Market Roundup
•German May PPI (MoM) 1.6%, 1.5% forecast, 2.8% previous
•German May PPI (YoY) 33.6%,33.5% forecast,33.5% previous
•UK Apr Construction Output (MoM) 3.00% forecast,3.40% previous
• Greek Apr Current Account (YoY) -1.616B forecast, -2.330B previous
Looking Ahead Economic Data(GMT)
• 13:00 EU French 3-Month BTF Auction -0.457%
• 13:00 EU French 6-Months BTF Auction-0.178%
• 13:00 EU French 12-Month BTF Auction 0.531%
Looking Ahead - Events, Other Releases (GMT)
•13:00 EU ECB President Lagarde Speaks
•13:00 UK BoE MPC Member Mann
• 15:00 ECB President Lagarde Speaks
•16:45 US FOMC Member Bullard Speaks
•17:00 German Buba President Nagel Speaks
•17:00 EU ECB's Panetta Speaks
•18:30 EU ECB's Lane Speaks
Fxbeat
EUR/USD: The euro rose on Monday as markets focused on the European Central Bank's tools to fight fragmentation in the currency bloc, even as French President Emmanuel Macron lost an absolute majority in the country's parliamentary election.Macron's centrist Ensemble coalition secured the most seats in the National Assembly but fell well short of an absolute majority needed to control parliament, final results showed. Traders shrugged off the election results, with the euro rising 0.2% against the dollar to $1.05155, as Macron was expected to stick with his pro-Europe agenda despite the election result. Immediate resistance can be seen at 1.0524(50%fib),an upside break can trigger rise towards 1.0612(61.8%fib).On the downside, immediate support is seen at 1.0479(5DMA), a break below could take the pair towards 1.0444(61.8%fib).
GBP/USD: The pound edged higher on Monday, breaking a three-week losing streak versus the broadly struggling U.S. dollar as hawkish comments from policymakers supported the currency.
While the Bank of England raised interest rates by just a quarter point last week - lagging more robust action from the U.S. Federal Reserve and other central banks, markets are putting a 80% chance on a half-point rise in July and expect almost 100 basis points of tightening by September. The BoE’s new message that it may have to act “forcefully” on interest rates is not unconditional and depends on the persistence of inflation pressures, the central bank’s chief economist said on Friday. The pound is up 0.1% at $1.2236 against the U.S. dollar ,after three consecutive weeks of losses. Immediate resistance can be seen at 1.2297(38.2%fib),an upside break can trigger rise towards 1.2386 (50%fib).On the downside, immediate support is seen at 1.2208(50%fib), a break below could take the pair towards 1.2120(61.8%fib).
USD/CHF: The dollar declined sharply against the Swiss franc on Monday as global economic worries countered concerns around aggressive monetary tightening by the U.S. Federal Reserve, with focus being on several central bankers' views this week. A market gauge measuring the gap between U.S. two-year Treasury yields and 10-year borrowing costs inverted on Monday for the first time since April, a phenomenon that often heralds economic recession A host of central bankers will be speaking this week, led by a likely hawkish testimony from Fed Chair Jerome Powell's to the House on Wednesday and Thursday. Immediate resistance can be seen at 0.9707 (50%fib), an upside break can trigger rise towards 0.9766(30DMA).On the downside, immediate support is seen at 0.9610 (38.2%fib), a break below could take the pair towards 0.9476(23.6%fib).
USD/JPY: The dollar held neat near a 24-year low against Japanese yen on Monday after the Bank of Japan last week renewed its commitment to ultra-easy policy and bucked the trend among global peers to rapidly raise interest rates. The U.S. dollar paused for breath following a volatile week that saw it retreat sharply. However, it recovered half of that by the end of last week as investors continue to assess the outlook for U.S. monetary policy and the risk of recession following the Federal Reserve’s biggest rate increase since 1995. The greenback rose 0.21% to 135.25 yen, heading back toward Wednesday’s peak of 135.60, the highest level since October 1998. Strong resistance can be seen at 135.25 (23.6%fib), an upside break can trigger rise towards 136.76(Higher BB).On the downside, immediate support is seen at 134.16(5DMA), a break below could take the pair towards 132.15(38.2%fib).
Equities Recap
European stocks were flat on Monday as investors weighed the impact of tighter monetary policies on the global economy, while French stocks lagged after Sunday's vote saw President Emmanuel Macron lose control of the National Assembly.
At (GMT 10:20 ),UK's benchmark FTSE 100 was last trading up at 0.93 percent, Germany's Dax was up by 0.40 percent, France’s CAC was up by 0.20 percent.
Commodities Recap
Gold inched higher on Monday, as a slightly weak dollar and global economic worries countered concerns around aggressive monetary tightening by the U.S. Federal Reserve, with focus being on several central bankers' views this week.
Spot gold rose 0.2% to $1,842.99 per ounce by 0926 GMT, after falling 1.7% last week — its biggest since mid-May. U.S. gold futures gained 0.2% to $1,845.00 per ounce.
Oil prices were stable on Monday, struggling to reverse last week's losses as the market balanced tightening supplies with concerns about slowing global economic growth.
Brent crude futures were down 38 cents, or 0.3%, at $112.74 a barrel by 1022 GMT. Front-month prices tumbled 7.3% last week, their first weekly fall in five.
U.S. West Texas Intermediate crude was at $109.38 a barrel, down 18 cents, or 0.2%. Front-month prices dropped 9.2% last week, the first decline in eight weeks.
