Market Roundup
• US Cap Goods Ship Non-Defence Ex Air (MoM) -0.7%, 0.3% previous
• US Jul Chicago Fed National Activity -36 , 0.03% previous
• US Jul Core Durable Goods Orders (MoM) -0.4 %, 0.1 forecast 0.8% previous
• US Jul Durable Goods Orders (MoM) 2.1%, 1.1% forecast, -1.8% previous
• US Durables Excluding Defence (MoM), 0.4%,- 0.1 forecast,-0.9 previous
• Brazil Jul Foreign direct investment ,7.66B , 7.00B forecast, 2.20B previous
• US Aug Dallas Fed Mfg Business Index 2.7, -6.3 previous
Looking Ahead - Events, Other Releases (GMT)
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 0.7 previous
• 01:30 Jul Chinese Industrial Profit (YoY) -3.10 previous
• 01:30 Chinese Industrial Profit YTD -2.4% previous
• 05::00 Japan BoJ Core CPI (YoY) 0.6%previous
Looking Ahead - Events, Other Releases (GMT)
• 02:00 Australia RBA Assist Gov Debelle Speaks
Currency Summaries
EUR/USD: The euro declined against the U.S. dollar on Monday, from overnight losses after the United States and China sought to ease trade war tensions.U.S. President Donald Trump on Friday heaped an additional 5% duty on some $550 billion in targeted Chinese goods, just hours after China unveiled tariffs on $75 billion worth of U.S. goods.The news shook global markets, leading to sharp sell-offs across Asian equities and a slump in crude prices, following Wall Street's nose-dive on Friday.The euro was down -0.36 percent at $1.1096. An index that tracks the dollar versus a basket of six major currencies was up 0.83 at 98.08. Immediate resistance can be seen at 1.1135 (21 DMA), an upside break can trigger rise towards 1.1207 (50 DMA).On the downside, immediate support is seen at 1.1090 (Aug 15th low), a break below could take the pair towards 1.1037 (Lower Bollinger Band).
GBP/USD: Sterling declined against dollar on Monday, as investors further priced in the probability of Britain leaving the European Union without a deal in place.Boris Johnson, who took over as prime minister two weeks ago, has said he would take Britain out of the EU on Oct. 31, with or without a divorce agreement to smooth ties with the bloc. Most investors have been forced to recalculate their assumptions of a no-deal Brexit. Odds on betting websites currently suggest that the probability of Britain leaving the EU this year without a deal is roughly 60%. The pound was trading lower at $1.2117 on Monday, not far from the 31-month low of $1.2080.Immediate resistance can be seen at 1.2294 (23 Aug High), an upside break can trigger rise towards 1.2382 (Jul 29th High).On the downside, immediate support is seen at 1.2205 (5 DMA), a break below could take the pair towards 1.2140 (21 DMA).
USD/CAD: The Canadian dollar edged higher against the greenback on Monday as risk sentiment improved, but held in the middle of its tight recent range as investors continued to focus on the fallout of the U.S.-China trade war. The United States and China sought to ease tensions on Monday, with Beijing calling for calm and U.S. President Donald Trump predicting a trade deal after markets fell in response to new tariffs from both countries. That boosted risk sentiment, sending stock prices higher, and gave a modest boost to the Canadian currency. Canada exports many commodities, including oil, so its economy could be hurt by a slowdown in the flow of global trade. The Canadian dollar was last up 0.14% at 1.3260 to the greenback. It has held between 1.3248 and 1.3344 since Aug.15. Immediate resistance can be seen at 1.3293 (9 DMA), an upside break can trigger rise towards 1.3340 (23rd Aug).On the downside, immediate support is seen at 1.3249 (21 DMA), a break below could take the pair towards 1.3200 (Psychological level).
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as dollar recovered from earlier losses as U.S. President Donald Trump said Chinese officials had contacted Washington about resuming trade negotiations, after signs of escalation in the U.S.-China trade dispute had roiled markets earlier in the day. Trump’s comments followed Chinese Vice Premier Liu He’s remarks that China was willing to resolve the trade dispute through “calm” negotiations.The Japanese yen gained 0.66% to 105.74 against the greenback, nearing an eight-month high of 105.51 reached on Tuesday. Strong resistance can be seen at 105.00 (Psychological level), an upside break can trigger rise towards 106.40 (23rd Aug high).On the downside, immediate support is seen at 104.46 (26 Aug low), a break below could take the pair towards 104.00 (Psychological level).
Equities Recap
European shares stabilised on Monday as trade tensions between the United States and China eased somewhat while potential for a coalition arrangement to form a new government in Rome thrust Italian stocks higher.
The UK's benchmark FTSE 100 closed down by -0.47 percent, Germany's Dax ended up by 0.40 percent, and France’s CAC finished the down by 0.40 percent.
Wall Street’s main indexes rose on Monday as U.S. President Donald Trump eased his stance on trade with China, calming investor nerves after an intense feud between the world’s top two economies last week sent stocks tumbling.
Dow Jones closed down by 0.67 percent, S&P 500 ended up 0.74 percent, Nasdaq finished the day down by 0.92 percent.
Treasuries Recap
U.S. Treasury yields held steady on Monday, bouncing off multi-year lows as uncertainties over trade developments between China and the United States underpinned safe-haven demand for low-risk government bonds.
Benchmark 10-year Treasury yields slid to 1.443% earlier on Monday, their lowest since July 2016, in the wake of another round of tit-for-tat tariffs between the world's biggest economies last week.
Commodities Recap
Gold surged to a more than six-year peak on Monday, surpassing $1,550 in early trade, as investors sought safety from a host of uncertainties including heightened U.S.-China trade tensions and a fragile global economy.
Spot gold rose 0.3% to $1,529.90 per ounce as of 02:30 pm EDT (1830 GMT), paring gains to shed more than $20 from earlier in the session when the metal had jumped to its highest level since April 2013 at $1,554.56.U.S. gold futures settled nearly unchanged at $1,537.20 per ounce
Oil prices fell 1% on Monday on the outlook for increased supply of Iranian crude after France’s president lifted hopes for a deal between Washington and Tehran, but losses were limited by optimism surrounding a U.S.-China trade deal.
Brent crude lost 64 cents, or 1.1%, to settle at $58.70 a barrel, after hitting a session high of $60.17.
U.S. West Texas Intermediate (WTI) crude futures settled 53 cents, or 1%, lower at $53.64 a barrel.
