Market Roundup
•EU Feb Current Account 25.9B , 30.5B previous
•EU Feb Current Account n.s.a. 13.3B, 5.8B previous
•EU Feb Construction Output (MoM) -2.12%,0.83% previous
Looking Ahead – Economic Data (GMT)
•13:00 French 12-Month BTF Auction -0.629% previous
•13:00 French 3-Month BTF Auction -0.630% previous
•13:00 French 6-Month BTF Auction -0.633% previous
•15:30 US 3-Month Bill Auction 0.020% previous
•15:30 US 6-Month Bill Auction 0.040% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fx Beat
EUR/USD: The euro rose against dollar on Monday as European Central Bank meeting. The European Central Bank meets on Thursday with internal divisions over the pace of bond buying, extended COVID-19 lockdowns and potential delays to the EU recovery fund form the backdrop. Markets are watching what the ECB says and does closely amid signs of disagreement among policymakers over the future pace of bond purchases especially once a recovery takes hold. The euro was trading at $1.2031, up 0.42% on the day and near its highest against the dollar since March 4. Immediate resistance can be seen at 1.2054(23.6%fib), an upside break can trigger rise towards 1.2100(Psychological level).On the downside, immediate support is seen at 1.1991 (38.2%fib), a break below could take the pair towards 1.1943(50%fib).
GBP/USD: Sterling rose to hit two-week high against the dollar on Monday ahead of a data-heavy week that is expected to provide more evidence that Britain’s economy is rebounding from its deepest recession in 300 years. The pound had a strong first quarter, helped by a speedy roll-out of COVID-19 vaccinations across Britain and by dwindling expectations of negative interest rates. The pound versus a weakening dollar, rose 0.3% to $1.3888 at 0835, it highest level since April 6. It was 0.1% lower versus the euro at 86.63 pence. Immediate resistance can be seen at 1.3928 (Daily high), an upside break can trigger rise towards 1.3960 (23.6%fib ).On the downside, immediate support is seen at 1.3854 (50%fib), a break below could take the pair towards 1.3800 (5DMA).
USD/CHF: The dollar declined against the Swiss franc on Monday as greater risk appetite and retreating Treasury yields weighed on dollar. Risk sentiment was fuelled by expectations that monetary policy will remain accommodative the world over. The dollar index was down 0.6% at its lowest levels in more than a month, at 91.052, having weakened since its recent peak of 93.439 at the end of March. Immediate resistance can be seen at 0.9189 (38.2%fib), an upside break can trigger rise towards 0.9239(38.2%fib).On the downside, immediate support is seen at 0.9112 (23.6%fib), a break below could take the pair towards 0.9046 (50DMA).
USD/JPY: The dollar traded just above one month low against Japanese yen on Monday, with Treasury yields near their lowest in five weeks, after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary. The greenback's weakness was pronounced across the board on Monday, with the currency hitting multi-week lows against major peers in the G10 group of currencies: the Japanese yen, the Swiss franc, the Australian dollar and the New Zealand dollar, and the euro. Strong resistance can be seen at 108.57 (38.2%fib), an upside break can trigger rise towards 108.78 (5DMA).On the downside, immediate support is seen at 108.15(23.6%fib), a break below could take the pair towards 107.77(Lower BB).
Equities Recap
European stocks inched higher on Monday, extending their record-setting rally, as optimism about a solid start to the earnings season offset a worrying resurgence in COVID-19 cases globally.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.03 percent, Germany's Dax was down by 0.02 percent, France’s CAC was last up by 0.40 percent.
Commodities Recap
Gold prices scaled a more than seven-week peak on Monday as a softer dollar and lower U.S. Treasury yields lifted the yellow metal's appeal even as the appetite for riskier assets remained strong.
Spot gold rose 0.3% to $1,781.03 per ounce by 1152 GMT, having earlier touched its highest since Feb. 25 at $1,789.77.
Oil prices steadied on Monday as concerns about demand from rising coronavirus infections in India and other countries were tempered by a weaker U.S. dollar.
Brent crude was down 2 cents at $66.75 a barrel by 1226 GMT, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil was up 1 cent at $63.14 a barrel, having gained 6.4% last week.
