Market Roundup
•German Apr WPI (MoM) -0.4%, 0.3% forecast, 0.2% previous
•Sweden Apr CPI (MoM) 0.5% ,0.7% forecast,0.6% previous
• Sweden Apr CPI (YoY) 10.5%, 10.7% forecast,10.6% previous
•Swiss Apr PPI (MoM) 0.2%,-0.1% forecast,0.2% previous
•EU Mar Industrial Production (YoY) -1.4%,0.9% forecast,2.0% previous
•EU Mar Industrial Production (MoM) -4.1%, -2.5% forecast,1.5% previous
•Canada Apr Housing Starts 261.6K, 224.6K forecast, 213.9K previous
• US May NY Empire State Manufacturing Index -31.80,-3.70 forecast, 10.80 previous
•Canada Mar Wholesale Sales (MoM) 46.0%, -0.4% forecast, -1.7% previous
Looking Ahead Economic Data(GMT)
•12:15 Canada Apr Housing Starts 224.6K forecast, 213.9K previous
•12:30 US May NY Empire State Manufacturing Index -3.70 forecast, 10.80 previous
•12:30 Canada Mar Wholesale Sales (MoM) -0.4% forecast, -1.7% previous
•13:00 EU French 6-Month BTF Auction 3.205% previous
•13:00 EU French 12-Month BTF Auction 3.215% previous
•13:00 EU French 3-Month BTF Auction 3.079% previous
Looking Ahead Events And Other Releases(GMT)
•13:15 US FOMC Member Kashkari Speaks
•14:00 Canada BoC Financial System Review
•16:00 UK BoE MPC Member Pill Speaks
•16:30 US FOMC Member Barkin Speaks
Currency Forecast
EUR/USD: The euro edged higher on Monday as dollar dipped ahead of a host of U.S. Federal Reserve officials to speak to vindicate market pricing of rate cuts this year. A host of Federal Reserve officials are speaking, with Chair Jerome Powell set for Friday, and could generate plenty of headlines to move the dial further. Traders currently put the odds of the Fed holding rates steady at 17.7%, up from 8.5% a week ago, after a report on Friday showed U.S. long-term inflation expectations jumped to the highest since 2011 Immediate resistance can be seen at 1.0950(5DMA), an upside break can trigger rise towards 1.0977(23.6%fib).On the downside, immediate support is seen at 1.0844 (Daily low ), a break below could take the pair towards 1.0818(Lower BB).
.GBP/USD: The pound steadied on Monday rise in risk appetite boosted pound across the board. Investors focus turned on April retail sales and industrial production data, due to be released on Tuesday. Investors are also watching developments around the U.S. debt ceiling talks. U.S. President Joe Biden is expected to meet with congressional leaders on Tuesday for talks on a plan to raise the nation's debt limit and avoid a catastrophic default. Immediate resistance can be seen at 1.2576 (5DMA), an upside break can trigger rise towards 1.2616 (23.6%fib).On the downside, immediate support is seen at 1.2496(38.2%fib), a break below could take the pair towards 1.2439(May 1st low).
USD/CHF: The dollar initially gained against Swiss franc on Monday but gave up ground as economic slowdown steered some traders from making new bets on the pair. Data on Friday showed U.S. consumer sentiment slumped to a six-month low in May on worries that political haggling over raising the federal government’s borrowing cap could trigger a recession.U.S. President Joe Biden said he expects to meet with congressional leaders on Tuesday for talks on a plan to raise the nation’s debt limit and avoid a catastrophic default. Immediate resistance can be seen at 0.8986(Daily high), an upside break can trigger rise towards 0.8991 (38.2%fib).On the downside, immediate support is seen at 0.8876(23.6%fib), a break below could take the pair towards 0.8827(Lower BB).
USD/JPY: The dollars strengthened against Japan's yen on Monday as the greenback was buoyed by a rise in Treasury yields after a survey of U.S. consumers’ long-term inflation expectations jumped to the highest since 2011, putting a possible Federal Reserve rate hike next month back in play.Traders currently put those odds at 13%, from close to zero prior to the University of Michigan’s poll. However, there are still as many as three quarter-point cuts priced into the market by year-end.. Strong resistance can be seen at 135.44(23.6%fib) an upside break can trigger rise towards 136.00(psychological level).On the downside, immediate support is seen at 134.04(30DMA), a break below could take the pair towards 133.77(38.2%fib)
Equities Recap
European stocks rose on Monday as investors assessed uncertainties around U.S. debt ceiling talks and a runoff election in Turkey, while awaiting data this week for clues on the state of the global economy.
At (GMT 13:17),UK's benchmark FTSE 100 was last trading up at 0.24 percent, Germany's Dax was down by 0.16 percent, France’s CAC was trading up by 0.00 percent.
Commodities Recap
Gold regained its footing on Monday after three straight sessions of losses as the dollar eased and investors remained wary of the U.S. debt ceiling standoff that could fuel worries of a global economic slowdown.
Spot gold was up 0.1% to $2,013.99 per ounce by 1132 GMT, having hit its lowest since May 5 on Friday. U.S. gold futures were mostly unchanged at $2,018.80.
Oil prices edged up on Monday as the prospect of tightening supplies due to OPEC+ production cuts and a resumption in U.S. buying for reserves outweighed concerns about fuel demand in top global oil consumers the United States and China.
Brent crude futures were up 36 cents or 0.5% to $74.53 a barrel at 1240 GMT, while U.S. West Texas Intermediate crude was at $70.41 a barrel, up 37 cents or 0.5%.
