Market Roundup
• French 12-Month BTF Auction 3.450%, 3.507% previous
• French 6-Month BTF Auction 3.747% ,3.792% previous
•13:55 French 3-Month BTF Auction 3.813% ,3.860% previous
• US Feb CB Employment Trends Index 113.71 previous
• US Consumer Inflation Expectations 3.00%,3.00% previous
• US 3-Month Bill Auction 5.250%, 5.240% previous
• US 6-Month Bill Auction 5.100% , 5.105% previous
• US 3-Year Note Auction 4.256%, 4.169% previous
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Currency Summaries
EUR/USD: The euro was little changed against the dollar on Monday as traders grappled with uncertainty over the economic outlook and waited for U.S. inflation data later in the week. Tuesday's U.S. consumer price index (CPI) report for February is forecast to rise 0.4% for the month and keep the annual pace steady at 3.1%. Core inflation is seen rising 0.3%, which will nudge the annual pace down to the lowest since early 2021 at 3.7%. The European Central Bank left rates at record highs last Thursday while cautiously laying the ground to lower them later this year. The euro slipped 0.1% to $1.0924 after jumping as high as $1.0980 on Friday for the first time since Jan. 12.Immediate resistance can be seen at 1.0957(23.6%fib), an upside break can trigger rise towards 1.0993(Higher BB).On the downside, immediate support is seen at 1.0921(March 9th low), a break below could take the pair towards 1.0880(38.2%fib).
GBP/USD: The British pound traded just below a seven-month high touched last week on Monday as investors digested recruitment data and looked ahead to Tuesday's wage and employment figures. The minor dip in the pound came after data showed Britain's labour market slowed sharply in February as recruitment firms reported the biggest drop in demand for staff from employers since the coronavirus lockdown of early 2021.Investors now turn their attention to Tuesday's figures, where the focus will be on the pace of average earnings growth. It is expected to have remained high at 6.2%, excluding bonuses, in the three months to the end of January, unchanged from December. Sterling dropped 1.1% against the dollar to $1.2807, after pushing to the highest since late July at $1.2890. Immediate resistance can be seen at 1.2868(23.6%fib), an upside break can trigger rise towards 1.2895 (March 6th high).On the downside, immediate support is seen at 1.2799 (38.2%fib), a break below could take the pair towards 1.2757(50%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday as the recent rally in equity markets lost momentum ahead of a key U.S. inflation report this week. Wall Street's main stock indexes slipped as investors turned attention to the release on Tuesday of the U.S. consumer price index report for February. The data could provide clues on whether inflation has eased enough for the Federal Reserve to begin cutting interest rates.The Bank of Canada said on Wednesday it was too early to consider easing rates as it kept its benchmark rate on hold at a 22-year high of 5%. The loonie fell 0.1% lower to 1.3485 per U.S. dollar, after trading in a range of 1.3470 to 1.3509..Immediate resistance can be seen at 1.3519(38.2% fib), an upside break can trigger rise towards 1.3600 (23.6% fib).On the downside, immediate support is seen at 1.3456(50%fib), a break below could take the pair towards 1.3383 (61.8%fib).
USD/JPY: The dollar declined on Monday as yen rose on expectation that Bank of Japan could exit negative rates. A growing number of BOJ policymakers are warming to the idea of ending negative rates at their March 18-19 meeting, amid expectations for hefty pay rises from Japan's biggest firms. Results of this year's annual shunto wage negotiations are due on Wednesday. At the same time, an upward revision to Japan's economic growth last quarter meant the country avoided a technical recession, adding to the argument the economy could weather tighter policy. The dollar was down 0.4% against the yen, with the pair at 146.52 . Strong resistance can be seen at 147.58(38.2%fib),an upside break can trigger rise towards 146.80 (Feb 2nd high).On the downside, immediate support is seen 146.15(50%fib)a break below could take the pair towards 144.94(61.8%fib).
Equities Recap
A gauge of global stocks retreated for a second straight session on Monday, easing further from a record high ahead of U.S. inflation data this week which could heavily influence the Federal Reserve's interest rate path.
UK's benchmark FTSE 100 closed up by 0.49 percent, Germany's Dax ended up by 0.05 percent, France’s CAC finished the day down by 0. 10 percent.
The S&P 500 and Nasdaq ended down slightly on Monday with investors preparing for this week's consumer and producer price data, which they hope will provide a better idea of whether the Federal Reserve can begin cutting interest rates in the coming months.
Dow Jones closed up by 0.12 percent, S&P 500 ended down by 0.11 percent, Nasdaq finished the down by 0.41 percent.
Commodities Recap
Gold edged up on Monday, trading near its highest ever level after a record rally last week, as traders hunkered down for U.S. inflation data that could provide more clarity on the Federal Reserve's interest rate trajectory.
Spot gold was up 0.2% at $2,181.47 per ounce at 3:38 p.m. ET (1937 GMT), after hitting a record high on Friday at $2,194.99 following U.S. labour market data that boosted rate cut bets.U.S. gold futures settled 0.1% higher at $2,188.6.
Oil prices were little changed on Monday as concern eased that fighting in the Middle East would disrupt supply and Chinese data suggested weak demand, while an increase in U.S. refining limited any selling.
Brent futures for May delivery settled at $82.21 a barrel, gaining 13 cents. The U.S. crude April contract slipped 8 cents to end at $77.93 a barrel.
