Market Roundup
• US Construction Spending (MoM) (Jan): -0.3%, 0.1% forecast, 0.8% previous
• French 12-Month BTF Auction: 2.585%, 2.353% previous
• French 3-Month BTF Auction: 2.226%, 2.108% previous
• French 6-Month BTF Auction: 2.412%, 2.199% previous
• EU Consumer Confidence (Mar): -16.3, -15.0 forecast, -12.3 previous
• US Atlanta Fed GDPNow (Q1): 2.0%, 2.3% forecast, 2.3% previous
• US 3-Month Bill Auction: 3.635%, 3.610% previous
• US 6-Month Bill Auction: 3.630%, 3.570% previous
Looking Ahead Economic Data (GMT)
•00:30 Japan au Jibun Bank Services PMI (Mar) 53.8 previous
•00:30 Japan Manufacturing & Services PMI (Mar) 53.90 previous
•00:30 Japan au Jibun Bank Manufacturing PMI (Mar) 52.9 forecast, 53.0 previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Summaries
EUR/USD : The euro edged high on Monday as dollar eased after Trump backed down on strikes on Iran's power network. President Donald Trump backed down on targeting Iran's power network on Monday, saying the U.S. and Iran have held constructive talks and that he would postpone any strikes on power plants and energy infrastructure.Trump's statement came after Iran threatened to attack Israel's power plants and those supplying U.S. bases across the Gulf region if the U.S. targets Iran's power network.Conversations with Iran will continue throughout the week, Trump said in a social media post. However, Iran's Fars news agency, citing a source, said there are no direct or indirect communications with the United States.The reaction from markets was swift and marked: Brent crude oil futures fell sharply, the dollar fell against other major currencies, stock markets rallied and government borrowing costs fell back.. Immediate resistance can be seen at 1.1546(38.2%fib), an upside break can trigger rise towards 1.1659 (50%fib).On the downside, immediate support is seen at 1.1472(March 17th low), a break below could take the pair towards 1.1421(23.6%fib).
GBP/USD: The pound rounded from early decline on Monday as dollar weakened after U.S. President Donald Trump said he had asked the Department of Defense to postpone "any and all" military strikes against Iranian power plants and energy infrastructure for five days.Trump made the announcement on Truth Social just hours before a deadline he had set for Tehran to "fully open" the Strait of Hormuz, threatening to destroy Iranian power plants in a further escalation in a conflict now in its fourth week. British Prime Minister Keir Starmer is set to hold an emergency meeting with senior ministers and BoE Governor Andrew Bailey later on Monday to discuss the response to the energy shock stemming from the war.. Immediate resistance can be seen at 1.3373(38.2%fib), an upside break can trigger rise towards 1.3417(SMA 20).On the downside, immediate support is seen at 1.3260(Lower BB), a break below could take the pair towards 1.3208(23.6%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday as recent gloom around prospects for the Middle East war subsided, with the currency recovering from an earlier two-month low.The safe-haven U.S. dollar fell against a basket of major currencies, and stocks rallied after U.S. President Donald Trump said he would delay striking Iran's energy infrastructure after productive talks between the countries.The price of oil , one of Canada's major exports, settled 10.3% lower at $88.13 a barrel, easing some concerns that higher inflation could lead to tighter monetary policy globally.Money markets have priced in at least two rate hikes by the Bank of Canada this year after leaning toward steady policy before the start of the conflict. The loonie was trading 0.1% higher at 1.3715 per U.S. dollar , after touching its weakest intraday level since January 23 at 1.3754.Immediate resistance can be seen at 1.3785(50%fib), an upside break can trigger rise towards 1.3803(higher BB).On the downside, immediate support is seen at 1.3667(SMA 20), a break below could take the pair towards 1.3644(38.2%fib)
USD/JPY: The US dollar dipped on Monday after U.S. President Donald Trump delayed striking Iran's energy infrastructure following what he called productive talks between the two countries, easing near-term concerns about further supply shocks and slightly boosting risk assets.Trump said he had asked the Department of Defense to postpone "any and all" military strikes against Iranian power plants and energy infrastructure for five days.He made the announcement on Truth Social just hours before a deadline he had set for Tehran to "fully open" the Strait of Hormuz, threatening to destroy Iranian power plants in a further escalation in a conflict now in its fourth week.Iran's foreign ministry denied the talks shortly thereafter, adding that the country's conditions to end the war had not changed.. Immediate resistance can be seen at 159.87(23.6%fib) an upside break can trigger rise towards 160.00(Psychological level) .On the downside, immediate support is seen at 158.08 (SMA 20) a break below could take the pair towards 157.55(March 19th low).
Equities Recap
European shares bounced on Monday, ending a three-day losing streak after President Trump postponed strikes on Iranian power plants, citing “productive” talks with Tehran, easing investor fears.
UK's benchmark FTSE 100 closed down by 0.24 percent, Germany's Dax ended up by 1.22 percent, France’s CAC finished the day up by 0.79 percent.
U.S. stocks rose over 1% as oil fell after Trump postponed strikes on Iranian power plants, citing “productive talks” with Tehran.
Dow Jones closed up by 1.38 percent, S&P 500 closed up by 1.15 percent, Nasdaq settled up by 1.38percent.
Commodities Recap
Oil prices tumbled by more than 8%, the dollar fell against other major currencies and government borrowing costs eased.
U.S. crude was last down 8.78% to $89.61 a barrel and Brent fell to $101.42 per barrel, down 9.64% on the day.
Gold recovered from a four-month low on Monday after Trump postponed strikes on Iranian infrastructure, but remained down for a ninth straight session amid rising expectations of higher interest rates.
Spot gold fell 1.8% to $4,407.06 per ounce by 1:30 p.m. ET (1730 GMT), after falling over 8% earlier in the session. It posted its worst weekly performance since 1983 on Friday.
