America’s Roundup: Canadian dollar steadies near two-month high ,Wall Street indexes slip ,Gold climbs, Oil settles up

Market Roundup

• US NY Empire State Manufacturing Index (Aug) 20.60, 10.60 forecasts, 15.60 previous

•Canada Core CPI (MoM) (Jul) 0.2%, 0.1% previous

•Canada Core CPI (YoY) (Jul) 2.3%, 2.1% previous

•Canada Foreign Securities Purchases (Jun) 40.83B, 15.00B forecasts, 8.80B previous

•Canada CPI (MoM) (Jul) 0.5%, 0.4% forecasts, -0.4% previous

•Canada Common CPI (YoY) (Jul) 2.7%, 2.5% forecasts, 2.6% previous

•Canada CPI (YoY) (Jul) 3.0%, 2.8% previous

•Canada Median CPI (YoY) (Jul) 2.0%, 2.0% forecasts, 1.9% previous

•Canada Trimmed CPI (YoY) (Jul) 1.9%, 1.8% forecasts, 1.9% previous

•Canada Foreign Securities Purchases by Canadians (Jun) 35.430B, 21.890B previous

•France 12-Month BTF Auction 2.781%, 2.752% previous

•France 3-Month BTF Auction 2.484%, 2.448% previous

•France 6-Month BTF Auction 2.608%, 2.579% previous

•US NAHB Housing Market Index (Aug) 35, 33 forecasts, 34 previous

•US 3-Month Bill Auction 3.715%, 3.735% previous

•US 6-Month Bill Auction 3.780%, 3.830% previous

Looking Ahead Economic Data (GMT)  

•03:00 New Zealand  RBNZ Offshore Holdings (Jul) 55.80% previous

•03:45 Japan 5-Year JGB Auction 2.020% previous

Looking Ahead Events And Other Releases (GMT)  

•No Data Ahead

Currency Forecast

EUR/USD : The euro strengthened to hit two-month high against the U.S. dollar on Monday  as traders trimmed U.S. rate hike bets against the backdrop of a run of softer economic data. A run of soft U.S. economic data last week prompted markets to pare back bets on an imminent rate hike, sending the U.S. dollar lower for a third straight session, down 0.2%.Investors appear content to look past the simmering Middle East crisis after last week's cooler-than-expected inflation print eased fears of a near-term Fed hike, while robust tech-sector earnings gave sentiment an added lift.However, that fragile optimism may soon be tested. Oil prices traded mixed after last week's advance, with Iran on Saturday calling on Washington to accept defeat, even as U.S. President Donald Trump urged Americans to brace for higher gasoline prices while the conflict grinds on. Immediate resistance can be seen at 1.1581(38.2%fib an upside break can trigger rise towards 1.1639(Higher BB).On the downside, immediate support is seen at 1.1525(38.2%fib), a break below could take the pair towards 1.1515(SMA 20).

GBP/USD: The pound rose on Monday as investors awaited a batch of inflation and labour market data that could put the currency's recent gains to the test.The inflation and labour market readings due later this week will be crucial to the Bank of England's interest rate outlook and could determine whether sterling can extend its recovery after a period of political turmoil in the UK.The currency was boosted by data last week that showed the British economy had grown unexpectedly in June thanks to the start of the men's soccer World Cup, hot weather and respite from the energy price surge.However, a survey published on Monday showed that employers remain reluctant to hire and confidence has held near its weakest ​levels outside the COVID-19 pandemic.Immediate resistance can be seen at 1.3602(Higher BB), an upside break can trigger rise towards 1.3648(23.6%fib).On the downside, immediate support is seen at 1.3503(38.2%fib), a break below could take the pair towards1.3427(SMA 20).

USD/CAD: The Canadian dollar steadied near a two-month high against its U.S. counterpart on Monday ​and bond yields rose as domestic data showed inflation rising at a ‌faster pace than expected, with investors looking ahead to a key deadline for new U.S. tariffs on goods from Canada. Canada’s annual inflation rate accelerated to 3% in July, eclipsing expectations ⁠for 2.9%, as renewed U.S.-Iran tensions drove gasoline prices higher. The core inflation ​measures, CPI-trim and CPI-median, were more subdued at 1.9% and 2%, respectively. The new tariffs could complicate broader negotiations over the future of North America's free trade agreement. Separate data showed that foreign investors bought a net C$40.83 billion ($29.46 billion) in Canadian securities in ⁠June, ​led by federal government bonds. Immediate resistance can be seen at 1.3954(38.2%fib), an upside break can trigger rise towards 1.4000(SMA 20).On the downside, immediate support is seen at 1.3845(38.2%fib), a break below could take the pair towards 1.3800(Lower BB).

 USD/JPY:  The U.S. dollar dipped on Monday as yen gained edged higher against the dollar, largely shrugging off weaker-than-expected Japanese GDP data as traders reined in expectations the Federal Reserve could raise interest rates this year.The yen was 0.2% stronger against the U.S. dollar at 159.46 yen, on track for a second straight day of modest gains but still firmly within its trading range of the past week, after data on Monday showed Japanese GDP for the second quarter expanded at an annualised 1.1%. Soggy U.S. data, including non-farm payrolls and gauges of price inflation for consumers and producers, have doused investor expectations of rate hikes from the Fed this year, with few clues expected from the U.S. central bank until the Jackson Hole symposium from August 27 to 29.Immediate resistance can be seen at 159.70 (50%fib), an upside break can trigger rise towards 160.22(SMA 20).On the downside, immediate support is seen at  158.20(38.2%fib) a break below could take the pair towards 158.00 (Psychological level).

Equities Recap

 European shares settled lower for a fourth straight session on Monday, as the earnings-fuelled rally cooled and the continuing stand-off ‌between U.S. and Iran dampened risk appetite.

UK's benchmark FTSE 100 closed down by 0.28 percent, Germany's Dax ended down by 0.28 percent, France’s CAC finished the day down by 0.66 percent.

Wall Street's three major indexes finished lower on Monday as investors waited ‌for quarterly reports from large retailers to provide insights into U.S. consumer spending, while oil prices rose as the U.S. and Iran appeared no closer to a deal.

Dow Jones closed down  by  0.51 % percent, S&P 500 closed down by 0.52% percent, Nasdaq settled down by 0.32%  percent.

Commodities Recap

Gold prices rose on Monday, supported ‌by a weaker dollar and fading expectations of a U.S. Federal Reserve rate hike, while investors continued to monitor geopolitical tensions in the Middle East.

Spot gold was up ​0.9% to $4,417.24 per ounce by 1:34 p.m. EDT (1734 GMT). U.S. gold ​futures for December delivery settled 0.8% higher to $4,473.70.

Oil prices settled up by more than $2 on Monday on global supply worries stoked by investor pessimism about ​diplomatic efforts to resolve the Iran war, with U.S. President Donald Trump demanding Iran's surrender and threatening to bomb Oman.

Brent crude futures settled up $2.35, or 2.65%, ‌at $90.87 a barrel. U.S. West Texas Intermediate crude futures settled up $2.10, or 2.55%, to $84.50 a barrel.