Market Roundup
•Euro STOXX 600 gains 0.5%
•Oil and gas index up 2.1%
•U.S. fiscal stimulus talks in focus
•Swiss Jul Unemployment Rate s.a. 3.3%,3.6% forecast, 3.3% previous
•Swiss Jul Unemployment Rate n.s.a 3.2%,3.4% forecast, 3.2% previous
•EU Aug Sentix Investor Confidence -13.4, -15.1 forecast, -18.2 previous
Looking Ahead Economic Data (GMT)
•13:00 French 3-Month BTF Auction-0.574% previous
•13:00 French 6-Month BTF Auction -0.590% previous
•13:00 French 12-Month BTF Auction -0.560% previous
•14:00 US Jul CB Employment Trends Index 49.00 previous
•14:00 US Jul JOLTs Job Openings 5.397M previous
•15:30 US 3-Month Bill Auction 0.100% previous
•15:30 US 6-Month Bill Auction 0.105% 0.105%
Looking Ahead - Events, Other Releases (GMT)
•20:00 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday as worries over flaring tensions between the United States and China weighed on sentiment, although signs of a recovery in industrial activity in the world’s second-largest economy capped losses. Better than expected U.S. jobs data on Friday weighed also weighed on euro. Market increasingly focused on two major events this week, the passage of U.S. fiscal stimulus and a China-U.S. meeting this weekend. Immediate resistance can be seen at 1.1803 (38.2% fib), an upside break can trigger rise towards 1.1929 (23.6% fib).On the downside, immediate support is seen at 1.1740 (14DMA), a break below could take the pair towards 1.1702 (50%fib).
GBP/USD: Sterling edged higher against dollar on Monday ahead of UK unemployment and GDP data this week after hitting its biggest daily fall since June against the greenback on Friday.Sterling resumed its role as a risk-driven currency on Friday, with a sharp fall against the dollar as global investors sentiment turned sour amid more friction between China and the United States.The British currency rose 0.2% $1.3053 at 12:30 GMT on Monday against a slightly stronger dollar with investors also focusing on fiscal stimulus in the United States. Immediate resistance can be seen at 1.3097 (5 DMA), an upside break can trigger rise towards 1.3187 (23.6%fib).On the downside, immediate support is seen at 1.2968 (38.2%Fib), a break below could take the pair towards 1.2848 (21DMA).
USD/CHF: The dollar rebounded against the Swiss franc on Monday as investors focused on fiscal stimulus in the United States and U.S.-China tensions ahead of key trade talks on Aug. 15. The dollar index is recovering from a losing streak which saw it lose 4% in July. It picked up on Friday after jobs data calmed some fears about the U.S. labor market but still weakened on the week, for the seventh in a row. The Swiss franc fell versus the dollar, down 0.4% at 0.9159. Immediate resistance can be seen at 0.9182 (50%fib), an upside break can trigger rise towards 0.9224 (20DMA).On the downside, immediate support is seen at 0.9125 (38.2%fib), a break below could take the pair towards 0.9054(23.6% fib).
USD/JPY: The dollar rebounded against the Japanese yen as tension between the United States and China increased demand for dollar.. The dollar has, on occasion, been the favoured refuge amid escalations between Washington and Beijing, and was up in London trading, with investors also focusing on fiscal stimulus in the U.S. ahead of key trade talks on Aug. 15. Strong resistance can be seen at 105.81 (14 DMA), an upside break can trigger rise towards 107.00 (50DMA).On the downside, immediate support is seen at 105.53 (11 DMA), a break below could take the pair towards 105.15 (38.2%fib).
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Equities Recap
European shares inched higher on Monday as a decline in China’s producer prices slowed and oil prices rose, while investors looked to Washington for signs of more U.S. stimulus.
At (GMT 13:10),UK's benchmark FTSE 100 was last trading up at 0.13 percent, Germany's Dax was up by 0.14 percent, France’s CAC was up by 0.40 percent.
Commodities Recap
Gold prices edged lower on Monday and retreated sharply from a record peak in the last session, as the dollar made further gains with investors keeping a cautious eye on the U.S.-China spat ahead of key trade talks on Aug. 15.
Spot gold fell 0.2% to $2,031.39 per ounce by 1225 GMT. U.S. gold futures rose 0.7% to $2,041.60 per ounce.
Oil prices climbed in early trade on Monday, clawing back over half of Friday’s losses, on hopes for a stimulus deal to shore up the U.S. economic recovery and a pledge from Iraq to deepen its crude oil supply cuts.
U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 1.2%, to $41.71 a barrel at 0010 GMT, while Brent crude futures were up 40 cents, or 0.9%, at $44.80 a barrel.
While both benchmark contracts fell on Friday, hurt by demand concerns, Brent ended the week up 2.5%, with WTI up 2.4%.
