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Home » Blogs » America’s roundup; dollar climbs as G7 leaders gather for tense meeting,Wall street ends higher,gold edges up,Oil prices extend losses after JP Morgan cuts forecast-june 9th, 2018

America’s roundup; dollar climbs as G7 leaders gather for tense meeting,Wall street ends higher,gold edges up,Oil prices extend losses after JP Morgan cuts forecast-june 9th, 2018

 

Market Roundup

• G7 struggles to salvage summit as Trump holds firm on trade dispute.

• US Apr Wholesale Invt(y), R MM, 0.1%, 0.0% forecast, 0.0% previous.

• US Apr Wholesale Sales MM, 0.8%, 0.3% forecast, 0.3% previous.

• US Apr Consumer Credit, 9.26 bln, 13.75 bln forecast, 11.62 bln previous.

• US w/e ECRI Weekly Index, 148.7, 148.7 previous.

• US w/e ECRI Weekly Index Annualized, 2.6%, 3.0% previous.

• CA May Employment Change, -7.5k, 17.5k forecast, -1.1k previous.

• CA May Unemployment Rate, 5.8%, 5.8% forecast, 5.8% previous.

• CA May Full time employment change, -31.0k, 28.8k previous.

• CA May Part time employment change, 23.6k, -30.0k previous .

• CA May Participation Rate, 65.30%, 65.40% previous.

• CA May House Starts, Annualized, 195.6k, 218.0k forecast, 214.4k previous.

• CA Q1 Capacity Utilization, 86.1%, 86.0% previous.

• Iran slams U.S. for seeking Saudi oil output hike, says OPEC won’t comply.

• Argentina could revise fiscal targets for social spending – IMF.

Looking Ahead – Economic Data (GMT)

• 10 Jun 22:45 New Zealand Q1 Manufacturing Sales, 1.0% previous

• 10 Jun 23:50 Japan Apr Machinery Orders MM, 2.8% forecast, -3.9% previous

• 10 Jun 23:50 Japan Apr Machinery Orders YY, 3.9% forecast, -2.4% previous

Looking Ahead – Events, Other Releases (GMT)

• 11:00 Riksbank executive board meeting in Stockholm

• 15:00 Chancellor Angela Merkel meets heads of the IMF, WTO, World Bank, International Labour Organization and the OECD for talks before they hold a joint news conference in Berlin

Currency Summaries

EUR/USD is likely to find support at 1.1672 levels and currently trading at 1.1767 levels. The pair has made session high at 1.1778 and hit lows at 1.1724 levels. The euro dipped against US dollar on Friday as investors grew cautious ahead of what is expected to be a contentious G7 meeting in Canada. U.S. President Donald Trump lashed out at Canada and the European Union on Friday, setting the tone for a hostile Group of Seven (G7) summit and raising the specter of a trade war that has unnerved Washington’s top allies as well as investors. The dollar rose 0.3 percent against a basket of currencies to 93.67. But it was poised to notch its biggest weekly drop in 11 weeks. Despite Friday’s gains, the dollar was on track for its largest weekly drop since late March. Next week’s expected hike in U.S. interest rates by the Federal Reserve, a European Central Bank policy meeting and a Brexit bill vote all pose risks for currency traders and could inject more volatility in the market. The dollar has come under pressure this week as the euro bounced back from 10-month lows thanks to an ebb in Italian political concerns and speculation that the ECB could signal intentions to start unwinding its massive bond purchasing program when it holds the policy meeting on June 14.The euro fell 0.3 percent to $1.1767 after rising to a three-week high of $1.1840. It was up more than 1 percent on the week and was set to post its biggest weekly gain since mid-February.

GBP/USD is supported in the range of 1.3350 levels and currently trading at 1.3404 levels. It reached session high at 1.3417 and dropped to session low at 1.3355 levels. Sterling declined against the dollar on Friday after the European Union’s Brexit negotiator said a British proposal for avoiding border problems with Ireland after Brexit “raises more questions than answers” and that there was much still to negotiate. The pound slid against the dollar and the euro as investors focused on the differences that remain between the EU and Britain in agreeing the terms of their relationship after the UK leaves the bloc. The weakness for sterling also comes ahead of a week in which a crucial Brexit vote in the British parliament and economic data may determine if the pound can snap its two-month losing streak. Sterling, which was trading down 0.2 percent before EU negotiator Michel Barnier spoke, fell further to $1.3355, half a percent lower on the day. It later recovered some of those losses. Against the euro, sterling gave up its gains and traded flat on the day at 87.89 pence before recovering. British Prime Minister Theresa May is struggling to get her own cabinet to agree on a plan to prevent a hard border on the island of Ireland if Brexit talks fail, and on Thursday her government presented its so-called backstop arrangement. On June 12, the UK’s lower house will vote on proposed amendments to the government’s EU withdrawal bill.

