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America's Roundup: Dollar steady ahead of Fed's interest rate decision, Wall Street gains, Gold steadies, Oil closes in on 4-month highs on OPEC cuts, U.S. stock draw -March 19th, 2019

Market Roundup

• May's Brexit deal in chaos as Speaker sparks 'constitutional crisis'

• Brexit campaigner Matthew Elliott says May's deal will pass by March 29

• OPEC scraps April meeting but keeps oil cuts in place

• US Mar NAHB Housing Market Indx, 62, 63 forecast, 62 previous

• CA Jan Securities Cdns C$, -8.80 bln, -0.43 bln previous

• CA Jan Securities Foreign C$, 28.40 bln, -18.96 bln previous, -20.49 bln revised

Looking Ahead - Economic Data (GMT)

• 20:00 New Zealand Q1 Westpac Consumer Survey, 109.1 previous

• 00:30 Australia Q4 Home Price Index, -2.0% forecast, -1.5% previous

Looking Ahead - Events, Other Releases (GMT)

• N/A U.S. Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates (to March 20) in Washington D.C.

• 09:35 Participation by ECB's chief economist, Peter Praet, in a panel discussion on "Twenty Years of the Euro: Challenges and Opportunities Ahead" at the HSBC 'AAA' conference in Versailles, France.

• 13:00 Swedish Deputy Governor Cecilia Skingsley will talk about the economic situation and current monetary policy at Nordic Cash & Treasury Management in Stockholm

• 18:30 Bank of England's Member of the Financial Policy Committee, Richard Sharp, to give speech at Cass Business School in London

Currency Summaries

EUR/USD: The euro was little changed against the U.S. dollar on Monday, as caution about the American economy and expectations for an accommodative Federal Reserve kept investors cautious. The dollar index, which tracks the greenback versus the euro, yen, British pound and three other currencies, was about flat on the day at 96.52. The index hit a two-week low of 96.376 earlier in the session. Traders will focus on whether policymakers will have sufficiently lowered their interest rate forecasts to more closely align their individual rate views for the next three years with the pledge of patience, analysts say. Immediate resistance can be seen at 1.1359 (23.6% retracement level), an upside break can trigger rise towards 1.1400 (Psychological level).On the downside, immediate support is seen at 1.3222 (38.2% retracement level), a break below could take the pair towards 1.1293 (50% Retracement level).

GBP/USD: The British pound declined against the dollar on Monday, as chances of third Brexit vote diminished weighing on British pound. The speaker of Britain's parliament said Prime Minister Theresa May's Brexit deal could not be voted on again unless a different proposal was submitted. The move by parliamentary speaker, John Bercow, saw the pound shed half a percent with investors saying it had hurt May's chances of getting her EU withdrawal agreement approved before Britain's departure on March 29. After Bercow spoke, the pound hit the day's low of $1.3171, and was down nearly one percent.   It also weakened against the euro to a three-day low of 85.93 pence.Immediate resistance can be seen at 1.3305 (Daily High), an upside break can trigger rise towards 1.3386  (23.6% Retracement level).On the downside, immediate support is seen at 1.3168  (61.8% Retracement level), a break below could take the pair towards 1.3149 (21 DMA).

USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, trading in a narrow range ahead of Tuesday's federal budget as oil prices rose and investors bet that the U.S. Federal Reserve will strike a dovish tone this week. The price of oil, one of Canada's major exports, was supported by the prospect of prolonged OPEC-led oil supply curbs though concern that an economic downturn may dent fuel consumption curbed gains. At   (2034 GMT), the Canadian dollar   was trading nearly unchanged at 1.3337 to the greenback. The currency, which advanced 0.6 percent last week, traded in a range of 1.3304 to 1.3344.Immediate resistance can be seen at 1.3360 (50% retracement level), an upside break can trigger rise towards 1.3430 (61.8% retracement level).On the downside, immediate support is seen at 1.3288 (38.2% retracement level), a break below could take the pair towards 1.3200 (23.6% retracement level).

USD/JPY: The dollar edged lower against the Japanese yen on Monday, as caution about the U.S. economy and expectations for an accommodative Federal Reserve meeting this week kept the greenback on the back foot against yen. Markets are expecting the Fed to strike a dovish tone when it meets this week, and bets for an interest rate cut have risen after weaker-than-expected manufacturing data on Friday. U.S. bond yields fell to 10-week lows. The U.S. Fed will begin its meeting on interest rates on Tuesday, which ends with a news conference on Wednesday. The dollar was 0.04 lower versus the Japanese yen at 111.43.Strong resistance can be seen at 111.51 (23.6% retracement level), an upside break can trigger rise towards 111.89 (March 3rd high).On the downside, immediate support is seen at 111.29 (38.2% retracement level), a break below could take the pair towards 111.16 (50% retracement level). 

Equities Recap

European stocks rose for the fourth session in a row on Monday as a flurry of dealmaking, including merger talks between Deutsche Bank DBKGn.DE and Commerzbank  , spurred gains in the financial services sector.

UK's benchmark FTSE 100 closed up by 0.90 percent, the pan-European FTSEurofirst 300 ended the day up by 0.22 percent, Germany's Dax ended down by 0.2 percent, France’s CAC finished the day up by 0.1 percent.

Banks helped lead Wall Street higher on Monday, while Boeing and Facebook were a drag and investors eyed this week's Federal Reserve meeting for affirmation of its commitment to "patient" monetary policy.

Dow Jones closed up by 0.25 percent, S&P 500 ended up by 0.37 percent, Nasdaq finished the day up by 0.34 percent.

Treasuries Recap

U.S. Treasury debt yields ticked up on Monday but made no significant moves as traders held off placing large positions ahead of the Federal Reserve's policy-setting meeting this week at which the U.S. central bank is expected to keep interest rates steady.

The benchmark 10-year yield  was up 0.9 basis point, last at 2.602 percent, trading within a narrow range. At either end of the curve, the two-year yield   was up 1 basis point, while the 30-year yield   was down 0.4 basis point.

Commodities Recap

Oil prices rose to near four-month highs on Monday, supported by the prospect of extended OPEC-led oil supply curbs and signs of inventory declines in U.S. crude stockpiles.

Brent crude futures settled at $67.54 a barrel, rising 38 cents, or 0.6 percent. The international benchmark held near its 2019 peak of $68.14 reached on Thursday.

U.S. West Texas Intermediate crude settled at $59.09 a barrel, adding 57 cents, or 1 percent, after hitting a four-month high at $59.23.

Gold prices firmed on Monday, as the dollar slipped after sombre U.S. data increased chances the Federal Reserve will signal a dovish policy stance at its meeting this week.

Spot gold   was steady at $1,301.84 per ounce while U.S. gold futures   settled down 0.1 percent at $1,301.50.
 

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