Market Roundup
• Canada Mar Building Permits (MoM) -11.7% ,-4.6% forecast, 9.3% previous
•French 12-Month BTF Auction 3.481%, 3.460% previous
•French 3-Month BTF Auction 3.781%, 3.803% previous
•French 6-Month BTF Auction 3.670%, 3.666% previous
•US Consumer Inflation Expectations 3.30%, 3.00% previous
•US 3-Month Bill Auction 5.250%,5.250% previous
•US 6-Month Bill Auction 5.165%, 5.155% previous
Looking Ahead Economic Data(GMT)
•No Data Ahead
Looking Ahead Events And Other Releases(GMT)
•No significant Events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday as investors awaited U.S. inflation data releases this week, alongside a series of economic reports from the eurozone. All eyes will be on the U.S. producer and consumer prices inflation readings, due on Tuesday and Wednesday, which will further set the tone for the Federal Reserve's anticipated rate cuts this year. Meanwhile, euro zone's final inflation and flash first-quarter GDP in the latter half of the week will be scrutinized to gauge the interest rate path for the European Central Bank, which has indicated a June cut, flagged uncertainties around policy outlook beyond that, and stressed its independence from the Fed. The euro was up 0.33% at $1.0804.Immediate resistance can be seen at 1.0810(23.6% fib), an upside break can trigger rise towards 1.0826(Higher BB).On the downside, immediate support is seen at 1.0732 (38.2% fib), a break below could take the pair towards 1.0671(50% fib).
GBP/USD: The pound steadied against dollar on Monday ahead of crucial labor market data scheduled for release on Tuesday, which could influence the Bank of England's decision regarding interest rates. There's speculation that if the data indicates weakness, it may prompt the Bank of England to consider cutting interest rates at its June meeting. The pound was last up 0.3% against the dollar at $1.2557, having fallen 0.2% against the U.S. currency last week. The BoE last week left its Bank Rate unchanged at a 16-year high of 5.25%, but Governor Andrew Bailey said he was optimistic that inflation was moving in the right direction. Immediate resistance can be seen at 1.2557 (Daily high), an upside break can trigger rise towards 1.2597(23.6 % fib).On the downside, immediate support is seen at 1.2486 (50% fib), a break below could take the pair towards 1.2445 ( 61.8% fib).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Monday as investors turned attention to a key U.S. inflation report this week, with the currency unable to sustain the gains it made following recent domestic jobs data.On Friday, the currency touched its strongest intraday level in one week at 1.3632, clawing back some of this year's decline, after data showed Canada's economy adding 90,400 jobs in April, five times the number that was forecast. The U.S. consumer price index report, due on Wednesday, is expected to show core inflation slowing to 3.6% on an annual basis in April. The loonie was trading unchanged at 1.3670 to the U.S. dollar, or 73.15 U.S. cents, after moving in a range of 1.3661 to 1.3689.Immediate resistance can be seen at 1.3676 (23.6% fib), an upside break can trigger rise towards 1.3739 (May 9th high).On the downside, immediate support is seen at 1.3651 (38.2%fib), a break below could take the pair towards 1.3619 (Lower BB).
USD/JPY: The U.S. dollar strengthened against yen on Monday as markets participants awaited key U.S. CPI data this week. The US producer price index (PPI) data is scheduled for release on Tuesday, followed by the consumer price index (CPI) on Wednesday.Median forecasts are for core consumer prices to rise 0.3% in the month, compared with 0.4% in March, pulling the annual rate down to 3.6 . Traders expect the US central bank to start its easing cycle in September. The dollar index , which measures the U.S. currency against a basket of six others, was little changed at 105.28, following its first rise in three weeks. The dollar traded at 155.87 yen .Strong resistance can be seen at 156.49 (23.6%fib), an upside break can trigger rise towards 157.00(Psychological level).On the downside, immediate support is seen at 155.55(Daily low), a break below could take the pair towards 154.74(38.2% fib).
Equities Recap
Europe's STOXX 600 closed flat on Monday, as investors geared up for a slew of economic data from the euro zone and a key U.S. inflation print later in the week that could test the benchmark index's record-breaking run.
UK's benchmark FTSE 100 closed down by 0.22 percent, Germany's Dax ended down by 0.18 percent, France’s CAC finished the day down by 0.12 percent.
The S&P 500 closed slightly lower on Monday as investors took a breather after three weeks of gains, awaiting key inflation data and earnings reports due later in the week.
Dow Jones closed down by 0.21% percent, S&P 500 closed down by 0.01 % percent, Nasdaq settled up by 0.29% percent.
Commodities Recap
Gold eased on Monday as investors awaited this week's U.S. inflation data that is expected to be key for the outlook for U.S interest rates.Spot gold fell 1% to $2,336.76 per ounce.
Oil prices rose on Monday, as signs of improving demand in the U.S. and China, the top two oil consumers, aided the bounce from the previous session's $1 a barrel slide.
U.S. West Texas Intermediate crude futures rose 86 cents, or 1.1%, to settle at $79.12 a barrel. Brent crude futures gained 57 cents, or 0.7%, to settle at $83.36 a barrel.
