Posted at 26 June 2023 / Categories Market Roundups
Market Roundup
• Canada Wholesale Sales (MoM) 3.5%,-1.4% previous
• Canada Manufacturing Sales (MoM) 0.8%,0.3% previous
• French 6-Month BTF Auction 3.551%,3.499% previous
• French 3-Month BTF Auction 3.431%, 3.387% previous
• French 12-Month BTF Auction 3.623% , 3.605% previous
• US Jun Dallas Fed Mfg Business Index -23.2, -26.5 forecast,-29.1 previous
• US 3-Month Bill Auction 5.180%,5.130% previous
• US 6-Month Bill Auction 5.215%, 5.170% previous
• US 2-Year Note Auction 4.670%, 4.300% previous
Looking ahead Economic Data(GMT)
• 05:00 Japan BoJ Core CPI (YoY) 3.0% forecast, 2.9% previous
Looking ahead Events and Other Releases (GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors watched for potential ripple effects of the aborted weekend mutiny in Russia. A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern Russian city of Rostov under a deal that halted their rapid advance on the capital.However, the challenge has raised questions about President Vladimir Putin's grip on power and some concern about possible disruption of Russian oil supply. Immediate resistance can be seen at 1.0928(38.2%fib), an upside break can trigger rise towards 1.0963 (June 23rd high).On the downside, immediate support is seen at 1.0848(50%fib), a break below could take the pair towards 1.0777( (61.8%fib).
GBP/USD: Sterling was little changed against the dollar on Monday as traders grappled with the implications of the previous week's outsized rate hike by the Bank of England. Monday's moves in sterling were in the shadow of the Bank of England's larger-than-expected 50 basis point interest rate hike, which pushed market pricing for the peak in the Britain's key interest rate over 6%, implying a further over 100 basis points of tightening.The pound rose was last trading little changed at 1.2710. Immediate resistance can be seen at 1.2762(9DMA), an upside break can trigger rise towards 1.2800(23.6%fib).On the downside, immediate support is seen at 1.2672 (38.2%fib), a break below could take the pair towards 1.2633(15th June low).
USD/CAD: The Canadian dollar strengthened to a nine-month high against its U.S. counterpart on Monday, as investors respected bullish technical signals for the currency and awaited inflation data that could cement another rate hike by the Bank of Canada. The gain for the Canadian currency came as the U.S. dollar lost ground against a basket of major currencies and the price of oil, one of Canada’s major exports, settled 0.3% higher at $69.37 a barrel.The loonie was trading 0.3% higher at 1.3145 to the greenback , after touching its strongest level since September at 1.3134.Immediate resistance can be seen at 1.3183 (5DMA), an upside break can trigger rise towards 1.3270(38.2%fib).On the downside, immediate support is seen at 1.3142 (23.6%fib), a break below could take the pair towards 1.3069 (Lower BB).
USD/JPY: The U.S. dollar declined against Japanese yen on Monday following comments from the country's top currency diplomat. The dollar was softer against the yen, after Vice Finance Minister for International Affairs Masato Kanda said Japan was not ruling out any options in possible responses to excessive currency moves. The Japanese yen strengthened 0.16% versus the greenback at 143.40 per dollar. The Bank of Japan last intervened in the yen when it traded around 145 per dollar. Strong resistance can be seen at 143.64(23.6%fib) an upside break can trigger rise towards 144.00(Psychological level).On the downside, immediate support is seen 142.30(5DMA), a break below could take the pair towards 141.73(38.2%fib)
Equities Recap
European shares inched lower on Monday, led by healthcare, while defence stocks fell after an aborted weekend mutiny in Russia.
UK's benchmark FTSE 100 closed down by 0. 11 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day up by 0. 29 percent.
U.S. stocks closed lower on Monday, as investors were wary of betting on riskier assets before seeing the outcome of Russia's aborted weekend mutiny.
Dow Jones closed down by 0.04 percent, S&P 500 ended down by 0.45 percent, Nasdaq finished the day down by 1.16 percent.
Treasuries Recap
Treasury yields edged lower on Monday as the market grappled with a Federal Reserve message that interest rates would stay higher for longer as the U.S. economy continued to offer mixed signals on the likelihood of recession.
The two-year Treasury yield, which typically moves in step with interest rate expectations, fell 1.9 basis points at 4.731%, while the yield on benchmark 10-year notes slid 2.2 basis points to 3.717%.
Commodities Recap
Gold climbed on Monday after a weaker dollar made bullion more attractive for overseas investors, although prices hovered close to three-month lows as traders assessed prospects of more interest rate hikes by the U.S. Federal Reserve.
Spot gold rose 0.2% to $1,925.99 per ounce by 0719 GMT, while gold futures were up 0.3% at $1,936.00.
Oil prices rose slightly in choppy trading on Monday, as investors balanced concerns about global demand growth against upcoming supply disruptions that could be exacerbated by political instability in Russia.
Brent crude futures rose 33 cents, or 0.5%, to settle at $74.18 a barrel, while U.S. West Texas Intermediate (WTI) futures rose 21 cents, or 0.3%, to settle at $69.37 a barrel.