Posted at 20 June 2023 / Categories Market Roundups
Market Roundup
• Canada May RMPI (YoY) -18.4%,-12.8% forecast,-10.8% previous
•Canada May RMPI (MoM) -4.9%, 1.7% forecast,2.9% previous
• Canada May IPPI (YoY) -6.3%, -5.8% forecast,-3.5% previous
•Canada May IPPI (MoM) -1.0%, 1.4%forecast,-0.2% previous
•French 12-Month BTF Auction 3.605%,3.429% previous
•French 3-Month BTF Auction 3.387%,3.323% previous
•French 6-Month BTF Auction 3.499%, 3.410% previous
•US Jun NAHB Housing Market Index 55,51 forecast,50 previous
Looking Ahead Economic Data(GMT)
• 01:15 China PBoC Loan Prime Rate 3.55% forecast, 3.65% previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Australia RBA Meeting Minutes
•01:35 Australia RBA Assist Gov Kent Speaks
•03:40 Australia RBA Assist Gov Bullock Speaks
Currency Summaries
EUR/USD: The euro eased against dollar on Monday as investors digested a slew of monetary policy decisions by central banks last week and looked ahead to a crunch decision by the Bank of England on Thursday. Traders will also closely watch U.S. congressional testimony scheduled to be given by Federal Reserve chair Jerome Powell on Wednesday and Thursday this week for any hints on the future path for rates in the world's largest economy. The euro dipped 0.2% to $1.09230, trading close to a one-month peak .Immediate resistance can be seen at 1.0973 (23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0904(Daily low), a break below could take the pair towards 1.0883( (38.2%fib).
GBP/USD: The pound steadied on Monday as investors waited for British inflation data and a Bank of England decision later in the week. The pound was down 0.13% against the dollar at $1.281, not far below the 14-month high of $1.285 touched on Friday. Sterling has rallied against both major currency pairs over recent weeks as economic data has suggested inflation is far more stubborn in Britain than in the United States or Europe. The data has caused traders to factor in more rate hikes from the Bank of England . Immediate resistance can be seen at 1.2849(23.6%fib), an upside break can trigger rise towards 1.2900 (Psychological level).On the downside, immediate support is seen at 1.2769(Daily low), a break below could take the pair towards 1.2716(38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday, with the currency consolidating some recent gains as oil prices fell and investors awaited testimony later this week by U.S. Federal Reserve Chair Jerome Powell. U.S. markets were closed on Monday for a holiday. Traders will closely watch U.S. congressional testimony scheduled to be given by Powell on Wednesday and Thursday after the Fed’s move last week to skip a rate hike bolstered investor sentiment. The loonie was down 0.1% at 1.3215 to the greenback, after trading in a range of 1.3180 to 1.3228. On Friday, it touched a nine-month high at 1.3176. Immediate resistance can be seen at 1.3231 (5DMA), an upside break can trigger rise towards 1.3294(38.2%fib).On the downside, immediate support is seen at 1.3177 (23.6%fib), a break below could take the pair towards 1.3148(Lower BB).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Monday as investors continued to digest last week's raft of central bank meetings - including a decision from the Bank of Japan . Later in the week include data on Japanese consumer price inflation for May on Friday. The annual core CPI rate is expected to ease to 3.1% from 3.4% in April.The Bank of Japan last week left its ultra-loose policy unchanged and signaled it is in no rush to change its dovish stance even though inflation has exceeded the BOJ's 2% target for over a year. Strong resistance can be seen at 141.93(Daily high) an upside break can trigger rise towards 142.48(23.6%fb).On the downside, immediate support is seen 140.51(38.2%fib), a break below could take the pair towards 139.80(14DMA)
Equities Recap
European shares fell on Monday, as investors awaited further stimulus measures from China to revive demand and eyed testimony from Federal Reserve Chair Jerome Powell this week for more cues on the U.S. central bank's rate outlook.
UK's benchmark FTSE 100 closed down by 0.71 percent, Germany's Dax ended up by 0.96 percent, France’s CAC finished the day down by 1. 01 percent.
US stock market was closed on account of Juneteenth
Commodities Recap
Gold prices moved lower in holiday-thinned trade on Monday, as the U.S. dollar bounced back from the previous session’s lows, with markets looking ahead to U.S. Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill later in the week.
Spot gold was down 0.3% to $1,952.00 per ounce by 10 a.m. EDT (1400 GMT). U.S. gold futures fell 0.4% to $1,964.00. Trading is expected to be slow with U.S. markets closed for the Juneteenth holiday.
Oil prices fell on Monday as questions over China's economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.
Brent crude settled down 48 cents, or 0.6%, to $76.13 a barrel while U.S. West Texas Intermediate (WTI) crude was down 49 cents, or 0.7%, to $71.29 at 1935 GMT. Trading volumes were thin due to a U.S. holiday.