Posted at 07 June 2022 / Categories Market Roundups
Market Roundup
• US May CB Employment Trends Index 119.77, 120.18 previous
• US 3-Month Bill Auction 1.230%,1.120% previous
• US 6-Month Bill Auction 1.710%, 1.580% previous
Looking Ahead - Economic Data (GMT)
•06:30 New Zealand ANZ Commodity Price Index (MoM) -1.9% previous
•07:00 Australia Building Approvals (MoM) -2.4% previous
•07:00 Australia Private House Approvals 0.5% forecast, -3.0% previous
•10:00 Australia Jun RBA Interest Rate Decision 0.60% forecast, 0.35% previous
Looking Ahead - Events, Other Releases (GMT)
• 10:00 Australia RBA Rate Statement
•10:30 Japan Apr Leading Index (MoM) 0.7% previous
•10:30 Japan Apr Coincident Indicator (MoM) 0.7% previous
Currency Summaries
EUR/USD: The euro declined on Monday as risk appetite waned from earlier levels as appeal for safe haven dollar increased ahead of a key reading on inflation later in the week . Ahead of the Federal Reserve's policy announcement on June 15, in which the central bank is widely expected to raise rates by 50 basis points, investors will look to Friday's reading on consumer prices for signs of how long the Fed may continue its rate hike path. The dollar index rose 0.333% at 102.430, with the euro down 0.32% to $1.0685 ahead of a European Central Bank (ECB) policy meeting later this week. 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 steadied on Monday after UK PM Johnson won confidence bote, as Expected. British Prime Minister Boris Johnson survived a confidence vote on Monday but a large rebellion in his Conservative Party over the so-called partygate scandal dealt a blow to his authority and leaves him with a struggle to win back support.Johnson, who scored a sweeping election victory in 2019, has been under increasing pressure after he and staff held alcohol-fuelled parties in his Downing Street office and residence when Britain was under lockdowns to tackle the COVID-19 pandemic. 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 1.2481(38.2%fib), a break below could take the pair towards 1.2359(23.6%fib).
USD/CAD: The Canadian dollar rose to its highest level in nearly seven weeks against its U.S. counterpart on Monday as equity markets rallied and investors priced in more aggressive tightening this year by the Bank of Canada than the Federal Reserve. The loonie's advance came as stocks clawed back some of last week's decline and the price of oil, one of Canada's major exports, touched its highest in more than three months at $120.99 a barrel before settling 0.3% lower at $118.50.The Canadian dollar was trading 0.1% higher at 1.2575 per U.S. dollar , after touching its strongest since April 21 at 1.2536. It was the only G10 currency other than sterling to gain ground against the greenback. Immediate resistance can be seen at 1.2600 (5DMA), an upside break can trigger rise towards 1.2644 (38.2%fib).On the downside, immediate support is seen at 1.2542 (23.6%fib), a break below could take the pair towards 1.2506 (Lower BB).
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 132.32(23.6%fib), an upside break can trigger rise towards 132.72(Higher BB).On the downside, immediate support is seen at 131.05 (5DMA), a break below could take the pair towards 130.15(38.2%fib).
Equities Recap
European shares rose on Monday, helped by banks and commodity-linked stocks, as investors kept an eye out for U.S. inflation data and details from a European Central Bank meeting later this week.
UK's benchmark FTSE 100 closed up by 1.00 percent, Germany's Dax ended up by 1.34 percent, France’s CAC finished the day up by 0.98 percent.
U.S. stocks ended a choppy session slightly higher on Monday, helped by gains in Amazon.com and other mega-cap growth shares, while persistent worries over inflation and interest rates kept a lid on the market.
Dow Jones closed up by 0.05% percent, S&P 500 closed up by 0.31% percent, Nasdaq settled up by 0.40% percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as market participants prepared for new supply this week, and before data on Friday is expected to show still high inflation.
Benchmark 10-year note yields rose two basis points to 2.978%.
Commodities Recap
Gold prices fell on Monday, pressured by an uptick in the U.S. dollar and Treasury yields, as attention turned to U.S. inflation data this week that could strengthen the case for aggressive interest rate hikes by the Federal Reserve.
Spot gold was down 0.5% at $1,841.29 per ounce by 2:03 p.m. EDT (1803 GMT), while U.S. gold futures settled down 0.4% at $1,843.70.
Oil prices settled slightly lower after choppy trade on Monday, buoyed by Saudi Arabia raising its July crude prices but amid doubts that a higher output target for OPEC+ oil producers would ease tight supply.
Brent crude fell 21 cents, or 0.2%, to settle at $119.51 a barrel after touching an intraday high of $121.95.
U.S. West Texas Intermediate (WTI) crude futures fell 37 cents, or 0.3%, to settle at $118.50 a barrel after hitting a three-month high of $120.99.