America’ s Roundup: Dollar defensive after soft data, Gold flat, Brent crude trades above $87, sets highest levels since April

Market Roundup

• Canada July Leading Index (MoM)   0.15% , 0.15% previous

• Canada Jun Reserve Assets Total  122.9B , 122.8B previous

Looking Ahead Economic Data(GMT)

• 05:00  Japan May Coincident Indicator (MoM)  1.0% previous

• 05:00  Japan May Leading Index (MoM)  -0.8% previous

• 05:00  Japan Leading Index 111.1 forecast, 110.9 previous

Looking Ahead Events And Other Releses(GMT)

•No Events Ahead

Currency  Summaries

EUR/USD: The euro strengthened against dollar on Thursday  as weak U.S. economic data sent the greenback lower against major pairs . The dollar fell on softer-than-expected U.S. economic data on Wednesday, including a weak services report and ADP employment report, depicting a slowing economy, after a rise in initial applications for unemployment benefits last week.Markets now see nearly 50 basis points of Federal Reserve interest rate cuts in 2024, most likely starting with a 25-basis-point move in September and a second by year-end, bets which also brought down U.S. Treasury yields. Across the English Channel, polls suggested the National Rally (RN) would not win a majority of seats in Sunday's French election as mainstream parties moved to block the far right. Immediate resistance can be seen at 1.0811 (38.2% fib), an upside break can trigger rise towards 1.0843 (23.6% fib).On the downside, immediate support is seen at 1.0781(50% fib), a break below could take the pair towards 1.0751(61.8% fib).

GBP/USD: The pound gained on Thursday against a broadly weaker dollar was hurt by soft U.S. economic data, as Britons voted in a parliamentary election that investors hope will bring some stability to British politics.Opinion polls show Keir Starmer's centre-left Labour Party on course for a landslide victory over Prime Minister Rishi Sunaks's Conservatives, who have led the country for 14 often turbulent years.The pound was up 0.1% against the dollar at $1.2755 on Thursday, having gained 0.46% Wednesday after soft U.S. economic data sent the dollar lower across the board.The pound has spent most of 2024 down slightly against the dollar while outperforming other major currencies - though Wednesday's dollar weakness meant sterling was last up 0.23% against the dollar this year. Immediate resistance can be seen at 1.2767(23.6%fib), an upside break can trigger rise towards 1.2815(Higher BB).On the downside, immediate support is seen at 1.2691(50%fib), a break below could take the pair towards 1.2631(61.8% fib).

USD/CAD : The Canadian dollar strengthened to a one-month high against its U.S. counterpart on Thursday as the greenback posted broad-based declines, ahead of domestic jobs data that could guide bets on further interest-rate cuts by the Bank of Canada..Canada's services economy moved back into contraction in June as a decline in new business weighed on the sector's performance even as inflation pressures cooled, S&P Global Canada services PMI data showed. Economists expect the Canadian employment report, due on Friday, to show the economy adding 22,500 jobs in June and the unemployment rate rising to 6.3% from 6.2% in May.Investors see a roughly 40% chance the Bank of Canada will cut rates at its next policy meeting on July 24. Last month, the BoC became the first G7 central bank to ease policy, lowering its benchmark rate by 25 basis points to 4.75%.Immediate resistance can be seen at 1.3643(38.2%fib), an upside break can trigger rise towards 1.3678(50%fib).On the downside, immediate support is seen at 1.3630(23.6 %fib), a break below could take the pair towards 1.3587685(Lower BB).

 USD/JPY: The U.S. dollar eased against yen on Thursday as recent weak U.S. economic data raised prospects the Federal Reserve would cut interest rates as soon as September. Minutes of the Fed's June meeting acknowledged the U.S. economy appeared to be slowing and  price pressures were diminishing .Traders are now focused on U.S. nonfarm payrolls data, due on Friday. The market is looking for weaker job creation last month,Demand concerns were heightened by U.S. data showing that first-time applications for U.S. unemployment benefits increased last week while jobless numbers also rose.Softer U.S. data has already prompted markets to lift the probability of a September rate cut to 74% from 65%.. Strong resistance can be seen at 161.85(July 3rd high), an upside break can trigger rise towards 162.00(Psychological level).On the downside, immediate support is seen at 159.92 (38.2% fib), a break below could take the pair towards 158.49(50%fib).

Equities Recap

 European shares rose on Thursday amid optimism around U.S. interest rate cuts following soft economic data, while London markets gained as voting began in the UK general election with polls predicting a historic victory for the Labour party.

UK's benchmark FTSE 100 closed up  by  0.86 percent, Germany's Dax ended up by 0.43percent, France’s CAC finished the day up by 0.83 percent.                                

Commodities Recap

Oil prices for Brent crude hit their highest level since April on Thursday, holding above $87 after data the previous day showed a decline in U.S. inventories.

Brent crude futures were up 21 cents, or 0.2%, at $87.55 a barrel by 1922 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 18 cents at $84.06 in trade thinned by the U.S. Independence Day holiday.

Gold prices were flat near a two-week high on Thursday after softer-than-expected U.S. economic data spurred hopes of interest rate cuts as early as September, and the market spotlight is now on Friday's non-farm payrolls data.

Spot gold   edged 0.1% higher to $2,358.19 per ounce as of 9:53 a.m. ET (1353 GMT), after prices hit their highest level since June 21 on Wednesday. Most U.S. markets were closed for Independence Day holiday on Thursday.