Market Roundup
•French 12-Month BTF Auction 3.437%, 3.452% previous
• Belgium Jun NBB Business Climate -11.1,-10.2 forecast, -11.0 previous
•French 3-Month BTF Auction 3.699%, 3.703% previous
•French 6-Month BTF Auction 3.628%, 3.643% previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Coincident Indicator (MoM) 1.0% forecast,2.1% previous
•05:00 Japan Leading Index 111.6 forecast, 112.2 previous
•05:00 Japan Leading Index (MoM)-0.1% forecast, 0.1% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Monday as investors awaited US inflation data for further clues on Federal Reserve rate outlook. The Personal Consumption Expenditures (PCE) data, the Fed's preferred measure of inflation is due on Friday. Through this week, at least five Fed officials will speak, including San Francisco Fed President Mary Daly, Fed Governors Lisa Cook, and Michelle Bowman. On the data front, German business morale unexpectedly fell in June due to more pessimistic expectations of Europe's largest economy, according to a survey.The euro is heading for a drop of 1.2% in June, its largest monthly decline since January. But on Monday, it was trading up 0.2% on the day at $1.07123 . Investors awaited commentary from at least four members of the European Central Bank (ECB) later in the day, including board member Isabel Schnabel, for clues on the central bank's monetary policy path. Immediate resistance can be seen at 1.0739(38.2% fib), an upside break can trigger rise towards 1.0776(50% fib).On the downside, immediate support is seen at 1.0713(50% fib), a break below could take the pair towards 1.0687(61.8% fib).
GBP/USD: The pound edged higher against a broadly softer dollar on Monday, as markets looked beyond Britain's upcoming general election, opens new tab and instead set their focus on the outlook for monetary policy.The pound was last up almost 0.2% against the dollar at $1.2664, having fallen to $1.2622 on Friday, its lowest level since May 15.Britain heads to the voting booth on July 4 but with polls steady and signalling the opposition Labour Party is likely to win a majority, markets are showing little concern about the outcome. Instead, much of the focus remains on the outlook for monetary policy.The Bank of England last week held its main interest rate steady at a 16-year high of 5.25%, but the prospect of a future rate cut moved closer as some policymakers said their thinking was now "finely balanced . Immediate resistance can be seen at 1.2664(Daily high), an upside break can trigger rise towards 1.2704(23.6%fib).On the downside, immediate support is seen at 1.2630(38.2%fib), a break below could take the pair towards 1.2564(50% fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as weaker dollar and higher oil price boosted Canadian dollar. The spotlight this week will be on Friday's release of the U.S. personal consumption expenditures (PCE) price index, which the Federal Reserve relies on to gauge progress in getting inflation down to its 2% target.A number showing price pressures easing is likely to bolster bets on a rate cut as early as September, which futures currently price as a 70% prospect.The dollar index , which measures the greenback against a basket of currencies fell 0.4% to 105.46, sliding from a nearly eight-week high of 105.91 it touched last week.The loonie was trading 0.1% higher at C$1.3681 to the greenback, after trading in a range of 1.3671 to 1.3708.Immediate resistance can be seen at 1.3676 (50% fib), an upside break can trigger rise towards 1.3710(61.8% fib).On the downside, immediate support is seen at 1.3637(38.2% fib), a break below could take the pair towards 1.3590 (23.6% fib).
USD/JPY: The dollar eased against yen on Monday as markets were on alert for Japanese intervention as the dollar tested the 160-yen barrier. Japan's top currency diplomat Masato Kanda said authorities will take appropriate steps if there is excessive foreign exchange movement, and that the addition of Japan to the U.S. Treasury's monitoring list would not restrict their actions.The yen has come under renewed pressure after the BOJ's decision this month to postpone reducing bond-buying stimulus until its July meeting. It has been down 1.4% against the dollar so far in June, and nearly 12% weaker this year.A summary of opinions at the BOJ's June policy meeting on Monday showed some policymakers called for raising interest rates in a timely fashion as they saw a risk of inflation overshooting expectations.. Strong resistance can be seen at 159.09(23.6%fib), an upside break can trigger rise towards 159.55(Higher BB).On the downside, immediate support is seen at 157.83 (38.2% fib), a break below could take the pair towards 156.86 (50%fib).
Equities Recap
European equities advanced on Monday, led by gains in automobile and financial stocks, while investor attention focused on the first round of French parliamentary elections later this week.
UK's benchmark FTSE 100 closed up by 0.53 percent, Germany's Dax ended up by 0.99percent, France’s CAC finished the day up by 1.03 percent.
The Dow rallied on Monday to a one-month high, while the Nasdaq tumbled over 1% as investors rotated out of AI-linked stocks and added some laggards to their portfolios, betting on Federal Reserve interest rate cuts this year.
Dow Jones closed up by 0.67 percent, S&P 500 ended down by 0.31 percent, Nasdaq finished the day down by 1.07 percent.
Commodities Recap
Gold prices rose on Monday, helped by a pullback in the dollar, while investors looked forward to U.S. inflation data due later this week that could influence the Federal Reserve's monetary policy path.
Spot gold was up 0.5%, to $2,332.62 per ounce, as of 02:02 a.m. ET (1802 GMT). U.S. gold futures settled 0.6% higher, to $2,344.40.
Oil prices rose about 1% on Monday, spurred by the prospect of strong summer driving demand and as tensions in the Middle East and drone attacks on Russian refineries led to concerns about supply.
An easing U.S. dollar added to the crude price strength.
Brent futures for August delivery settled at $86.01 a barrel, gaining 77 cents, or 0.9%. U.S. crude settled at $81.63 a barrel, gaining 90 cents, or 1.1%
