Market Roundup
•French 12-Month BTF Auction 3.517%,3.487% previous
•French 3-Month BTF Auction 3.681%,3.686% previous
•French 6-Month BTF Auction 3.624%, 3.600% previous
•US May CB Employment Trends Index 111.44,111.25 previous
•US 3-Month Bill Auction5.250%, 5.250% previous
•US 6-Month Bill Auction 5.165%,5.155% previous
Looking Ahead Economic Data(GMT)
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Looking Ahead Evenst And Other Releases(GMT)
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Currency Summaries
EUR/USD: The euro fell sharply on Monday as euro was hit by political uncertainty after gains by the far right in voting for the European Parliament on Sunday prompted a bruised French President Emmanuel Macron to call a snap national election.The uncertainty in France adds one more element to what will be a busy week for markets with crucial U.S. inflation data due on Wednesday, the same day as a Federal Reserve policy meeting, and then a Bank of Japan meeting rounding off the week. The euro was last down 0.4% against the dollar at $1.076 and got as low as $1.0733, its lowest since May 9. It also fell 0.4% on sterling to a near two-year low of 84.52 pence , and was last down 0.4% on the Swiss franc at a seven-week low of 0.9648 francs. Immediate resistance can be seen at 1.0781(Daily high), an upside break can trigger rise towards 1.0809(38.2% fib).On the downside, immediate support is seen at 1.0741 (50% fib), a break below could take the pair towards 1.0671(61.8% fib).
GBP/USD: The pound slipped against the dollar on Monday as investors awaited key domestic economic data this week.British wage data for April, due Tuesday, is the main data point of this week, heading into that BoE meeting. Markets have seen a change in policy at that meeting as very unlikely since April's sticky services inflation. Pound dropped 0.2% against the dollar on Monday, to $1.2698, continuing to fall after a 0.5% drop Friday as hotter than expected U.S. jobs data caused markets to push back bets on the first Federal Reserve interest rate cut late into 2024. Immediate resistance can be seen at 1.2790(23.6%fib), an upside break can trigger rise towards 1.2823(Higher BB).On the downside, immediate support is seen at 1.2704(38.2%fib), a break below could take the pair towards 1.2629(50% fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Monday as investors readied for crucial U.S. inflation data and the Federal Reserve's monetary policy meeting due later this week. Investors drew a cautious stance ahead of Wednesday's U.S. consumer prices data and the Fed's monetary policy meeting, which could drive market action and determine the country's timing and scope of monetary policy easing this year.Oil prices climbed about 3% to a one-week high buoyed by hopes of rising fuel demand this summer.Meanwhile, Canada's manufacturing sales data and wholesale trade numbers for the month of April are scheduled for release on Friday. The loonie was trading 0.05% lower at C$1.3764 to the greenback .Immediate resistance can be seen at 1.3781 (23.6%fib), an upside break can trigger rise towards 1.3800 (Higher BB).On the downside, immediate support is seen at 1.3731(38.2%fib), a break below could take the pair towards 1.3689 (50%fib).
USD/JPY: The U.S. dollar steadied against yen on Monday as investors awaited Bank of Japan meetings this week. Japan will be in focus this week, as the Bank of Japan is due to hold its two-day monetary policy meeting on Thursday and Friday, with the central bank widely expected to maintain short-term interest rates in a 0-0.1% range.Reuters reported last week that BOJ policymakers are brainstorming ways to slow its bond buying and may offer fresh guidance. The dollar was last up 0.08% on the Japanese currency at 157.15 yen , having jumped 0.7% on Friday after the payrolls print. Strong resistance can be seen at 157.20(23.6%fib), an upside break can trigger rise towards 157.87(Higher BB).On the downside, immediate support is seen at 154.93(38.2% fib), a break below could take the pair towards 153.35 (50%fib).
Equities Recap
European shares fell on Monday, with French stocks hit after President Emmanuel Macron called a snap election following a heavy trouncing of his allies in European Union parliamentary elections.
UK's benchmark FTSE 100 closed down by 0.20 percent, Germany's Dax ended down by 0.37 percent, France’s CAC finished the day down by 1.35 percent.
The S&P 500 and Nasdaq eked out record closing highs on Monday, although investors were cautious ahead of this week's consumer prices report and a Federal Reserve policy announcement.
Dow Jones closed up by 0.18% percent, S&P 500 closed up by 0.26 % percent, Nasdaq settled up by 0.35% percent.
Treasuries Recap
U.S. Treasury yields, which move inversely to prices, rose on Monday, reflecting the higher-for-longer U.S. rate expectations.
The yield on benchmark U.S. 10-year notes rose 4.1 basis points to 4.469%, from 4.428% late on Friday, while the 30-year bond yield rose 4.8 basis points to 4.5958%.
The 2-year note yield, which typically moves in step with interest rate expectations, rose 1.5 basis points to 4.8846%, from 4.87% late on Friday.
Commodities Recap
Gold prices rebounded after dropping the most in 3-1/2 years in the previous session, as investors waited for inflation data and the Fed's policy statement.Spot gold added 0.72% to $2,309.15 an ounce.
Oil prices climbed about 3% to a one-week high on Monday, buoyed by hopes of rising fuel demand this summer despite a stronger U.S. dollar and expectations the U.S. Federal Reserve will leave interest rates higher for longer.
Brent futures rose $2.01, or 2.5%, to settle at $81.63 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.21, or 2.9%, to settle at $77.74.
