Market Roundup
• Canada Core CPI (MoM) (Mar): 0.2%, 0.4% previous
• Canada Core CPI (YoY) (Mar): 2.5%, 2.3% previous
• Canada CPI (MoM) (Mar): 0.9%, 1.1% forecast, 0.5% previous
• Canada CPI (YoY) (Mar): 2.4%, 2.5% forecast, 1.8% previous
• Canada Common CPI (YoY) (Mar): 2.6%, 2.6% forecast, 2.4% previous
• Canada Median CPI (YoY) (Mar): 2.3%, 2.4% forecast, 2.3% previous
• Canada Trimmed CPI (YoY) (Mar): 2.2%, 2.3% forecast, 2.3% previous
•French 12-Month BTF Auction: 2.476%, 2.634% previous
•French 3-Month BTF Auction: 2.159%, 2.248% previous
•French 6-Month BTF Auction: 2.319%, 2.448% previous
•US 3-Month Bill Auction: 3.610%, 3.620% previous
•US 6-Month Bill Auction: 3.590%, 3.610% previous
Looking Ahead Economic Data (GMT)
• No data head
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged higher but gains were limited on Monday as investors remained cautious against the backdrop of heightened geopolitical tensions in the Middle East.An Iranian official said Tehran is considering attending peace talks with the United States in Pakistan, following moves by Islamabad to end a U.S. blockade of Iran's ports. However, the official told Reuters that no decision was made, a day before the two-week ceasefire between the two countries was set to expire.Crude prices, a key driver for emerging markets, jumped over 5% to $95 a barrel as shipments through the key Strait of Hormuz were at a virtual standstill. The euro last bought $1.1757 after hitting a one-week low of $1.1729. Immediate resistance can be seen at 1.1823(50%fib), an upside break can trigger rise towards 1.1900(Psychological level).On the downside, immediate support is seen at 1.1728(61.8%fib), a break below could take the pair towards 1.1658(April 14th low).
GBP/USD: The pound recovered ground on Monday despite lingering U.S.-Iran tensions, as improving risk sentiment and a softer U.S. dollar supported the pairA U.S.-Iran ceasefire looked increasingly fragile on Monday after Washington seized an Iranian cargo ship accused of breaching its blockade, prompting Tehran to vow retaliation and reject fresh peace talks.Vice President JD Vance and the U.S. delegation are set to land in Pakistan within hours for talks on Iran, President Donald Trump told the New York Post in an interview on Monday.In its eighth week, the war has triggered an unprecedented energy supply shock, driving oil prices higher due to the de facto closure of the Strait of Hormuz, which handles about 20% of global oil flows. Immediate resistance can be seen at 1.3591(Higher BB), an upside break can trigger rise towards 1.3655(38.2%fib).On the downside, immediate support is seen at 1.3532(50%fib), a break below could take the pair towards 1.3499(April 14th low).
USD/CAD: The Canadian dollar strengthened to a five-week high against its U.S. counterpart on Monday as investors remained hopeful of a diplomatic solution to the war in the Middle East and despite domestic data that showed inflation heating up less than expected.The uneasy ceasefire between the United States and Iran frayed after the U.S. announced it had seized an Iranian cargo ship, prompting vows of retaliation from Iran, which over the weekend said it would not participate in a second round of negotiations.Canada's annual inflation rate rose to 2.4% in March from 1.8% in February as higher crude oil costs drove up gasoline prices.Crude prices, a key driver , jumped over 5% to $95 a barrel as shipments through the key Strait of Hormuz were at a virtual standstill.Immediate resistance can be seen at 1.3715(Daily high), an upside break can trigger rise towards 1.3758(38.2%fib).On the downside, immediate support is seen at 1.3639 (38.2%fib), a break below could take the pair towards 1.3597(Lower BB)
USD/JPY: The U.S. dollar edged higher on Monday as renewed U.S.-Iran tensions and fading hopes for a Middle East peace kept investors cautious .The United States said on Sunday that it had seized an Iranian cargo ship that tried to run its blockade, while Iran said it would retaliate, stoking fears about a resumption of hostilities.Tehran also said it would not participate in a second round of negotiations that the U.S. had hoped to kick off before its two-week ceasefire with Iran expires on Tuesday.The market's focus will also be on the Bank of Japan meeting later this month. Governor Kazuo Ueda has refrained from pre-committing to an April rate hike with the war muddling the outlook, but he left a few hawkish signs after last week's IMF meetings, suggesting tighter policy by June. Immediate resistance can be seen at 159.23(SMA 20) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.73(38.2%fib) a break below could take the pair towards 158.07(Lower BB).
Equities Recap
European shares declined on Monday, reversing part of the previous session’s rebound, as investors turned cautious ahead of potential U.S.-Iran talks and the looming expiry of the two-week ceasefire.
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UK's benchmark FTSE 100 closed down by 0.55 percent, Germany's Dax ended down by 1.15 percent, France’s CAC finished the day down by 1.12 percent.
U.S. stocks ended slightly lower on Monday as renewed U.S.-Iran tensions raised concerns over the stability of the two-week ceasefire, even as markets remained up for a third straight week.
Dow Jones closed down by 0.01 percent, S&P 500 closed down by 0.24 percent, Nasdaq settled down by 0.26 percent.
Commodities Recap
Oil prices jumped and global equities pulled back on Monday as markets grew increasingly concerned that the ceasefire between the U.S. and Iran might not hold, while tensions over the Strait of Hormuz escalated.
Brent crude futures rose about 5% to $94.92 a barrel
Gold prices fall after news that the Strait of Hormuz was closed again sent oil and gas prices higher, reviving concerns over inflation.
