Market Roundup
- US Construction Spending MM Jun 0.1%, f/c 0.6%, 1.8%-previous, revised from +0.8 lifts Q2 GDP f/cs.
- US Consumption, Adjusted MM Jun 0.2%, f/c 0.2%, 0.7%-previous.
- US ISM Manufacturing PMI Jul 52.7, f/c 53.5, 53.5-previous.
- US ISM Manufacturing Prices Paid Jul 44, f/c 49, 49.5-previous.
- US ISM Manufacturing Employment Index Jul 52.7, f/c 54.7, 55.5-previous.
- S&P: European Union Supranational outlook revised to negative; ‘AA+/A-1+’ ratings affirmed.
- Greek stocks unofficially close 16 percent lower, banks plunge 30 percent.
- Greece unlikely to seek more ECB liquidity for weeks as buffer has risen to EUR 5b.
Looking Ahead – Economic Data (GMT)
- 01:30 Australia Retail Trade* Q2 f/c 0.4%, 0.7%-previous
- 01:30 Australia Retail Sales MM* Jun f/c 0.5%, 0.3%-previous
- 01:30 Australia Trade Balance G&S (A$)* Jun f/c-3100m, -2751m-previous
- 01:30 Australia Goods/Services Imports* Jun -4%-previous
- 01:30 Australia Goods/Services Exports* Jun 1%-previous
- 23:30 Australia AIG Services Index Jul 51.2-previous
- 01:30 Japan Overtime Pay Jun -1.6%-previous
Looking Ahead – Events, Other Releases (GMT)
- 04:30 Australia RBA Cash Rate* Aug f/c 2%, 2%-previous
Currency Summaries
EUR/USD is supported around 1.0915 levels and currently trading at 1.0956 levels. It has made session high at 1.0986 and lows at 1.0939 levels. The dollar pared gains against the euro on Monday, after data showed the pace of growth in the U.S. manufacturing sector slowed in July. The Institute for Supply Management said its index of national factory activity fell to 52.7 from 53.5 the previous month. The dollar remained higher on the day, however, as investors awaited jobs data for July that will be released on Friday. A strong jobs report will boost expectations that the Federal Reserve is closer to raising interest rates, which many see as likely to begin in September. The greenback continued its gain against the euro in late New York session as the Greek stock market plunged 23% after it reopened on Monday following, a five-week shutdown. To the upside, immediate resistance can be seen at 1.1015. To the downside, major support level is located at 1.0915 levels.
GBP/USD is supported around 1.5545 levels and currently trading at 1.5585 levels. It has made session high at 1.5626 and low at 1.5560 levels. The cable had slipped below 1.5600 and was trading around 1.5565 levels just before New York session opening. After the disappointing ISM manufacturing figures from US market, the cable trimmed some losses suffered earlier and bounced back near 1.5625 levels, however the pair failed to advance above 1.5600 levels and slipped to trade around 1.5586 levels in the late New York session. Recently, Sterling has risen against U.S dollar, driven chiefly by a revival of speculation that Britain’s central bank could raise interest rates at the end of this year. Results of Thursday’s rate decision will be published for the first time on the same day, it is expected that, at least two, or possibly three, policy committee members voting in favor of a rate hike. To the upside, immediate resistance can be seen at 1.5670. To the downside, major support level is located at 1.5460 levels.
USD/JPY is supported around 123.50levels and currently trading at 123.95 levels. It has made session high at 124.23 and low at 123.83 levels. US dollar slipped against Japanese yen on Monday after US manufacturing data came at worse than expected figures. ISM manufacturing PMI printed 52.7 against 53.5 forecast. The pair retreated from 124.22 to hit daily lows at 123. pace of growth in the US manufacturing sector slowed in July and missed expectations. The U.S Federal reserve is widely expected to raise interest rates for the first time in nearly a decade before the end of the year. If Chinese weakness seeps into the U.S economy, the Fed could reassess its plan to hike rates and markets would have to balance between more support from the central bank and the expectations for slower growth. To the upside, immediate resistance can be seen at 124.25. To the downside, major support level is located at 123.70 levels.
USD/CAD is supported around 1.3100 levels and currently trading at 1.3161 levels. It has made session high at 1.3173 and low at 1.3112 levels. The Canadian dollar weakened on Monday, as crude oil prices fell. The resource linked Canadian dollar was at its weakest in more than a decade against its U.S peer as crude prices sank. The pair rose to hit 1.3175 before slipping back to hit session lows at 1.3112 after the disappointing ISM manufacturing PMI which printed 52.7 against 53.5 forecast. Meanwhile U.S. Personal Spending came in line with expectation at 0.2% in June, Personal Income came slightly better at 0.4 % against forecast of 0.3%. Oil futures prices sank to six month low on Monday, weighted by oversupply and weaker demand expectations. To the upside, immediate resistance can be seen at1.3173. To the downside, major support level is located at 1.3112 levels.
Equities Recap
European stocks closed higher on Monday, even though Greece equity market dived down at 16.3% at close. UK’s benchmark FTSE 100 slipped 0.2 percent at close, the pan-European FTSEurofirst 300 closed, up by 0.6 percent, Germany’s Dax closed up by 1.1 percent, France’s CAC closed up at 0.7 percent, Italy’s FTSE MIB up closed up by 0.8 percent. Meanwhile, Spain’s IBEX 35 was up by 0.6 percent at close.
US stocks ended lower at close on Monday as oil prices reached a six-month low, U.S manufacturing lost momentum print negative figures. Dow Jones closed down by 0.51 percent, S&P 500 closed down by 0.27 percent, Nasdaq closed down by 0.24percent.
Treasuries Recap
U.S. benchmark and long-dated Treasury yields hit their lowest levels in over two months on Monday on weak U.S. economic data and a muted inflation outlook, while declines in short-dated yields were limited ahead of a key U.S. jobs report.
U.S. 30-year yields hit 2.85 percent, their lowest level since May 29, while benchmark 10-year yields hit 2.14 percent, their lowest since June 1. Short-dated Treasury yields also dipped, with three-year yields hitting their lowest since July 9 at 0.96 percent.
U.S. 30-year Treasury bonds were last up 1-15/32 in price to yield 2.85 percent, from a yield of 2.93 percent late Friday. Benchmark 10-year notes were last up 16/32 to yield 2.15 percent, from a yield of 2.21 percent late Friday.
U.S. three-year notes were last up 1/32 to yield 0.97 percent, from a yield of 0.99 percent late Friday.
Commodities Recap
Gold dropped on Monday, after falling by the most in two years in July, as the dollar rose and investors monitored U.S. economic indicators for clues on the timing of a hike in U.S. interest rates.
Spot gold was down 0.9 percent at $1,086.06 an ounce by 3:02 p.m. EDT (1902 GMT). The metal hit a low of $1,077 on July 24, it’s weakest in 5-1/2 years.
Oil prices lurched 5 percent lower on Monday to their lowest since January, taking global benchmark Brent below $50 a barrel as weak factory activity in China deepened a commodity-wide rout.
Brent, the global benchmark for crude, settled down $2.69, or 5.2 percent, at $49.52 a barrel. Brent’s session bottom of $49.36 was within striking range of its 2015 low of $49.19.
U.S. crude settled down $1.95, or 4.1 percent, at $45.17, just about $3 above its 2015 bottom.
The material has been provided by InstaForex Company – www.instaforex.com