Market Roundup
• French 6-Month BTF Auction -0.610%,-0.603% previous
• French 3-Month BTF Auction -0.621%,-0.606% previous
• French 12-Month BTF Auction -0.619%,-0.590% previous
• US Jan Wholesale Trade Sales (MoM) 4.9%, 1.4%,1.2% previous
• US Feb CB Employment Trends Index 101.01,99.27 previous
•US Wholesale Inventories (MoM) 1.3%,1.3% previous
Looking Ahead Economic Data(GMT)
• 21:45 New Zealand Manufacturing Sales Volume (QoQ) (Q4) 17.3% previous
• 23:30 Japan Average Cash Earnings (YoY) -3.2% previous
• 23:30 Japan Household Spending (MoM) -3.1% forecast, 0.9% previous
• 23:30 Japan Household Spending (YoY) -2.1% forecast,-0.6% previous
• 23:30 Japan Jan Overtime Pay (YoY) -8.60% previous
• 23:50 Japan GDP (QoQ) (Q4) 3.0% forecast, 5.3% previous
• 23:50 Japan GDP (YoY) (Q4) 12.7% forecast, 22.9% previous
• 23:50 Japan GDP External Demand (QoQ) (Q4) 1.0% previous
•00:00 New Zealand ANZ Business Confidence 7.0 previous
•00:00 Australia Feb NAB Business Confidence 10 previous
•00:00 Australia Feb NAB Business Survey 7 previous
•00:60 Japan Machine Tool Orders (YoY) 9.7% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined on Monday as dollar was supported by rising U.S. Treasury yields. In early Monday trade, most 10-year bond yields were up 2 basis points on the day, but holding below recent highs . A note of caution before Thursday's European Central Bank meeting appeared to limit selling. Policymakers from ECB President Christine Lagarde to chief economist Philip Lane have expressed unease. Markets want to know the game plan. Immediate resistance can be seen at 1.1923 (50%fib), an upside break can trigger rise towards 1.2000(Psychological level).On the downside, immediate support is seen at 1.1847(Daily low), a break below could take the pair towards 1.1798 (Nov 23rd low 2020).
GBP/USD: Sterling edged against stronger dollar on Monday as the UK’s relative success in COVID-19 vaccinations supported the British currency. Although Britain has Europe’s biggest coronavirus death toll, it has outperformed on the vaccine front, with more than 21 million people having received the first dose of a COVID-19 vaccine.In the first step towards a return to normality, schools in England reopened on Monday as part of the UK’s lockdown-easing plan.Immediate resistance can be seen at 1.3843 ( 30DMA), an upside break can trigger rise towards 1.3915 (23.6%fib).On the downside, immediate support is seen at 1.3803 (38.2%fib), a break below could take the pair towards 1.3706(50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, holding on to last week's gains as U.S. fiscal stimulus moved a step closer to being passed and ahead of an interest rate decision by the Bank of Canada on Wednesday.The U.S. Senate on Saturday passed the stimulus package and President Joe Biden said he hoped for quick passage of the revised bill by the House of Representatives so he could sign it and send $1,400 direct payments to Americans. Canada sends about 75% of its exports to the United States including oil . Immediate resistance can be seen at 1.2675 (30 DMA), an upside break can trigger rise towards 1.2734 (38.2%fib).On the downside, immediate support is seen at 1.2608 (23.6%fib), a break below could take the pair towards 1.2575 (4th March).
USD/JPY: The dollar rose to hit nine-month high against the Japanese yen on Monday as the passage of a $1.9 trillion COVID-19 relief package by the U.S. Senate lifted greenback. The Senate on Saturday passed the stimulus package - one of the biggest in U.S. history - and President Joe Biden said he hoped for quick passage of the revised bill by the House of Representatives so he could sign it and send $1,400 direct payments to Americans. The dollar gained on the low-yielding yen, reaching a nine-month top of 108.63, and was last changing hands at 108.37. Strong resistance can be seen at 108.88 (Daily high), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 108.04 (38.2%fib), a break below could take the pair towards 107.78 (5DMA).
Equities Recap
European shares edged higher at the close after seesawing for most of the session on Monday, as traders swung their attention to the extra injections of support they now expect major central banks to provide following the coronavirus outbreak.
UK's benchmark FTSE 100 closed down by 3.62 percent, Germany's Dax ended down by 3.37 percent, France’s CAC finished the day up by 4.14 percent.
Futures tracking the Nasdaq 100 index sank 2% on Monday as the passage of a $1.9 trillion COVID-19 relief package by the U.S. Senate lifted bond yields, pressuring richly valued technology stocks and sparking inflation concerns.
Dow Jones closed up by 1.74percent, S&P 500 closed up by 0.50 percent, Nasdaq settled down by 1.15 % percent.
Treasuries Recap
U.S. Treasury yields advanced on Monday, with the belly of the curve leading the way, as investors continued to price in higher inflation and more upbeat U.S. economic prospects.
The 5-year and 7-year note yields were up 4 basis points, while that of the benchmark 10-year note hit a near 13-month high.
Commodities Recap
Gold prices rose on Monday, recovering from a near nine-month low hit in the previous session, as a passage of the long awaited $1.9 trillion U.S. coronavirus relief package boosted the metal's appeal.
Spot gold rose 0.3% to $1,705.62 per ounce by 0041 GMT, after hitting its lowest since June 8 at $1,686.40 on Friday. U.S. gold futures climbed 0.3% to $1,703.
Brent climbed as high as $71.38 a barrel in early Asian trade, its highest since Jan. 8, 2020. By 12:20 a.m. EST (1720 GMT), the global benchmark was trading down $1.01 or 1.5% at $68.35.
U.S. West Texas Intermediate (WTI) crude was down 94 cents or 1.4% at $65.15 after touching $67.98 a barrel, its highest since October 2018.
