Market Roundup
•Trade volumes muted due to U.S. holiday long weekend
•French 12-Month BTF Auction 3.132%, 3.017% previous
•French 6-Month BTF Auction 2.906%, 2.802% previous
• French 3-Month BTF Auction 2.693%, 2.556% previous
•EU Consumer Confidence -19.0,-19.0forecast,-20.9 previous
Looking Ahead - Economic data (GMT)
•00:30 Japan Services PMI 52.3 previous
•00:30 Japan Feb Manufacturing PMI 49.30 forecast, 48.9 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday as U.S. holiday limited market movement ahead of minutes of the latest Federal Reserve meeting. Trading will likely be subdued as markets await data on euro area Global flash PMIs on Tuesday, Federal Reserve minutes on Wednesday and the U.S. Personal Consumption Expenditures index the Fed’s preferred measure of inflation on Friday. U.S. markets are closed on Monday for Presidents’ Day. The euro was little changed against the dollar at $1.0684, just above Friday's six-week low of $1.06125. Immediate resistance can be seen at 1.0692(5DMA), an upside break can trigger rise towards 1.0808(23.6%fib).On the downside, immediate support is seen at 1.0602(38.2%fib), a break below could take the pair towards 1.0541(Lower BB).
GBP/USD: Sterling fell slightly against the dollar on Monday, in a quiet session ahead of flash composite PMIs due on Tuesday which will give more hints on the state of the UK economy.Traders will also be closely watching to speeches from Monetary Policy Committee members Sam Woods and Catherine Mann this week for hints over the BoE’s next move as it battles to bring down inflation. By 1130 GMT on Monday, the pound was down 0.1% against the dollar to $1.2032 .Immediate resistance can be seen at 1.2049 (5DMA), an upside break can trigger rise towards 1.2120(23.6%fib).On the downside, immediate support is seen at 1.1927 (38.2%fib), a break below could take the pair towards 1.1873(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, as Canadian dollar was driven higher by higher commodities prices and slightly weaker dollar. The dollar nudged lower against a basket of major currencies, but was noticeably down against so-called commodity currencies, including the Australian dollar and the Canadian dollar.Brent crude futures, which last week shed nearly 4%, rose 0.9% to $83.74 a barrel, while copper gained 1.7% to trade around $9,143 a tonne. The Canadian dollar was trading 0.1% higher at 1.3449 to the greenback. Immediate resistance can be seen at 1.3501 (23.6% fib), an upside break can trigger rise towards 1.3533 (Higher BB).On the downside, immediate support is seen at 1.3438 (38.2% fib), a break below could take the pair towards 1.3412 (10 DMA).
USD/JPY: The dollar was little changed against yen on Monday as trading was limited due to US holiday. Economic data last week showed signs of a resilient U.S. economy and a tight labour market, sparking speculation the Fed would keep interest rates higher for longer.Investor attention will be on the release of the Federal Open Market Committee’s January meeting minutes and U.S. GDP data.The dollar was little changed against the yen at 134 . It hit a two-month high of 135.12 yen on Friday. Strong resistance can be seen at 135.75(38.2%fib), an upside break can trigger rise towards 135.95 (Higher BB ).On the downside, immediate support is seen at 133.20(5DMA), a break below could take the pair towards 132.92(23.6%fib)
Equities Recap
European shares inched higher on Monday, with sustained gains in miners on bets of a demand recovery in China offsetting a fall in industrials and shares of Telecom Italia.
UK's benchmark FTSE 100 closed down by 0.12 percent, Germany's Dax ended down by 0.03 percent, France’s CAC finished the day down by 0. 16 percent.
US stock market was is closed on account of Presidents' Day
Commodities Recap
Gold prices edged higher on Monday on a slightly weaker dollar, as investors looked out for upcoming U.S. economic data for clues on the Federal Reserve’s rate hike path.
Spot gold was up 0.2% to $1,845.93 per ounce at 9:43 a.m. ET (1443 GMT), after falling to its lowest since late December in the previous session. U.S. gold futures gained 0.3% to $1,855.10.
Oil prices rose over 1% on Monday, buoyed by optimism over Chinese demand, continued production curbs by major producers and Russia's plans to rein in supply.
Brent crude settled up $1.07, or 1.3%, at $84.07 a barrel. U.S. West Texas Intermediate crude (WTI) for March, which expires on Tuesday, last rose 85 cents, or 1.1%, at $77.19.
