Market Roundup
• Russia GDP Quarterly YoY (Q2) 0.9%,0.9% forecast, 0.9% previous
• US Aug CB Employment Trends Index 110.60, 110.70 previous
• US Jul Consumer Credit 16.10B forecast, 14.60B previous
Looking Ahead - Economic Data (GMT)
• 22:45 Zealand Aug Electronic Card Retail Sales (YoY) 1.6% previous
• 22:45 New Zealand Aug Electronic Card Retail Sales (MoM) -0.1% previous
• 23:50 Japan M2 Money Stock (YoY) 2.4% previous
• 23:50 Japan Aug M3 Money Supply 1,807.7T previous
• 01:30 Australia Aug NAB Business Confidence 4
• 01:30 Australia Aug NAB Business Survey 2
• 01:30 China Aug CPI (YoY) 2.6% forecast, 2.8% previous
• 01:30 China Aug CPI (MoM) 0.5% forecast, 0.4% previous
• 01:30 China Aug PPI (YoY) -0.9% forecast, -0.3% previous
Looking Ahead - Events, Other Releases (GMT)
No significant events
Currency Summaries
EUR/USD: The euro strenthed against the U.S. dollar on Monday, after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. Euro gains were capped, however, before the European Central Bank’s meeting on Thursday, when the central bank is expected to introduce a new wave of monetary stimulus. The euro may get a boost, however, if the ECB disappoints dovish expectations already baked into the market.The euro was up 0.01 percent at $1.1047. An index that tracks the dollar versus a basket of six major currencies was down 0.30 at 98.30. Immediate resistance can be seen at 1.1076 (21 DMA), an upside break can trigger rise towards 1.1146 (50 DMA).On the downside, immediate support is seen at 1.1022 (5 DMA), a break below could take the pair towards 1.0967 (lower BB).
GBP/USD: Sterling trimmed earlier gains against dollar on Monday, as investors took profits after a rally lifted the British currency to six-week highs thanks to surprisingly strong data and hopes that Britain will not crash out of the European Union without a deal. Brexit will be delayed again, according to a poll of economists that continued to put the chance of Britain and the European Union parting ways without agreeing a deal at 35%, despite the UK parliament attempting to block a no-deal exit. The pound trimmed gains to stand up 0.1% on the day at $1.2342. It jumped to a six-week high of $1.2385 in London trading after economic data beat forecasts. Immediate resistance can be seen at 1.2384 (Higher BB), an upside break can trigger rise towards 1.2400 (Psychological level).On the downside, immediate support is seen at 1.2265 (5 DMA), a break below could take the pair towards 1.2214 (11 DMA).
USD/CAD: The Canadian dollar strengthened to its highest level in nearly six weeks against its U.S.counterpart on Monday as the price of oil, one of Canada's major exports, rose and recent data bolstered investor confidence inthe domestic economy. Data on Friday showed that Canada's economy added 81,100 jobs in August. It followed data the previous week showing that gross domestic product expanded at an annualized rate of 3.7% in the second quarter, even as other countries were being hurt by global trade uncertainty. The Canadian dollar was trading 0.1% higher at 1.3160 to the greenback. The currency, which last week snapped a seven-week losing streak, touched its strongest intraday level since July 31 at 1.3140.Immediate resistance can be seen at 1.3191 (50 DMA), an upside break can trigger rise towards 1.3263 (11 DMA).On the downside, immediate support is seen at 1.3140 (Daily low), a break below could take the pair towards 1.3100 (Psychological level).
USD/JPY: The U.S. dollar strenthed against the yen on Monday, as demand for riskier assets improved on expectations that global central banks will launch stimulus measures to support their slumping economies.The European Central Bank meets on Thursday. Money markets show investors expect a 10 basis-point cut in the deposit rate to -0.50% in the first cut since 2016. Some investors are betting on a bigger 20 basis-point easing; nearly a quarter of economists polled anticipate this too. On Friday, China's central bank cut reserve requirements for a seventh time since early 2018 to free funds for lending.Federal Reserve Board Chairman Jerome Powell said on Friday.the U.S. central bank would continue to "act as appropriate" to sustain U.S. expansion. Strong resistance can be seen at 107.37 (Higher BB), an upside break can trigger rise towards 108.00 (Psychological level).On the downside, immediate support is seen at 106.46 (9 DMA), a break below could take the pair towards 106 .00 (Psychological level).
Equities Recap
European stocks finished lower on Monday as Britain’s export-heavy FTSE index tumbled due to a stronger pound, while selling in defensive sectors such as healthcare and utilities dented early gains in markets.
The UK's benchmark FTSE 100 closed down by 0.64 percent, Germany's Dax ended up by 0.28 percent, and France’s CAC finished the the day down by 0.27 percent.
U.S. stocks ended flat on Monday as increased expectations of stimulus from central banks around the world were offset by losses in technology and healthcare shares.
Dow Jones closed up by 0.14 percent, S&P 500 ended down 0.01 percent, Nasdaq finished the day down by 0.19 percent.
Treasuries Recap
U.S. Treasury yields rose to three-week highs on Monday, in line with gains in the European
bond market, as risk appetite improved amid easing U.S.-China trade tensions and expectations of less-aggressive action from the European Central Bank this week..
Yields on U.S. debt, from two-year notes to 30-year bonds, all hit peaks after rising in two of the last three sessions, as investors grew less nervous about the U.S.-China trade war. Washington and Beijing have agreed to go back to the negotiating table.
Commodities Recap
Gold fell to an over two-week low on Monday, briefly breaking below the key $1,500 support, as renewed risk appetite and gaining U.S. yields outweighed support for bullion from expectations for interest rate reductions by top central banks.
Spot gold fell 0.2% to $1,503.56 per ounce at 1:36 p.m. EDT (1736 GMT). The metal touched $1,497.30, its lowest since Aug. 23.U.S. gold futures settled down 0.3% to $1,511.10.
Oil prices rose about 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country's policy of limiting crude output to support prices.
Brent crude futures gained $1.05, or 1.7%, to settle at $62.59 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.33, or 2.4%, to settle at $57.85 a barrel.
