Posted at 28 June 2021 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction -0.650%,-0.646% previous
• French 3-Month BTF Auction -0.651%,-0.646% previous
• French 6-Month BTF Auction-0.648%,-0.646% previous
• US Jun Dallas Fed Mfg Business Index 31.1, 34.9 previous
• US 3-Month Bill Auction 0.050%,0.045% previous
• US 6-Month Bill Auction 0.055%,0.055% previous
• Russia Business Confidence27.2%,-0 previous
Looking Ahead - Economic Data (GMT)
• 05:00 Japan May May Unemployment Rate 2.9% forecast, 2.8% previous
• 05:00 Japan May Retail Sales (YoY) 7.9% forecast,11.9% previous
• 05:20 Japan Large Retailers' Sales (MoM) 15.5% previous
• 05:20 Japan May Jobs/applications ratio 1.08 forecast, 1.09 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday as investors were on the sidelines ahead of Friday’s U.S. nonfarm payrolls report, which could determine the path of the Federal Reserve’s monetary policy. The U.S. Labor Department is expected to report a gain of 690,000 jobs in June, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month . Investors are also looking at U.S. consumer confidence data on Tuesday as well as the Institute for Supply Management’s manufacturing index on Thursday for clues as to where interest rates are headed. Immediate resistance can be seen at 1.1966 (38.2%fib), an upside break can trigger rise towards 1.2034(50%fib).On the downside, immediate support is seen at 1.1883 (23.6%fib), a break below could take the pair towards 1.1854 (21 June low).
GBP/USD: The British edged higher on Monday as traders prepare for the end of the worst month against the dollar since September, with the focus this week on political risk. This month, sterling dropped for the first time since April below $1.38 against a strengthening dollar after the U.S. Federal Reserve surprised markets by signalling it would raise interest rates and end emergency bond-buying sooner than expected. Sterling strengthened 0.04% to $1.3879 versus the dollar. Immediate resistance can be seen at 1.3897 (5DMA), an upside break can trigger rise towards 1.3930(38.2%fib).On the downside, immediate support is seen at 1.3841 (23.6% fib), a break below could take the pair towards 1.3787 (Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday, as oil prices fell and investors turned attention to economic data later in the week that could guide expectations for the Federal Reserve's interest rate outlook. The loonie was trading 0.3% lower at 1.2333 to the greenback, or 81.08 U.S. cents, after touching its weakest intraday level since last Tuesday at 1.2347. Canadian GDP data for April is due on Wednesday and the U.S. employment report is due on Friday. Immediate resistance can be seen at 1.2355(38.2%fib), an upside break can trigger rise towards 1.2434 (23.6%fib).On the downside, immediate support is seen at 1.2315 (5 DMA), a break below could take the pair towards 1.2302 (50%fib).
USD/JPY: The dollar was little changed against the Japanese yen Monday as investors awaited jobs data that could sway Federal Reserve monetary policy. The U.S. Labor Department is expected to report on Friday that nonfarm payrolls increased by 690,000 in June, after rising by 559,000 in May. The unemployment rate is forecast to have fallen to 5.7%, from 5.8% in May The dollar index was up 0.1% at 91.897,against the yen, the dollar was little changed 0.2% at 110.59. Strong resistance can be seen at 110.59 (5DMA), an upside break can trigger rise towards 111.15 (23.6% fib).On the downside, immediate support is seen at 110.50 (38.2%fib), a break below could take the pair towards 110.00 (Psychological level).
Equities Recap
European shares ended lower on Monday, with travel stocks leading losses on concerns over bans on British tourists, while a spike in Asian COVID-19 infections hit crude prices and saw energy stocks tumble more than 2%.
UK's benchmark FTSE 100 closed down by 0.88 percent, Germany's Dax ended down by 0.34 percent, France’s CAC finished the day down by 0.98 percent.
The S&P 500 and the Nasdaq were on pace to open near record levels as tech-related growth stocks edged up, while investors awaited data on the health of a U.S. labor market recovery and corporate earnings later in the week.
Dow Jones closed down by 0.44 percent, S&P 500 closed up by 0.23 percent, Nasdaq closed up by 0.98 % percent.
Treasuries Recap
U.S. Treasury yields fell on Monday as the market prepared for the release of June employment data later in the week to gauge the strength of the economic recovery from the coronavirus pandemic.
The benchmark 10-year yield was last down 5.4 basis points at 1.4816%. Last week, it notched its largest weekly gain since March, but has remained below 1.6% since early June.
Commodities Recap
Gold drifted sideways on Monday as investors were caught between fears of a spike in the highly transmissible Delta strain of the coronavirus and expectations of an early interest rate hike by the U.S. Federal Reserve.
Spot gold was steady at $1,779.70 per ounce by 13:31 p.m. EDT (1731 GMT). U.S. gold futures settled up 0.2% at $1,780.70.
Oil prices fell 2% to a one-week low on Monday after hitting their highest since 2018 earlier in the session, as a spike in COVID-19 cases in Asia and Europe put a brake on the rally before this week's OPEC+ meeting.
Brent futures fell $1.50, or 2.0%, to settle at $74.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.14, or 1.5%, to settle at $72.91.