Market Roundup
- ECB's Liikanen: ECB ready to use additional monetary policy measures.
- Fed's Potter: warns on rush to 'government-only' U.S. money funds.
- U.S. to push for greater fiscal spending at G20 -Treasury official.
- As pound plunges, UK's Cameron defends EU deal to avert 'Brexit', Mayor Johnson backs Brexit.
- Fitch: Brexit Would Drive Short-Term Disruption, Long-Term Risks.
- ECB money printing slows, ECB bought EUR 12.57bn of public sector assets vs 12.718 previous week.
- Italy calls for changes of EU fiscal rules to help growth.
- Stocks gain broadly, pound falls to 7-yr low on EU exit fears.
Looking Ahead - Economic Data (GMT)
- No Significant Data
Looking Ahead - Events, Other Releases (GMT)
- No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.1000 levels and currently trading at 1.1029 levels. The pair has made session high at 1.1036 and hit lows at 1.1001 levels. The dollar rose to a three-week high against euro on Monday as the dollar was bolstered by gains in oil and stocks as well as losses in sterling amid worries about Britain's possible exit from the European Union. The risk-on mood across markets also weighed on the euro, which has tended to be negatively correlated with risk appetite in recent months. The euro fell to a three-week low of $1.1004 and was on track for its biggest one-day fall in a week. On the data front, Markit's Composite Flash Purchasing Managers' Index (PMI) for the euro zone, based on surveys of thousands of companies and seen as a good guide to growth, slumped to a 13-month low of 52.7 from January's 53.6.
GBP/USD is supported in the range of 1.4050 and currently trading at 1.4148 levels. It reached session high at 1.4167 and hit low at 1.4056 levels. Sterling slipped sharply to hit seven-year low against the dollar on Monday as the speculation surrounding Britain's possible exit from the European Union intensified. British PM Cameron, who clinched a deal to reform Britain's relations with the EU last week, was due to address the EU in parliament later on Monday. Analysts are expecting choppy trading in the run-up to the vote. The British pound hit a seven-year low of $1.4067, down 2.3 percent on the day, putting it on track for its biggest daily percentage loss since February 2009, while the euro rose 1.4 percent to 78.31 pence.
AUD/USD is supported around 0.7211 levels and currently trading at 0.7228 levels. It hit session high at 0.7245 and made session lows at 0.7226 levels. The Australian traded in higher range against their U.S. peer on Monday, as the Australian dollar gained strength following rise in metal prices and iron ore, which are main exports of Australia. The Australian dollar was sidelined at $0.7159, but up from a low of $0.7068 on Friday. It rallied 0.7 percent last week, well above a seven-year trough of $0.6827 touched in January. Also helping the antipodean currency was heavy selling in the pound on concerns that Britain could quit the European Union.
USD/CAD is supported at 1.3660 levels and is trading at 1.3708 levels. It has made session high at 1.3720 and lows at 1.3660 levels. The Canadian dollar rose against its U.S. counterpart on Monday as crude oil prices rallied and risk appetite firmed, while Oil prices rose after the world's oil consumer body said it expected U.S. shale production to fall this year and next, potentially reducing the glut in supplies. The currency weakened even as the greenback gained ground against a broad basket of major currencies. The currency's strongest level of the session was C$1.3689, while its weakest level was C$1.3793. Bearish bets by speculators against the Canadian dollar were pared further after reaching five-month highs in January.
Equities Recap
European stocks rose on Monday as firmer mining company shares helped offset concerns about Britain's potential exit from the European Union.
Britain's blue-chip FTSE 100 index inched up by 1.5 percent, France's benchmark CAC-40 index was 1.72 percent, Germany's DAX ended up 2.00 percent, meanwhile the pan-European FTSEurofirst 300 index was up by 1.62 percent.
Wall Street surged on Monday, helped by a robust rally in oil prices that lifted energy shares, including Chevron and Schlumberger.
Dow Jones closed up by 1.38 percent, S&P 500 ended up by 1.44 percent, Nasdaq finished the day up by 1.44 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as rising stock and oil prices reduced demand for safe haven debt, ahead of an expected government sale of $88 billion in new short- and intermediate-dated debt this week.
Benchmark 10-year notes were last down 4/32 in price to yield 1.76 percent, up from 1.75 percent late Friday.
Commodities Recap
Oil markets settled up as much as 6 percent on Monday as speculation about falling U.S. shale output and a rally in equities fed the notion that crude prices may be bottoming after a 20-month collapse.
U.S. crude futures settled up $1.84, or 6 percent, at $31.48 a barrel, rallying above $32 at one point.Futures of Brent finished up $1.68, or 5 percent, at $34.69.
Gold prices slipped as much as 2 percent on Monday as the dollar strengthened and investor appetite for risk increased, but the metal remained above $1,200 an ounce after a rally that pushed prices to one-year highs this month.
Spot gold was down 1.6 percent at $1,208.60 an ounce by 1:58 p.m. EDT (1858 GMT), off a session low of $1,201.63.
U.S. gold futures for April delivery settled down 1.7 percent to $1,210.10.
