Posted at 05 July 2021 / Categories Market Roundups
Market Roundup
• Italian June Services PMI 56.7, 56.0 forecast, 53.1 previous
• Italian June Composite PMI 58.3, 55.7 previous
• French Jun Markit Composite PMI 57.4 , 57.1 forecast, 57.0 previous
• French Jun Services PMI 57.8,57.4 forecast, 56.6 previous
•German Jun Composite PMI 60.1,60.4 forecast, 60.4 previous
•German Jun Services PMI 57.5, 58.1 forecast, 52.8 previous
• EU June Services PMI 58.3,58.0 forecast, 55.2 previous
• EU Jun Markit Composite PMI 59.5,59.2 forecast, 57.1 previous
• UK June Composite PMI 62.2, 61.7 forecast, 62.9 previous
• UK Jun Car Registration (YoY) 28.0%,674.1% previous
• UK Jun Services PMI 62.4 ,61.7 forecast, 62.9 previous
Looking Ahead - Economic Data (GMT)
• 13:00 French 6-Month BTF Auction -0.650% previous
• 13:00 French 3-Month BTF Auction -0.651% previous
• 13:00 French 12-Month BTF Auction -0.648% previous
• 13:30 Canada BoC Business Outlook Survey
Looking Ahead - Economic events and other releases (GMT)
•21:30 ECB's Enria Speaks
•22:30 ECB's De Guindos Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Monday as euro was supported by upbeat Euro zone business activity data. Euro zone businesses expanded activity at the fastest rate in 15 years in June as the easing of more coronavirus restrictions brought life back to the bloc’s dominant service industry, a survey showed on Monday. IHS Markit’s final composite Purchasing Managers’ Index (PMI), seen as a good gauge of economic health, jumped to 59.5 last month from May’s 57.1, its highest level since June 2006. Immediate resistance can be seen at 1.1901 (11DMA), an upside break can trigger rise towards 1.1920 (38.2%fib).On the downside, immediate support is seen at 1.1835 (23.6%fib), a break below could take the pair towards 1.1804 (June 2nd low).
GBP/USD: The British pound rose on Monday as investors expected UK government to announce that it will continue its plans to fully reopen the UK economy later this month despite an increase in COVID19 cases. The final step in relieving the lockdown was postponed by four weeks last month to allow more people to get vaccinated as the now prevalent delta variant of the coronavirus is driving an increase in COVID19 cases. The pound edged 0.20% higher to $1.3853 versus the dollar at 11:45 GMT. Immediate resistance can be seen at 1.3856(38.2% fib), an upside break can trigger rise towards 1.3876 (14DMA).On the downside, immediate support is seen at 1.3810(5DMA), a break below could take the pair towards 1.3751 (23.6%fib).
USD/CHF: The dollar was little changed against the Swiss franc on Monday as mixed labor market data last week allayed investor fears of an hastening end to monetary stimulus. Traders' focus this week is on minutes from the Fed's June meeting - due Wednesday - and on a meeting of Australia's central bank, both having the potential to excite currencies market amid uncertainty around policy outlook.At ( GMT 11:40),greenback edged higher 0.02 % versus the Swiss franc to 0.9214.Immediate resistance can be seen at 0.9224 (38.2%fib), an upside break can trigger rise towards 0.9286 (23.6%fib).On the downside, immediate support is seen at 0.9189 (5DMA), a break below could take the pair towards 0.973 (14DMA).
USD/JPY: The dollar declined against yen on Monday as investors focused on the weaker aspects of an overall strong US non-farm data announced on Friday. Data from the US showed that job growth rose 850,000 jobs in June, after rising 583,000 in May. While this was positive for the country, the unemployment rate rose to 5.9% from 5.8% a month ago, most likely dragging the dollar down as fears of the Fed's rate hike eased. At (GMT 11:40),greenback edged lower 0.13% versus the Japanese yen to 110.85. Strong resistance can be seen at 111.18(38.2%fib), an upside break can trigger rise towards 111.76 (23.6%fib).On the downside, immediate support is seen at 110.85(11DMA), a break below could take the pair towards 110.64 (50%fib).
Equities Recap
European stock markets fell below record highs on Monday as spread of Delta variant of corona virus heightening concerns about slow economic recovery.
At (GMT 11:43),UK's benchmark FTSE 100 was last trading higher at 0.69 percent, Germany's Dax was down by 0.06percent, France’s CAC was trading up by 0.36 percent.
Commodities Recap
Gold fell Monday after hitting a two-week high in the previous session as investors waited for more economic data from US for clues about the Federal Reserve's monetary policy plans.
Spot gold was down 0.1% to $1,785.41 per ounce by 0037 GMT, after hitting its highest since June 18 at $1,794.86 on Friday. U.S. gold futures rose 0.1% to $1,785.20.
Oil prices rose on Monday, driven higher by a disagreement inside OPEC+ about output policy that led to a third day of talks to try to break an impasse among producers in the group.
Brent was up 30 cents, or 0.4%, at $76.47 a barrel by 0935 GMT, trading around 2-1/2 year highs. U.S. oil gained 32 cents, or 0.4%, to $75.48 a barrel.