Market Roundup
• U.S. waters down demand China ax subsidies in push for trade deal -sources
• Rate cuts possible if inflation falls more than expected -Fed's Evans
• US Apr NY Fed Manufacturing, 10.10, 6.70 forecast, 3.70 previous
• CA Q1 Business Outlook Future Sales, 6 pct, -1 pct previous
• CA Q1 BoC Senior Loan Officer Survey, -2.67 pct, -15.98 pct previous
• Canadian home sales rise in March but hold near 6-year lows -CREA
• China c.bank calls for more policy coordination to support growth
Looking Ahead - Economic Data (GMT)
• 01:30 China Mar China House Prices YY, 10.4 pct previous
Looking Ahead - Events, Other Releases (GMT)
• 00:00 Fed Boston's President Eric Rosengren delivers 33rd Annual Cornelson Distinguished Lecture hosted by Davidson University in North Carolina
• 07:00 Riksbank executive board meeting in Stockholm
• 17:00 Irish central bank governor Philip Lane speaks on "tail risks in the Irish economy" in Dublin
• 18:00 Fed Dallas's President Robert Kaplan participates in a moderated question-and-answer session before a community forum hosted by the Federal Reserve Bank of Dallas's El Paso Branch
Currency Summaries
EUR/USD: The euro strengthen against the U.S. dollar on Monday, as investors' appetite for riskier currencies got a boost after Chinese data showed exports rebounded last month. Signs of economic stabilization in China and a strong start to U.S. corporate earnings season boosted demand for riskier assets, leaving the dollar to turn in its worst weekly performance against the euro in four weeks.The euro was up 0.05 percent at $1.1304. An index that tracks the dollar versus a basket of six major currencies was up 0.08 percent at 96.93. Immediate resistance can be seen at 1.1323 (Daily High), an upside break can trigger rise towards 1.1381 (Higher Bollinger Band).On the downside, immediate support is seen at 1.1272 (21 DMA), a break below could take the pair towards 1.1257 (9 DMA).
GBP/USD: Sterling strengthened against dollar on Monday, as investors awaited for new Brexit-related developments. Volatility in the pound has collapsed since European Union leaders and the British government last week announced Brexit would be delayed for up to six months.That removed the immediate risk of a no-deal Brexit, but it also raised the possibility of months of uncertainty in Britain as politicians struggle over how or whether to leave the EU. Sterling gained 0.23 percent to $1.3094 by 1938 GMT. Immediate resistance can be seen at 1.3121 (21 DMA), an upside break can trigger rise towards 1.2759 (Dec 10th High).On the downside, immediate support is seen at 1.3009 (23.6% retracement level), a break below could take the pair towards 1.2943 (100 DMA).
USD/CAD: The Canadian dollar weakened to against the greenback on Monday, as Canadian dollar was weighed down by weaker oil prices and stronger greenback. The price of oil, one of Canada's major exports, has rallied about 50% since December. But its recent rally was halted on Monday after signals that Russia may exit production cuts. U.S. crude prices were down 0.7% at $63.44 a barrel. At (2012 GMT), the Canadian dollar was last trading at 0.35% lower at 1.3370to the greenback. The currency, which rose 0.5% last week, traded in a range of 1.3298 to 1.3370.Immediate resistance can be seen at 1.3400 (Psychological Level), an upside break can trigger rise towards 1.3436 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3296 (Daily low), a break below could take the pair towards 1.3278 (Lower Bollinger Band).
USD/JPY: The U.S. dollar gained against the Japanese yen on Monday,as signs of stabilisation in the Chinese economy and an upbeat start to the U.S. earnings season prompted investors to abandon the safe-haven assets like Japanese yen. Chinese data published on Friday showed exports rebounded sharply and new bank loans increased far more than expected in March. Although China's imports remained weak, the data on the whole cemented hopes that the Chinese economy is bottoming out after a soft patch as Beijing has curbed de-leveraging efforts and stepped up support for the economy in recent months.The dollar was 0.14 lower versus the Japanese yen at 113.63. Strong resistance can be seen at 112.09 (38.2% retracement levell), an upside break can trigger rise towards 112.83 (23.6% retracement level).On the downside, immediate support is seen at 111.58 (9 DMA), a break below could take the pair towards 111.13 (21 DMA).
Equities Recap
European shares ended higher on Monday with telecom and retail stocks leading gains as Sino-U.S. trade optimism and strong Chinese economic data eased some worries over global growth - though lacklustre earnings from big U.S. banks weighed.
UK's benchmark FTSE 100 closed down by 0.03 percent, the pan-European FTSEurofirst 300 ended the day up by 0.08 percent, Germany's Dax ended up by 0.2 percent, France’s CAC finished the day up by 0.01 percent.
Wall Street ended slightly lower on Monday, dragged down by financials as underwhelming earnings from Goldman Sachs and Citigroup curbed investor enthusiasm.
Dow Jones closed down by 0.12 percent, S&P 500 ended down by 0.06 percent, Nasdaq finished the day down by 0.11 percent.
Treasuries Recap
U.S. long-dated Treasury yields slipped from four-week highs on Monday in choppy trading, ahead of U.S. data in a holiday-shortened week that will give some guidance on whether the world's largest economy could tip into recession in the near future.
Yields on U.S. 30-year bonds were also lower at 2.964%, down from 2.971% on Friday.On the short end of the curve, U.S. 2-year yields edged lower to 2.393%, compared with Friday's 2.396%
Commodities Recap
Gold fell to its lowest in more than a week on Monday as hopes the United States and China would reach a trade deal lifted appetite for riskier asset even as the dollar retreated.
Spot gold was down 0.2 percent at $1,288.61 per ounce at (2121 GMT), off a low of $1,281.96, its lowest since April 4.
U.S. gold futures settled down 0.3 percent at $1,291.30 an ounce.
Oil prices halted their rally on Monday, with both benchmarks down nearly 1 percent, after Russia's finance minister said Russia and OPEC may decide to boost production to fight for market share with the United States, where output remains at record highs.
Brent crude futures ended the session at $71.18 a barrel, down 37 cents, or 0.5 percent, having earlier slid below $71. Brent hit its highest since Nov. 12 on Friday at $71.87.
U.S. West Texas Intermediate crude futures fell 49 cents, or 0.8 percent, to settle at $63.40 per barrel.
