Oil Prices Rise Over 1% on Positive U.S. Economic Data and Geopolitical Tensions 
Market Roundup
•Canada May Wholesale Sales (MoM) -0.8% ,2.0% forecast,2.4% previous
•Canada May Manufacturing Sales (MoM) 0.4% ,0.3% forecast,1.1% previous
•US Jul NY Empire State Manufacturing Index -6.60 ,-5.50 forecast,-6.00 previous
•Canada New Motor Vehicle Sales (MoM) 184.7K , 175.1K previous
•French 6-Month BTF Auction 3.537% ,3.572% previous
•French 3-Month BTF Auction 3.602% ,3.674% previous
•French 12-Month BTF Auction 3.355%, 3.439% previous
•US 3-Month Bill Auction 5.195% ,5.230% previous
•US 6-Month Bill Auction 4.985% ,5.080% previous
Looking Ahead Economic Data(GMT)
•03:00 New Zealand Jun RBNZ Offshore Holdings 57.80% previous
•04:30 Japan May Tertiary Industry Activity Index -9.50 previous
•04:30 Japan Tertiary Industry Activity Index (MoM) 0.1% forecast,1.9% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro rose higher on Monday as euro attracted bids ahead of this week’s European Central Bank meeting . The European Central Bank meets on Thursday to take stock of how the euro zone economy is faring a month after it cut interest rates for the first time five years.Inflation has dropped since the ECB last met but has failed to budge in the dominant services sector. Some policymakers felt cornered into June's rate cut and are in no hurry to flag what's next.The ECB wants to see more evidence that inflation is approaching its 2% target before moving again. Investors will focus on anything ECB chief Christine Lagarde lets slip about whether the rate cut markets are banking on will follow in September just when they expect a first U.S. rate cut. Immediate resistance can be seen at 1.0902(23.6%fib).), an upside break can trigger rise towards 1.1000 (Psychological level).On the downside, immediate support is seen at 1.0861(Daily low), a break below could take the pair towards 1.0825(38.2%fib).
GBP/USD: The pound strengthened against the dollar on Monday as markets scaled back their anticipation of an August rate cut by the Bank of England. Traders are now awaiting UK inflation data on Wednesday for more insights into interest rate policy. Britain's Office for National Statistics will release its consumer price data, with economists predicting that headline annual inflation will remain steady at 2%. BoE Chief Economist Huw Pill stated that the timing of the first interest rate cut remains an open question. Money market traders have priced in around 12.5 basis points (bps) of easing by the August meeting, implying a 50% chance that the BoE will cut its bank rate by a quarter point next month. Immediate resistance can be seen at 1.2989(23.6%fib), an upside break can trigger rise towards 1.3000(Psychological level).On the downside, immediate support is seen at 1.2905(Daily low), a break below could take the pair towards 1.2871(38.2%fib).
USD/CAD: The Canadian dollar fell to a 12-day low against the U.S. dollar on Monday, as a Bank of Canada business survey inticated a drop in inflation, boosting speculation that the central bank will cut interest rates again this month. The likelihood of a rate cut at the next week's Bank of Canada policy announcement increased to 80% from 77% prior to the survey's release, according to swaps market data. Last month, the Bank of Canada became the first G7 central bank to initiate easing measures, reducing its benchmark rate by 25 basis points to 4.75%. Canada's consumer price index report for June, scheduled for release on Tuesday, is anticipated to reveal a slowdown in inflation to an annual rate of 2.8%, following a surprise increase to 2.9% in May. The Canadian dollar, known as the loonie, traded 0.3% lower at 1.3670 against the U.S. dollar. Immediate resistance can be seen at 1.3680(38.2%fib), an upside break can trigger rise towards 1.3722(23.6%fib).On the downside, immediate support is seen at 1.3651(50%fib), a break below could take the pair towards 1.3621 (61.8%fib)
USD/JPY: The dollar eased against Japanese on Monday after comments from Federal Reserve Chair Jerome Powell. Investors digested comments from Powell, who said on Monday the three U.S. inflation readings over the second quarter of this year do "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion. Powell also said at the event that he intended to serve out his full term as chair, which ends in early 2026, but declined to comment on whether he would remain as chair if tapped by the next president.His remarks are likely his last until his press conference following the Fed's July 30-31 meeting. The dollar index , which measures the greenback against a basket of currencies, was last down 0.04% to 104.25, with the euro down 0.01% at $1.0893. Against the Japanese yen , the dollar strengthened 0.02% to 158.04. Strong resistance can be seen at 158.77(38.2%fib), an upside break can trigger rise towards 160.23(23.6%fib). On the downside, immediate support is seen at 157.63 (50%fib), a break below could take the pair towards 156.42 (61.8%fib).
Equities Recap
European shares edged lower on Monday, influenced by disappointing updates from luxury companies that weighed on the sector while, sentiment remained fragile following the recent assassination attempt on U.S. presidential candidate Donald Trump over the weekend..
UK's benchmark FTSE 100 closed down by 0.85 percent, Germany's Dax ended down by 0.79 percent, France’s CAC finished the day down by 1.19 percent.
Wall Street ended higher on Monday, extending gains from Friday, buoyed by growing expectations of a potential second Donald Trump presidency following a failed assassination attempt raised hopes among investors for a less stringent regulatory environment.
Dow Jones closed up by 0.53% percent, S&P 500 closed up by 0.28% percent, Nasdaq settled up by 0.42% percent.
Commodities Recap
Oil prices declined as concerns about demand in China, the top importer, outweighed supportive U.S. economic news, OPEC+ supply restraint efforts, and ongoing tensions in the Middle East.
Brent futures fell 18 cents, or 0.2%, to settle at $84.85 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 30 cents, or 0.4%, to settle at $81.91.
Gold prices reached a near two-month high on Monday, supported by expectations of interest rate cuts from the Federal Reserve as traders awaited further comments from Fed officials to assess the timing of these potential cuts.
Spot gold rose 0.4% to $2,421.25 per ounce.U.S. gold futures settled 0.3% higher at $2,428.9.
