Market Roundup
• Dollar slips as risk sentiment improves
• Gold rebounds, eyes on Fed meeting
• Oil falls 3% despite OPEC+ outp ut cuts
• Canada May Housing Starts 193.5K, 155.0K forecast, 166.4K previous
• French 3-Month BTF Auction -0.514% -0.520% previous
• French 6-Month BTF Auction-0.513%,-0.513% previous
• French 12-Month BTF Auction -0.488%,-0.514% previous
• US May CB Employment Trends Index 46.28,, 43.40 previous
• US 3-Month Bill Auction 0.170%,0.150% previous
• US 6-Months Bill Auction 0.185%,0.170% previous
• US 3-Years Note Auction0.280%, 0.230% previous
Looking Ahead Economic Data
• 23:30 Japan April Overall wage income of employees 0.1% previous
• 23:30 Japan April Overtime Pay (YoY) -4.00% previous
• 23:30 Japan Average Cash Earnings (YoY) 0.1% previous
• 23:50 Japan May M3 Money Supply 1,847.5T previous
• 23:50 Japan M2 Money Stock (YoY) 3.7% previous
• 01:00 New Zealand ANZ Business Confidence-41.8 previous
• 01:30 New Zealand May NAB Business Confidence -46 previous
• 01:30 New Zealand May NAB Business Survey -34 previous
• 01:30 New Zealand ANZ Job
Advertisements (MoM) -53.1% previous
Currencies Summaries
EUR/USD: The euro declined against dollar on Monday as dismissal German industrial output underlined the severe economic damage caused. German industrial output posted a record plunge in April as the coronavirus pandemic forced manufacturers in Europe’s largest economy to halt production, with firms expecting a bumpy road ahead despite a massive stimulus package. Industrial output dropped by 17.9% on the month, figures released by the Statistics Office showed . Immediate resistance can be seen at 1.1379 (Higher BB), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.1260 (5 DMA), a break below could take the pair towards 1.1178 (9 DMA).
GBP/USD: Sterling rose against the dollar on Monday as plans to ease coronavirus lockdowns in Britain and signs the economy may bounce back due to pent-up demand kept the currency just below the $1.27 touched late last week.Analysts warned, however, that Brexit remains a risk for the pound - which has rallied for seven consecutive days against the dollar - as talks on a future trade deal with the European Union after the UK’s exit fail to make progress.The pound has risen 2.8% against the dollar this month as several economies reopen from lockdowns, weakening demand for the U.S. currency. .Immediate resistance can be seen at 1.2680 (Higher BB), an upside break can trigger rise towards 1.2772 (23.6% fib).On the downside, immediate support is seen at 1.2597 (5 DMA), a break below could take the pair towards 1.2501 (38.2 % fib).
USD/CAD: The Canadian dollar strengthened to a three-month high against its U.S. counterpart on Monday as hopes of a quick economic rebound from the coronavirus crisis overshadowed lower oil prices. Canada, which also reported surprisingly strong jobs data last week , is a major producer of commodities, including oil, so the loonie tends to benefit from a brighter outlook for the global economy. The Canadian dollar was trading 0.5% higher at 1.3361 to the greenback . Immediate resistance can be seen at 1.3433 (Higher BB), an upside break can trigger rise towards 1.3500 (Psychological level).On the downside, immediate support is seen at 1.3377 (5 DMA), a break below could take the pair towards 1.3332 (9 DMA)
USD/JPY: The dollar declined against the Japanese yen on Monday as safe haven yen demand increased hopes of dovish monetary policy from the U.S. Federal Reserve. Market participants are waiting for the U.S. central bank’s two-day policy meeting, which ends on Wednesday, but have stopped pricing in the possibility of negative interest rates after Friday’s jobs report. The dollar fell against the yen, down 0.7% at 108.37. It also dropped 0.6% against Swiss franc, another safe haven, to 0.9567. Strong resistance can be seen at 109.70 (23.6% fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.11 (5 DMA), a break below could take the pair towards 108.48 (9 DMA).
Equities Recap
European shares pulled back from three-month highs on Monday, with losses in technology and healthcare stocks halting a recent rally on hopes of a post-coronavirus economic recovery.
UK's benchmark FTSE 100 closed down by 0.18 percent, Germany's Dax ended down by 0.22 percent, France’s CAC finished the day down by 0.43 percent.
Wall Street’s main indexes rose on Monday, building on last week’s sharp gains after a surprisingly upbeat jobs report raised bets of a swift recovery from a coronavirus-driven downturn.
Dow Jones closed up by 1.70 percent, S&P 500 ended up by 1.20 percent, Nasdaq was finished the day up by 1.13 % percent.
Treasuries Recap
U.S. Treasury yields retrenched a little on Monday from last week's dramatic rise, while an auction of three-year notes was met with solid demand.
The benchmark 10-year yield was last down 2.6 basis points at 0.8785%. Yields spiked on Friday in the wake of a better-than-expected May employment report with the 10-year note yield rising above 0.9% for the first time since March 20.
Commodities Recap
Gold rose on Monday after the previous session’s steep fall, boosted by hopes of dovish monetary policy from the U.S. Federal Reserve.
Spot gold rose 0.5% to $1,692.86 per ounce by 12:23 p.m. ET (1623 GMT). U.S. gold futures rose 0.9% to $1,698.10.
Oil slipped on Monday after Saudi Arabia said that an extension of output cuts by OPEC+ nations would not include additional voluntary cuts by a trio of Gulf producers.
Brent crude was down 65 cents, or 1.5%, at $41.65 a barrel by 1400 GMT, while U.S. West Texas Intermediate (WTI) crude fell 72 cents, or 1.8%, to $38.83.
