Market Roundup
• Canada Jan RMPI (YoY) -6.4% ,-7.9% previous
• Canada Jan IPPI (YoY) -2.9%,-2.7% previous
• Canada Jan RMPI (MoM) 1.2% ,0.7% forecast, -4.9% previous
• Canada Jan IPPI (MoM) -0.1%,-0.1% forecast, -1.5% previous
• French 12-Month BTF Auction 3.477%,3.408% previous
• French 3-Month BTF Auction 3.838%,3.825% previous
• French 6-Month BTF Auction 3.746%,3.714% previous
Looking Ahead Economic Data (GMT)
•01:15 China Feb PBoC Loan Prime Rate 4.10% forecast,4.20% previous
•01:45 China PBoC Loan Prime Rate 3.45% forecast,3.45% previous
Looking Ahead Events And Other Releases(GMT)
•00:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro edged lower on Monday as uncertainties over monetary policy outlooks from the Federal Reserve, the European Central Bank, and the Bank of England kept investors cautious. Investor focus this week will be on the minutes of the Fed meeting from last month, scheduled for release on Wednesday. Several Fed officials including Christopher Waller and Raphael Bostic are also due to speak this week. Traders have pushed back their expectations of a U.S. interest rate cut from March to June. Markets are currently pricing a 77% chance of a cut in June, according to the CME Fed Watch Tool. The euro was down 0.12% at $1.0763, after falling to a three-month low of $1.0695 last week. Immediate resistance can be seen at 1.0803(Feb 12th high), an upside break can trigger rise towards 1.0848 (23.6%fib).On the downside, immediate support is seen at 1.0771(38.2%fib), a break below could take the pair towards 1.0705 (50%fib).
GBP/USD: The pound edged higher on Monday as investors awaited further impetus from survey data on Thursday. Thursday's release of the survey-based Purchasing Managers' Index (PMI) data will provide insight into the economic health of the UK for the month of February. Investors currently expect around 70 basis points of interest rate cuts from the Bank of England this year, down from around 110 at the start of February. They see a roughly 55% chance that the first BoE cut comes by June. Sterling was unchanged at $1.2595. U.S. markets are closed for the Presidents' Day holiday, Immediate resistance can be seen at 1.2631(Daily high), an upside break can trigger rise towards 1.2659 (23.6%fib).On the downside, immediate support is seen at 1.2567(38.2%fib), a break below could take the pair towards 1.2497(50%fib).
USD/CAD: The Canadian dollar struggled for direction against its U.S. counterpart on Monday as U.S. and Canadian markets closed for holiday, with trading volumes remaining thin throughout the day. . Bank of Canada Governor David Dodge said on Monday that most of the Canadian dollar's rise to near 30-year highs against the U.S. dollar has been based on strong fundamentals. Still, the central bank is closely watching the currency's impact on inflation and will consider that in its July monetary report, Dodge told reporters after a speech to the Chicago Council on Global Affairs.On Friday the Canadian dollar finished at C$1.0895 to the dollar. The Canadian dollar last traded at C$1.0843. The loonie is up about 8 percent against the U.S. dollar in the past two months alone.Immediate resistance can be seen at 1.3488 (Daily high), an upside break can trigger rise towards 1.3522 (23.6% fib).On the downside, immediate support is seen at 1.3456(38.2% fib), a break below could take the pair towards 1.3405(50% fib).
USD/JPY: The dollar little changed against yen on Monday as market volumes remained than usual due to the Presidents' Day holiday in the U.S. Focus also shifted to minutes from the Fed's January policy meeting, due on Wednesday, for more clues on when it could begin cutting interest rates.Chicago Fed President Austan Goolsbee cautioned against delaying rate cuts for too long even after data showed consumer prices rose more than expected in January.Fed Bank of Atlanta President Raphael Bostic said that while he needs more data to convince him inflation pressures are truly falling, he's open to lowering rates at some point in the next few months. Strong resistance can be seen at 150.78 (Higher BB) an upside break can trigger rise towards 151.56(23.6%fib).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
Europe's benchmark stock index hit its highest in over two years on Monday on strength in healthcare stocks, while French and German shares lost some steam after scaling record highs last week as economic concerns weighed on sentiment.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended down by 0.15 percent, France’s CAC finished the day up by 0.00 percent.
Stock markets in the US will remain closed in observance of the Presidents’ Day holiday on Monday.
Commodities Recap
Gold prices hit their highest in almost a week on Monday as the U.S. dollar retreated slightly and conflict in the Middle East buoyed bullion's safe-haven appeal.U.S. gold futures rose 0.4% to $2,031.30.
Brent crude oil prices settled slightly higher in an abbreviated session on Monday, as lingering supply concerns from tensions in the Middle East were offset by signs of weakening demand.
Brent futures gained 9 cents to settle at $83.56 a barrel. U.S. West Texas Intermediate (WTI) crude for March delivery , which will not have a settlement today and expires on Tuesday, rose 30 cents to $79.49 a barrel by 1:43 p.m. ET (1843 GMT).
