Market Roundup
•Canada Current Account (Q2) 3.6B,3.4B forecast, 1.2B previous
French 6-Month BTF Auction -0.665%,-0.691% previous
•French 12-Month BTF Auction -0.653%,-0.651% previous
•US Jul Pending Home Sales Index 110.7,112.8 previous
•US Jul Pending Home Sales (MoM) -1.8%,0.4% forecast, -1.9% previous
•US Aug Dallas Fed Mfg Business Index 9.0, 27.3 previous
Looking Ahead –Economic Data (GMT)
•01:00 Chinese Aug Composite PMI 52.4 previous
•01:00 Chinese Aug Manufacturing PMI 50.2 forecast, 50.4 previous
•01:00 Chinese Aug Non-Manufacturing PMI 53.3 previous
•New Zealand Aug ANZ Business Confidence -3.8 previous
•01:30 Australia Jul Private Sector Credit (MoM) 0.9% previous
•01:30 Australia Jul Private Sector Credit (MoM) 0.9% previous
•01:30 Australia Jul Net Exports Contribution -1.0%forecast, -0.6% previous
•01:30 Australia Current Account (Q2) 21.0B forecast, 18.3B previous
•01:30 Australia Jul Building Approvals (MoM) -5.0% forecast, -6.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Monday as expectations that continued central bank support would sustain an economic recovery supported euro. The European Central Bank expects the more contagious variant to have a limited impact on the euro zone economy due to an advanced vaccination campaign. On the data front, Germany’s annual consumer price inflation accelerated to a fresh 13-year high in August, data showed on Monday, underlining growing price pressures as Europe's largest economy recovers from the pandemic and companies struggle with supply shortages. The euro was up 0.06% to $1.1799 after hitting its highest in more than three weeks at 1.181.Immediate resistance can be seen at 1.1802(38.2%fib), an upside break can trigger rise towards 1.1844(23.6%fib).On the downside, immediate support is seen at 1.1779 (30DMA), a break below could take the pair towards 1.1768 (50%fib)
GBP/USD: Sterling was little changed on Monday as investors were on sidelines on lacking direction as investors weighed up COVID-19 data. Risk appetite was mixed, with riskier currencies such as the British pound little changed at the start of the week, but any gains limited by concerns about the Delta variant.At 22:13 GMT, the pound was higher 0.1% against a slightly stronger dollar at $1.3758.Immediate resistance can be seen at 1.3771(38.2%fib),an upside break can trigger rise towards 1.3800 (30DMA).On the downside, immediate support is seen at 1.3742(5DMA), a break below could take the pair towards 1.3684(23.6%fib).
USD/CAD: The Canadian dollar rose to a near two-week high against the greenback on Monday as investors cheered the Federal Reserve's patience on reducing asset purchases and data showed a widening of Canada's current account surplus in the second quarter. Canada's current account surplus widened to C$3.6 billion in the second quarter from a revised C$1.8 billion surplus in the first quarter. A positive trade balance tends to raise demand for a country's currency in the foreign exchange market. The loonie was trading 0.2% higher at 1.2603 to the greenback. It touched its strongest intraday level since Aug. 17 at 1.2573. Immediate resistance can be seen at 1.2668 (38.2%fib), an upside break can trigger rise towards 1.2762 (Higher BB).On the downside, immediate support is seen at 1.2571 (50%fib), a break below could take the pair towards 1.2450 (61.8%fib).
USD/JPY: The dollar edged higher against yen on Monday as the greenback attempted to recover from Friday's drop on comments from U.S. Federal Reserve Chair Jerome Powell that were interpreted as dovish.The dollar had one of its biggest daily percentage declines of the month on Friday after Powell said tapering could begin this year, but the central bank was in no hurry to raise interest rates. The dollar index hit a two-week low at 92.595 before firming slightly, and was last up 0.001% at 92.671.For the month the dollar index has gained about 0.7%.Strong resistance can be seen at 109.92(38.2%fib), an upside break can trigger rise towards 110.28(23.6%fib).On the downside, immediate support is seen at 109.69(50%fib), a break below could take the pair towards 109.30(61.8%fib).
Equities Recap
European stocks ended flat on Monday as a British holiday made for languid trade, but were set for strong monthly gains on expectations that continued central bank support would sustain an economic recovery.
UK's benchmark FTSE 100 closed up by 0.32 percent, Germany's Dax ended up by 0.22 percent, France’s CAC finished the day up by 0.08 percent.
The S&P 500 and Nasdaq hit record highs on Monday as technology stocks jumped after the Federal Reserve's dovish comments eased fears of a sudden tapering in monetary stimulus and boosted optimism around an economic recovery.
Dow Jones closed down by 0.17% percent, S&P 500 closed down by 0.43 % percent, Nasdaq settled up by 0.90% percent.
Treasuries Recap
U.S. Treasury yields fell on Monday as the market looked ahead to the release later this week of the August employment report and the possibility it could factor into the timing of the Federal Reserve's tapering announcement.
The benchmark 10-year yield was last down 2.9 basis points at 1.2835%.
Commodities Recap
Gold prices slipped, after touching a near a four-week high earlier on Monday, as the dollar ticked up from its lows and investors showed caution in the run-up to the release of a key U.S. jobs report later in the week.
Spot gold fell 0.4% to $1,808.67 per ounce by 1:33 p.m. EDT (1733 GMT) after touching its highest level since Aug. 4. U.S. gold futures settled down 0.4% at $1,812.2.
Oil rose on Monday, lifted as U.S. Gulf Coast platforms, refineries and pipelines grappled with uncertainty on restart timelines after Hurricane Ida wreaked havoc on the region.
Global benchmark Brent settled at $73.41 a barrel, up 71 cents or 0.98%. Brent touched a session high of $73.69, the highest since Aug. 2. U.S. crude futures rose 47 cents, or 0.68% to $69.21 a barrel.
