America’s Roundup: Dollar gains amid rising tensions in the Middle East,Wall Street ends mixed, Gold nears record high, Oil gains 3% as production cuts in Libya heightened supply concerns

Market Roundup

• US Jul Core Durable Goods Orders (MoM)  -0.2%, 0.0% forecast, 0.5% previous             

•US Jul Durable Goods Orders (MoM) 9.9%, 4.0%,-6.6% previous            

•US Jul Durables Excluding Defense (MoM)  10.4%,-7.2% previous          

•US Jul Goods Orders Non Defense Ex Air (MoM) -0.1%, 0.0% forecast, 1.0% previous                   

• French 12-Month BTF Auction 2.999% ,3.029% previous                                             

• French 3-Month BTF Auction 3.372%, 3.502% previous                             

• French   6-Month BTF Auction3.285%,  3.285%, 3.358% previous

• US Dallas Fed Mfg Business Index  -9.7, -17.5 previous               

Looking Ahead Economic Data (GMT)  

•23:50   Japan  Corporate Services Price Index (CSPI) (YoY) 2.9% forecast, 3.0% previous              

• 01:30  Chinese Jul Industrial profit YTD  3.5% previous                

• 05:00    Japan BoJ Core CPI (YoY) 2.1% forecast, 2.1% previous

Looking Ahead Events And Other Releases (GMT)

•No Events Ahead

Currency Summaries

EUR/USD: The euro eased against the dollar as  the market switched focus from dovish Fed signals to geopolitical risk following the exchange of missiles between Israel and Hezbollah on Sunday. The PCE inflation report, which is the Federal Reserve's preferred measure of price growth, is scheduled for release on Friday and could have a significant impact on the markets, potentially more so than the typically volatile durable goods data. However, following Fed Chair Jerome Powell's focus on the labor market in his Jackson Hole speech, the September 6 non-farm payrolls report is also expected to attract considerable attention. The euro   down 0.21% at $1.1167 .Immediate resistance can be seen at 1.1184(Daily high), an upside break can trigger rise towards 1.1200(Higher BB).On the downside, immediate support is seen at 1.1098(38.2%fib), a break below could take the pair towards 1.1070 (Aug 20th low).

GBP/USD: The British pound eased slightly as investors absorbed comments from Bank of England Governor Andrew Bailey. On Friday, Bailey suggested that long-term inflation pressures were easing, but he cautioned against rushing into further interest rate cuts, as it was still too early to be certain that inflation had been fully addressed. In his speech, Bailey expressed hope that Britain might avoid the typical economic hardships associated with high interest rates used to combat inflation. However, he emphasized that the Bank of England would maintain restrictive interest rates for a sufficient period, signaling a gradual approach. Bank holiday in the UK added to the mix of factors affecting trade as investors continued to digest dovish messaging by Fed Chair Jerome Powell on Friday. Immediate resistance can be seen at 1.3107(23.6%fib), an upside break can trigger rise towards 1.3128(Higher BB).On the downside, immediate support is seen at 1.3006(38.2%fib), a break below could take the pair towards 1.2936(50%fib).

 USD/CAD: The Canadian dollar rose to a five-month high against the U.S. dollar, thanks to an increase in oil prices and the restoration of service by major railroad operators. The rally in oil prices also bolstered the Canadian dollar further. U.S. crude oil futures rose by 3.2%, reaching $77.25 a barrel, driven by heightened supply concerns due to escalating conflict in the Middle East and production cuts in Libya. Given that oil is a major export for Canada, these developments have provided additional support for the Canadian currency. The loonie   was trading 0.3% higher at 1.3470 to the U.S. dollar , after touching its strongest intraday level since March 21 at 1.3464. Immediate resistance can be seen at 1.3510 (50%fib), an upside break can trigger rise towards 1.3564 (61.8%fib).On the downside, immediate support is seen at 1.3470 (38.2%fib), a break below could take the pair towards 1.3446(Lower BB).

 USD/JPY: The dollar recovered from  three week low against the yen as investors were cautious  as geopolitical tension in the Middle East intensified. Over the weekend, Israel and Hezbollah engaged in one of their most intense clashes in over 10 months of border conflict. Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, prompting Israel's military to respond with airstrikes, deploying around 100 jets to target Lebanon and prevent a larger assault. The dollar index, a gauge of the dollar's value against six major currencies, inched up 0.1% to 100.72, rising from its lowest since late December of 100.53 . The dollar dropped to a three-week low against the yen of 143.45 and was last down 0.2% at 144.18 yen. Strong resistance can be seen at 145.00(Psychological level), an upside break can trigger rise towards 146.56(38.2 %fib). On the downside, immediate support is seen at 143.56(23.6 %fib), a break below could take the pair towards 142.45(Lower BB).

Equities Recap

European shares were mostly unchanged in subdued trading on Monday, with semiconductor stocks dragging down the technology sector. Investors are awaiting several key economic data releases this week for further insights into future monetary policy directions.

UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended down  by 0.05 percent, France’s CAC finished the day down by 0.40 percent.

The S&P 500 ended lower on Monday, with a decline in AI giant Nvidia ahead of its quarterly earnings report later this week. Investors are also awaiting inflation data for insights into potential interest rate cuts by the Federal Reserve.

Dow Jones closed up by  0,16% percent, S&P 500 closed down by 0.32% percent, Nasdaq settled down by 0.83%  percent.

Commodities Recap

Gold prices strengthened on Monday, as gains were driven by increase was driven by expectations of a September interest rate cut following dovish signals from Federal Reserve Chair Jerome Powell.

Spot gold rose 0.3% to $2,518.47 per ounce at 01:45 p.m. ET (1742 GMT), just shy of the record high of $2,531.60 hit last week. U.S. gold futures settled 0.3% higher at $2,555.20.

Oil prices closed 3% higher on Monday as production cuts in Libya intensified supply concerns, compounded by reports of escalating conflict in the Middle East.

Brent crude futures closed $2.41, or 3.05%, at $81.43 a barrel, while U.S. crude futures settled $2.59, or 3.5%, higher at $77.42 a barrel.