Market Roundup
• Oil hits 2019 high on U.S. plan to tighten squeeze on Iran
• U.S. to end all waivers on Iran oil imports, crude price jumps
• US Mar Existing Home Sales, 5.21 mln, 5.30 mln forecast, 5.51 mln previous, 5.48 mln revised
• US Mar Exist. Home Sales % Chg, -4.9%, -3.8% forecast, 11.8% previous, 11.2% revised
• To survive trade battles, China manufacturers deploy every weapon they can
• Herman Cain withdraws from consideration for Fed seat, Trump says
• Easter sunshine brings shoppers to British high streets
Looking Ahead - Economic Data (GMT)
• No major economic data expected
Looking Ahead - Events, Other Releases (GMT)
• 17:30 Federal Reserve Board holds a open meeting in Washington
• 12:30 Federal Reserve Bank of Philadelphia issues Non-manufacturing Business Outlook Survey for April
Currency Summaries
EUR/USD: The euro was little changed lower against the U.S. dollar on Monday, as traders failed to push the single currency higher, as liquidity in the market remained thin due to market holiday. Financial markets in Australia, Hong Kong and many countries in Europe were closed on Monday for the Easter holiday. The dollar index, which measures the greenback against six major currencies, was 0.2% lower at 97.283. The index hit a two-week high of 97.485 late last week. The greenback has firmed in recent weeks on the back of a gradual rise in U.S. 10-year Treasury yields and signs of strength in the world's top economy .Immediate resistance can be seen at 1.1268 (11 DMA), an upside break can trigger rise towards 1.1340 (100 DMA).On the downside, immediate support is seen at 1.1221 (23.6% retracement level), a break below could take the pair towards 1.1200 (Psychological level).
GBP/USD: British pound declined against the dollar on Monday, as investors waited for another round of Brexit developments. The British currency has dropped recently, as traders booked profits and investors turned nervous about the sort of divorce Britain and the European Union will have and when or possibly even if it will occur. The pound fell to a 1/2-month low of $1.22977. The dollar found little support from data that showed U.S. home sales fell more than expected in March amid supply constraints. Immediate resistance can be seen at 1.3000 (Psychological level), an upside break can trigger rise towards 1.3125 (50% retracement level).On the downside, immediate support is seen at 1.2950 (38.2% retracement level), a break below could take the pair towards 1.2850 (Feb 7th Low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as oil prices jumped to fresh multi-month highs, while investors awaited an interest rate decision this week from the Bank of Canada. The Bank of Canada is expected to hold its benchmark interest rate steady at 1.75% on Wednesday and for the rest of this year, with calls for the next hike in early 2020 resting on a knife's edge. The Canadian dollar was trading 0.2% higher at 1.3346 to the greenback. Immediate resistance can be seen at 1.3395 (50% retracement level), an upside break can trigger rise towards 1.3473 (61.8% retracement level).On the downside, immediate support is seen at 1.3323 (38.2% retracement level), a break below could take the pair towards 1.3267 (April 17th low).
USD/JPY: The dollar was little changed against the Japanese yen on Monday, as moves in the market remained small as many investors were still away for the long Easter weekend. Financial markets in Australia, Hong Kong and many major countries in Europe were closed on Monday for the Easter holiday. The dollar was flat versus the Japanese yen at 119.93. Strong resistance can be seen at 112.34 (38.2% retracement level), an upside break can trigger rise towards 113.00 (23.6% retracement level).On the downside, immediate support is seen at 111.83 (50% retracement level), a break below could take the pair towards 111.30 (61.8% retracement level).
Equities Recap
U.S. stocks ended a low-volume trading session little changed on Monday, with the biggest gains in the energy sector as investors otherwise stayed on the sidelines ahead of quarterly earnings.
Dow Jones closed up by 0.18 percent, S&P 500 ended up 0.10 percent, Nasdaq finished the day up by 0.22 percent.
Treasuries Recap
The Treasury yield curve steepened on Monday, with the kick-off of a busy auction week that will see $237 billion of new debt sold.
Benchmark 10-year note US10YT=RR and 30-year bond yields US30YT=RR were up 3 basis points and 3.3 basis points, respectively.
The five-year yield was last up 1.9 basis points at 2.388 percent. The seven-year yield was last up 2.7 basis points to 2.487 percent.
Commodities Recap
Gold steadied on Monday, holding above a nearly four-month low touched the previous session on support from a weaker dollar and expectations the United States would put further restrictions on Iran's oil exports.
Spot gold was slightly up 0.1 percent at $1,275.62 per ounce as of 1:47 p.m. EDT (1747 GMT). On Thursday, it touched $1,270.63, its lowest since Dec. 27. The market was closed on Friday.U.S. gold futures settled 0.1 percent higher at $1,277.60 an ounce.
Oil prices jumped more than 2 percent on Monday to a near six-month high, on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports.
Brent crude futures rose $2.07, or 2.88 percent, to settle at $74.04 a barrel. The session high of $74.52 a barrel for the international benchmark was the highest since Nov. 1.
U.S. West Texas Intermediate crude futures climbed $1.70, or 2.66 percent, to settle at $65.70 a barrel. The contract hit $65.92 a barrel, the highest since Oct. 31.
