Market Roundup
•French Mar Trade Balance -12.4B,-10.3B previous
•French Mar Imports 58.1B,56.0B previous
•French Mar Current Account -3.20B,-1.10B previous
•EU May Sentix Investor Confidence -22.6, -20.8 forecast, -18.0 previous
•Canada Building Permits (MoM) -9.3%, 21.0% previous
• French 6-Month BTF Auction -0.579%, -0.519% previous
• French 3-Month BTF Auction -0.664%,-0.652% previous
• French 12-Month BTF Auction -0.120% ,-0.167% previous
Looking Ahead - Economic Data (GMT)
•14:00 US Mar Wholesale Trade Sales (MoM) 1.7% previous
•14:00 US Apr CB Employment Trends Index 120.56 previous
•14:00 US Wholesale Inventories (MoM) 2.3% forecast, 2.3% previous
•15:30 US 3-Month Bill Auction 0.910% previous
•15:30 US 6-Month Bill Auction 1.420% previous
Looking Ahead - Economic events and other releases (GMT)
•18:15 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro was little changed against the U.S. dollar on Monday as worries about higher interest rates and a tightened lockdown in Shanghai deepened investors’ fears that the global economy is rapidly heading for a slowdown. Central banks in the United States, Britain and Australia all raised interest rates last week, and investors are bracing for more tightening as policymakers try to get on top of soaring inflation. Investors are awaiting U.S. inflation data for April, which might provide more signals about the future monetary tightening path of the Federal Reserve. Immediate resistance can be seen at 1.0557 (5DMA), an upside break can trigger rise towards 1.0597 (38.2%fib).On the downside, immediate support is seen at 1.0490(23.6%fib), a break below could take the pair towards 1.0422 (Lower BB).
GBP/USD: The pound fell to its lowest level since June 2020 for a third straight day on Monday against a broadly robust dollar. News that Irish nationalist party Sinn Fein won the most seats in the Northern Ireland’s devolved assembly for the first time in elections last Thursday added to the pound’s woes. Sterling was last down 0.4% at $1.2284, having fallen to as low as $1.2262 its lowest level in almost two years. It has hit a new low for three straight sessions, and is down 2.3% this month against the dollar. The greenback meanwhile hit a two-decade high as investors snapped up the safe-haven currency amid heightened uncertainty about the global growth outlook. Immediate resistance can be seen at 1.2405(38.2%fib), an upside break can trigger rise towards 1.2433(5DMA).On the downside, immediate support is seen at 1.2287 (23.6%fib), a break below could take the pair towards 1.2187(Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Monday as a combination of rising U.S. Treasury yields and a tightening lockdown in China boosted the safe haven appeal of the greenback. Against a basket of major currencies, the dollar topped 104.19 for the first time since July 2002, extending its almost 9% rise this year. The dollar’s rise has been aided by a relentless march higher in U.S. Treasury yields. On Monday, yields on ten-year benchmark debt hit 3.18% for the first time since Nov 2018. They have doubled over the past two months. Immediate resistance can be seen at 0.9943(23.6 % fib), an upside break can trigger rise towards 0.9971(Higher BB).On the downside, immediate support is seen at 0.9882(Daily low), a break below could take the pair towards 0.9838(38.2 % fib ).
USD/JPY: The dollar steadied against yen on Monday as investors' tilt toward safety as lockdowns in China, war on the edge of Europe and fear about higher interest rates sent a nervous jolt through markets. Money markets expect the United States to raise interest rates by another 200 bps during the remainder of the year ,taking benchmark rates to nearly 3% .Treasury yields extended their rise for a third consecutive session with yields on benchmark 10-year debt pushing further above 3% to fresh 3-1/2 years. They have doubled in the past two months. Against a basket of major currencies, the dollar topped 104.19 on Monday for the first time since July 2002, extending its almost 9% rise this year. Strong resistance can be seen at 131.44(23.6%fib), an upside break can trigger rise towards 131.95 (Higher BB).On the downside, immediate support is seen at 130.23(5DMA), a break below could take the pair towards 129.45(38.2%fib).
Equities Recap
European shares hit two-month lows on Monday, led by miners as investors fretted over a sharp economic slowdown in China due to prolonged COVID-19 curbs, while surging bond yields kept technology stocks under pressure.
At (GMT 13:57),UK's benchmark FTSE 100 was last trading down at 1.50 percent, Germany's Dax down by 1.02 percent, France’s CAC finished was down by 1.52 percent.
Commodities Recap
Gold prices retreated 1% on Monday as elevated U.S. Treasury yields and a surge in the dollar to two-decade highs dented the appeal of non-yielding bullion.
Spot gold was down 1% at $1,865.05 per ounce by 1302 GMT. U.S. gold futures fell 0.9% to $1,866.20.
Oil prices slipped on Monday alongside equities and weighed down by a strong dollar and demand concerns on the back of continued coronavirus lockdowns in China, the world top oil importer.
Brent crude fell $2.88, or 2.6%, to $109.51 a barrel by 1351 GMT. U.S. West Texas Intermediate crude was at $106.73 a barrel, down $3.04, or 2.8%. Both contracts have gained over 40% so far this year.
