Posted at 06 June 2022 / Categories Market Roundups
Market Roundup
• China lifts more COVID-19 curbs; miners luxury stocks rise
•Risk appetite supports the common currency
•Yen around multi-year lows versus euro and dollar
•Chinese yuan just off one month high
Looking Ahead Economic Data
•13:00 French 6-Month BTF Auction -0.432% previous
•13:00 French 3-Month BTF Auction -0.561% previous
•13:00French 12-Month BTF Auction 0.092% previous
•14:00 May CB Employment Trends Index 120.18 previous
•15:30 US 3-Month Bill Auction 1.120% previous
•15:30 US 6-Month Bill Auction 1.580% previous
Looking Ahead - Events, Other Releases (GMT)
• No events ahead
Fxbeat
EUR/USD: The euro edged higher on Monday as risk appetite picked up while investors awaited a European Central Bank (ECB) policy meeting later this week. Markets, which have already priced in several ECB rate increases and the end of bond-buying stimulus, want more clarity on what comes after.Hedge funds are already loaded up on euros. U.S. futures market data shows speculators are holding their most significant net-long euro position in 12 weeks. Money markets are pricing in 130 basis points (bps) of ECB rate increases by year-end, including a 30% chance of an additional 25 bps move beyond the fully priced 25 bps in July .Immediate resistance can be seen at 1.0759(38.2%fib), an upside break can trigger rise towards 1.0787(30th May high).On the downside, immediate support is seen at 1.0714(5DMA), a break below could take the pair towards 1.0651(23.6%fib).
GBP/USD: The British pound rose on Monday against a broadly weaker dollar, hours before Prime Minister Boris Johnson was due to face a confidence vote called by members of his Conservative Party.Johnson is seen surviving the vote which was called after a growing number of lawmakers in the governing Conservative Party questioned the British leader's flagging authority over the partygate scandal, which led to police fines for gatherings that broke COVID-19 lockdown rules. t 0826 GMT, sterling was 0.62% higher against the dollar at $1.25690. It rose 0.45% to 85.465 pence versus the euro. Immediate resistance can be seen at 1.2578(50%fib),an upside break can trigger rise towards 1.2677(61.8%fib).On the downside, immediate support is seen at 1.2475(38.2%fib), a break below could take the pair towards 1.2359(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as investors positioned themselves for more direction on interest rates and the economy from a string of central bank meetings spilling into next week.The European Central Bank meets on Thursday, though it is not expected to begin raising interest rates until July, with rate setters at the U.S. Federal Reserve and Bank of England gathering next week. Markets will be on tenterhooks for the U.S. consumer price report on Friday, especially after EU inflation shocked many with a record high last week. Immediate resistance can be seen at 0.9642 (23.6%fib), an upside break can trigger rise towards 0.9701 (April 27th high).On the downside, immediate support is seen at 0.9606 (5DMA), a break below could take the pair towards 0.9558 (38.2%fib).
USD/JPY: The dollar strengthened on Monday as yen was on backfoot ahead of a busy policy-focused week in which inflation is in the spotlight with a major European Central Bank meeting and U.S. consumer price data scheduled. The Japanese yen was hovering around its multi-year lows against the dollar and the euro, with analysts expecting the Bank of Japan (BoJ) to stick to its super-low interest rate policy stance. Governor Haruhiko Kuroda said the BoJ’s top priority was to support the economy, stressing an unwavering commitment to maintaining a “powerful” monetary stimulus. The yen was at 130.61 just off its two-decade low of 131.35 against the dollar. Strong resistance can be seen at 131.19 (Higher BB), an upside break can trigger rise towards 131.82(23.6%fib).On the downside, immediate support is seen at 130.14 (5DMA), a break below could take the pair towards 129.10(38.2%fib).
Equities Recap
European shares rose strongly on Monday, helped by banks and commodity-linked stocks, while investors kept an eye out for U.S. inflation data and details from a European Central Bank meeting later this week.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 1.32 percent, Germany's Dax was up by 1.26 percent, France’s CAC finished was up by 1.32 percent.
Commodities Recap
Gold prices gained on Monday, supported by a slight pullback in the dollar, with investors watching out for U.S. inflation data and major central bank policy meetings to shed light on the path of interest rate hikes.
Spot gold rose 0.2% to $1,853.89 per ounce by 1033 GMT, having slipped off a near one-month high of $1,873.79 on Friday.U.S. gold futures were up 0.4% at $1,856.80.
Oil prices hit $120 a barrel on Monday after Saudi Arabia raised crude prices for July and amid doubts that an increased OPEC+ monthly output target will help ease tight supply.
Brent crude firmed 32 cents, or 0.3%, to $120.04 a barrel at 0858 GMT after touching an intraday high of $121.95.
U.S. West Texas Intermediate (WTI) crude futures were up 40 cents, or 0.3%, at $119.27 a barrel after hitting a three-month high of $120.99.