America's Roundup: US dollar rebounds as traders scale back expectations for major Fed rate cut, Wall Street surges, Gold prices steady, Oil prices edge up

Market Roundup

•French 12-Month BTF Auction 2.859%,2.997% previous

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•  French  6-Month BTF Auction 3.258%,3.308% previous  
 
•US Aug CB Employment Trends Index 109.04,  109.61 previous  
     
•US Total Vehicle Sales 15.10M, 15.40M forecast, 15.80M previous  
 
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 Looking Ahead Economic Data (GMT)  

•23:20    Japan M2 Money Stock (YoY) 1.5% forecast, 1.4% previous        

•23:50    Japan Aug M3 Money Supply  2,168.3B previous    

•  01:30 Australia Building Approvals (MoM) (Jul) forecast 10.4%, previous -6.4%

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•03:00 China Exports (Aug)    6.50M  previous  
•03:00 China Imports (Aug)    6.60M previous  
•03:00 China Trade Balance (Aug) forecast 582.00B, 601.90B previous

•03:00 China Exports (YoY) (Aug)  forecast 6.5%, 7.0% previous  

•03:00 China Imports (YoY) (Aug) forecast 2.0%,  7.2% previous

•03:00 China Trade Balance (USD) (Aug)  forecast 82.10B, 84.65B previous

Looking Ahead Events And Other Releases (GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro slipped against the dollar on Monday as investors awaited a series of economic data releases and anticipated a European Central Bank (ECB) interest rate cut later in the week. The ECB is expected to reduce rates by 25 basis points to 3.50%, following a similar cut in July that marked the beginning of its rate-cutting cycle. The focus will be on the ECB's rate decision on Thursday and the subsequent commentary from ECB President Christine Lagarde, particularly regarding the potential for additional cuts in October and December.Traders will also be looking for hints from several ECB members who are scheduled to speak at various events throughout the week. The euro dipped 0.3% to $1.1049 , having briefly been as high as $1.1155 on Friday. Immediate resistance can be seen at 1.1118(38.2%fib), an upside break can trigger rise towards 1.1185(Aug 20th high).On the downside, immediate support is seen at 1.1039(50%fib), a break below could take the pair towards 1.0958 (61.8%fib).

GBP/USD: Sterling slipped lower against the dollar on Monday as  investors awaited key labour market data later in the week. Investors are focussed on key labour market data and gross domestic product figures out of the country this week, for more clues on the Bank of England's stance on further interest rate cuts this year. The British central bank is widely expected to hold rates at its meeting later this month, while the European Central Bank is expected to cut at its meeting this week.Data out of the U.S. fanned worries about growth in the world's largest economy, and left investors divided on the trajectory of the Federal Reserve's policy easing cycle, dampening sentiment across global markets. The pound was about 0.09% lower at $1.3131.Immediate resistance can be seen at 1.3140(Daily high), an upside break can trigger rise towards 1.3180(38.2%fib ).On the downside, immediate support is seen at 1.3075(50%fib), a break below could take the pair towards 1.2980(61.8%fib).

USD/CAD: The Canadian dollar gained ground against the U.S. dollar as Wall Street rallied. However, the advance was restrained as investors awaited a speech by Bank of Canada Governor Tiff Macklem, which could provide insights into the potential pace of interest rate cuts. Wall Street's main stock indexes rebounded from a week of significant losses, with attention shifting to potential Federal Reserve interest rate cuts in 2024 and a key inflation report set for Wednesday. As Canada is a major commodity producer, including oil, its currency is particularly sensitive to changes in investor sentiment. U.S. crude oil futures were up 1.5%, trading at $68.67 per barrel.Immediate resistance can be seen at 1.3437(Daily high), an upside break can trigger rise towards 1.3467 (Feb 28th high).On the downside, immediate support is seen at 1.3386 (5 DMA), a break below could take the pair towards 1.3332 (11 DMA).

USD/JPY: The dollar rebounded against the yen as investors turned their attention to key U.S. inflation data and adjusted their expectations for a significant Federal Reserve rate cut next week. Focus is now on Wednesday's release of the U.S. Consumer Price Index (CPI) report, despite the Fed's current emphasis on employment over inflation. According to a Reuters poll, the headline CPI is expected to have increased by 0.2% month-on-month in August, unchanged from the previous month, but is forecasted to rise by 2.6% year-on-year, down from 2.9% in July. The greenback gained against the Japanese currency for the first time in five sessions and rose for a second consecutive day against the euro.Strong resistance can be seen at 143.53 (Daily high), an upside break can trigger rise towards 144.64 (38.2%fib). On the downside, immediate support is seen at 142.12(23.6%fib), a break below could take the pair towards 141.32 (Lower BB).

Equities Recap

European bourses climbed on Monday, rebounding from substantial declines the previous week, as investors turned their attention to the anticipated interest rate cut from the European Central Bank on Thursday.

UK's benchmark FTSE 100 closed up by  1.09 percent, Germany's Dax ended up  by 0.77 percent, France’s CAC finished the day up by 0.99percent.

Wall Street's three major indexes each gained more than 1% as investors sought bargains following the previous week's sell-off.

Dow Jones closed up by 1.20 %percent, S&P 500 closed up by 1.16% percent, Nasdaq settled up by  1.17 % percent.

Commodities Recap

Gold prices held steady on Monday as investors awaited the U.S. inflation report, seeking further insights into the potential magnitude of the Federal Reserve's forthcoming interest rate cut.

Spot gold was little changed at $2,499.79 per ounce by 1:54 p.m. ET (1754 GMT).U.S. gold futures settled 0.3% higher at $2,532.70.

Oil prices rose 1% on Monday due to concerns that a hurricane expected to hit Louisiana on Wednesday might disrupt production and refining activities along the U.S. Gulf Coast.

Brent   futures were up 78 cents, or 1.1%, to settle at $71.84 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.04, or 1.5%, to settle at $68.71.