Market Roundup
• UK Lords approve Brexit law forcing May to consult parliament on delay.
• Brexit hangs in the balance as May's government talks with Labour.
• Top U.S. trade official says EU, U.S. 'working hand in hand' on China.
• US Feb Factory Orders MM,-0.5%, -0.6% forecast, 0.1% previous, 0.0% revised.
• US Feb Durable Goods, R MM, -1.6%, -1.6% previous.
• CA Mar House Starts, Annualized, 192.5k, 196.5k forecast, 173.1k previous, 166.3k revised.
• CA Feb Building Permits MM, -5.7%, 1.3% forecast, -5.5% previous, -6.0% revised.
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Feb Housing Finance, -2.6% previous
Looking Ahead - Events, Other Releases (GMT)
• No major events are scheduled
Currency Summaries
EUR/USD: The euro strengthened against the U.S. dollar on Monday, as investors squared positions before a European Central Bank meeting this week. Traders cut long euro positions last week by the most in nine months, data showed, as core European bond yields entered negative territory and PMI data indicated the euro zone economy was struggling. No policy changes are expected at this week's ECB meeting, but the press conference afterward will be in focus amid talk of tiered rates, global recession fears.The euro was up 0.43 percent at $1.1262. Immediate resistance can be seen at 1.1279 (21 DMA), an upside break can trigger rise towards 1.1316 (50 DMA).On the downside, immediate support is seen at 1.1210 (Daily low), a break below could take the pair towards 1.1161 (Lower Bollinger Bands).
GBP/USD: British pound held above $1.3 on Monday, but traded in a narrow range reflecting nervousness in the market about key Brexit talks in London between Prime Minister Theresa May and the opposition Labour Party. Britain is due to leave the European Union on Friday but May is seeking a compromise with Labour leader Jeremy Corbyn on the terms of the UK's divorce ahead of an EU leaders' summit on Wednesday. The pound traded up 0.1 percent at $1.3046 and was down 0.3 percent against a stronger euro at 86.34 pence. Immediate resistance can be seen at 1.3090 (9 DMA), an upside break can trigger rise towards 1.3153 (21 DMA).On the downside, immediate support is seen at 1.2980 (Lower Bollinger Band), a break below could take the pair towards 1.2924 (100 DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, performing better than most other G10 currencies as oil prices climbed to their highest this year and domestic data showed a 15.8% jump in March housing starts. The price of oil, one of Canada's major exports, rose to a five-month high on expectations of tightening global supplies.The Canadian dollar was trading 0.6% higher at 1.3312 to the greenback, or 75.12 U.S. cents.. Immediate resistance can be seen at 1.3364 (11 DMA), an upside break can trigger rise towards 1.3433 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3286 (50 DMA), a break below could take the pair towards 1.3272 (Lower Bollinger Band).
USD/JPY: The U.S. dollar edged lower against the yen on Monday, as concerns about global growth led investors to switch to safe-haven Japanese yen. Washington and Beijing wrapped up their latest round of trade talks on Friday and are scheduled to resume discussions this week to try to secure a pact to end their bitter tariff war. The dollar was 0.16 lower versus the Japanese yen at 111.54. The market is also waiting for data on U.S. consumer and producer prices this week amid cooling wage pressures. The minutes from the last Federal Reserve policy meeting will be also be on tap this week. Strong resistance can be seen at 112.02 (Psychological level), an upside break can trigger rise towards 112.61 (23.6% retracement level).On the downside, immediate support is seen at 111.25 (9 DMA), a break below could take the pair towards 110.78 (50 DMA ).
Equities Recap
Most European stocks slid on Monday amid losses across most sectors, with German bank and real estate shares drawing investor attention as did European suppliers of U.S. planemaker Boeing following a production cut announced late on Friday.
The UK's benchmark FTSE 100 closed down by 0.07 percent, FTSEurofirst 300 ended the day down by 0.26 percent, Germany's Dax ended down by 0.49 percent, and France’s CAC finished the down by 0.18 percent.
The S&P 500 and the Nasdaq edged into positive territory on Monday, with gains held in check by falling industrial stocks as investors braced for what Wall Street expects to be the first quarter of contracting earnings since 2016.
Dow Jones closed down by 0.31 percent, S&P 500 ended up 0.10 percent, Nasdaq finished the day up by 0.19 percent.
Treasuries Recap
U.S. Treasury debt prices drifted lower in generally quiet trading on Monday, pressured by upcoming government debt and corporate supply.
In late trading, U.S. 10-year note yields rose to 2.518% , up from 2.499% late on Friday.U.S. 30-year bond yields, were also up at 2.925% , from 2.909% on Friday.
Commodities Recap
Gold rose 1 percent to briefly breach $1,300 an ounce on Monday and remained at its highest in more than a week as the dollar slipped and a recent equities rally paused.
Spot gold was up 0.46 percent at $1,297.52 per ounce as of (2018 GMT) after rising as much as 1 percent to $1,303.61 per ounce, its highest since March 28. U.S. gold futures settled 0.5 percent higher at $1,301.9 an ounce.
Oil prices rose up to 2 percent on Monday, hitting five-month highs on expectations that global supplies would tighten due to fighting in Libya, OPEC-led cuts and U.S. sanctions against Iran and Venezuela.
International benchmark Brent futures rose 76 cents, or 1.1 percent, to settle at $71.10 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained $1.32, or 2.1 percent, to settle at $64.40 a barrel.
