Market Roundup
•French 6-Month BTF Auction 3.710% ,3.710% previous
•French 12-Month BTF Auction 3.488%, 3.474% previous
•French 3-Month BTF Auction 3.800%,3.825% previous
•US Mar Dallas Fed PCE 3.40% previous
•US Apr Dallas Fed Mfg Business Index -14.5,-14.4 previous
•US 3-Month Bill Auction 5.250%, 5.255% previous
•US 6-Month Bill Auction 5.165%, 5.160% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Mar Unemployment Rate 2.5% forecast, 2.6% previous
•23:30 Japan Mar Jobs/applications ratio 1.26 forecast,1.26 previous
•23:30 Japan Mar Retail Sales (YoY) 2.5% forecast,4.6% previous
•23:50 Japan Mar Industrial Production (MoM) 3.4% forecast,-0.6% previous
•01:00 New Zealand Apr ANZ Business Confidence 22.9 previous
•01:00 New Zealand Apr NBNZ Own Activity 22.5% previous
•01:30 Australia Mar Private Sector Credit (MoM )0.4% forecast,0.5% previous
•01:30 China Apr Non-Manufacturing PMI 52.2 forecast, 53.0 previous
•01:30 China Apr Manufacturing PMI 50.3 forecast, 50.8 previous
•01:30 Australian Mar Retail Sales (MoM) 0.2% forecast,0.3% previous
•01:45 China Apr Caixin Manufacturing PMI 51.0 forecast,51.1 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Monday as investors attention turned to this weeks euro zone economic data and a U.S. policy decision . German inflation rose slightly in April due to higher food prices and a smaller drop in energy prices than in previous months, preliminary data from the federal statistics office showed on Monday.German consumer prices, harmonised to compare with other European Union countries, rose 2.4% in April, compared with 2.3% year-on-year in March . The German data was released ahead of the publication of pan-euro zone figures due on Tuesday, with inflation in the bloc expected to have remained at 2.4% in April, according to economists polled .Against the dollar, the euro rose 0.22% to $1.0721. The dollar index fell 0.25% to 105.69, though was headed for a monthly gain of 1%. Immediate resistance can be seen at 1.0721(50% fib), an upside break can trigger rise towards 1.0751(61.8% fib).On the downside, immediate support is seen at 1.0690(38.2% fib), a break below could take the pair towards 1.0650(23.6% fib).
GBP/USD: The pound reached its highest in around two weeks against the dollar at the start of a week packed with market-moving events. Versus the dollar, the pound was up 0.54% at $1.2561, its highest since April 12, a small recovery from five-month lows in mid April, when investors' expectations the Bank of England would cut interest rates earlier than the Federal Reserve caused them to sell the pound. Markets expect the Bank of England to start cutting rates in August, while the Fed is expected to wait until later in the year, causing the gap between U.S. and British government bond yields to widen. Immediate resistance can be seen at 1.2562 (38.2%fib), an upside break can trigger rise towards 1.2595(23.6 % fib).On the downside, immediate support is seen at 1.2495 (38.2 % fib), a break below could take the pair towards 1.2445 (50 % fib).
USD/CAD : The Canadian dollar edged up to a near three-week high against its U.S. counterpart on Monday as risk sentiment improved and ahead of monthly GDP data this week that could offer clues on the strength of the domestic economy. Investors were awaiting a Federal Reserve interest rate decision, due on Wednesday, as well as Tuesday's Canadian GDP data. Economists expect that Canada's economy grew 0.3% month-over-month in February, after advancing 0.6% in January. The price of oil, one of Canada's major exports, fell as Israel-Hamas ceasefire talks in Cairo tempered fears of a wider Middle East conflict. U.S. crude oil futures were down 1.7% higher at $82.45 a barrel.The loonie was trading 0.1% higher at 1.3656 to the U.S. dollar , after earlier touching its strongest level since April 10 at 1.3632. Immediate resistance can be seen at 1.3691 (23.6 % fib), an upside break can trigger rise towards 1.3731 (April 24th high).On the downside, immediate support is seen at 1.3633 (38.2%fib), a break below could take the pair towards 1.3583(50%fib).
USD/JPY: The U.S. dollar slipped lower against yen against on Monday after Tokyo reportedly stepped into the market. The dramatic move begins what could be a busy week for currency traders with a Federal Reserve meeting concluding on Wednesday, U.S. payrolls data on Friday, and European inflation data throughout the week, beginning with German and Spain on Monday. The dollar fell as far as 154.4 yen in several sudden moves in Asia trade and again in the European morning that knocked it from an intraday high of 160.245, its highest since 1990.Japan's top currency diplomat Masato Kanda declined to comment when asked if authorities had intervened, though traders said they had. The yen strengthened 1.49% versus the greenback at 156.04 per dollar. Strong resistance can be seen at 157.08 (38.2%fib), an upside break can trigger rise towards 159.55(23.6%fib).On the downside, immediate support is seen at 155.09 (38.2% fib), a break below could take the pair towards 154.63 (61.8% fib).
Equities Recap
European shares closed below day highs on Monday after Germany reported higher-than-expected inflation, while Deutsche Bank had its worst day in over a year as worries around its Postbank acquisition resurfaced.
UK's benchmark FTSE 100 closed up by 0.09 percent, Germany's Dax ended down by 0.16 percent, France’s CAC finished the day down by 0.29 percent.
U.S. stocks ended higher on Monday, with sharp gains for Tesla and Apple leading the way, as investors looked toward what the Federal Reserve would say about the interest rate outlook after its policy meeting this week.
Dow Jones closed down by 0.38% percent, S&P 500 closed up by 0.32 % percent, Nasdaq settled up by 0.35% percent.
Treasuries Recap
U.S. Treasury yields pulled back from last week's highs ahead of a Fed meeting and crucial economic data expected later in the week.
Benchmark 10-year notes last rose 13/32 in price to yield 4.6156%, from 4.669% late on Friday.
The 30-year bond last rose 22/32 in price to yield 4.7357%, from 4.782% late on Friday.
Commodities Recap
Oil prices lost more than $1 a barrel on Monday as Israel ceasefire talks in Cairo tempered fears of a wider Middle East conflict, while U.S. inflation data dimmed the prospect of imminent interest rate cuts.
Brent crude futures for June settled at $88.40 a barrel, falling $1.10, or 1.2%. The more active July contract ended at $87.20, losing $1.01 a barrel.
U.S. West Texas Intermediate (WTI) futures settled at $82.63 a barrel, falling $1.22, or 1.5%.
Gold prices edged lower as investors await crucial data and potential clues regarding the Fed's rate cut path.
Spot gold dropped 0.1% to $2,335.71 an ounce.
