America's Roundup: Dollar slips on U.S. rate cut, S&P edges lower, Gold rallies to near six-year high, Oil mixed on crude demand fears and U.S.-Iran tensions-June 25th,2019

Market Roundup

• Trump imposes new U.S. sanctions on Iran's supreme leader, other top officials

• WTO says G20 erected 20 new trade barriers, although 29 barriers fell

• Gold pinned near 6-year top as investors boost safe-haven bids

• Oil prices slip on demand fears, Mideast tensions ease

• Bitcoin trades above $11,000, after 10% weekend jump

• Trump says Fed “blew it” -Twitter

Looking Ahead – Economic Data (GMT)

• 24 Jun New Zealand  22:45 May Annual Trade Balance (NZD), -5.48 bln previous

• 24 Jun New Zealand  22:45 May Trade Balance, 433.0 mln previous

Looking Ahead – Events, Other Releases (GMT) 

 N/A Russia's central bank monetary policy chief, Alexei Zabotkin, to speak at Duma in Moscow

• 07:05 RBA's Michele Bullock speaks on “Modernising the Australian Payments System” at the Central Bank Payments Conference in Berlin

• 07:15 ECB's Luis de Guindos speaks at ABI Annual Convention “Supervision, Risks and Profitability 2019” organised by the Italian Banking Association in Rome

• 12:30 Philadelphia Fed issues Nonmanufacturing Business Outlook Survey for June in Philadelphia

• 12:45 New York Fed's John Williams gives welcome remarks before the Open Finance Forum organized by Open Finance NYC and Bloomberg in New York

• 16:00 Atlanta Fed's Raphael Bostic participates in panel on “Housing” before the Harvard University Joint Center for Housing Studies' “The State of the Nation's Housing 2019,” in Atlanta

• 17:00 Fed's Jerome Powell speaks at “C. Peter McColough Series on International Economics: A Conversation with Jerome H. Powell,” in New York

• 17:00 Fed's Jerome Powell speaks at Council on Foreign Affairs in Washington D.C.

• 17:15 ECB's Benoit Coeure gives opening remarks at a dinner with the International Swaps and Derivatives Association's (ISDA) Board of Directors and senior staff in Frankfurt

Currency Summaries

EUR/USD: The euro advanced to a three-month high against the dollar on Monday, as bearish bets on the U.S. currency remained solid after the Federal Reserve signalled last week it could soon cut interest rates. The euro stretched its rally last week, when it added 1.4%, and rose about 0.15% to $1.1403 in US session, its highest since March 22. It last traded at $1.1383.The dollar index versus a basket of six major currencies was a shade lower at 96.02, having struck 96.093 on Friday, its lowest since March 21, after the Fed last week opened the door for a potential rate cut as early as next month. That weighed on the dollar and in turn reinvigorated its counterparts such as the euro, which has had troubles of its own including Italy's debt problem and the possibility of the European Central Bank having to ease policy. Immediate resistance can be seen at 1.1393 (23.6% retracement level), an upside break can trigger rise towards 1.1423 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.1348 (200 DMA), a break below could take the pair towards 1.1273 (9 DMA).

