Market Roundup
•US 3-Month Bill Auction 5.245%,5.250% previous
•US 6-Month Bill Auction 5.160%,5.165% previous
Looking Ahead Economic Data(GMT)
• 00:30 Australia May Westpac Consumer Sentiment -2.4% previous
•03:00 New Zealand Credit Card Spending (YoY) 1.4% previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro eased against dollar on Monday as investors assed comments from officials from the European Central Bank (ECB) and the Federal Reserve after they warned that the monetary easing path remained uncertain. ECB board member Isabel Schnabel said in an interview last week with Nikkei the central bank may slash interest rates in June, but should be cautious about further cuts in borrowing costs given uncertainty over the outlook. Markets are pricing in around 65 bps (basis points) of ECB rate cuts in 2024, as per LSEG's rate probabilities app, compared with 67 bps on Friday. The euro eased to $1.0858, not far from the nearly two-month high of $1.0895 it touched last week.Immediate resistance can be seen at 1.0894(23.6%fib), an upside break can trigger rise towards 1.0914(Higher BB).On the downside, immediate support is seen at 1.0825 (38.2% fib), a break below could take the pair towards 1.0756(50% fib).
GBP/USD: The pound held steady on Monday as markets waited for April inflation data later in the week which is expected to show the rate of UK price rises falling back to the Bank of England's target.Sterling was unchanged from Friday's closing price at $1.2704. The pound has risen around 2% so far this month as the U.S. dollar has fallen on the back of weak growth and inflation figures, while British data has been stronger than expected.Data on Wednesday is expected to show that the UK's headline rate of inflation fell to 2.1% in April, down sharply from 3.2% in March, thanks mostly to a fall in the cap on household energy bills. Immediate resistance can be seen at 1.2717(23.6%fib), an upside break can trigger rise towards 1.2746(Higher BB).On the downside, immediate support is seen at 1.2683Daily low), a break below could take the pair towards 1.2636(38.2% fib).
USD/CAD: The Canadian dollar was little changed against U.S. counterpart on Monday as investors awaited domestic inflation data and further clues on the path of U.S. interest rates. Investors will gauge Canada's April inflation data on Tuesday for fresh insights into the Bank of Canada's rate-cut timeline. Investors anticipate the BoC to begin rate cuts as early as June or July, compared to the U.S. Federal Reserve's first cut expected in September. Oil prices eased by less than 1% on Monday after U.S. Federal Reserve officials indicated they were waiting for more definitive signs of declining inflation before considering interest rate cuts. The Canadian dollar was trading 0.01% higher at 1.3623 to the greenback .Immediate resistance can be seen at 1.3628 (38.2%fib), an upside break can trigger rise towards 1.3628 (23.6%fib).On the downside, immediate support is seen at 1.3591(50%fib), a break below could take the pair towards 1.3554(61.8%fib).
USD/JPY: The U.S. dollar initially dipped against yen on Monday as investors were on alert for signs of government intervention. The currency has moved in tight ranges in the past couple of trading days after a tumultuous start to May in the wake of suspected rounds of currency interventions by Tokyo to prop up the yen. The yen has depreciated by roughly 10% against the dollar so far this year despite the BOJ's decision in March to end eight years of negative rates, as markets focused on the still-huge divergence between U.S. and Japanese interest rates.BOJ has ruled out using monetary policy to affect currency moves, rising concern over the demerits of a weak yen has led some government and business executives to call on the central bank to hike interest rates from near-zero levels.Strong resistance can be seen at 156.58 (23.6%fib), an upside break can trigger rise towards 157.87(Higher BB).On the downside, immediate support is seen at 154.75(38.2% fib), a break below could take the pair towards 153.05(50% fib).
Equities Recap
European shares ended marginally higher on Monday, with defence stocks in the lead, but gains remained in check as investors awaited economic data against an uncertain backdrop on the outlook for interest rate cuts.
UK's benchmark FTSE 100 closed up by 0.05 percent, Germany's Dax ended up by 0.33 percent, France’s CAC finished the day up by 0.35 percent.
The Nasdaq closed at a record high on Monday and gold jumped to an all-time high as investors weighed hawkish statements from the Federal Reserve against evidence of cooling U.S. inflation.
Dow Jones closed down by 0.49 %percent, S&P 500 closed up by 0.09% percent, Nasdaq settled up by 0.65 % percent.
Commodities Recap
Oil prices eased less than 1% on Monday as U.S. Federal Reserve officials said they were awaiting more signs that inflation was declining before the central bank starts cutting interest rates.
Brent futures fell 27 cents, or 0.3%, to settle at $83.71 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.3%, to settle at $79.80. the central bank starts cutting interest rates.
Gold touched record highs, coasting on last week's encouraging inflation data, while silver reached its highest level in over 11 years.Spot gold added 0.4% to $2,424.69 an ounce.
