Market Roundup
•13:00 French 3-Month BTF Auction -0.669%,-0.653% previous
•13:00 French 6-Month BTF Auction -0.541%,-0.561% previous
•13:00 French 12-Month BTF Auction -0.156%,-0.291% previous
•13:00 Belgium Apr Business Climate 2.4, 0.4 previous
• 14:30 US Dallas Apr Fed Mfg Business Index 1.1, 8.7 previous
• US 15:30 3-Month Bill Auction 0.890%, 0.860% previous
• US 15:30 US 6-Month Bill Auction 1.370%, 1.250% previous
Looking Ahead Economic Data (GMT)
• 03:00 New Zealand Credit Card Spending (YoY) 1.0% previous
•05:00 Japan BoJ Core CPI (YoY) 1.0% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Monday as relief over Emmanuel Macron’s victory in the French presidential election quickly gave way to renewed concerns about rising global interest rates and China’s spluttering economy. Much focus on is on how fast and far the Federal Reserve will raise U.S. interest rates this year and whether it will, along with all the other global worries, tip the world economy into recession. The euro’s tiny gains after news of French President Emmanuel Macron’s comfortable election victory over far-right rival Marine Le Pen quickly dissipated, with the single currency down 0.8% at $1.0729. Immediate resistance can be seen at 1.0786(5DMA), an upside break can trigger rise towards 1.0806 (38.2%fib).On the downside, immediate support is seen at 1.0691(23.6%fib), a break below could take the pair towards 1.0662 (Lower BB).
GBP/USD: Sterling fell on Monday to its lowest since September 2020 against a strengthening dollar as money markets scaled back their bets on future monetary policy tightening from the Bank of England (BoE).The greenback climbed as investors sought safety due to uncertainties over the global growth outlook. Money markets are currently pricing around 150 basis points (bps) of additional BoE rate hikes by year-end from 160 bps on Friday. BoE looked mainly concerned about risks of a possible recession and a slowdown in the labour market, analysts said after comments from BoE Governor Andrew Bailey last Thursday. The pound fell 0.8% to its lowest since September 2020 of $1.2740 after setting on Friday the biggest daily drop since September 2020.Immediate resistance can be seen at 1.2831 (38.2%fib), an upside break can trigger rise towards 1.2904(50%fib).On the downside, immediate support is seen at 1.2700 (Daily Low), a break below could take the pair towards 1.2654 (23.6%fib).
USD/CAD: The Canadian dollar weakened to its lowest level in nearly six weeks against the greenback on Monday as concern that COVID-19 lockdowns in China would weigh on the global economy offset the Bank of Canada's hawkish stance.Wall Street extended a sharp selloff from last week and the price of oil, one of Canada's major exports, tumbled as Shanghai's lockdown dragged into a fourth week and investors braced for potentially aggressive interest rate hikes by the Federal Reserve.U.S. crude oil futures settled 3.5% lower at $98.54 a barrel, while the safe-haven U.S. dollar climbed against a basket of major currencies. The Canadian dollar was trading 0.1% lower at 1.2725 to the greenback , after touching its weakest since March 16 at 1.2777. Immediate resistance can be seen at 1.2776 (23.6%fib), an upside break can trigger rise towards 1.2826 (14th March high).On the downside, immediate support is seen at 1.2709(38.2%fib), a break below could take the pair towards 1.2654 (50%fib).
USD/JPY: The dollar dipped against yen on Monday as fears about the economic impact of China’s COVID-19 lockdowns and an aggressive pace of U.S. rate hikes sent investors scrambling for safety. With war in Ukraine entering a third month and the lockdown of 25 million people in Shanghai about to enter a second month, investor sentiment was fragile amid worries that climbs in consumer prices will lead to rapid global interest rate rises. This week will see the release of U.S. growth data, European inflation figures and a Bank of Japan policy meeting, which will be watched for any hints of a response to a sharp fall in the yen, which has lost 10% in about two months. Strong resistance can be seen at 128.58(23.6%fib), an upside break can trigger rise towards 130.00(Psychological level).On the downside, immediate support is seen at 126.16(38.2%fib), a break below could take the pair towards 125.28 (April 14th low).
Equities Recap
European stocks inched to fresh peaks on Thursday as the European Central Bank raised its recovery outlook and promised to keep ample stimulus flowing, while travel stocks fell after a recent run of gains.
UK's benchmark FTSE 100 closed down by 1.88 percent, Germany's Dax ended down by 1.54 percent, France’s CAC finished the day down by 2.01 percent.
Wall Street rose on Monday, with the Nasdaq ending sharply higher after Twitter agreed to be bought by billionaire Elon Musk, sparking a late day rally in growth stocks.
Dow Jones closed up by 0.70% percent, S&P 500 closed up by 0.57% percent, Nasdaq settled up by 1.28% percent.
Treasuries Recap
U.S Treasury yields edged down on Monday as fears over China's COVID-19 outbreaks spooked investors, leading to a partial reversal of last week's losses, when concerns over aggressive U.S. interest rate hikes pushed yields higher.
Benchmark 10-year yields were down to 2.8275% from their 2.9045% close on Friday, while seven-year government bonds were yielding 2.864%, down from 2.9519%.
Commodities Recap
Gold slips over 1% Gold prices fell more than 1% on Monday to their lowest in four weeks, as prospects of aggressive policy tightening by the U.S. Federal Reserve and a stronger dollar dented the precious metal's appeal.
Spot gold fell 1% to $1,909.61 per ounce by 1127 GMT, earlier hitting its lowest since March 29 at $1,904.40. U.S. gold futures were 1.3% lower at $1,908.90.
Oil slumped about 4% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.
Brent futures fell $4.33, or 4.1%, to settle at $102.32 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.53, or 3.5%, to settle at $98.54.
