Market Roundup
- EUR/USD -0.13%, USD/JPY -0.18%, GBP/USD -0.17%, EUR/GBP 0.06%
- DXY 0.17%, DAX -0.19%, FTSE 0.06%, Brent 0.47%, Gold -0.09%
- Britain's Hunt says "political suicide" to pursue no-deal Brexit
- EU could slap 3 bln euro fine on Italy for excessive debt- Salvini
- Trump's red carpet visit gives Japan brief reprieve on trade, pressure stays
- China confident of keeping yuan stable - c.bank governor
- Germany Jun GfK Consumer Sentiment, 10.1, 10.4 f'cast, 10.4 prev, 10.2 r'vsd
- Germany Apr Import Prices YY, 1.4%, 1.6% f'cast, 1.7% prev
- France May Consumer Confidence, 99, 97 f'cast, 96 prev
- UK Apr Finance Mortgage Apps, 42.989k, 39.980k prev, 40.564k r'vsd
- EZ May Consumer Confidence Final, -6.5, -6.5 f'cast, -6.5 prev
- EZ May Business Climate, 0.30, 0.40 f'cast, 0.42 prev
- EZ May Economic Sentiment, 105.1, 104.0 f'cast, 104.0 prev, 103.9 r'vsd
- EZ May Industrial Sentiment, -2.9, -4.3 f'cast, -4.1 prev, -4.3 r'vsd
- EZ May Services Sentiment, 12.2, 11.0 f'cast, 11.5 prev, 11.8 r'vsd
Economic Data Ahead
- (0900 ET/1300 GMT) The S&P/Case-Shiller is expected to report that U.S. home price index of 20 metropolitan areas rose at an annualized rate of 2.8 percent in June, after posting a gain of 3.0 percent in the previous month.
- (1000 ET/1400 GMT) The U.S. Conference Board is likely to show its consumer confidence index rose to 130 in the month of May from a final reading of 129.2 in April.
- (1030 ET/1430 GMT) The Dallas Fed releases its Manufacturing Business Index for the month of May. The index posted a rise of 2.0 percent in the previous month.
FX Beat
DXY: The dollar index surged as the euro eased on Italian debt worries, while sterling fell towards a near 5-month low amid Brexit concerns. The greenback against a basket of currencies traded 0.05 percent up at 97.79, having touched a high of 98.37 on Thursday, its highest since May 2017. FxWirePro's Hourly Dollar Strength Index stood at -10.52 (Neutral) by 1000 GMT.
EUR/USD: The euro slumped, extending previous session losses, as political risks in Europe remain high, even though pro-Europe parties won a majority of European parliamentary seats. The European currency traded 0.05 percent down at 1.1188, having touched a high of 1.1215 on Monday, its highest since May 16. FxWirePro's Hourly Euro Strength Index stood at 50.52 (Bullish) by 1000 GMT. Immediate resistance is located at 1.1229 (Apr. 30 High), a break above targets 1.1262 (April 22 High). On the downside, support is seen at 1.1166 (May 16 Low), a break below could drag it below 1.1118 (April 25 Low).
USD/JPY: The dollar plunged to a near 2-week low, amid persisting trade worries. On Monday, U.S. President Donald Trump stated that Washington was not ready to make a deal with China, but he expected one in the future. The major was trading 0.1 percent down at 109.37, having hit a low of 109.21 earlier, its lowest since May 15. FxWirePro's Hourly Yen Strength Index stood at 22.87 (Neutral) by 1000 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. consumer confidence. Immediate resistance is located at 110.11 (May 11 High), a break above targets 110.67 (May 21 High). On the downside, support is seen at 109.01 (May 13 Low), a break below could take it lower at 108.80 (Jan. 30 Low).
GBP/USD: Sterling declined, hovering towards near 5-month trough hit last week, as candidates to succeed British Prime Minister Theresa May laid out some of their Brexit plans. The major traded 0.1 percent down at 1.2668, having hit a high of 1.2747 on Monday; it’s highest since May 21. FxWirePro's Hourly Sterling Strength Index stood at -146.32 (Highly Bearish) 1000 GMT. Immediate resistance is located at 1.2774 (38.2% retracement of 1.3047 and 1.2605). a break above could take it near 1.2827 (50.0% retracement). On the downside, support is seen at 1.2647 (May 24 Low) a break below targets 1.2581 (Jan. 2 Low). Against the euro, the pound was trading 0.1 percent down at 88.31 pence, having hit a low of 88.50 on Friday, it’s lowest since Jan. 21.
