America's Roundup: Dollar gains on upbeat retail sales data, Wall Street falls, Gold eases, Oil falls as Iran tensions seen easing-July 17th,2019

Market Roundup

• Retail sales beat economists' expectations in June

• Fed's Powell pledges to 'act as appropriate' for the economy

• Atlanta Fed raises GDP estimate for second quarter

• US Jun Retail Control (MoM) 0.7, forecast 0.3,previous 0.6

• US Jun Retail Sales MM Actual 0.40,forecast 0.1,previous -0.4

• US June Retail Sales Ex Gas/Autos (MoM) Actual 0.7,forecast 0.3,previous 0.5

• CA May Foreign Securities Purchases 10.20 B, -12 79B previous

• US Redbook MM Actual 1.0%,previous -2.2%

• US Redbook YY Actual 4.7%,previous 6.2%

• Russia PPI YY Actual 4.1%, previous 8.6%

• Russia PPI MM Actual -0.6%, previous 1.8%

•US Jun Capacity Utilization Rate 77.9%, previous 78.2%, previous 78.1 %

• US Jun Industrial Production MM 0.0%, 0.1 previous Forecast, 0.4 previous

• US Jul NAHB Housing Market Index 66, 64 previous Forecast,64 previous

Looking Ahead - Economic Data (GMT)

• 00:30 Australia MI Leading Index (MoM)

Looking Ahead - Events, Other Releases (GMT)

• No major events are scheduled

Currency Summaries

EUR/USD: The euro declined against the U.S. dollar on Tuesday, as data that pointed to deterioration in confidence among German investors prompted by the trade conflict between China. Euro also dipped as traders expect the European Central Bank to move policy rates deeper into negative later this year as the euro zone economy has been struggling. Earlier Tuesday, the ZEW Institute said its monthly survey showed economic sentiment among German investors fell to -24.5 in July from -21.1 the month before. The euro was down 0.42 percent at $1.1210.An index that tracks the dollar versus a basket of six major currencies was up 0.47 at 97.38. Immediate resistance can be seen at 1.1244 (9 DMA), an upside break can trigger rise towards 1.1282 (21 DMA).On the downside, immediate support is seen at 1.1191 (9th July Low), a break below could take the pair towards 1.1163 (Lower Bollinger Bands).

GBP/USD: Sterling plunged briefly below $1.24 for the first time in 27 months on Tuesday,as the two candidates to be Britain’s next prime minister vied to outgun each other on taking a harder Brexit stance. Their positions appear to be leading markets to price a sharply higher risk of Britain leaving the European Union on October 31 without any transition trading agreements in place. The British currency weakened 0.9% on Tuesday to $1.2409, having plunged earlier to $1.2396, the lowest since April 2017 and below the "flash crash" of $1.2409 on Jan. 3.Immediate resistance can be seen at 1.2527 (11 DMA), an upside break can trigger rise towards 1.2595 (21 DMA).On the downside, immediate support is seen at 1.2371 (Lower Bollinger Band), a break below could take the pair towards 1.2300 (Psychological level).

USD/CAD:The Canadian dollar held steady against its U.S. counterpart on Tuesday, hovering near a nine-month high, as a drop in U.S. oil prices offset a rise in domestic bond yields that moved in step with higher U.S. yields. The loonie has gained sharply against the greenback in recent days as the Bank of Canada showed no signs it was prepared to lower interest rates anytime soon. Canadian policy-makers' current stance come at a time as soft inflation data and global trade disputes have led other central banks including the Federal Reserve to signal they are ready to provide stimulus to counter an economic slowdown. At (2000 GMT), the Canadian dollar was 0.23 % lower at C$1.3074 per U.S. dollar, retreating from an earlier peak of C$1.3023.Immediate resistance can be seen at 1.3075 (11 DMA), an upside break can trigger rise towards 1.3130 (21 DMA).On the downside, immediate support is seen at 1.3000(Psychological level), a break below could take the pair towards 1.2952 (Lower Bollinger Band).

USD/JPY: The dollar strengthened against the Japanese yen on Tuesday, as surprisingly strong growth in U.S. retail sales in June soothed jitters about the American economy and trimmed expectations the Federal Reserve may embark on a deep interest rate cut later this month. The U.S. Commerce Department said retail sales rose 0.4% in June, exceeding the 0.1% increase forecast among analysts polled. The dollar was 0.37 percent higher versus the Japanese yen at 108.27. Strong resistance can be seen at 108.22(5 DMA), an upside break can trigger rise towards 108.70 (50 DMA).On the downside, immediate support is seen at 107.78 (Daily Low), a break below could take the pair towards 107.07 (Lower Bollinger Band).

Equities Recap

British fashion brand Burberry's shares jumped on Tuesday, lifting other luxury goods makers, whileupbeat earnings from big Wall Street banks spurred gains for theregion's lenders, driving major European markets to theirhighest closing levels in a week.

UK's benchmark FTSE 100 closed up by 0.60 percent, Germany's Dax ended up by 0.35 percent, France’s CAC finished the day up by 0.65 percent.

The S&P 500 edged lower on Tuesday as quarterly results from banks added to concerns about lower interest rates dampening profits, while comments from U.S. President Donald Trump on trade also weighed on the benchmark index.

Dow Jones closed down by 0.09 percent, S&P 500 ended down by 0.38 percent, Nasdaq finished the down by 0.43 percent.

Treasuries Recap

U.S. Treasury yields rose on Tuesday, after data showed that U.S. retail sales increased more than expected in June, adding to recent evidence that the economy is improving.

Benchmark 10-year notes fell 8/32 in price to yield 2.118%, up from 2.092% late on Monday. The Federal Reserve is seen as certain to cut rates when it meets later this month, even as the U.S. economic picture improves.

Commodities Recap

Gold prices fell on Tuesday, after better-than-expected U.S. retail sales data lowered expectations of an interest rate cut by the U.S. Federal Reserve and boosted the dollar.

Spot gold inched down 0.45% to $1,407.38 per ounce. U.S. gold futures slipped 0.33 % to $1,408.9 per ounce.

Oil prices turned lower on Tuesday, falling by about $1 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast.

Brent crude futures fell $1.01 a barrel to $65.47 by 1:04 p.m. EDT (1704 GMT). The international benchmark hit a session high of $67.09 earlier in the day.West Texas Intermediate crude futures fell by $1.11 a barrel to $58.47.