Posted at 19 July 2021 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction -0.638%, -0.637% previous
•French 3-Month BTF Auction -0.651%, -0.647% previous
•French 6-Month BTF Auction -0.640% ,-0.641% previous
• US NAHB July Housing Market Index 80 ,82, 81 previous
• US 6-Month Bill Auction 0.050% ,0.050% previous
• US 3-Month Bill Auction 0.050% ,0.050% previous
Looking Ahead –Economic Data (GMT)
• 23:50 Japan Jun CPI, n.s.a (MoM) 0.3% previous
• 23:50 Japan Jun National Core CPI (YoY) 0.2% forecast, 0.1% previous
• 23:50 Japan Jun National CPI (YoY) -0.1% previous
• 23:50 Japan Jun National CPI (MoM) 0.3% previous
• 01:30 China PBoC Loan Prime Rate 3.85% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Monday ahead of Thursday’s policy meeting of the European Central Bank (ECB), while concerns about the Delta variant of the coronavirus continued to dampen risk sentiment. ECB policymakers are set for a showdown as they chart a new policy path, with disagreements on the economic outlook and thus on how much more stimulus, mainly in bond purchases, is needed.The euro was last trading around $1.1797. Immediate resistance can be seen at 1.1802 (5DMA), an upside break can trigger rise towards 1.1821 (38.2%fib).On the downside, immediate support is seen at 1.1750 (23.6%fib), a break below could take the pair towards 1.1727(Lower BB)
GBP/USD: The British pound hit its lowest since February on Monday as global markets turned cautious over a surge in coronavirus infections, meaning that riskier currencies lost out to the safe-haven dollar. The wary moves coincide with Prime Minister Boris Johnson lifting most COVID-19 restrictions in England in what some have dubbed Freedom Day. Johnson has urged the public to remain cautious as infections in Britain are surging Immediate resistance can be seen at 1.3792 (38.2% fib), an upside break can trigger rise towards 1.3842 (21 DMA).On the downside, immediate support is seen at 1.3703 (23.6%fib), a break below could take the pair towards 1.3681 (Lower BB).
USD/CAD: The Canadian dollar weakened to a five-month low against its U.S. counterpart on Monday as a worldwide surge in coronavirus cases weighed on investor sentiment, with the currency shifting into negative territory since the start of the year. The safe-haven U.S. dollar rallied and stocks globally were facing their longest losing streak since the pandemic first hit global markets 18 months ago, as the continued spread of the highly-contagious Delta variant raised doubts about the strength of economic recovery. The Canadian dollar was trading 1.1% lower at 1.2749 to the greenback. Immediate resistance can be seen at 1.2753 (38.2%fib), an upside break can trigger rise towards 1.2832(23.6%fib).On the downside, immediate support is seen at 1.2723 (5 DMA), a break below could take the pair towards 1.2693 (50%fib).
USD/JPY: The dollar dipped against the Japanese yen on Monday as investors grew nervous about a raging coronavirus variant that could threaten the outlook for a global economic recovery. Rising virus cases, particularly of the highly infectious Delta variant, cast a pall over most risk-driven assets, and encouraged flows into safe havens such as the dollar and the Japanese yen. The yen surged against the dollar on Monday, rising to its highest since late May. The greenback was last down 0.6% at 109.44 yen .Strong resistance can be seen at 109.71(5DMA), an upside break can trigger rise towards 110.19(38.2%fib).On the downside, immediate support is seen at 109.33 (Lower BB), a break below could take the pair towards 109.14 (23.6%fib).
Equities Recap
European shares sank more than 2% on Monday, their worst session in nine months on worries that the fast-spreading Delta coronavirus variant could slow the global economic recovery.
UK's benchmark FTSE 100 closed down by 2.34 percent, Germany's Dax ended down by 2.62 percent, France’s CAC finished the day down by 2.54 percent.
The Dow sank more than 2% on Monday as fears a spike in COVID-19 cases would halt a broader economic recovery pummeled economically sensitive and travel stocks and pushed bond yields to five-month lows.
Dow Jones closed down by 2.09%percent, S&P 500 closed down by 1.58% percent, Nasdaq settled down by 1.06 % percent.
Treasuries Recap
U.S. Treasury bond yields tumbled to five-month lows on Monday as the rapid increase in new coronavirus cases sparked fears global growth would slow and hamper the reopening of economies.
The yield on benchmark 10-year notes fell 12.2 basis points to 1.177%, close to the session's low of 1.176%, a level last seen in February.
Commodities Recap
Gold inched lower in choppy trading on Monday, as a buoyant dollar offset a slump in Treasury yields to their lowest levels since February.
Gold shed 0.2% to $1,807.59 per ounce by 11:06 a.m. EDT (1806 GMT). U.S. gold futures settled 0.3% lower at $1,809.20.
Oil slumped $5 a barrel on Monday, closing out its worst day since March, after an OPEC+ agreement to boost output stoked fears of a surplus just as rising COVID-19 infections once again threaten demand.
Brent crude settled at $68.62 a barrel, losing $4.97, or 6.8%. U.S. oil futures for August delivery, which expires on Tuesday, settled at $66.42, down $5.39, or 7.5%. The September U.S. crude oil futures contract settled at $66.35, down $5.21.