USD/CHF: The Swiss franc eased as the greenback rebounded from multi-week lows amid hopes for U.S. - China trade agreement. The major trades 0.1 percent up at 1.0044, having touched a low of 1.0008 on Friday; it’s lowest since Apr. 12. FxWirePro's Hourly Swiss Franc Strength Index stood at -48.72 (Neutral) by 1000 GMT. On the higher side, near-term resistance is around 1.0084 (Mar.13 High) and any break above will take the pair to next level till 1.0124 (May 7 High). The near-term support is around 0.9997 (April 12 Low), and any close below that level will drag it till 0.9977 (Apr. 8 Low).
Equities Recap
European shares tumbled after Italian Deputy Prime Minister Matteo Salvini stated that the European Commission could fine Italy 3 billion euros for accumulating debt and deficits that break EU rules.
The pan-European STOXX 600 index plunged 0.5 percent at 374.96 points, while the FTSEurofirst 300 index slumped 0.5 percent to 1,476.46 points.
Britain's FTSE 100 trades 0.05 percent down at 7,275.64 points, while mid-cap FTSE 250 gained 0.1 to 19,148.16 points.
Germany's DAX fell 0.5 percent at 12,017.75 points; France's CAC 40 trades 0.6 percent lower at 5,305.80 points.
Commodities Recap
Crude oil prices surged, supported by tighter global supplies that helped offset lingering worries that demand could be hampered by a U.S.-Chinese trade war. International benchmark Brent crude was trading 0.5 percent higher at $70.33 per barrel by 1039 GMT, having hit a low of $66.99 on Thursday, its lowest since Mar, 28. U.S. West Texas Intermediate was trading 0.2 percent up at $59.10 a barrel, after falling as low as $57.32 on Thursday, its lowest since the Mar. 13.
Gold prices eased after rising to a 1-1/2 week peak, as the greenback rebounded from multi-week lows amid simmering U.S.-China trade tensions. Spot gold was 0.1 percent down at $1,283.95 per ounce by 1044 GMT, having touched a high of $1,287.27 on Monday, its highest since May 17. U.S. gold futures were down 0.1 percent at $1,281.80 an ounce.
Treasuries Recap
The U.S. Treasury yields plunged during the afternoon session, after returning from a long weekend, following yesterday’s Memorial Day holiday amid an otherwise muted trading session that is scheduled to witness data of little economic significance. The yield on the benchmark 10-year Treasury yield plunged 4-1/2 basis points to 2.285 percent, the super-long 30-year bond yields slumped 4 basis points to 2.716 percent and the yield on the short-term 2-year traded nearly 3-1/2 basis points lower at 2.143 percent.
The German bund yields plunged during European trading session despite a tad lower reading of the country’s GfK consumer climate, released early today. Investors shall now be looking forward to the country’s unemployment data for the month of May and short-term 5-year auction, both scheduled for May 29 by 07:55GMT for further direction in the debt market. The German 10-year bond yields, which move inversely to its price, slumped 4 basis points to -0.157 percent, the yield on 30-year note plunged nearly 5 basis points to 0.491 percent and the yield on short-term 2-year traded nearly 2-1/2 basis points lower at -0.653 percent.
The Japanese government bonds closed higher after investors showed ample demand at the super-long 40-year auction held early today, while still eyeing the Bank of Japan (BoJ) Governor Haruhiko Kuroda’s speech, scheduled to be held on May 29 and the country’s industrial production data for the month of April, due on the following day by 23:50GMT for further direction in the debt market. At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, dived 4 basis point to -0.074 percent, the yield on the long-term 30-year edged 1-1/2 basis points lower to 0.494 percent and the yield on short-term 2-year suffered 5 basis points to -0.159 percent.
The Australian government bonds remained tad higher during Asian session of the second trading day of the week amid a stable session that witnessed data of little economic significance. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, slipped 1-1/2 basis points to 1.539 percent, the yield on the long-term 30-year bond suffered 2 basis points to 2.206 percent and the yield on short-term 2-year edged nearly 1-1/2 basis points lower to 1.132 percent.
