Market Roundup
- Oil near 6-1/2 year low on Japan slowdown, China worry.
- US NY Fed Manufacturing Aug -14.92, f/c 5, 3.86-previous.
- US NAHB Housing Market Index Aug 61, f/c 61, 60-previous, Highest since Nov 2005.
- Germany's Schaeuble: we will be able to reach a consensus with IMF on Greek debt sustainability.
- Gold firms as U.S. data hurts dollar, caution over China lingers.
- Wall Street erases losses after positive housing data.
- FRB of Dallas picked Robert Steven Kaplan to be its next president, votes on policy in 2017.
Looking Ahead - Economic Data (GMT)
- 01:30 Australia New Motor Vehicle Sales m/m* Jul 3.8%-previous
- 01:30 China -China House Prices YY* Jul -4.9%-previous
Looking Ahead - Events, Other Releases (GMT)
- 01:30 Australia- Reserve Bank of Australia to publish the minutes of its August policy meeting
Currency Summaries
EUR/USD is likely to find support at 1.1016 levels and currently trading at 1.1077 levels. The pair has made session high at 1.1121 and hit lows at 1.1054 levels. The dollar advanced on Monday, against euro, as traders focused on potential U.S. interest rate hikes and shook off worries about a China-led currency war. The pair traded at its strongest in five days, reaching $1.1063 per euro before easing to $1.1073, still up around 0.30 percent on the day. The euro is expected to remain weak as the European Central Bank presses on with a 1 trillion euro asset-purchase program. Meanwhile later in the day, German Finance Minister Wolfgang Schaeuble said , he had no qualms at all about urging fellow lawmakers to approve a new bailout for Greece in a parliamentary vote on Wednesday, citing a dramatic change in the Greek government's readiness to reform. He described existing loan terms to Greece as "very generous" but said he was convinced steps could taken that would reassure the IMF on Greece's debt sustainability and ensure their involvement. To the upside, immediate resistance can be seen at 1.1125. To the downside, immediate support level is located at 1. 1060 levels.
GBP/USD is supported in the range of 1.5568 levels and currently trading at 1.5588 levels. It reached session high at 1.5601 and dropped to session low at 1.5578 levels. The sterling slipped lower against US dollar on Monday in New York session , sterling eased to $1.5625, after rising to $1.5690 in early European trade, its highest in two weeks. Traders turned cautious before consumer price inflation numbers on Tuesday, which are likely to show price pressures remain subdued in the UK. Meanwhile, Bank of England official Kristin Forbes has become the latest rate-setter to highlight the bank's central dilemma, how to square a strong domestic economy, which points to higher interest rates, with global disinflationary forces. Earlier in the UK Session, Forbes comments sent the pound higher, against the dollar, after she warned Britain's economic recovery could be damaged, if the BoE waits too long before raising interest rates. Britain is set to release, headline inflation data for July on Tuesday, which analysts expect will stay flat at zero. To the upside, immediate resistance can be seen at 1.5600. To the downside, immediate support level is located at 1.5570 levels.
USD/JPY is supported around 124.25 levels and currently trading at 124.45 levels. It peaked to hit session high at 124.56 and made session lows at 124.25 levels. The dollar started the week against Japanese Yen on bullish note on Monday, after briefly hitting daily highs around 123.57 in the earlier European session, the dollar conceded its earlier momentum and dropped towards 124.24 in the early New York session, after the New York Fed's Empire State Manufacturing Survey took a big hit, sinking to -14.92 for August from +3.86 last month. It had been expected to rise to +5.00, but instead fell to the worst since April 2009. The pair once again picked up the pace to advance towards 124.40 after market cooled down from the impact of negative data. The greenback was ahead 0.10 percent against the Japanese yen at 124.45 yen. To the upside, immediate resistance can be seen at 124.47. To the downside, immediate support level is located at 124.00 levels.
USD/CAD is supported at 1.3040 levels and is trading at 1.3093 levels. It has made intraday high at 1.3141 and lows at 1.3058 levels. The Canadian dollar weakened against the greenback on Monday as the price of oil slipped and investors faced some key domestic data due at the end of the week. Foreign investment in Canadian securities picked back up in June as portfolio adjustments saw investors push into the money market, data from Statistics Canada showed on Monday. Non-residents bought C$8.51 billion ($6.47 billion) in Canadian assets, more than offsetting May's decline. Foreigners sold C$8.86 billion in Canadian bonds, reflecting retirements of provincial and corporate bonds. But investment in the Canadian money market reached a record C$12.04 billion. Foreigners also upped their equities' holdings by C$5.33 billion, despite a more than 3 percent decline in the benchmark Canadian stock market in June. The currency's strongest level of the session was C$1.3091. To the upside, immediate resistance can be seen at 1.3090. To the downside, immediate support level is located at 1.3060 levels.
Equities Recap
European stock markets closed higher on Monday surrounded by developments in china and Greece. European stocks bounced from last week's heavy selloff of nearly 3 percent, with UK's benchmark FTSE 100 closing ,up by 0.7 percent, the pan-European FTSEurofirst 300 closed, up by 0.3 percent, Germany's Dax closed, down by 0.3 percent, France's CAC closed, up by 0.7 percent, Italy's FTSE MIB closed, up by 0.7 percent. Meanwhile, Spain's IBEX 35 was down by 0.2 percent at close.
US stocks gained modestly ,after a rout last week, with upbeat U.S. housing data helping Wall Street shrug off a weak manufacturing report, US stocks closed higher on Monday, Dow Jones closed, up by 0.38 percent, S&P 500 closed, up by 0.52 percent, Nasdaq closed, up by 0.86 percent.
Treasuries Recap
U.S. Treasury prices gained on Monday after data showing manufacturing activity in New York state plunged in August to its weakest since 2009, raising concerns the weakness may weigh on broader U.S. economic growth indicators.
Benchmark 10-year notes were last up 13/32 in price to yield 2.15 percent, down from 2.18 percent before the data.
Commodities Recap
Oil fell about 1 percent on Monday, with U.S. crude settling within range of a new 6-1/2-year low, after No. 3 oil consumer Japan said its economy contracted in the second quarter and China's slowdown continued to weigh on sentiment.
U.S. light crude settled down 63 cents, or 1.5 percent, at $41.87 a barrel. Monday's intraday low of $41.64 came within striking distance of Friday's low of $41.35, the weakest front-month price since March 2009. Trading in expiring options for U.S. crude dominated the action.
Brent, the global crude benchmark, settled down 45 cents, or nearly 1 percent, at $48.74 a barrel. It earlier hit a session low of $48.35, about $3 above its six-year low of $45.19 set in January.
Gold firmed on Monday, building on its biggest weekly rise in three months, buoyed by weaker-than-expected U.S. data and lingering uncertainty over the implications of China's yuan devaluation.
Spot gold was up 0.2 percent at $1,116.40 an ounce by 3:02 p.m. EDT (1902 GMT), while U.S. gold futures for December delivery settled up 0.5 percent at $1,118.40 an ounce.
