Market Roundup
• French 6-Month BTF Auction -0.627%, -0.620% previous
• French 3-Month BTF Auction -0.629% ,-0.619% previous
• French 12-Month BTF Auction -0.630%,-0.625% previous
• US March Dallas Fed Mfg Business Index 28.9 ,17.2 previous
• US March 3-Month Bill Auction0.020%, 0.015% previous
• US March 6-Month Bill Auction 0.040%, 0.040% previous
Looking Ahead Economic Data(GMT)
•21:45 New Zealand Feb Building Consents (MoM) 2.1%previous
•23:30 Japan Feb Unemployment Rate 3.0% forecast ,2.9% previous
•23:30 Feb Jobs/applications ratio 1.10 forecast , 1.10 previous
•23:30 Feb Retail Sales (YoY) -2.8% forecast , -2.4% previous
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as U.S. economic strength and a vaccine rollout proceeding much more quickly than in Europe drew investors into the greenback. The euro sat at $1.1788, not far above last week's four-and-a-half-month trough of $1.1755 and well below its 200-day moving average of about $1.1866.The common currency is heading for its worst month since mid-2019 as Europe's faltering vaccination programme runs into a wave of new infections, a bearish signal as positioning data shows investors remain heavily long euros. Immediate resistance can be seen at 1.1800 (5 DMA), an upside break can trigger rise towards 1.855 (9 DMA).On the downside, immediate support is seen at 1.1755(Daily low), a break below could take the pair towards 1.1700 (Psychological level).
GBP/USD: Sterling steadied near $1.38 against the dollar on Monday as a decline in concerns about Britain’s COVID-19 vaccine supply from the European Union helped turn around some of the currency’s recent losses. The EU last week stopped short of imposing a ban on vaccine exports, a proposal that had caused concern in Britain, which relies on imports of COVID-19 inoculations for its rapid vaccination programme, which has benefited the pound. Expectations that Britain’s economy will reopen quickly after its rapid vaccine rollout lifted sterling to $1.42 in February, at the time making it the best performing G10 currency. Immediate resistance can be seen at 1.3845 (38.2%fib), an upside break can trigger rise towards 1.3965 (23.6%fib).On the downside, immediate support is seen at 1.3755(50%fib), a break below could take the pair towards 1.3664 (61.8%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday as the default of a U.S. hedge fund weighed on investor sentiment, offsetting higher oil prices. Oil, one of Canada's major exports, rose on expectations the OPEC+ group of leading producers will keep output unchanged inMay, and worries that operations in the Suez Canal might take weeks to return to normal even though a ship blocking it has been partly refloated. U.S. crude prices were up 0.3% at $61.12 a barrel,while the Canadian dollar was trading 0.1% lower at 1.2592 to the greenback, or 79.42 U.S. cents. Immediate resistance can be seen at 1.2627(Daily high), an upside break can trigger rise towards 1.2721 (38.2%fib).On the downside, immediate support is seen at 1.2559 (23.6% fib), a break below could take the pair towards 1.2535(9DMA).
USD/JPY: The dollar gained against the Japanese yen on Monday as renewed optimism about the pace of economic growth in the United States were offset by worries over rising coronavirus infections in Europe, putting demand for. The greenback was up against most currencies in early trade as cautious investors favoured safe haven assets. As U.S. economy gains strength amid a rapid vaccine rollout in the world's largest economy, a rise in COVID-19 infections in Europe has led to a fall in risk demand. Strong resistance can be seen at 109.82 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.18 (5 DMA), a break below could take the pair towards 108.87 (38.2%fib).
Equities Recap
European stocks edged closer to a record high on Monday on optimism over a global economic recovery, while Credit Suisse tumbled following a warning of “significant” losses from exiting positions after a U.S.-based hedge fund defaulted on margin calls.
UK's benchmark FTSE 100 closed down by 0.07 percent, Germany's Dax ended up by 0.47 percent, France’s CAC finished the day up by 0.45 percent.
Wall Street’s main indexes fell on Monday after a surge in the previous session, as global banks said they faced potential losses of billion of dollars from a hedge fund’s default on margin calls.
At (GMT 18:33) Dow Jones was last up by 0.17% percent, S&P 500 closed down by 0.22 % percent, Nasdaq settled down by 0.77% percent.
Treasuries Recap
Longer-dated Treasury yields rose on Monday morning, steepening the yield curve, on investor expectations that U.S. President Joe Biden’s infrastructure initiative - to be announced Wednesday - could mean faster economic growth and a dramatic increase in Treasury bond issuance.
The benchmark 10-year yield, which moves in step with economic expectations, rose to a session high of 1.697% in mid-morning New York trade and was last up 3.6 basis points on the day at 1.696%.
Commodities Recap
Gold prices fell on Monday as the U.S. dollar and global share markets firmed on the back of improving economic outlook, with elevated bond yields putting further pessure on the metal.
Spot gold fell 0.3% to $1,726.35 per ounce by 0651 GMT. U.S. gold futures slipped 0.4% to $1,724.80 per ounce.
Oil fell 1% on Monday, after a container ship that has blocked the Suez Canal for nearly a week was refloated and traffic in the waterway resumed.
Brent oil dropped 65 cents, or 1%, to $63.92 a barrel by 11:17 a.m. EDT (1517 GMT). U.S. crude fell 57 cents, or 0.9%, to $60.40 a barrel.
