Posted at 21 June 2021 / Categories Market Roundups
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Looking Ahead - Economic Data (GMT)
•US May Chicago Fed National Activity 0.24 previous
•13:00 French 6-Month BTF Auction -0.649% previous
•13:00 French 3-Month BTF Auction -0.656% previous
•13:00 French 12-Month BTF Auction -0.647% previous
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Looking Ahead - Economic events and other releases (GMT)
•12:30 ECB President Lagarde Speaks
•14:15 ECB President Lagarde Speaks
•19:00 US FOMC Member Williams Speaks
EUR/USD: The euro gained against dollar on Monday as investors digested last week's surprise hawkish shift by the U.S. Federal Reserve. The index, which tracks the greenback against six major currencies, fell 0.2% to 92.074 from a high of 92.405 reached on Friday, a level not seen since April 13. The euro traded above its lowest against the dollar since April 6 at $1.1895 on Monday, dropping from as high as $1.2145 last Tuesday. Immediate resistance can be seen at 1.1992(200DMA), an upside break can trigger rise towards 1.1901 (Daily high).On the downside, immediate support is seen at 1.1934 (38.2%fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: Sterling rose on against Monday, recovering from an last week’s fall to its lowest level versus the dollar since April after the U.S. Federal Reserve surprised the market with a hawkish tone last week.At 1140 GMT, the pound rose 0.6% versus a weakening dollar to $1.3873, after falling to $1.3786, its lowest of since April 16. Versus the euro, sterling rose 0.3% to 85.68 pence, after closing on Friday its worst week against the single currency since April. Immediate resistance can be seen at 1.3886 (38.2%fib), an upside break can trigger rise towards 1.3935(5DMA).On the downside, immediate support is seen at 1.3793 (23.6%fib), a break below could take the pair towards 1.3715(April 6th low).
USD/CHF: The dollar edged lower against the Swiss franc on Monday but broadly held most of the previous week's gains after the Fed's surprise hawkish tilt. Last week the Fed signalled it would raise interest rates and end emergency bond-buying sooner than expected. The Fed's hawkish shift has weighed on markets since, although risk sentiment improved somewhat on Monday. Immediate resistance can be seen at 0.9238 (Daily high), an upside break can trigger rise towards 0.9263 (23.6% fib).On the downside, immediate support is seen at 0.9200 (38.2%fib), a break below could take the pair towards 0.9148(50%fib).
USD/JPY: The dollar dipped against the yen on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve. Following the U.S. central bank’s hawkish turn, focus shifts this week towards a number of Fed speakers, including Chair Jerome Powell, who appears before Congress on Tuesday. The dollar was last down 0.2%, after recovering some lost ground. Strong resistance can be seen at 110.27 (38.2%fib), an upside break can trigger rise towards 110.49(June 18th high).On the downside, immediate support is seen at 109.80(50%fib), a break below could take the pair towards 109.35 (61.8% fib).
As the Fed adopted a more aggressive tone last week, European stock markets fluctuated on Monday after the global market turmoil.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.22 percent, Germany's Dax was up by 0.71 percent, France’s CAC was up by 0.26 percent.
Gold prices rebounded more than 1% on Monday after their biggest weekly fall in percentage terms since March 2020, with demand bolstered by a drop in U.S. Treasury yields and a pause in the dollar’s rally.
Spot gold rose 1.1% to $1,781.86 an ounce by 0825 GMT while U.S. gold futures edged up 0.8% to $1,782.90.
Oil prices edged higher on Monday, underpinned by strong demand during the northern hemisphere summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
Brent crude for August gained 14 cents, or 0.2%, to $73.65 a barrel by 1109 GMT. U.S. West Texas Intermediate (WTI) crude for July was up 21 cents, or 0.3%, at $71.85 a barrel.