Market Roundup
• US Chicago Fed National Activity (Feb) 0.18, -0.08 previous
• US S&P Global Manufacturing PMI (Mar) 49.8, 51.9 forecast, 52.7 previous
• US S&P Global Composite PMI (Mar) 53.5, 51.6 previous
• US S&P Global Services PMI (Mar) 54.3,51.2 forecast, 51.0 previous
•French 12-Month BTF Auction 2.226%, 2.279% previous
•French 3-Month BTF Auction 2.300%,2.348%previous
•French 6-Month BTF Auction 2.282%,2.306%previous
•US 3-Month Bill Auction 4.190%,4.205% previous
•US 6-Month Bill Auction 4.085%,4.100% previous
Looking Ahead Economic Data(GMT)
•05:00 Japan BoJ Core CPI (YoY) 2.2% previous
Looking Ahead Events And Other Releases(GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro dipped against the dollar on Monday as dollar firmed after data showed U.S. business activity picked up in March and reports that U.S. President Donald Trump will be flexible with upcoming tariffs. Trump hinted on Friday that there would be some flexibility regarding reciprocal tariffs that are set to take effect on April 2 and are expected to drive inflation and hinder economic growth. Meanwhile, Euro zone business activity grew at its fastest pace in seven months in March, supported by an easing in the long-running manufacturing downturn despite slower growth in services, a survey showed. The euro fell 0.09% to $1.0804 and slid as low as $1.078, its weakest since March 7.Immediate resistance can be seen at 1.0946 (23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0804(38.2%fib), a break below could take the pair towards 1.0693(50%fib).
GBP/USD: The British pound edged higher against the dollar on Monday as investors awaited Finance Minister Rachel Reeves' spring budget update. The Office for Budget Responsibility is expected to lower its UK growth forecast, while rising borrowing costs may force Reeves to scale back future spending. On Sunday, she reaffirmed her commitment to fiscal rules, raising concerns about potential public sector job cuts in the budget update. Meanwhile, investors awaited clarity on potential exclusions from sector-specific tariffs in Trump’s April 2 reciprocal levies, though a Trump official said no final decisions had been made. Immediate resistance can be seen at 1.3012(23.6%fib), an upside break can trigger rise towards 1.3072(Higher BB).On the downside, immediate support is seen at 1.2902(March 17th low), a break below could take the pair towards 1.2873(38.2%fib)
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday after the Trump administration signaled it may give some countries breaks on tariffs and take a more measured approach against its trading partners. U.S. President Donald Trump initially planned broad levies from April 2, but media reports citing officials suggest some sector-specific tariffs may be excluded. A Trump administration official on Monday warned that the situation remained fluid with no final decisions made.On the data front, U.S. business activity improved in March, but concerns over import tariffs and government spending cuts weighed on the outlook. Meanwhile, Canada’s January GDP data and the U.S. Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, are due later this week. Immediate resistance can be seen at 1.4405(March 20th high), an upside break can trigger rise towards 1.4490 (38.2%fib).On the downside, immediate support is seen at 1.4292(50%fib), a break below could take the pair towards 1.4224 (Lower BB)
USD/JPY: The dollar strengthened against the yen on Monday as reports suggested that Trump's tariff plan may take a more targeted approach, boosting risk appetite.Trump hinted that automobile tariffs are coming soon and suggested "a lot of countries" may receive exemptions but offered no details. Financial markets have been volatile recently amid inflation fears and recession concerns following Trump’s tariffs on major U.S. trading partners last month.A survey showed U.S. business activity improved in March, but concerns over import tariffs and government spending cuts weighed on sentiment. Investors now await key data this week, including the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, on Friday. The dollar index , which measures the greenback against a basket of currencies, rose 0.26% to 104.30, with the euro down 0.12% at $1.0801. Immediate resistance can be seen at 151.53(Higher BB) an upside break can trigger rise towards 152.`11(50%fib). On the downside, immediate support is seen at 150.22(38.2%fib) a break below could take the pair towards 148.14(23.6%fib).
Equities Recap
European shares closed flat on Monday as caution persisted, despite growing hopes that Trump may take a softer stance on tariffs in the coming weeks.
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended down by 0.17 percent, France’s CAC finished the day down by 0.26 percent.
The S&P 500 jumped to a two-week high on Monday, boosted by Nvidia and Tesla amid signs that the Trump administration may adopt a softer stance on tariffs.
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Dow Jones closed up by 1.42 %percent, S&P 500 closed up by 1.76% percent, Nasdaq settled up by 2.27% percent.
Commodities Recap
Gold prices fell on Monday as the dollar hit a two-week high, while investors assessed Trump’s more cautious stance on tariffs.
Spot gold fell 0.6% to $3,006.84 an ounce at 01:42 p.m. (1742 GMT). U.S. gold futures settled 0.2% lower at $3,015.60.
Oil prices climbed 1% on Monday after Trump announced a 25% tariff on countries purchasing oil and gas from Venezuela.
Brent crude futures rose 84 cents, or 1.2%, to $73 a barrel, while U.S. West Texas Intermediate crude was up 83 cents, or 1.2%, at $69.11.
