Market Roundup
•French 12-Month BTF Auction3.408, 3.358% previous
•French 3-Month BTF Auction 3.825% ,3.825% previous
•French 6-Month BTF Auction 3.714% ,3.739% previous
•US Consumer Inflation Expectations 3.00%,3.00% previous
•US 3-Month Bill Auction 5.235%,5.235% previous
Looking Ahead Economics Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Release(GMT)
•00:30 New Zealand RBNZ Gov Orr Speaks 5.045% previous
Currency Summaries
EUR/USD: The euro edged lower against dollar on Monday as investors awaited economic data for insights into the European Central Bank's rate outlook. This week is packed with economic data, including euro zone's fourth-quarter GDP growth, consumer price inflation from Spain and other regions, and ZEW survey to gauge industry expectations on the state of the region's economy. Across the Atlantic, investors will closely monitor the U.S. January CPI print on Tuesday for clues on the potential timing of a rate cut by the Federal Reserve. The euro was down a whisker at $1.0778, edging off a 10-day high touched in early trading . Immediate resistance can be seen at 1.0809(Daily high), an upside break can trigger rise towards 1.0857( 38.2%fib).On the downside, immediate support is seen at 1.0745(23.6%fib), a break below could take the pair towards 1.0732(Lower BB).
GBP/USD: The British pound dipped against dollar on Monday as investors awaited key U.S. CPI data as well as U.K inflation readings due this week. Traders wait for U.S. inflation data on Tuesday, as well as British inflation data and euro zone GDP on Wednesday. The US inflation data will impact market expectations of when the Federal Reserve may begin to ease policy rates. On Wednesday, a reading of British CPI inflation will similarly influence opinion on when the Bank of England will start to cut interest rates it is currently seen lagging the Fed and European Central Bank. Investors are currently pricing in a 17.5% chance of a rate cut in March and about 63% in May, according to CME's FedWatch tool. Immediate resistance can be seen at 1.2661(38.2%fib), an upside break can trigger rise towards 1.2722(Jan 30th high).On the downside, immediate support is seen at 1.2585(50%fib), a break below could take the pair towards 1.2566(Lower BB).
USD/CAD: The Canadian dollar was little changed against the U.S. dollar on Monday, with investors waiting for a significant U.S. inflation report and a speech from a Bank of Canada policymaker later in the week.The U.S. consumer price index report for January, due for release on Tuesday, could offer clues on when the Federal Reserve may begin widely anticipated interest rate cuts.The timing of expected Bank of Canada rate cuts is also uncertain. Deputy Governor Rhys Mendes is set to speak on Wednesday.The price of oil, one of Canada's major exports, settled 8 cents higher at $76.92 a barrel as Middle East tensions continued to provide support. The loonie was trading nearly unchanged at 1.3450 to the greenback, or 74.35 U.S. cents, after trading in a range of 1.3431 to 1.3475. The currency has been in a sideways pattern since mid-January after losing as much as 2.1% in the first few weeks of the year.Immediate resistance can be seen at 1.3503(38.2% fib), an upside break can trigger rise towards 1.3540 (Higher BB).On the downside, immediate support is seen at 1.3436(32.2% fib), a break below could take the pair towards 1.3381 (Lower BB).
USD/JPY: The dollar was little changed against the yen on Monday in the lead-up to the U.S. inflation data. Data due Tuesday is expected to show that U.S. consumer prices rose by 0.2% month-on-month while the more important core measure increased 0.3%.The data comes after a robust U.S. jobs report and repeated pushback from Federal Reserve officials against imminent rate cuts. Both of these have prompted a significant cool-off in expectations around a rate cut at the March meeting.The U.S. Labor Department on Friday published the annual consumer price index revisions. The December headline inflation rate was revised down and there were slight upward revisions to both the November and October prints. Strong resistance can be seen at 149.59(23.6%fib),an upside break can trigger rise towards 149.77(Higher BB).On the downside, immediate support is seen 148.01 (Feb 5th low)a break below could take the pair towards 147.84(50%fib).
Equities Recap
European shares climbed on Monday, tracking a strong rally on Wall Street, while investors looked forward to a key U.S. inflation reading and a raft of economic data from the euro zone this week.
UK's benchmark FTSE 100 closed down by 0.01 percent, Germany's Dax ended down by 0.64 percent, France’s CAC finished the day up by 0.55 percent.
The Nasdaq slipped on Monday afternoon after briefly surpassing its record closing high from November 2021, while the Dow rose modestly ahead of two U.S. inflation reports this week that could influence Federal Reserve policy.
Dow Jones closed down by 0.33% percent, S&P 500 closed down by 0.09% percent, Nasdaq settled down by 0.30% percent.
Commodities Recap
Gold prices slipped on Monday ahead of U.S. inflation data and comments from Federal Reserve officials that could offer insight into the central bank's interest rate plans.
Spot gold was down 0.2% to $2,020.97 per ounce at 01:47 p.m. ET (1847 GMT).U.S. gold futures settled 0.3% lower to $2,033.
Oil futures settled little changed on Monday as concerns about interest rates and global demand caused the market to take a break after prices jumped about 6% last week on worries Middle East tensions could cause supply problems.
Brent futures fell 19 cents, or 0.2%, to settle at $82.00 a barrel. U.S. West Texas Intermediate (WTI) crude rose 8 cents, or 0.1%, to settle at $76.92.z
