News

America’s Roundup: Dollar holds near a two-month high, Wall Street ends mixed, Gold firms, Oil edges up on prospect of U.S. interest rate cut-July 30th,2019

Market Roundup

• Fed expected to lower U.S. borrowing costs

• Britain warns Iran: release seized tanker

• Markets also eye U.S.-China trade talks this week

• Brazil July Debt-to-GDP Ratio 55.2%,54.5% forecast, 54.7% previous

• Brazil Jun Budget Balance -30.100B, -50.600B forecast, -47.600B previous

• Brazil Jun Budget Surplus-12.700B,-14.000B forecast,-13.000B previous

• US  Dallas Fed Mfg Business Index -6.3,-5.0 forecast,-12.1 previous    

Looking Ahead – Economic Data (GMT)

• 22:45 New Zealand  Jun Building Consents (MoM) 13.2% previous

•  23:50 Japan  Jobs/applications ratio, 1.62 % forecast, 1.62  % previous

•  23:50 Japan  Jun Unemployment  Rate, 2.4%% forecast 2.4%% previous

•  23:50 Japan  Industrial Production (MoM), -2.0%  forecast, 2.0% previous

•  23:50 Japan Industrial Production forecast 1m ahead  MoM-1.2% previous

•  01:30 Australia Jun Building Approvals (MoM)   0.2%,0.7% previous

•  01:30 Australia Private House Approvals -0.3% previous

Looking Ahead – Events, Other  Releases (GMT)

• 03:00    Japan BoJ Monetary Policy Statement

• 03:00    Japan BoJ Interest Rate Decision

Currency Summaries

EUR/USD: The euro edged higher against the U.S. dollar on Monday, as investors await a widely expected interest rate cut by the Federal Reserve this week. The Fed begins its two-day monetary policy meeting on Tuesday, with a 25-basis-point cut fully priced in.Investors will also be awaiting  for German inflation data for July set to be released tomorrow. Economist expected German inflation to ease from 1.5% to 1.3%.In late U.S. trading, the euro was up 0.09% at $1.1272. An index that tracks the dollar versus a basket of six major currencies was up 0.13 at 98.03. Immediate resistance can be seen at 1.1145 (5 DMA), an upside break can trigger rise towards 1.1187 (11 DMA).On the downside, immediate support is seen at 1.1114 (Daily Low), a break below could take the pair towards 1.1100 (Lower Bollinger Band).

GBP/USD: The pound stumbled below $1.2300 against dollar on Monday, after Prime Minister Boris Johnson said a hard divorce from the EU was in the cards, left traders scratching their heads about the direction for the British currency. Sterling fell to a 28-month low of $1.2213 as Johnson’s cabinet prepared the ground for a “no-deal” British exit from the European Union on October 31, which many investors say would tip Britain into a recession and inject unwanted uncertainty into financial markets. At (1936), sterling stood at $1.2228, down 1.22% on the day. Immediate resistance can be seen at 1.2388 (5 DMA), an upside break can trigger rise towards 1.2436 (11 DMA).On the downside, immediate support is seen at 1.2200 (Psychological level), a break below could take the pair towards 1.2175 (23.6% Retracement Level).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, recovering from a one-month low it hit on Friday, ahead of a widely expected Federal Reserve interest rate cut this week.The Fed is expected to cut interest rates by 25 basis points this week, for what would be the first rate cut since the financial crisis. Meanwhile, the price of oil, one of Canada’s major exports, rose on Monday despite pessimism over U.S.-China trade talks and the prospect of slower economic growth globally that could reduce demand for crude. The Canadian dollar was 0.04 percent higher at 1.3158 to the greenback.  Immediate resistance can be seen at 1.3200 (Psychological level), an upside break can trigger rise towards 1.3235 (50 DMA).On the downside, immediate support is seen at 1.3147 (5 DMA), a break below could take the pair towards 1.3101 (11 DMA).

USD/JPY: The U.S. dollar strengthened against the yen on Monday, ahead of a U.S. Federal Reserve meeting later in the week where markets will watch for indications of monetary easing in the world’s largest economy. The Fed is expected to trim the key interest rate by at least 25 basis points (bps) at its July 30-31 meeting. Investors will also look for signals of likely additional cuts in the pipeline. Interest rate futures are fully priced for a quarter-point rate cut from the Fed on Wednesday, with only a small chance of a half-point move.The dollar was 0.11 percent lower versus the Japanese yen at 108.77. Strong resistance can be seen at 109.00 (Psychological level), an upside break can trigger rise towards 109.73 (100 DMA).On the downside, immediate support is seen at 108.45 (50 DMA), a break below could take the pair towards 108.10 (11 DMA). 

Equities Recap

European edged higher  on Monday, as a pair of big merger reports and a weak pound sent London’s FTSE 100 higher, while defensive plays dominated other major markets ahead of Wednesday’s U.S. Federal Reserve policy decision.

The UK's benchmark FTSE 100 closed up by 1.82 percent, Germany's Dax ended down by 0.02 percent, and France’s CAC finished the down by 0.16 percent.

U.S. stocks ended mixed on Monday, as investors looked forward to an interest rate cut from the U.S. Federal Reserve and for signs of progress from Shanghai, where U.S.-China trade negotiations are underway.

Dow Jones closed up by 0.11 percent, S&P 500 ended down 0.16 percent, Nasdaq finished the day down by 0.44 percent.

Treasuries Recap

U.S. Treasury yields were lower across the board on Monday, in line with falls around the world amid global economic uncertainty, as investors await a widely expected interest rate cut by the Federal Reserve this week.

In morning trading, U.S. 10-year note yields fell to 2.056% , from 2.081% late on Friday. Yields on 30-year bonds slid to 2.583%, from 2.601% on Friday.

Commodities Recap

Gold prices firmed on Monday on expectations of a rate cut by the Federal Reserve this week, while investors awaited cues on the future trajectory of monetary easing by the U.S. central bank.

Spot gold inched up 0.2% to $1,420.51 per ounce as of 1:36 p.m. EDT (1736 GMT). U.S. gold futures settled up 0.1% at $1,420.40.

Oil prices rose on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.

Brent crude   gained 25 cents to settle at $63.71 a barrel, while U.S. West Texas Intermediate (WTI) crude  futures rose 67 cents to settle at $56.87 a barrel.
 


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