Market Roundup
• French 12-Month BTF Auction 0.545% ,0.450% previous
• French 3-Month BTF Auction -0.272%, -0.286% previous
• French 6-Month BTF Auction 0.076%, 0.037% previous
• US Jul NAHB Housing Market Index 55, 66 forecast, 67 previous
• US 3-Month Bill Auction2.470%, 2.110% previous
• US 6-Month Bill Auction 2.910%,2.685% previous
Looking Ahead - Economic Data (GMT)
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Looking Ahead - Economic events and other releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro firmed to a one-week high on Monday, benefiting from the dollar's slide after several Federal Reserve officials signaled they would not favor accelerating rate hikes. Fed officials signalled Friday they would likely stick with a 75-basis-point interest rate increase at their July 26-27 meeting, though a recent high inflation reading could still warrant larger increases than anticipated later in the year. Against a basket of currencies , the dollar was 0.48% lower at 107.32. The index closed at a two-decade high of 108.65 on Thursday. The euro firmed 0.6% at $1.0138, having plunged last week below parity to the dollar . Immediate resistance can be seen at 1.0139 (11DMA), an upside break can trigger rise towards 1.0205(38.2% fib).On the downside, immediate support is seen at 1.0062 (5DMA), a break below could take the pair towards 0.9979 (23.6%fib).
GBP/USD: Sterling rose against weakening US dollar on Monday as markets trimmed some of their bets on US Federal Reserve rate hikes, but the British currency's rally was capped by political risks and ongoing recession fears in the UK. The focus will turn to UK data later in the week, with jobs and inflation figures expected on Tuesday and Wednesday, which could give more clues to how the Bank of England will act to try to tame surging inflation. Sterling hit a more than two-year low of $1.1761 on Thursday, but buoyed mainly by dollar weakness, the pound was up 0.6% to $1.1944 after hitting its lowest level since March 2020 would have. Immediate resistance can be seen at 1.1983(14DMA), an upside break can trigger rise towards 1.2044(38.2%fib).On the downside, immediate support is seen at 1.1834(23.6% fib), a break below could take the pair towards 1.1747 (Lower BB).
USD/CAD: The Canadian dollar strengthened against the greenback on Monday, and the yield on benchmark government debt climbed. Canadian government 10-year bond yields rose 1.8 basis points to 3.088%. The yield on similar U.S. government benchmark debt rose to 2.9651%. U.S. August crude futures rose $5.01 to settle at $102.6 a barrel on Monday. Canadian housing starts in Junefell, but less than expected, to 273,800 units from a revised 282,200 units the previous month. The loonie was trading 0.5% higher at C$1.2985 to the greenback, after trading in a range of 1.2899 to 1.3029. Immediate resistance can be seen at 1.3052 (23.6%fib), an upside break can trigger rise towards 1.3088(Higher BB).On the downside, immediate support is seen at 1.2944(38.2%fib), a break below could take the pair towards 1.2850 (50%fib).
USD/JPY: The dollar was little changed against the Japanese yen on Monday as the safe-haven dollar nudged down after several Federal Reserve officials signaled they would not favor accelerating rate hikes. The greenback has soared this year thanks to a combination of rising U.S. interest rates and wobbling economies in Europe and China. The Bank of Japan meets on Thursday, too, though no policy changes are expected which could mean more pain for the beleaguered yen, while Japan has struck a lonely figure in pinning interest rates near zero. Strong resistance can be seen at 138.63 (Higher BB), an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen at 137.86 (38.2%fib), a break below could take the pair towards 136.97 (11DMA).
Equities Recap
European stocks edged higher on Monday ahead of this week's ECB meeting and the expected resumption of an important gas pipeline that is currently closed for maintenance.
UK's benchmark FTSE 100 closed up by 0.90 percent, Germany's Dax ended up by 0.75 percent, France’s CAC finished the day up by 0.93 percent.
Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple shares fell on a report saying the company plans to slow hiring and spending growth next year.
Dow Jones closed down by 0.69% percent, S&P 500 closed down by 0.86% percent, Nasdaq settled down by 0.81% percent.
Treasuries Recap
U.S. bond yields rose on Monday as upbeat economic data last week and a quiet period from the Federal Reserve set the stage for risk taking, but ended below session highs as stocks sold off into the close.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 3.7 basis points at 3.172%.
Commodities Recap
Gold recovered some ground on Monday, lifted by a retreat in the dollar as the market toned down the chances of a 100-basis-point rate hike by the U.S. Federal Reserve next week.
Spot gold was up 0.2% at $1,709.87 per ounce by 1:58 p.m. ET (1758 GMT), after rising 1% earlier in the session. U.S. gold futures settled up 0.4% at $1,710.20.
Oil prices rose more than $5 on Monday, boosted by dollar weakness and expectations that the U.S. Federal Reserve won't raise interest rates by a full percentage point at its next meeting to combat inflation.
Brent crude futures for September settlement gained $5.11, or 5.1%, to settle at $106.27 a barrel, after rising 2.1% on Friday.
U.S. West Texas Intermediate (WTI) crude futures for August delivery settled up $5.01, or 5.1%, at $102.60.
