Market Roundup
• French 12-Month BTF Auction 2.435%, 2.372%previous
•French 3-Month BTF Auction 2.704%, 2.770% previous
•French 6-Month BTF Auction 2.592%, 2.575% previous
•US S&P Global Composite PMI (Dec) 55.4, 56.6 forecast, 54.9 previous
•US S&P Global Services PMI (Dec) 56.8, 58.5 forecast, 56.1 previous
•US Durables Excluding Defense (MoM) (Nov) -0.4%, -0.3% forecast, 0.5% previous
•US Durables Excluding Transport (MoM) (Nov) -0.2%, 0.2% previous
•US Factory Orders (MoM) (Nov) -0.4%, -0.3% forecast,, 0.5% previous
•US Factory Orders Ex Transportation (MoM) (Nov) 0.2%, 0.2%
•US 3-Month Bill Auction 4.205% forecast, 4.230% previous
•US 6-Month Bill Auction 4.110% forecast,, 4.135% previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Building Approvals (YoY) (Nov) 12.70% previous
•00:30 Australia Building Approvals (MoM) (Nov) -0.9% 4.2% previous
Looking Ahead Events And Other Released
• No Events Ahead
Currency Summaries
EUR/USD: The euro steadied on Monday as investor optimism was fuelled by a report suggesting that U.S. tariffs might be less severe than previously feared. As investors look ahead, the week promises a flurry of economic data, with inflation reports expected from across Europe. Initial figures from Germany have already shown a higher-than-anticipated rise in inflation. Additionally, Germany's service sector experienced a slight uptick, even as the broader euro zone saw overall activity contract for a second consecutive month. This week's centrepiece would be the December U.S. nonfarm payrolls report on Friday, a crucial metric to assess the Federal Reserve's interest rate path for 2025. Immediate resistance can be seen at 1.0468(50%fib), an upside break can trigger rise towards 1.0551(61.8%fib).On the downside, immediate support is seen at 1.0352(38.2%fib), a break below could take the pair towards 1.0252(23.6%fib).
GBP/USD: The pound initially gained on Monday but gave up some ground after President-elect Donald Trump rejected a report about tariffs that had boosted the Trump's aides are exploring tariff plans that would be applied to every country but would only cover critical imports, the Washington Post reported. A survey showed British business activity growth slowed to a crawl in December and employers cut staffing at the fastest rate in almost four years, on a continued decline in corporate morale after the government's budget. This week's centrepiece for global markets would be the December U.S. nonfarm payrolls report due on Friday, a crucial metric in gauging the Federal Reserve's interest rate path for 2025. Immediate resistance can be seen at 1.2526(38.2%fib), an upside break can trigger rise towards 1.2672(50%fib).On the downside, immediate support is seen at 1.2393(23.6%fib), a break below could take the pair towards 1.2351(Lower BB)
USD/CAD: The Canadian dollar head near threehigh against the U.S. dollar on Friday as investors weighed the uncertain timing of a potential shift in Canadian political power after Prime Minister Justin Trudeau announced plans to resign. Trudeau said he would step down in the coming months after nine years in power and added that parliament would be prorogued, or suspended, until March 24. U.S. President-elect Donald Trump is due to take office on Jan. 20 and has threatened to impose steep tariffs on trading partners, including a 25% tariff on imports from Canada.Trump denied a newspaper report that said his aides were exploring tariff plans that would only cover critical imports. Immediate resistance can be seen at 1.4477 (23.6%fib), an upside break can trigger rise towards 1.4535(Higher BB).On the downside, immediate support is seen at 1.4364(50%fib), a break below could take the pair towards 1.4273 (61.8%fib).
USD/JPY: The U.S. dollar steadied against the yen on Monday as uncertainty over the timing of Bank of Japan interest rate hike kept bearish pressure on yen. At an event hosted by the Japanese Bankers Association today, BoJ Governor Kazuo Ueda reaffirmed the cautious approach to monetary policy changes. He underlined that any increases in interest rates would be contingent upon long-term improvements in the state of the economy and prices. On the data front, Japan’s service activity expanded for a second straight month in December, buoyed by solid demand and business expansion, a private-sector survey showed on Monday. Immediate resistance can be seen at 157.87 (Daily high) an upside break can trigger rise towards 158.13 (23.6%fib). On the downside, immediate support is seen at 156.38(38.2%fib) a break below could take the pair towards 155.17(50%fib).
Equities Recap
European stocks and currencies climbed following a Washington Post report earlier on Monday that Trump aides were exploring tariff plans that would be applied to every country but cover only certain sectors deemed critical to national or economic security.
UK's benchmark FTSE 100 closed down by 0.30 percent, Germany's Dax ended down by 1.56 percent, France’s CAC finished the day down by 2.24percent.
The S&P 500 and Nasdaq Composite climbed on Monday to their highest levels in over a week, driven by a surge in semiconductor stocks and a report indicating that the incoming Trump administration might take a less aggressive approach to tariffs than anticipated.
Dow Jones closed down by 0.06 percent, S&P 500 closed up by 0.58 percent, Nasdaq settled up by 1.25 percent.
Commodities Recap
Gold prices dropped on Monday as U.S. Treasury yields increased, with the Federal Reserve's recent indication of a slower pace of rate cuts in 2025 prompting investors to await key economic data this week for further clarity.
Spot gold fell 0.2% to $2,634.52 per ounce by 2:27 a.m. ET (1927 GMT). U.S. gold futures settled 0.3% lower at $2,647.40.
Oil prices eased in volatile trade on Monday as some bearish economic news from the United States and Germany offset bullish support from a weaker U.S. dollar and forecasts for increased heating demand for energy from a winter storm.
Brent futures fell 21 cents, or 0.3%, to settle at $76.30 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 40 cents, or 0.5%, to settle at $73.56.
