Posted at 24 February 2025 / Categories Market Roundups
Market Roundup
• French 12-Month BTF Auction 2.241%, 2.276% previous
• French 3-Month BTF Auction 2.423%, 2.452% previous
• French 6-Month BTF Auction 2.339%, 2.369% previous
• Belgium NBB Business Climate (Feb) -12.3 ,-12.9forecast, -13.6 previous
•US Dallas Fed Mfg Business Index (Feb) -8.3, 14.1 previous
• US 3-Month Bill Auction 4.195%, 4.225% previous
• US 6-Month Bill Auction 4.180% ,4.220% previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.9% forecast,2.9% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro pared earlier gains on Monday following a brief rally spurred by the election victory of Germany's conservatives. Friedrich Merz is set to become Germany's next chancellor after his party won Sunday's election, as expected. However, attention shifted to the potentially lengthy coalition talks that lie ahead. Merz now faces complex negotiations, particularly after the far-right Alternative for Germany (AfD) surged to a historic second place, leaving the vote highly fragmented. Investors are now focused on how quickly Merz's party can form a coalition and implement necessary reforms to revive Germany's stagnant economy. Immediate resistance can be seen at 1.0506(38.2%fib), an upside break can trigger rise towards 1.0556(Higher BB).On the downside, immediate support is seen at 1.0445(50%fib), a break below could take the pair towards 1.0374(61.8%fib).
GBP/USD: Sterling was little changed on Monday after comments from Bank of England policymaker Swati Dhingra. Dhingra highlighted the lack of consensus among BoE members on the pace of interest rate cuts, despite the general agreement to implement them gradually. She was one of two members to vote for a half-percentage-point rate cut during the February 6 meeting, while the majority opted for a smaller 0.25% cut, bringing the policy rate to 4.5%. The ongoing divergence in views among MPC members continues to keep markets uncertain about the BoE's future policy direction. The BoE cut interest rates by a quarter of a percentage point in August and November 2024 as well as earlier this month. Immediate resistance can be seen at 1.2677(23.6%fib), an upside break can trigger rise towards 1.2728(Higher BB).On the downside, immediate support is seen at 1.2571(38.2%fib), a break below could take the pair towards 1.2484(50%fib)
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Monday as investors awaited greater clarity on prospects of U.S. trade tariffs and additional easing from the Bank of Canada . Canada and Mexico are expected to intensify efforts this week to avoid punishing 25% tariffs on their exports to the U.S. in talks to persuade President Donald Trump's administration that their steps to increase border security and curb fentanyl trafficking are working ahead of a March 4 deadline. Investors see a 37% chance that the central bank would cut its benchmark interest rate by a further 25 basis points at a policy announcement on March 12 after the rate was lowered last month to 3%.Immediate resistance can be seen at 1.4330 (38.2%fib), an upside break can trigger rise towards 1.4412 (Jan 23rd high).On the downside, immediate support is seen at 1.4189(50%fib), a break below could take the pair towards 1.4107(Lower BB).
USD/JPY: The U.S. dollar edged higher against the yen on Monday as attention turned to a key U.S. inflation report later this week. The Personal Consumption Expenditures Price Index, which the Fed uses for its 2% inflation target, is set for release next week, with most economists expecting a smaller increase compared to the CPI. Also, on the radar are speeches from at least nine U.S. central bank officials this week, who are expected to reinforce a cautious stance on further rate cuts. Against the Japanese yen , the dollar gained 0.31% at 149.76.Immediate resistance can be seen at 150.51(38.2%fib) an upside break can trigger rise towards 151.43(38.2%fib). On the downside, immediate support is seen at 149.14(23.6%fib) a break below could take the pair towards 148.72 (Lower BB).
Equities Recap
German stocks ended Monday higher in Europe after conservatives led by Friedrich Merz won the national election with promises of pro-growth policies to boost an ailing economy.
UK's benchmark FTSE 100 closed flat by 0.00 percent, Germany's Dax ended up by 0.62 percent, France’s CAC finished the day down by 1.78 percent.
The Nasdaq Composite dropped over 1% on Monday, led by losses in big tech stocks as investors grew concerned about demand for technology supporting artificial intelligence as they awaited results from Nvidia, a key market player.
Dow Jones closed up by 0.08% percent, S&P 500 closed down by 0.49% percent, Nasdaq settled down by 1.21% percent.
Commodities Recap
Gold prices surged to a record high on Monday, fueled by safe-haven demand amid concerns over U.S. President Donald Trump's tariff plans.
Spot gold rose 0.4% to $2,947.48 an ounce as of 01:55 p.m. ET (1854 GMT). It hit $2,956.15 earlier in the session its eleventh record high in 2025.U.S. gold futures settled 0.3% higher at $2,963.20.
Oil prices closed higher on Monday, driven by new U.S. sanctions on Iran and Iraq's pledge to offset overproduction.
Brent crude futures settled up 35 cents, or 0.5%, at $74.78 a barrel. U.S. West Texas Intermediate crude futures gained 30 cents, or 0.4%, to $70.70.