America's Roundup: Dollar slides for third day on U.S. rate cut bets, Wall Street rises, Gold holds firm above $1,400, Oil rises on tropical storm disruptions, glut forecasts weigh-July 13th,2019

Market Roundup

• US Jun PPI Final Demand MM, 0.1%, 0.1% forecast, 0.1% previous

• US Jun PPI Final Demand YY, 1.7%, 1.6% forecast, 1.8% previous

• Russia May Trade Balance 11.82 B, 13.71 B  previous

Looking Ahead – Economic Data (GMT)

No Economic Data

Looking Ahead – Events, Other Releases (GMT)

No Significant Events

Currency Summaries

EUR/USD: The euro strengthened against the U.S. dollar on Friday, as dollar was as pressured by expectations the Federal Reserve will start cutting interest rates at a monetary policy meeting later this month. Against a basket of other currencies, the dollar fell 0.1% to 97.004, posting its worst daily loss against the yen and Swiss franc in more than three weeks. The dollar briefly trimmed losses after U.S. data showed producer prices rose slightly in June, up 0.1% following a similar gain in May. In the 12 months through June, the PPI rose 1.7%, the smallest gain since January 2017. The producer prices data followed a report on Thursday showing the core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018.. An index that tracks the dollar versus a basket of six major currencies was down 0.24 at 96.83 Immediate resistance can be seen at 1.1281 (21 DMA), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1251 (9 DMA), a break below could take the pair towards 1.1200 (Psychological level).

GBP/USD: Sterling strengthened against dollar on Friday, as bets that Bank of England could raise rates supported Sterling across the board. Bank of England official Gertjan Vlieghe said the central bank might need to cut rates almost to zero in the event of a no-deal Brexit and it was not clear how long it would take for them to rise again. Vlieghe also said that a scenario in which the BoE cuts rates “is more possible” than a scenario in which it raises rates.At 20:07 (GMT),the pound was last trading at $1.2571 against dollar. Against the euro, it was trading lower at 89.64 pence.. Immediate resistance can be seen at 1.2605 (21 DMA), an upside break can trigger rise towards 1.2697 (50 DMA).On the downside, immediate support is seen at 1.2513 (5 DMA), a break below could take the pair towards 1.2426 (Lower Bollinger Band).

USD/CAD: The Canadian dollar strengthened to a near nine-month high against its U.S. counterpart on Friday, adding to its gains since mid-week when the Bank of Canada made clear it had no intention of easing monetary policy. The signal from Canada’s central bank that interest rates are on hold has contrasted with dovish guidance from the U.S. Federal Reserve. Investors are betting that the Fed will cut interest rates at the end of this month and ease further by October. At (1956 GMT), the Canadian dollar was last trading 0.3% higher at 1.3033 to the greenback. Immediate resistance can be seen at 1.3081 (5 DMA), an upside break can trigger rise towards 1.3157 (21 DMA).On the downside, immediate support is seen at 1.3000 (Psychological level), a break below could take the pair towards 1.2943 (Lower Bollinger Band).

USD/JPY: The dollar weakened against the Japanese yen on Friday, as the dollar fell on expectations of a U.S. interest-rate cut. On the data front, U.S. producer prices rose slightly in June as a rising cost of services was offset by cheaper energy costs, beating economists’ expectations that prices would be unchanged.The Labor Department report comes on the heels of strong consumer price data published on Thursday, suggesting overall inflation could continue to rise moderately despite the gains in consumer prices. The dollar index, which tracks the greenback against six major peers, fell 0.26%, with the euro  up 0.19% to $1.1273.The Japanese yen strengthened 0.54 % versus the greenback at 107.90 per dollar. Strong resistance can be seen at 108.32 (9 DMA), an upside break can trigger rise towards 108.78 (50 DMA).On the downside, immediate support is seen at 107.52 (Jul 3rd low), a break below could take the pair towards 106.74 (Lower Bollinger Band).

Equities Recap

European shares were little changed on Friday as drugmakers came under pressure on worries the U.S. government may intervene over high drug prices, while Federal Reserve chairman Jerome Powell’s dovish comments helped limit losses.

UK's benchmark FTSE 100 closed down by 0.05 percent,Germany's Dax ended down by 0.07 percent, France’s CAC finished the day up by 0.38 percent.

U.S. stocks hit record highs on Friday as high expectations for an interest-rate cut from the Federal Reserve continued to propel shares while investors awaited next week’s kickoff of the corporate earnings season.

Dow Jones closed up by 0.90 percent, S&P 500 ended up by 0.44 percent, Nasdaq finished the day up by 0.59 percent.

Treasuries Recap

Treasury yields rose modestly on Friday, largely unmoved by stronger-than-expected producer price data as market expectations of an interest rate cut in July held firm.

The two-year Treasury note yield, which reflects market sentiment about changes in interest rate policy, was up less than half a basis point to 1.855%. Gains were slightly larger at the long end of the yield curve, with the benchmark 10-year note up 1.1 basis points to 2.131%, and the 30-year bond yield up 1.8 basis points to 2.657%.

Commodities Recap

Oil prices inched up on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains.

Brent crude futures were up 31 cents to $66.83 a barrel by 1:21 p.m. EDT (1721 GMT). U.S. West Texas Intermediate (WTI) crude futures gained 18 cents to $60.38 a barrel.

Gold prices inched higher on Friday as investors shrugged off concerns that stronger-than-expected consumer inflation in the United States could influence the U.S. central bank’s decision on aggressive monetary policy easing.

Spot gold rose 0.7% to $1,412.88 per ounce as of 1:47 p.m. EDT (1748 GMT), having touched $1,413.41 earlier in the session. Prices have risen nearly 1% so far this week.U.S. gold futures settle 0.4% up at $1,412.20 per ounce

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