Spreadex Market Update
USD Lower on Monday Following Mixed US Labour Report on Friday
USD starts the week under pressure after a mixed set of labour readings on Friday. This Friday’s CPI reading now on watch. Equities see better start amidst USD weakness, ECB on watch on Thursday. Oil prices slip on Monday following Saudi price hike for Asian buyers. Very light data sheet today with holidays across Europe.
Key Factors for Today
- USD lower following mixed labour indicators on Friday
- GBP higher as UK traders return post-holiday
- Equities higher amidst USD weakness
- Gold and silver see better start
- Oil slips on Saudi price raise
Coming Up
Very light data sheet today, Swiss, German & French bank holidays
USD Under Pressure on Monday
The US Dollar starts the new week with a mildly offered tone. Late Asian and early European trading today has seen the greenback sold, reversing some of the gains made on Friday. The latest set of labour market indicators delivered on Friday highlighted a mixed bag; average earnings and the unemployment rate both missed forecasts while the headline NFP figure was better than expected. Traders will now be looking to see if softer wage growth data feeds into weaker-than-expected US CPI on Friday.
Equities Rebound Following Choppy Week
It was a choppy session for equities last week as assets were knocked around by USD volatility. Equities indices are generally in the green across the European open on Monday, benefiting from a weaker US Dollar. The Nikkei has been particularly strong at the start of the week, rallying more than 1% so far as JPY weakness continues to offer support. The big focus for equities traders this week will be on the ECB’s June meeting on Thursday followed by US CPI on Friday.
GBP Leads in FX As UK Traders Return
In FX, USD starts the new week under pressure following Friday’s mixed data. GBP has been among the better performers so far today, likely benefitting from the return of UK traders following a double-length bank holiday as part of the Queen’s Platinum Jubilee celebrations. AUD is trading a little softer ahead of the RBA rate decision tonight which is expected to see the bank hiking rates further.
Precious Metals See Better Start on USD Weakness
Gold and silver have both started the week with a better tone. A softer US Dollar has created better demand for both metals with silver in particular seeing decent upside on Monday, fuelled also by higher equities prices. However, in light of recent price action it’s hard to see either metal making a significant move near term until we get a proper directional catalyst.
Oil Falls on Saudi Price Hike
Despite a strong rally into the end of last week, oil prices have started the new week under pressure. Crude prices have reversed lower over the European open on Monday after Saudi Arabia raised its July oil prices for Asian buyers by much more than expected. Despite surging demand, it seems the hike from $2.1 per barrel to $6.5 per barrel is a little too steep and has seen some drop off in interest initially.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