GBP/USD: Britain's pound was little changed against the dollar on Monday, as traders were reluctant to take big positions on the pound until the conclusion of the Conservative Party leadership contest. While the Bank of England sounded less dovish than other central banks last week, providing some support to the British currency, the pound's moves are being driven by developments elsewhere. With the dollar suffering a selloff after the Federal Reserve encouraged expectations of a July rate cut, the pound was able to briefly touch a one-month high against the greenback earlier in the session. The pound was last trading little changed at $1.2740 by 1924 GMT after earlier touching $1.2766, its strongest since May 21.Immediate resistance can be seen at 1.2797 (Higher Bollinger Bands), an upside break can trigger rise towards 1.2827 (23.6 % retracement level).On the downside, immediate support is seen at 1.2714 (50% retracement level), a break below could take the pair towards 1.2474 (61.8% retracement level).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, adding to last week's gains ahead of a meeting this week between the Chinese and U.S. presidents, as oil prices climbed and the greenback broadly weakened. The U.S. dollar fell against its rivals after sustaining its biggest weekly drop in four months last week as the Federal Reserve opened the doors for a rate cut as early as next month.  The price of oil, one of Canada's major exports, extended large gains last week that were prompted by tensions between Iran and the United States, as Washington was set to announce new sanctions on Tehran. U.S. crude oil futures were up 0.4% at $57.63 a barrel. At (GMT 1934) the Canadian dollar   was trading 0.2% higher at 1.3185 to the greenback, or 75.76 U.S. cents. Immediate resistance can be seen at 1.3210 (50 % retracement level ), an upside break can trigger rise towards 1.3271  (61.8 % retracement level).On the downside, immediate support is seen at 1.3146 (38.2 % retracement level), a break below could take the pair towards 1.3100 (Psychological level).

USD/JPY: The dollar was little changed against the Japanese yen on Monday, as investors refrained from making big bets before this week's G20 summit where the presidents of the United States and China are expected to discuss their trade disputes. Investors are focused on whether U.S. President Donald Trump and Chinese President Xi Jinping can de-escalate the trade war between the two countries when they meet at the G20 summit in Japan.Tariffs between the two counties have been blamed for slowing international growth, prompting global central banks to signal a readiness to adopt looser policies. Rising tensions between the United States and Iran have also boosted safe-haven demand. Trump imposed new U.S. sanctions on Iran on Monday following Tehran's downing of an unmanned American drone and said the measures would target Iranian Supreme Leader Ayatollah Ali Khamenei. The dollar was last trading 0.03 percent higher  versus the Japanese yen at 107.93.Strong resistance can be seen at 108.00 (9 DMA), an upside break can trigger rise towards 108.40 (21 DMA).On the downside, immediate support is seen at 106.77 (Lower Bollinger Band), a break below could take the pair towards 106.00(Psychological level). 

Equities Recap

Weak German economic data and a profit warning from Daimler weakened European stock markets on Monday as investors reined in any bets on a fourth week of gains before G20 meetings that may see more trade talks between the U.S. and Chinese presidents.

UK's benchmark FTSE 100 closed 0.01 percent, the pan-European FTSEurofirst 300 ended the day  by 0.30percent, Germany's Dax ended up by 0.6 percent, France’s CAC finished the day down by 0.02 percent.

Wall Street struggled for direction on Monday as gains by technology companies were blunted by losses in the healthcare sector, while investors looked to U.S. President Donald Trump's meeting with his Chinese counterpart Xi Jinping at the G20 summit later this week.

Dow Jones closed up by 0.04 percent, S&P 500 ended down by 0.17 bpercent, Nasdaq finished the day down by 0.33 percent.

Treasuries Recap

U.S. Treasury yields fell on Monday, holding just above almost three-year lows, ahead of trade talks between the U.S. and China later this week.

Benchmark 10-year notes were last up 11/32 in price to yield 2.028 percent, down from 2.066 percent on Friday.

Commodities Recap

Gold prices rose more than 1 percent on Monday to a near six-year peak as the dollar fell, with safe-haven bullion also boosted by U.S. President Donald Trump's announcement to impose fresh sanctions on Iran.

Spot gold was 1.2% higher at $1,415.16 an ounce by 01:57 p.m. EDT (1757 GMT), heading for a fifth straight session of gains. Its session high of $1,416.84 was its highest level since late August 2013.U.S. gold futures settled up 1.3% at $1,418.20 an ounce.

Oil prices were mixed on Monday as market concerns about the possibility of a conflict between the United States and Iran eased, while worries about declining crude demand resurfaced.

Benchmark Brent crude futures  settled at $64.86 a barrel, losing 34 cents, or 0.5%. U.S. crude futures   settled at $57.90 a barrel, rising 47 cents, or 0.8%.

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