Market Roundup
•French 12-Month BTF Auction 3.252%,3.341% previous
•French 6-Month BTF Auction 3.456%,3.540% previous
•French 3-Month BTF Auction 3.610%,3.576% previous
•US Dallas Fed Mfg Business Index -17.5,-15.1 previous
•US 3-Month Bill Auction 5.145%,5.190% previous
•US 6-Month Bill Auction 4.930%,4.990% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Jun Jobs/applications ratio 1.24 forecast,1.24 previous
•01:30 Australia Jun Private House Approvals 2.1% previous
•01:30 Australia Jun Building Approvals (MoM) -2.3% forecast,5.5% previous
Looking Ahead Events And Other Releases(GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro slipped lower against dollar on Monday as investors braced for Federal Reserve's policy meeting due later this week . The Federal Reserve is expected to hold interest rates steady at a two-day policy meeting this week but open the door to interest rate cuts as soon as September by acknowledging inflation has edged nearer to the U.S. central bank's 2% target. Policymakers in advance of the July 30-31 meeting were reluctant to commit to the timing of a first rate cut, but audibly cheered recent data showing price pressures were easing broadly, with headline inflation moving closer to the Fed's target and evidence from job, housing and other markets suggesting that trend would continue. The euro eased 0.1% to $1.0821 , having found support around $1.0804. Immediate resistance can be seen at 1.2834(38.2%fib), an upside break can trigger rise towards 1.2871(23.6%fib).On the downside, immediate support is seen at 1.2807(50%fib), a break below could take the pair towards 1.2773(61.8%fib).
GBP/USD: The pound fell to its lowest level in two weeks on Monday as investors anticipated the Bank of England's interest rate decision on Thursday . Traders increased their bets on BoE rate cuts, with derivative market pricing indicating an almost 60% chance of a reduction on Thursday, up from just over 50% late on Friday. This shift in rate expectations pulled British bond yields lower, further weighing on the pound..Sterling was last down 0.25% at $1.2834 after falling to $1.2807 earlier in the session, the lowest since July 10. Immediate resistance can be seen at 1.2894(38.2%fib), an upside break can trigger rise towards 1.2960 (23.6%fib).On the downside, immediate support is seen at 1.2846(50%fib), a break below could take the pair towards 1.2794(61.8%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as investors awaited the U.S. Federal Reserve's rate decision later this week, which could provide insights into global interest rates. This week's market focus is primarily on the U.S. central bank's interest rate decision on Wednesday, with traders expecting the Fed to keep rates unchanged. Money markets are fully pricing in a rate cut for September. Additionally, domestic GDP data for May will capture investors' attention on Wednesday, along with the U.S. jobs report due at the end of the week. The loonie was trading 0.1% lower at C$1.385 to the greenback , after trading in a range of 1.3817 to 1.3864. Immediate resistance can be seen at 1.3871 (23.6%fib), an upside break can trigger rise towards 1.3880(Higher BB).On the downside, immediate support is seen at 1.3823 (38.2%fib), a break below could take the pair towards 1.3784 (50%fib).
USD/JPY: The dollar gained ground against the Japanese yen on Monday ahead of three central bank meetings, which could signal potential interest rate cuts in the United States and the UK, while Japan might increase borrowing costs in a move towards normality. Rising speculation about a possible BOJ interest rate hike this week has buoyed the yen. The Federal Reserve is also widely expected to set the stage for a rate cut in September. Data released on Friday indicated that investors have significantly reduced their short positions against the yen, which had been trading at a 38-year low at the beginning of the month.The dollar index , which measures the currency against the yen and five other major peers, rose 0.13% to 104.51. Strong resistance can be seen at 154.83(38.2%fib), an upside break can trigger rise towards 156.30(50%fib). On the downside, immediate support is seen at 153.09(Daily low), a break below could take the pair towards 152.48 (Lower BB).
Equities Recap
European shares ended slightly lower on Monday as investors remained risk-averse at the start of an earnings-packed week.
UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended down by 0.52 percent, France’s CAC finished the day down by 0. 98 percent.
Wall Street's main indexes gained on Monday, as investors prepared for the Federal Reserve's interest rate decision along with Big Tech earnings reports, and crucial labor market data, following the recent equity sell-off.
Dow Jones closed down by 0.12 percent, S&P 500 ended up by 0.08 percent, Nasdaq finished the day up by 0.07 percent.
Commodities Recap
Gold prices retreated on Monday, pressured by an uptick in the dollar as investors anticipated the U.S. Federal Reserve policy meeting this week for any indications on potential interest rate cuts
Spot gold fell 0.3% to $2,378.25 per ounce by 1810 GMT. U.S. gold futures for August delivery settled 0.1% lower at $2,377.8.
Oil prices fell by nearly 2% on Monday after Israeli officials expressed a desire to avoid escalating the Middle East into an all-out war while responding to a deadly rocket strike in the Israeli-occupied Golan Heights over the weekend.
Brent crude oil futures settled at $79.78 a barrel, falling $1.35, 1.7%. U.S. crude futures ended $1.35, or 1.8%, lower at $75.81 a barrel.
