Market Roundup
•French 12-Month BTF Auction 3.053%,2.924% previous
•French 3-Months BTF Auction 3.553% ,3.485% previous
•French 6-Month BTF Auction3.380%, 3.245% previous
•US Jul Consumer Inflation Expectations 3.0%, 3.0% previous
•US 3-Month Bill Auction 5.070%,5.075% previous
•US 6-Month Bill Auction 4.795%,4.700% previous
Looking Ahead Economic Data(GMT)
•06:00 Japan Jul Machine Tool Orders (YoY) 9.7% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Monday as investors waited to see how U.S. economic data affected the chance of outsized rate cuts. Producer price figures due on Tuesday will provide an appetizer for the main inflation report on Wednesday, and could move markets since they feed through to the core personal consumption (PCE) measure favoured by the Federal Reserve.Forecasts are for a 0.2% rise in both the headline PPI and the core measure.More important will be the consumer price report and retail sales for July which could have a material impact on whether the Fed eases by 25 basis points or 50 basis points in September. The euro stood at $1.0931 against greenback. Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0903(38.2%fib), a break below could take the pair towards 1.0839(50%fib).
GBP/USD: The British pound edged up on Monday but gains were limited as traders looked ahead to a run of British economic data this week that could influence how quickly the Bank of England (BoE) cuts interest rates.British employment data due on Tuesday, inflation figures on Wednesday and economic output data on Thursday could start to clear up the picture. The BoE cut rates for the first time since 2020 at the start of this month, but was cautious on prospects for more easing.Money markets show traders are pricing in further BoE rate cuts of 44 basis points (bps) by the end of this year, compared to 101 bps from the U.S. Federal Reserve.Sterling was last up 0.1% versus the dollar at $1.2764 . Immediate resistance can be seen at 1.2778(38.2%fib), an upside break can trigger rise towards 1.2856(23.6%fib).On the downside, immediate support is seen at 1.2717(50%fib), a break below could take the pair towards 1.2656(61.8%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday as upcoming data from the U.S. this week kept investors on edge. Investors were cautious ahead of a host of economic data expected in the United States this week, including the U.S. consumer price index due on Wednesday to gauge the Federal Reserve's stance on its monetary policy.Oil prices surged on Monday to $80.06 a barrel on fears that rising tensions in the Middle East could lead to a broader conflict and choke crude oil supplies globally.The loonie was down 0.1% at 1.3812 to the greenback, or 72.40 U.S. cents, after trading in a range of 1.3761 to 1.3830. On Tuesday, the currency touched its weakest intraday level since May 2020 at 1.3855. Immediate resistance can be seen at 1.3763(38.2%fib), an upside break can trigger rise towards 1.3823(23.6%fib).On the downside, immediate support is seen at 1.3717(50%fib), a break below could take the pair towards 1.3673 (61.8%fib).
USD/JPY: The dollar firmed on Monday as yen fell markets stabilized ahead of a slew of U.S. economic data. Investors were looking ahead to U.S. consumer price index data for July on Wednesday, which is expected to show month-on-month inflation ticked up to 0.2% after a minus 0.1% reading in June. Retail sales data is due on Thursday. Japan's yen slipped, with the dollar up 0.4% at 147.26 yen . The dollar index was little changed at 103.16 while the euro rose 0.1% to $1.0928.A sharp rally in the Japanese currency in July and August has wrong-footed investors, forcing them to unwind so-called carry trades in which they borrow in Japanese yen to buy dollars and other currencies to invest in higher-yielding assets. Strong resistance can be seen at 148.45(38.2 %fib), an upside break can trigger rise towards 150.80 (50%fib). On the downside, immediate support is seen at 145.43(23.6%fib), a break below could take the pair towards 144.00(Psychological level).
Equities Recap
Europe's benchmark stock index was subdued on Monday, erasing early gains, with investors bracing for key U.S. inflation numbers to gauge the Federal Reserve's monetary policy path amid lingering recession fears and a deluge of other European data.
The UK's benchmark FTSE 100 closed up by 0.52 percent, Germany's Dax ended up by 0.02 percent, and France’s CAC finished the down by 0.26 percent.
Wall Street stocks closed mixed on Monday as investors braced for a slew of U.S. economic data this week, especially consumer prices, to gauge the outlook for Federal Reserve monetary policy.
Dow Jones closed lower by 0.36 percent, S&P 500 was down 0.00 percent, Nasdaq was up by 0.21 percent.
Commodities Recap
Gold prices rose by more than 1% on Monday to hit the highest since Aug. 2, driven by safe-haven inflows as traders awaited U.S. inflation data this week that could shed more light on the Federal Reserve's interest rate cut path.
Spot gold rose 1.5% to $2,468.25 per ounce as of 1818 GMT. U.S. gold futures settled 1.2% higher at $2,504.
Oil prices jumped by more than 3% on Monday, rising for a fifth consecutive session on expectations of a widening Middle Eastern conflict that could tighten global crude oil supplies.
Global benchmark Brent crude futures settled higher at $82.30 a barrel, gaining $2.64, or 3.3%. U.S. West Texas Intermediate crude futures settled at $80.06 a barrel, up $3.22, or 4.2%. Brent saw its biggest
