Market Roundup
•US Feb Chicago Fed National Activity 0.05, -0.30 previous
•Canada Manufacturing Sales (MoM) 0.7% ,0.2% previous
•US Feb New Home Sales (MoM) -0.3%, 1.5% previous
•US Feb New Home Sales 662K, 675K forecast,661K previous
•French 12-Month BTF Auction 3.436%,3.526% previous
•French 3-Month BTF Auction 3.844%, 3.796% previous
•French 6-Month BTF Auction 3.690%,3.775% previous
• US Mar Dallas Fed Mfg Business Index -14.4 ,-11.3 previous
•US 3-Month Bill Auction 5.230%, 5.245% previous
•US 6-Month Bill Auction 5.105%,5.130% previous
Looking Ahead Economic Data(GMT)
•23:30 Australia Mar Westpac Consumer Sentiment 6.2% previous
•23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.0% forecast,2.1% previous
•05:00 Japan BoJ Core CPI (YoY) 2.5% forecast,2.6% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors positioned themselves ahead of inflation data. After the U.S. Federal Reserve's decision last Wednesday to leave its key policy rate unchanged, and its dot plot still reflecting expectations for three cuts to that rate this year, markets are looking ahead to Friday's Personal Consumption Expenditures (PCE) report due from the Commerce Department.The report will be released on the Good Friday holiday despite it being a market holiday.Analysts expect the PCE data to show inflation gathered heat in February, with prices rising by 0.4% after January's 0.3% gain. However, core price inflation, which strips away volatile food and energy prices, is seen cooling to 0.3% from 0.4%.The euro was last up 0.1% at $1.0836, climbing off a near three-week low. Immediate resistance can be seen at 1.0840(38.2%fib), an upside break can trigger rise towards 1.0906 (23.6%fib).On the downside, immediate support is seen at 1.0800(Psychological level), a break below could take the pair towards 1.0763 (50%fib).
GBP/USD: The pound strengthen against dollar on Monday as upbeat UK CBI data boosted sterling across the board. British retail sales edged up in March after falling in the previous 10 months but stores expect sales volumes to slip again in April, according to industry figures which echoed official data published last week. The Confederation of British Industry's (CBI) monthly retail sales balance, a gauge of sales over the year to March, rose to +2 from -7 in February. But retailers expected the decline in sales to resume in April at -25. Now Investors focus turns to UK Q4 GDP on Thursday, U.S. core PCE Friday .Immediate resistance can be seen at 1.2655(Daily high), an upside break can trigger rise towards 1.2692(23.6%fib).On the downside, immediate support is seen at 1.2584(38.2%fib), a break below could take the pair towards 1.2533(Lower BB).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday but was holding near its weakest level in more than three months as the U.S. Federal Reserve officials signaled increased concern about the slow progress in cooling inflation. The loonie was trading 0.2% higher at 1.3580 to the U.S. dollar. On Friday, the currency touched its weakest intraday level since Dec. 12 at 1.3614 as the greenback extended recent gains against a basket of major currencies. Fed officials said they still had faith that U.S. inflation will ease, with housing price increases in particular expected to help pull down the headline pace of price increases, but also acknowledged an increased sense of caution around the issue. The price of oil , one of Canada's major exports, settled 1.6% higher at $81.95 a barrel .Immediate resistance can be seen at 1.3605(23.6%fib), an upside break can trigger rise towards 1.3640 (Higher BB).On the downside, immediate support is seen at 1.3574 (Daily low), a break below could take the pair towards 1.3524 (38.2%fib).
USD/JPY: The dollar was little changed against the yen on Monday as concerns about potential currency intervention by Japanese authorities kept investors cautious. Japan's top currency diplomat said on Monday the yen's current weakness did not reflect fundamentals, adding to the rhetoric of government officials who have stepped up warnings in recent days over the currency's decline.The yen has dropped despite the Bank of Japan hiking interest rates out of negative territory last week. Traders think rates in Japan will remain low for some time and therefore the big interest rate gap with the U.S. will stay in place, boosting the appeal of the dollar. The Japanese yen was little changed on the day and last stood at 151.40 per dollar .Strong resistance can be seen at 151.93 (23.6%fib) an upside break can trigger rise towards 152.39(Higher BB).On the downside, immediate support is seen 150.85(38.2%fib), a break below could take the pair towards 150.12(50%fib)
Equities Recap
European stocks inched up to close at record high levels on Monday at the start of a holiday-shortened week as investors digested recent big gains spurred by dovish views from major central banks.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended up by 0.34 percent, France’s CAC finished the day down by 0.00 percent.
U.S. stocks lost ground at the start of a holiday-shortened week on Monday as investors positioned themselves ahead of inflation data.
Dow Jones closed down by 0.41% percent, S&P 500 closed down by 0.31% percent, Nasdaq settled down by 0.27% percent.
Commodities Recap
Gold prices rose on Monday, driven by expectations of interest rate cuts by the U.S. Federal Reserve this year, even as traders await inflation readings this week for confirmation on the timing of these reductions.
Spot gold gained 0.5% to $2,174.51 per ounce as of 1:45 p.m. EDT (1745 GMT), while silver rose 0.2% to $24.71.U.S. gold futures settled 0.8% higher at $2,176.4.
Oil prices settled higher on Monday as orders from the Russian government to curb oil output, and attacks on energy infrastructure in both Russia and Ukraine offset the United Nation's demand for a ceasefire in Gaza.
Brent crude futures settled $1.32 higher or 1.55%, at $86.75 a barrel. U.S. crude futures settled $1.32 higher, or 1.64%, at $81.95.
