Market Roundup
•Canada May Housing Starts 264.5K, 247.0K forecast, 240.2K previous
•French 3-Month BTF Auction 3.703% ,3.681% previous
•French 6-Months BTF Auction 3.452% , 3.624% previous
•French 12-Month BTF Auction 3.452% ,3.517% previous
•US 3-Month Bill Auction 5.250% ,5.250% previous
•US 6-Month Bill Auction 5.150% ,5.165% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Released(GMT)
•04:30 Australia Jun RBA Interest Rate Decision 4.35% forecast,4.35% previous
•04:30 Australia Jun RBA Rate Statement
Currency Summaries
EUR/USD: The euro hovered near a more than one-month low amid continued concerns about the political outlook in Europe. The euro was nearly flat at $1.0703, picking up somewhat after falling to its lowest since May 1 at $1.06678 on Friday. The currency also logged its biggest weekly decline since April at 0.88% last week. Investors have been contemplating the risk of a budget crisis at the heart of the euro area, as far right and leftist parties gain momentum ahead of France's surprise parliamentary election, pressuring President Emmanuel Macron's centrist administration. Immediate resistance can be seen at 1.0743(38.2% fib), an upside break can trigger rise towards 1.0822(23.6% fib).On the downside, immediate support is seen at 1.0689 (50% fib), a break below could take the pair towards 1.0615(61.8% fib).
GBP/USD: The pound declined on Monday, ahead of a policy meeting by the Bank of England this week at which the central bank is not expected to cut interest rates, but might telegraph the likely timing of the first drop.Political turmoil in France last week rattled risk appetite and sent investors fleeing from French assets and the euro which fell 0.6% against sterling last week . Against the dollar, the pound has fared less well, falling 0.6% last week, in its largest weekly slide in two months. Sterling was last down 0.1% at $1.2674.Recent data has shown inflation in the United States is not slowing as quickly as many had anticipated, while the Federal Reserve has said it sees only one rate cut this year.Immediate resistance can be seen at 1.2754(23.6%fib), an upside break can trigger rise towards 1.2808(Higher BB).On the downside, immediate support is seen at 1.2656(38.2%fib), a break below could take the pair towards 1.2602(50% fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as investors awaited further insight into the Bank of Canada's move to cut interest rates and after speculators raised their bearish bets on the currency to a record high level. The BoC this month became the first G7 central bank to begin cutting interest rates. Minutes from the June 5 policy decision are due to be released on Wednesday.Canadian home sales fell 0.6% in May from April and were down 5.9% on an annual basis, data from the Canadian Real Estate Association showed.The loonie was trading 0.1% higher at 1.3725 to the U.S. dollar, after trading in a range of 1.3722 to 1.3764. Immediate resistance can be seen at 1.3751(23.6%fib), an upside break can trigger rise towards 1.3782(Higher BB).On the downside, immediate support is seen at 1.3707(38.2%fib), a break below could take the pair towards 1.3167 (50%fib).
USD/JPY: The U.S. dollar strengthened against yen on Monday as political turmoil in Europe ramped up the level of uncertainty among traders, while investors awaited more data to gauge the strength of the U.S. economy. The yen struggled to gain its footing after the BOJ surprised markets when the central bank announced kept bond buying unchanged at its meeting on Friday, instead pushing details of its tapering plan to its July policy meeting.Governor Kazuo Ueda said, however, he would not rule out raising interest rates in July as weakness in the yen pushes up import costs.The yen was last up 0.05% at 157.41 per dollar, after slipping to 158.26 after Friday's decision, its lowest since April 29.The yen's decline to a 34-year low of 160.245 per dollar at the end of April triggered several rounds of official Japanese intervention totaling 9.79 trillion yen. Strong resistance can be seen at 157.83(38.2% fib), an upside break can trigger rise towards 159.13(23.6%fib).On the downside, immediate support is seen at 156.86(38.2% fib), a break below could take the pair towards 155.64 (50%fib).
Equities Recap
European shares closed marginally higher on Monday, with banks and technology stocks rebounding from losses last week after markets were startled by political uncertainty in France, while Danish insurer Topdanmark surged on Sampo's buyout bid.
UK's benchmark FTSE 100 closed down by 0.06 percent, Germany's Dax ended up by 0.40 percent, France’s CAC finished the day up by 0.91 percent.
The S&P 500 and Nasdaq scored record closing highs on Monday as technology shares rallied on enthusiasm over artificial intelligence ahead of this week's economic data and Federal Reserve officials' speeches that could shed light on monetary policy.
Dow Jones closed up by 0.49% percent, S&P 500 closed up by 0.77 % percent, Nasdaq settled up by 0.94% percent.
Commodities Recap
Oil prices surged nearly $2 a barrel on Monday to their highest settlement levels in over a month, adding to last week's gains as investors grew more optimistic on the demand outlook.
U.S. West Texas Intermediate crude futures gained by $1.88, or 2.4%, to settle at $80.33 a barrel, the highest since the end of April. Global benchmark Brent crude gained $1.63, or 2%, to $84.25 a barrel, also the highest since April.
