Posted at 06 July 2021 / Categories Market Roundups
Market Roundup
•US Jun Services PMI 64.6, 64.8 previous
•US June US Markit Composite PMI 63.7, 63.9 forecasts,68.7previous
•US June ISM Non-Manufacturing Business Activity 60.4, 66.4 forecast, 66.2 previous
•US June CB Employment Trends Index 109.84,107.40 previous
•US June ISM Non-Manufacturing PMI 60.1 ,63.5 forecast, 64.0 previous
•US June ISM Non-Manufacturing Prices 79.5,80.6 previous
•US June ISM Non-Manufacturing Employment 49.3 ,55.3 previous
•US Jun ISM Non-Manufacturing New Orders 62.1,63.9 previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Foreign Reserves (USD) 1,387.5B previous
•01:00 New Zealand ANZ Business Confidence-0.6 previous
•01:00 Japan May Coincident Indicator (MoM) 2.4% previous
•01:00 Japan May Leading Index (MoM)
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Tuesday as disappointing data tarnished some of the single currency's earlier gains. Investor sentiment in Germany, the euro zone's biggest economy, remains at a high level but fell sharply in July, the ZEW economic research institute reported, while data showed orders for German-made goods posted their sharpest slump in May since the first lockdown in 2020.The data dented the euro which weakened about 0.2% to $1.1819 in US session. It fell to an early April low of $1.1807 last week. Immediate resistance can be seen at 1.1841 (5DMA), an upside break can trigger rise towards 1.1895 (38.2%fib).On the downside, immediate support is seen at 1.1808 (23.6%fib), a break below could take the pair towards 1.1723(Lower BB).
GBP/USD: Sterling initially gained against dollar on Tuesday but reversed course as markets looked forward to England becoming the first major country to formally start living with the coronavirus by dropping COVID-related curbs in two weeks' time. Johnson confirmed the government aimed to end restrictive measures on July 19, with a final decision to be taken next week. Sterling was down 0.34% against the dollar at $1.3800 after having hit a one-week high of $1.3888. Immediate resistance can be seen at 1.3822 (9DMA), an upside break can trigger rise towards 1.3868 (38.2%fib).On the downside, immediate support is seen at 1.3774(23.6%fib), a break below could take the pair towards 1.3680 (Lower BB).
USD/CAD: The Canadian dollar fell to a two-month low against its broadly stronger U.S. counterpart on Tuesday, as oil prices tumbled and investors weighed signs that the pace of global economic recovery is peaking. Canada is a major exporter of commodities, including oil, so the loonie has benefited this year from the global economy's rebound from the coronavirus crisis. The Canadian dollar was trading 0.9% lower at 1.2456 to the greenback , its biggest decline since Feb. 26. Immediate resistance can be seen at 1.2476 (23.6%fib), an upside break can trigger rise towards 1.2523 (Higher BB).On the downside, immediate support is seen at 1.2401 (38.2%fib), a break below could take the pair towards 1.2380(9DMA).
USD/JPY: The dollar edged higher against the Japanese yen on Tuesday as traders positioned themselves ahead of the release of the minutes from the U.S. Federal Reserve's pivotal June meeting. Market participants will be looking for clues as to when the Fed will begin to taper its pandemic-induced bond-buying spree amid a recovering economy, when minutes of the June meeting are published on Wednesday. Strong resistance can be seen at 110.92(23.6%fib), an upside break can trigger rise towards 111.20(July 5th high).On the downside, immediate support is seen at 110.49(38.2%fib), a break below could take the pair towards 110.14 (50%fib).
Equities Recap
European stocks retreated sharply from two-week highs on Tuesday, breaking a three-day winning streak as investors flocked to bonds on worries over risks to rebounding global economic growth.
UK's benchmark FTSE 100 closed down by 0.89 percent, Germany's Dax ended down by 0.96 percent, France’s CAC finished the day down by 0.96 percent.
U.S. stocks were lower in Tuesday afternoon trading, led by declines in the Dow Jones Industrial Average as investors took profits in some of the groups tied most closely to economic growth.
Dow Jones ended down by 0.60 percent, S&P 500 ended lower by 0.20 percent, Nasdaq was settled up by 0.17 percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday, with the benchmark 10-year note poised for its longest streak of daily declines in 16 months as investors look for clues on the Federal Reserve's policy path and after data signaled the service sector expanded at a slower pace.
The yield on 10-year Treasury notes was down 6.4 basis points to 1.368%. The yield hit a low of 1.352%, its lowest since Feb. 24 and was on track for a sixth straight session of declines.
Commodities Recap
Gold rose on Tuesday, bouncing above the key $1,800 level at one point, bolstered by a retreat in U.S. bond yields while investors watched for minutes from the Federal Reserve’s last policy meeting to gauge interest rate trajectory.
Spot gold rose 0.2% to $1,794.37 per ounce by 2:13 p.m. EDT (1813 GMT), after jumping to its highest level since June 17 at $1,814.78. U.S. gold futures settled 0.6% higher at $1,794.2.
Oil prices tumbled on Tuesday in a volatile session after OPEC producers canceled a meeting when major players were unable to come to an agreement to increase supply.
Brent crude settled down $2.63 a barrel, or 3.4%, to $74.53, after hitting a session peak of $77.84, its highest since October 2018.
U.S. West Texas Intermediate (WTI) crude futures settled down $1.79, or 2.4%, to $73.37 after touching $76.98, highest since November 2014.