USD/CAD is supported at 1.2900 levels and is trading at 1.2926 levels. It has made session high at 1.3037 and lows at 1.2939 levels. The Canadian dollar strengthened against its U.S. counterpart on Friday as tense G7 summit boosted Canadian dollar. Investors were anxious about the G7 summit, kicking off Friday in Quebec, where mounting risks of a tariff war between the United States and its major trade partners are in the spotlight. The divide has been widening between U.S. President Donald Trump and the group’s remaining six members after Trump imposed tariffs on steel and aluminum imports from Canada, Mexico and the European Union last week. The U.S. dollar rose after a four-day losing streak, while perceived safe-haven currencies such as the yen gained as investors grew cautious. The price of oil, one of Canada’s major exports, fell as weakening demand in China and surging U.S. output weighed on markets. U.S. crude prices were down 0.1 percent at $65.91 a barrel. On the data front, the Canadian economy unexpectedly shed 7,500 jobs in May as hiring declined in the manufacturing and construction sectors, data from Statistics Canada showed. Economists had forecast a gain of 17,500 jobs. The Canadian dollar was last trading 0.3 percent higher at C$1.2926 to the greenback. The currency traded in a range of C$1.2970 to C$1.3040.

AUD/USD is supported around 0.7553 levels and currently trading at 0.7597 levels. It hit session high at 0.7603 and made session lows at 0.7559 levels. The Australian dollar came off recent highs against greenback on Friday as risk trades were hit amid bets Europe’s massive bond purchasing was nearing an end and on growing trade tensions between the United States and its major allies and global economic growth. The Australian dollar was last down 0.2 percent at $0.7608 from a six-week high of $0.7677 touched on Wednesday. Despite Friday’s losses, the Aussie is set to notch up its third straight week of gains. U.S. President Donald Trump on Friday lashed out at Canada and the European Union before the weekend summit in Charlevoix, Quebec, after he imposed tariffs last week on steel and aluminum imports from the EU and Canada. Their leaders criticized Trump’s move and plan to retaliate with their own levies on U.S. products. Investors also looked to a historic U.S.-Korea summit in Singapore on June 12 where the main issue is whether North Korea will abandon its nuclear weapons programme. Also next week, the European Central Bank will debate whether to end bond purchases later this year, the bank’s chief economist said on Wednesday, a hawkish message that sent the euro to a three-week high.

Equities Recap

European shares fell on Friday as worries about global trade and an economic slowdown in the region weighed on investor sentiment ahead of a European Central Bank meeting next week that could signpost plans to wind down its massive monetary stimulus.

UK’s benchmark FTSE 100 closed down 0.3 percent, the pan-European FTSEurofirst 300 ended the day down by 0.25 percent, Germany’s Dax ended down by 0.4 percent, France’s CAC finished the day flat.

U.S. stock indexes closed higher on Friday as investors shrugged off concerns about global trade tensions, but trading volume was relatively light ahead of a busy week of central bank meetings.

Dow Jones closed up by 0.28 percent, S&P 500 ended up by 0.29 percent, Nasdaq finished the day up by 0.11 percent.

Treasuries Recap

U.S. Treasury yields were marginally lower on Friday on light volume as traders awaited the outcome of the Group of Seven summit, fretting about growing trade tensions between the United States and its major allies and global economic growth.

The yield on benchmark 10-year Treasury notes was 2.926 percent, down 0.3 basis point from late Thursday.

Commodities Recap

Gold firmed on Friday as a rise in risk aversion ahead of G7 talks this weekend lent support, but the yellow metal remained hemmed within its narrowest weekly range in over a decade as a recovery by the dollar capped gains.

Spot gold inched up 0.1 percent to $1,298.11 per ounce by 1:35 p.m. EDT (1735 GMT), while U.S. gold futures for August delivery settled down 30 cents, or 0.02 percent, at $1,302.70 per ounce.

Oil prices fell on Friday as concerns about surging U.S. output and falling demand in China weighed on the contract and JP Morgan cut its price forecast.

Brent crude futures fell 66 cents to $76.66 a barrel by 1:32 p.m. EDT [1732 GMT]. U.S. West Texas Intermediate (WTI) crude futures recovered some earlier losses to trade 25 cents lower at $65.71. For the week, Brent was set to fall 0.2 percent, while U.S. crude was little changed.

Source: FXWire Media Round Ups

 

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