Posted at 12 July 2022 / Categories Market Roundups
Market Roundup
•Nord Stream I begins annual maintenance
•U.S. inflation data eyed to make bets on Fed tightening
•French 12-Month BTF Auction 0.450% , 0.453% previous
•French 3-Month BTF Auction -0.286%,-0.378% previous
•French 6-Month BTF Auction 0.037%,-0.021% previous
•US CB Jun Employment Trends Index 119.38,119.77 previous
• US 3-Month Bill Auction 2.110% ,1.850% previous
• US 6-Month Bill Auction 2.685%, 2.500% previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia Jul Westpac Consumer Sentiment -4.5% previous
•01:30 Australia Jun NAB Business Confidence 6 previous
•01:30 Australia Jun NAB Business Survey 16 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Monday as the largest single pipeline carrying Russian gas to Germany went into annual maintenance and flow is expected to be halted for 10 days. Investors fear the war in Ukraine could prolong the shutdown, further restricting European gas supplies and pushing the eurozone economy into recession. The single currency was last down 0.8% to $1.0105 per dollar. It fell to the edge of parity at $1.0072 on Friday after the release of U.S. payrolls figure for June before bouncing higher. Immediate resistance can be seen at 1.0130 (5DMA), an upside break can trigger rise towards 1.0266 (38.2% fib).On the downside, immediate support is seen at 1.0028(23.6% fib), a break below could take the pair towards 1.0000 (Psychological level).
GBP/USD: Sterling hovered near a two-year low on Monday as traders held their breath ahead of a leadership contest to choose Boris Johnson's successor as Britain's next prime minister. Johnson's resignation deepens uncertainty over the UK economy, which is already under pressure from near double-digit inflation, the risk of recession and Brexit. The candidate who take over from Johnson will have to make big tax and spending decisions that could reduce the risk of a recession. Against the U.S. dollar, the pound was trading at $1.1964, down 0.6% on the day and not far from a March 2020 low of just below $1.19 hit last week. Immediate resistance can be seen at 1.1951 (5DMA), an upside break can trigger rise towards 1.1987 (38.2%fib).On the downside, immediate support is seen at 1.1870 (23.6% fib), a break below could take the pair towards 1.1781(Lower BB).
USD/CAD: The Canadian dollar weakened against its US counterpart on Monday on falling equity markets, but the currency's fall was contained as investors awaited a Bank of Canada interest rate decision this week. Stocks fell globally and the safe-haven US dollar rose against a basket of major currencies as investors waited for a US inflation report on Wednesday that could force another sizeable rate hike from Federal Reserve. Oil prices, one of Canada's top exports, fell as markets braced for an expected fall in demand amid massive COVID-19 testing in China. The loonie was trading 0.2% lower at 1.2980 to the greenback. Immediate resistance can be seen at 1.3015 (23.6%fib), an upside break can trigger rise towards 1.3083(Higher BB).On the downside, immediate support is seen at 1.2958 (9DMA), a break below could take the pair towards 1.2924 (38.2%fib).
USD/JPY: The dollar rose against the Japanese yen Monday as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates. A hawkish Fed, combined with fears of recession, particularly in Europe, has kept the dollar up at 20-year highs against a basket of competitors . The dollar broke above 137.00 to reach its highest since 1998 at 137.74 yen as the Bank of Japan remained dovish. Japan's conservative coalition government was projected to have increased its majority in upper house elections on Sunday, two days after the assassination of former prime minister Shinzo Abe. Strong resistance can be seen at 137.65 (23.6% fib), an upside break can trigger rise towards 138.36 (Higher BB).On the downside, immediate support is seen at 136.67 (5 DMA), a break below could take the pair towards 135.51(38.2% fib).
Equities Recap
European stocks fell on Monday, dragged lower by economically sensitive stocks as concerns over an energy supply crisis and fresh COVID-19 cases in China weighed on risk appetite and raised fears of a recession.
UK's benchmark FTSE 100 closed down by 0.00 percent, Germany's Dax ended down by 1.40 percent, France’s CAC finished the day down by 0.61percent.
U.S. stocks lost ground on Monday as a lack of catalysts prompted market participants to cautiously enter a week of crucial inflation data and the unofficial start of the second-quarter earnings season.
Dow Jones was trading down by 0.52 percent, S&P 500 was trading lower by 1.15 percent, Nasdaq was trading down by 2.26 percent.
Treasuries Recap
U.S. Treasury yields dropped on Monday in choppy trading, in line with Europe, drawing safe-haven bids amid a sell-off on Wall Street driven by growth concerns that could hurt earnings.
In afternoon trading, U.S. 30-year bond yields were down 9.2 bps at 3.177% .On the short end of the curve, U.S. two-year yields dropped 5.5 bps to 3.065% .
Commodities Recap
Gold was pinned near a nine-month low on Monday as bets for aggressive interest rate hikes by the U.S. Federal Reserve and the dollar’s ascent dimmed appeal for bullion.
Spot gold fell 0.3% to $1,735.91 per ounce by 2:00 p.m. ET (1800 GMT). U.S. gold futures settled down 0.6% at $1,731.70.
Oil prices were little changed on Monday as markets balanced an expected drop in demand due to mass testing for COVID-19 in China against ongoing concerns over tight supply.
Brent futures for September delivery gained 8 cents, or 0.1%, to settle at $107.10 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 70 cents, or 0.7%, to settle at $104.09.