Currencies Summary
EUR/USD is likely to find support at 1.1240 levels and currently trading at 1.1305 levels. The pair has made session high at 1.1357 and hit lows at 1.1301 levels. The dollar declined against the euro on Monday, as investors pared back bullish bets on the greenback after polls showed support for Britain staying in the EU strengthened before Thursday's referendum. Britain is due to vote on its European Union membership on June 23. Opinion polls have been split, although bookmakers have given a greater probability towards Britain opting to stay in the EU, rather than leave in a "Brexit" scenario. The euro jumped 0.85 percent to 118.45 yen, well above Thursday's three-year low of 115.51. Against the dollar, the euro gained 0.6 percent to $1.1340. Meanwhile, investors awaited Yellen's two-day testimony before Congress, which starts on Tuesday, where she might offer clues on the timing of the central bank's next rate increase.
GBP/USD is supported in the range of 1.4540 and currently trading at 1.4668 levels. It reached session high at 1.4705 and hit low at 1.4580 levels. Sterling rose sharply against the dollar on Monday after three opinion polls ahead of the vote showed the "Remain" camp recovering some momentum. Recent opinion polls have generally shown a tight race ahead of the June 23 referendum, although betting markets have shown a higher probability of a "Remain" vote. Sterling earlier rose to a session high of $1.4717, its highest in nearly three weeks, as it extended a recovery from Thursday's more than two-month trough of $1.4013. The rise put sterling on track for its best one-day performance in seven years. It was last up 2 percent at $1.4665. The pound jumped 2.4 percent to 152.80 yen, pulling away from a three-year trough around 145.34 also set on Thursday. The euro fell 1.5 percent to 77.40 pence. In spite of Monday's rebound, several traders remained cautious, given the uncertainty around the referendum.
AUD/USD is supported around 0.7375 levels and currently trading at 0.7451 levels. It hit session high at 0.7480 and made session lows at 0.7445 levels. The Australian dollar inched up against its U.S. counterpart on Monday, underpinned by improved risk appetite as momentum swung towards Britain remaining in the European Union ahead of this week's referendum. Three opinion polls before Thursday's vote showed the 'Remain' camp gaining some traction, although the overall picture remained one of an evenly split electorate. The Aussie climbed 0.6 percent to $0.7454, continuing to pull away from last Thursday's trough of $0.7286. It rallied 1.1 percent on the yen to 77.82. Unsurprisingly, sterling was the star performer, rising against all of its peers. It reached a two-week high of A$1.9652 and touched a peak of NZ$2.0605, a level last seen more than a week ago.
USD/CAD is supported at 1.2730 levels and is trading at 1.2796, it has made session high at 1.2830 and lows at 1.2770 levels. The Canadian dollar strengthened against a broadly weaker U.S. counterpart on Monday as worries eased that Britons will vote to leave the European Union and offset disappointing domestic data. Global stocks rose and oil rallied after polls showed support for Britain staying in the EU regaining momentum before Thursday's referendum. On the data front, Canadian wholesale trade rose far less than expected in April as activity increased in just three sectors, including the food and beverage industry, data from Statistics Canada showed on Monday. The 0.1 percent gain was short of economists' expectations for an increase of 0.5 percent after March's upwardly revised decrease of 0.8 percent. Volumes increased by 0.2 percent in April. Britons will cast their vote on whether their country should stay in the EU on Thursday.
Equities Recap
European shares indexes posted their biggest rallies since August on Monday, led by heavyweight banking stocks, as weekend opinion polls boosted expectations that Britain would vote to stay in the European Union.
Britain's blue-chip FTSE 100 index closed up by 0.15 percent, the pan-European FTSEurofirst 300 ended the day up by 0.08 percent, Germany's Dax closed up 0.76, and France’s CAC finished the day up by 0.23 percent.
Wall Street rose on Monday in a relief rally after indications that British voters later this week will choose to remain in the European Union.
Dow Jones closed up 0.74 percent, S&P 500 ended the day up by 0.60 percent, Nasdaq finished the day down by 0.60 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday with longer-dated yields hitting their highest level in more than week, as traders trimmed safe-haven holdings of government debt due to polls showing increased support for Britain to stay in the European Union.
Benchmark 10-year Treasury yields rose over 5 basis points from late Friday to 1.671 percent after reaching 1.680 percent earlier on Monday.
The yield on 30-year bonds was last 2.473 percent, up 4 basis points on the day.
Commodities Recap
Oil prices rose 3 percent on Monday, settling higher for a second straight day, after polls showing a lower likelihood of Britain leaving the European Union while U.S. gasoline surged 5 percent in anticipation of peak summer driving demand.
Brent crude futures' front-month contract, August, settled up $1.48, or 3 percent, at $50.65 a barrel. The contract has risen 7 percent since Thursday's settlement, after falling 10 percent in six previous sessions.
U.S. crude's West Texas Intermediate (WTI) futures gained $1.39, or 2.9 percent, at $49.37 a barrel for the July front-month . But the contract, which expires on Tuesday, was barely traded. Investors flocked instead to August WTI , the new front-month from Wednesday, which settled up 3 percent at $49.96.
Gold fell on Monday after polls showed the campaign for Britain to remain in the European Union regaining some momentum, sharpening appetite for assets seen as higher risk and sparking a sharp rally in stocks.
Spot gold was down 0.8 percent at $1,288.50 an ounce at 2:46 p.m. EDT (1846 GMT), off an earlier low of $1,277.34 an ounce, while U.S. gold futures for August delivery settled down 0.2 percent at $1,292.10 an ounce.
