Market Roundup
•Swiss Retail Jan Sales (YoY) -0.5%, 4.7% previous
•Spanish Feb Manufacturing PMI 52.9, 52.0 forecast, 49.3 previous
•Sweden GDP (YoY) -2.2%,-2.5% previous
• Italian Feb Manufacturing PMI 56.9, 57.0 forecast, 55.1 previous
•French Feb Manufacturing PMI 56.1, 55.0 forecast, 51.6 previous
•German Feb Manufacturing PMI 60.7, 60.6 forecast, 57.1 previous
•EU Feb Manufacturing PMI 57.9, 57.7 forecast, 54.8 previous
•UK Feb Manufacturing PMI 55.1, 54.9 forecast, 54.1 previous
•UK Jan BoE Consumer Credit -2.392B, -1.900B forecast, -0.965B previous
•Italian Feb CPI (MoM) 0.1%,0.7% previous
•French Car Registration (YoY) -20.9%,-5.8% previous
Looking Ahead - Economic Data (GMT)
•13:00 Canada Current Account (Q4) -8.3B forecast, -7.5B previous
•13:30 French 12-Month BTF Auction-0.614% previous
•13:30 French 3-Month BTF Auction -0.617% previous
•13:30 French 6-Month BTF Auction 0.616% previous
•13:30 Belgian GDP (QoQ) (Q4) 0.2% forecast,0.2% previous
•14:00 Canada Feb Manufacturing PMI 54.4 previous
•14:45 US Feb Manufacturing PMI 58.5 previous
•15:00 US Feb ISM Manufacturing New Orders Index 61.1 previous
•15:00 US Feb ISM Manufacturing Employment 53.0 forecast, 52.6 previous
•15:00 US Feb ISM Manufacturing PMI 58.8 forecast, 58.7 previous
•15:00 US Feb ISM Manufacturing Prices 80.0 forecast, 82.1 previous
Looking Ahead - Economic events and other releases (GMT)
•14:05 US FOMC Member Brainard Speaks
•15:20 EU ECB's De Guindos Speaks
•15:20 German Buba Vice President Buch Speaks
•15:20 EU ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday as traders waited for a speech later this afternoon by President Christine Lagarde. Pressure has been growing on the European Central Bank to act against rising yields in the euro zone. Traders will focus on a speech later this afternoon by President Christine Lagarde. On the data front, Germany’s factory activity rose to its highest level in more than three years last month, driven by higher demand from China, the United States and Europe. The euro fell 0.23% to $1.2042, after dropping 0.9% at the end of last week, the most since April. Immediate resistance can be seen at 1.2089 (5DMA), an upside break can trigger rise towards 1.2117 (21DMA).On the downside, immediate support is seen at 1.2029 (38.2% fib), a break below could take the pair towards 1.1933 (23.6%fib).
GBP/USD: Sterling edged higher against both the euro and the dollar on Monday as a swift coronavirus vaccine roll out supported the pound and fuelled hopes of economic recovery. After retreating from a three-year high on Friday to fall below $1.39 amid a rout in global bond markets and concerns of inflation risks, sterling rose as high as $1.3999 in Asian trading .In early London trading, it was 0.1% higher at $1.3938 by 0933 GMT as investors bet a vaccination programme would help lift the British economy. Immediate resistance can be seen at 1.4015 (5DMA), an upside break can trigger rise towards 1.4182 (Feb 25th HIgh).On the downside, immediate support is seen at 1.3914 (23.6%fib), a break below could take the pair towards 1.3861 (21DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as greenback was supported by U.S. Treasuries recovery from last week’s losses Benchmark 10-year.Key yields fell from highs seen last week when market participants became wary that when economies re-open from coronavirus lockdowns a combination of massive government stimulus and pent-up consumer demand will cause inflation to accelerate.The U.S. 10-year treasury yield was down around 3 basis points at 1.429% at 1207 GMT, having dropped from Thursday’s one-year high of 1.614% although it did edge up slightly overnight. Immediate resistance can be seen at 0.9145 (38.2%fib), an upside break can trigger rise towards 0.9202 (23.6%fib).On the downside, immediate support is seen at 0.9097 (50%fib), a break below could take the pair towards 0.9071 (5 DMA).
USD/JPY: The dollar rose against the Japanese yen Monday as investor sentiment improved after reflationary bets sent bond markets for their biggest monthly selloff in years.The rise in bond yields last month, spurred on by U.S. fiscal stimulus hopes and a post-pandemic economic rebound that could fuel inflation, reverberated around the world. The dollar index rose 0.26% to 91.02 after posting its biggest surge since June on Friday. Strong resistance can be seen at 106.74 (Daily high), an upside break can trigger rise towards 106.90 (23.6%fib).On the downside, immediate support is seen at 106.46 (38.2%fib), a break below could take the pair towards 106.15 (50%fib).
Equities Recap
European stocks recovered on Monday after bond markets stabilized following a sharp selloff last week, while sentiment was boosted by heightened optimism over global COVID-19 vaccination programmes and a $1.9 trillion U.S. stimulus package.
At (GMT 12:40 ),UK's benchmark FTSE 100 was last trading up at 1.43 percent, Germany's Dax was up by 1.02 percent, France’s CAC finished was up by 1.39 percent.
Commodities Recap
Gold jumped over 1% on Monday as a retreat in U.S. Treasury yields pushed investors to bullion again as a refuge from inflation following the passage of a $1.9 trillion U.S. stimulus package.
Spot gold was up 0.5% to $1,742.30 per ounce at 1151 GMT, after rising as much as 1.5% to $1,759.53 earlier in the session. U.S. gold futures rose 0.7% to $1,740.70 per ounce.
