Market Roundup
• French 12-Month BTF Auction 2.019%, 2.051% previous
• French 3-Month BTF Auction 1.958% ,1.999% previous
• French 6-Month BTF Auction 2.009%,2.034% previous Looking Ahead Economic Data(GMT)
• 23:50 Japan M2 Money Stock (YoY) 1.3% previous
• 23:50 Japan M3 Money Supply (Sep) 2,219.7B previous
•00:30 Australia NAB Business Confidence (Sep) 4 previous
•00:30 Australia NAB Business Survey (Sep) 7previous
Looking Ahead Events And Other Releases(GMT)
•00:30 Australia RBA Meeting Minutes
Currency Forecast
EUR/USD : The euro dipped slightly against the dollar on Monday as ongoing political developments in France continued to pressure the currency. The French presidency announced Prime Minister Sébastien Lecornu’s new cabinet on Sunday, retaining most top positions amid calls from opponents for a political shift to secure their support for urgent budget negotiations.Lecornu, reappointed last week after a previous 27-day tenure as prime minister, had promised a cabinet of “renewal and diversity,” but largely retained his prior choices for key roles.On the data front, the eurozone calendar is light this week, featuring industrial production, trade figures, final September HICP, and Germany’s ZEW survey. ECB President Christine Lagarde is also scheduled to participate in a debate on the global economy.. Immediate resistance can be seen at 1.16612(38.2%fib), an upside break can trigger rise towards 1.1663(50%fib).On the downside, immediate support is seen at 1.1558(50%fib), a break below could take the pair towards 1.1538(Lower BB)
GBP/USD: The pound edged lower on Monday as dollar recovered as U.S. President Donald Trump softened his rhetoric on trade tensions with China. On Friday, Trump unveiled 100% tariffs on U.S.-bound Chinese goods starting November 1, responding to China’s limits on critical mineral exports. After threatening 100% tariffs on Chinese goods effective November 1, Trump softened his stance over the weekend, saying that “everything will be fine” and that the U.S. does not wish to “hurt” China . Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October as the two sides try to de-escalate tensions over tariff threats and export controls, U.S. Treasury Secretary Scott Bessent said on Monday. Immediate resistance can be seen at 1.3368(Daily high), an upside break can trigger rise towards 1.3442(38.2%fib).On the downside, immediate support is seen at 1.3260(50%fib), a break below could take the pair towards 1.3226(Lower BB).
USD/CAD: The Canadian dollar weakened against the U.S. dollar on Monday as the greenback strengthened following President Donald Trump’s conciliatory remarks on renewed U.S.-China trade tensions, easing investor concerns. Over the weekend, Trump said, “it will all be fine” and emphasized that the U.S. does not wish to “hurt” China.China, meanwhile, blamed the U.S. for the escalation but did not announce further countermeasures. The latest tensions followed China’s Thursday announcement to dramatically expand its rare-earth export controls. In response, Trump on Friday threatened a 100% tariff on Chinese imports and announced export controls on all critical U.S.-made software, effective November 1.The loonie was trading 0.1% higher at 1.40 per U.S. dollar.Immediate resistance can be seen at 1.4040(23.6 %fib), an upside break can trigger rise towards 1.4080(Higher BB).On the downside, immediate support is seen at 1.3981(Daily low), a break below could take the pair towards 1.3948(38.2%fib).
USD/JPY: The dollar firmed against the yen on Monday as easing U.S.-China trade tensions reduced safe-haven demand. The yen had surged more than 1% on Friday after Trump threatened 100% tariffs on Chinese goods effective November 1. Over the weekend, Trump softened his stance, stating that “everything will be fine” and emphasizing that the U.S. does not wish to “hurt” China.Beijing defended its restrictions on rare-earth exports and related equipment as a response to U.S. actions but stopped short of imposing new tariffs on American goods. In Japan, Monday was a holiday, though political developments remain in focus following a split in the ruling coalition.Key economic events this week include machinery orders and speeches from Bank of Japan Deputy Governor Shinichi Uchida and BOJ Board Member Naoki Tamura, both scheduled for Thursday. Immediate resistance can be seen at 153.45(23.6%fib) an upside break can trigger rise towards 154.00 (Psychological level) .On the downside, immediate support is seen at 151.071 (38.2%fib) a break below could take the pair towards 148.92 (50%fib).
EquitiesRecap
European shares staged a modest recovery on Monday, rebounding from Friday’s selloff as U.S. President Donald Trump softened his aggressive stance on China trade.
UK's benchmark FTSE 100 closed up by 0.16 percent, Germany's Dax ended up by 0.60 percent, France’s CAC finished the day up by 0.21percent.
Wall Street fell on Friday as Trump intensified the U.S.-China trade conflict following Beijing’s tighter rare earth restrictions.
Dow Jones closed up by 1.29 percent, S&P 500 ended up by 1.56 percent, Nasdaq finished the day up by 2.21 percent.
Commodities Recap
Gold surpassed $4,100 per ounce on Monday, setting a new record amid renewed U.S.-China trade tensions and expectations of U.S. interest rate cuts, while silver also climbed to an all-time high..
Spot gold was up 2.2% to $4,106.48 per ounce, as of 01:47 p.m. ET (1747 GMT), after hitting a record $4,116.77.
Oil prices rose on Monday after U.S. President Donald Trump assured a meeting with Chinese President Xi Jinping later in October, easing trade tensions that had pushed crude benchmarks to five-month lows on Friday.
Brent crude futures settled 59 cents higher, or 0.9%, at $63.32 a barrel, and U.S. West Texas Intermediate crude futures also closed up 59 cents, or 1%, at $59.49 a barrel.
