monday, ahead of a week packed with central bank decisions and key economic data, starting with a read on the UK jobs market that could be pivotal in setting expectations for what the Bank of England may do next week. The currency market showed little reaction to developments on the political front in the UK, after the surprise resignation from parliament of former Conservative Prime Minister Boris Johnson and two fellow lawmakers over the weekend.The pound, which is heading for its third successive quarterly gain against the dollar, was up 0.1% at $1.2594. Immediate resistance can be seen at 1.2584 (23.6%fib), an upside break can trigger rise towards 1.2615(Higher BB).On the downside, immediate support is seen at 1.2511(5DMA), a break below could take the pair towards 1.2454(38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, giving back some recent gains, as oil prices tumbled and investors managed their positions ahead of U.S. data this week that could provide clues on the Federal Reserve policy outlook. Investors widely expect the Fed's policy-setting Federal Open Market Committee will keep its benchmark overnight interest rate steady in the 5.00%-5.25% range at the end of its two-day meeting on Wednesday. The loonie was trading 0.3% lower at 1.3375 to the greenback, after touching on Friday its strongest intraday level in nearly two months at 1.3311.Immediate resistance can be seen at 1.3372 (38.2% fib), an upside break can trigger rise towards 1.3390 (5DMA).On the downside, immediate support is seen at 1.3315(23.6% fib), a break below could take the pair towards 1.3291 (Lower BB).
USD/JPY: The U.S. dollar trading in a narrow range against Japanese yen on Monday as investors remained cautious ahead of several key policy decisions due this week, with the Federal Reserve expected to keep rates on hold for the first time since January 2022.U.S. May inflation data is due on Tuesday as the Fed kicks off its two-day meeting. Early estimates show the pace of month-on-month inflation easing, up 0.2% in May after having risen 0.4% in April .Traders see a near 75% probability that the Fed will keep its benchmark overnight interest rate in the 5.00%-5.25% range, and a 54% chance of a 25 bps hike in July, according to CME’s Fedwatch tool. Strong resistance can be seen at 140.33(23.6%fib) an upside break can trigger rise towards 141.04(higher BB).On the downside, immediate support is seen 139.00(5DMA), a break below could take the pair towards 138.23(38.2%fib)
Equities Recap
Germany's DAX index led gains among its European peers on Monday, boosted by Adidas shares after an analyst upgrade, while investor focus was largely on major central bank policy meetings scheduled through the week.
UK's benchmark FTSE 100 closed up by 0.11 percent, Germany's Dax ended up by 0.93 percent, France’s CAC finished the day up by 0.52 percent.
The S&P 500 and the Nasdaq rallied on Monday to their highest closing levels since April 2022, while Oracle hit a record high ahead of quarterly results as investors awaited inflation data and the Federal Reserve's interest rate decision this week.
Dow Jones was trading up by 0.56 percent, S&P 500 was trading up by 0.93 percent, Nasdaq was trading up by 1.53 percent.
Treasuries Recap
Longer-dated U.S. Treasury yields inched higher on Monday as investors awaited upcoming inflation data and a policy announcement from the Federal Reserve in the coming days.
The yield on the benchmark 10-year Treasury notes was up 0.6 basis point at 3.751%
Commodities Recap
Gold prices dipped on Monday as the dollar and bond yields firmed, while traders braced for a busy week of key U.S. inflation prints and major central bank policy meetings, with all eyes on the Federal Reserve.
Spot gold fell 0.4% to $1,953.77 per ounce by 1:40 p.m. EDT (1740 GMT). U.S. gold futures settled 0.4% lower at $1,969.70.
Oil prices fell by around $3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a U.S. Federal Reserve meeting later this week.
Brent crude futures fell $2.95, or 3.9%, to settle at $71.84 a barrel, their lowest since Dec. 2021. West Texas Intermediate crude fell $3.05, or 4.4%, to settle at $67.12 a barrel.