Posted at 21 June 2021 / Categories Market Roundups
Market Roundup
•US May Chicago Fed National Activity 0.29,0.24 previous
• French 6-Month BTF Auction-0.646%, -0.649% previous
• French 3-Month BTF Auction -0.646%,-0.656% previous
• French 12-Month BTF Auction-0.646%, -0.647% previous
• US Month-Bill Auction 0.045%,0.025% previous
• US 6-Month Bill Auction 0.055%,0.040% previous
Looking Ahead - Economic Data (GMT)
•01:00 New Zealand Credit Card Spending (YoY) 87.4% previous
•05:00 Japan BoJ Core CPI (YoY) -0.1% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
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 U.S. dollar index fell 0.427%, off Friday's high of 92.408 , as investors weighed whether the Fed's stance will mean a pause in the greenback's bear trend. Several Fed officials have speaking duties this week, including Chair Jerome Powell, who testifies before Congress on Tuesday. 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 1.1926(38.2%fib), an upside break can trigger rise towards 1.1992(200DMA).On the downside, immediate support is seen at 1.1848 (23.6%fib), a break below could take the pair towards 1.1800 (Psychological level).
GBP/USD: Sterling rose on against dollar on Monday, recovering from 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. A more optimistic economic assessment from the Bank of England, which next meets on Thursday, could push sterling towards $1.40 quicker. Currency markets are fully pricing in a 30 basis point hike in rates by the BoE by December 2022. Investors are also watching a dispute between Britain and the European Union over post-Brexit trade in the British province of Northern Ireland. 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/CAD: The loonie posted its biggest gain in nearly seven weeks against the dollar on Monday as oil skyrocketed and more aggressive Federal Reserve forecasts supported expectations of the Bank of Canada's rate hike. Oil, one of Canada's top exports, was fueled by a lull in talks to end US sanctions on Iranian crude. Crude oil futures closed 2.8% higher at $ 73.66 a barrel while the Canadian dollar traded 0.9% higher at $ 1.2357 a dollar, its biggest gain since May 6 .Immediate resistance can be seen at 1.2380 (50%fib), an upside break can trigger rise towards 1.2427(38.2%fib).On the downside, immediate support is seen at 1.2353(5 DMA), a break below could take the pair towards 1.2328 (61.8%fib).
USD/JPY: The dollar gained against the yen on Monday after the Fed surprised markets last week by signalling it would raise interest rates and end emergency bond-buying sooner than expected. Minneapolis Federal Reserve President Neel Kashkari said on Friday he wants to keep the U.S. central bank’s benchmark short-term interest rate near zero at least through the end of 2023 to allow the labour market to return to its pre-pandemic strength.2023 to allow the labour market to return to its pre-pandemic strength. Most currencies gained against greenback on Monday , but dollar got a lift as the dollar consolidated gains against yen. Strong resistance can be seen at 110.27 (5DMA), an upside break can trigger rise towards 110.84(23.6%fib).On the downside, immediate support is seen at 110.25(38.2%fib), a break below could take the pair towards 109.80(38.2% fib).
Equities Recap
European stocks rose on Monday, led by growth-exposed sectors as encouraging comments from central bank head Christine Lagarde boosted optimism over a speedy economic recovery this year.
UK's benchmark FTSE 100 closed up by 0.64 percent, Germany's Dax ended up by 1.00 percent, France’s CAC finished the day up by 0.51percent.
Wall Street rebounded on Monday and global stocks rose from a four-week low as investors banked on economic growth, while the U.S. dollar sank from Friday’s 10-week high, boosting oil prices.
Dow Jones closed up by 1.76 percent, S&P 500 closed up by 1.40 percent, Nasdaq settled up by 0.79 % percent.
Treasuries Recap
Falling inflation expectations briefly pushed yield spreads to their lowest levels in months before rebounding on Monday as investors continued to digest the Federal Reserve's hawkish turn at its policy meeting last week.
Two-year yields were flat at 0.2563%, while 10-year yields edged higher to 1.4853%. The two-year yield hit 0.284%, its highest level since April 2020, on Friday. Bond yields rise as prices fall.
Commodities Recap
Gold on Monday clawed back some losses from its biggest weekly percentage drop since March 2020, as a pause in the U.S. dollar’s rally helped restore the metal’s allure.
Spot gold was up 1.1% at $1,782.83 per ounce by 1:48 p.m. EDT (1748 GMT), while U.S. gold futures settled up 0.8% at $1,782.90.
Oil prices soared on Monday, gaining on a pause in talks to end U.S. sanctions on Iranian crude,and as the dollar retreated from two-month highs.
Brent crude for August gained $1.39, or 1.9% to settle at $74.90 a barrel. U.S. West Texas Intermediate (WTI) crude for July gained $2.02, or 2.8%, to end at $73.66.