Market Roundup
•French 6-Month BTF Auction3.600%, 3.657% previous
•French 3-Month BTF Auction 3.686%,3.697% previous
•French 12-Month BTF Auction 3.487%,3.503% previous
•Canada May Manufacturing PMI 49.3,50.2 forecast,49.4 previous
•US May Manufacturing PMI 51.3,50.9 forecast,50.0 previous
•US Apr Construction Spending (MoM) -0.1%, 0.2% forecast,-0.2% previous
•US May ISM Manufacturing Prices 57.0, 60.0 forecast,60.9 previous
•US May ISM Manufacturing Employment 51.1,48.7,48.6 previous
•US May ISM Manufacturing PMI 48.7,49.8 forecast,49.2 previous
•US May ISM Manufacturing New Orders Index45.4,49.1 previous
•US Atlanta Fed GDPNow (Q2) 1.8%,2.7% forecast,2.7% previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Company Gross Operating Profits (QoQ) (Q1) -0.9% forecast, 7.4% previous
•01:30 Australia Retail Sales (MoM) 0.1% forecast, -0.4% previous
•01:30 Australia ANZ Job Advertisements (MoM) 2.8% previous
•01:30 Australia Net Exports Contribution (Q1)0.6% previous
•01:30 Australia Current Account (Q1) 5.9B forecast, 11.8B previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Monday after data showed the U.S. economy is slowing down with weaker-than-expected readings on manufacturing and construction spending. The U.S. Institute for Supply Management (ISM) said its purchasing managers index (PMI) for manufacturing fell to 48.7 in May, from 49.2 in April, sliding as well from an 18-month high of 50.3 seen in March.Monday's ISM decline followed weakness in the Chicago PMI, Dallas Fed, Philadelphia Fed indexes, and the Empire State manufacturing indexes.U.S. construction spending also slid unexpectedly for a second consecutive month in April, decreasing by 0.1% after a 0.2% decline in March, amid falls in non-residential activity.The euro gained 0.3% to $1.0879 , pushing the dollar index, a measure of the U.S. currency's value versus six major currencies, down 0.3%.Immediate resistance can be seen at 1.0919(23.6%fib), an upside break can trigger rise towards 1.0940(Higher BB).On the downside, immediate support is seen at 1.0877(38.2% fib), a break below could take the pair towards 1.0848(50% fib).
GBP/USD: Sterling strengthened against dollar on Monday as weakness in U.S. manufacturing data, feeding uncertainty about the U.S. interest rate outlook. U.S. manufacturing activity slowed for a second straight month in May as new goods orders dropped by the most in nearly two years, but a measure of input inflation fell back from the highest since mid-2022, a monthly survey showed on Monday.The Institute for Supply Management's manufacturing purchasing managers index for May fell to 48.7 from 49.2 in April. It was both the second straight decline and the second month below the 50 level that separates growth from contraction. Immediate resistance can be seen at 1.2759(23.6%fib), an upside break can trigger rise towards 1.2825(23.6% fib).On the downside, immediate support is seen at 1.2753(38.2%fib), a break below could take the pair towards 1.2691(50% fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday, with the currency pulling back from an earlier two-week high, as equity markets fell and investors braced for the potential start of Bank of Canada interest rate cuts. Domestic data also showed a slowdown in manufacturing. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) edged down to a seasonally adjusted 49.3 in May from 49.4 in April. U.S. crude oil futures settled down 3.6% at $74.22 a barrel as investors digested the complex deal brokered by producer group OPEC+ to extend various layers of output cuts.The loonie was trading 0.1% lower at 1.3645 to the U.S. dollar, or 73.29 U.S. cents, after touching its strongest intraday level since May 20 at 1.3604.Immediate resistance can be seen at 1.3656 (38.2% fib), an upside break can trigger rise towards 1.3700(50% fib).On the downside, immediate support is seen at 1.3602(38.2% fib), a break below could take the pair towards 1.3562 (lower BB).
USD/JPY: The U.S. dollar dipped against yen on Monday after data showed that U.S. manufacturing activity slowed for a second straight month in May. Data showed U.S. manufacturing activity slowed for a second straight month in May, and U.S. construction spending fell unexpectedly for a second consecutive month in April on declines in non-residential activity. Traders see a 59% chance that the Fed will begin cutting rates in September, up from about 53% before the ISM data was released, according to the CME's FedWatch tool. Benchmark U.S. 10-year note yields fell to a two-week low following the soft manufacturing data. Investors now look forward to Wednesday's ADP employment report, and U.S. non-farm payrolls data due on Friday.The greenback fell to a two-week low against the yen following the data and was last down 0.6% at 156.245 .Strong resistance can be seen at 157.48(23.6%fib), an upside break can trigger rise towards 158.10(Higher BB).On the downside, immediate support is seen at 155.90(38.2% fib), a break below could take the pair towards 154.87 (50%fib).
Equities Recap
European shares rose for the third straight session on Monday, led by bond-proxy sectors, as investors looked to a near certain interest rate cut from the European Central Bank (ECB) later this week.
UK's benchmark FTSE 100 closed down by 0.15 percent, Germany's Dax ended up by 0.61 percent, France’s CAC finished the day up by 0.06 percent.
S&P 500 and the Nasdaq edged higher in a choppy session on Monday amid soft manufacturing sector data and as a glitch on the NYSE briefly caused trading halts in dozens of equities..
Dow Jones closed down by 0.30 percent, S&P 500 ended up by 0.11 percent, Nasdaq finished the day up by 0.56 percent.
Commodities Recap
Gold prices rose on Monday as weaker-than-expected U.S. economic data cemented expectations that the Federal Reserve would cut interest rates later this year, sending the dollar and bond yields lower.
Spot gold was up 0.9% at $2,347.12 per ounce as of 2:38 p.m. ET (1838 GMT), after posting a 2% gain last month. Prices hit an all-time high of $2,449.89 on May 20.U.S. gold futures settled 1% higher at $2,369.3 per ounce.
Oil prices tumbled by $3 a barrel on Monday to their lowest in nearly four months, as investors worried that a complicated OPEC+ output decision could lead to higher supplies later in the year even though demand growth has been slow.
Brent crude futures fell by $2.75, or 3.4%, to settle at $78.36 a barrel, closing below $80 for the first time since Feb. 7. U.S. West Texas Intermediate crude futures also closed at a near four-month low of $74.22 a barrel, down by $2.77 or 3.6% from Friday.
