Posted at 12 May 2025 / Categories Market Roundups
Market Roundup
• French 12-Month BTF Auction 1.985%,1.901% previous
• French 3-Month BTF Auction 2.057%,2.072% previous
• French 6-Month BTF Auction 2.023% ,1.982% previous
•US 3-Month Bill Auction 4.300% ,4.220% previous
•US 6-Month Bill Auction 4.105% ,4.090% previous
•US Federal Budget Balance (Apr) 258.0B, 256.4B forecast,-161.0B previous
Looking Ahead Events And Other Releases(GMT)
•00:30 Australia Westpac Consumer Sentiment (May) -6.0% previous
•01:30 Australia Building Approvals (MoM) (Mar) -8.8% forecast, -0.3% previous
•01:30 Australia NAB Business Confidence (Apr) -3 previous
•01:30 Australia NAB Business Survey (Apr) 4 previous
•01:30 Australia Private House Approvals (Mar) -4.5% forecast, 1.0% previous
•03:35 Japan 30-Year JGB Auction 2.414% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro slipped lower on Monday as the U.S. dollar strengthened following a major breakthrough in trade talks between the United States and China. The two economic superpowers announced a deal to significantly reduce reciprocal tariffs, easing concerns about a prolonged trade war that had rattled global markets.In a notable de-escalation, the U.S. and China agreed to slash tariffs by a combined 115% and implement a 90-day pause on further levies. The announcement came after high-level discussions in Geneva, where U.S. Treasury Secretary Scott Bessent confirmed the agreement, signaling a step toward resolving the trade tensions that have weighed heavily on the global economy. The euro dipped 1.10% to $1.1096. Immediate resistance can be seen at 1.1237(38.2%fib), an upside break can trigger rise towards 1.1392(May 6th high).On the downside, immediate support is seen at 1.1038(50%fib), a break below could take the pair towards 1.0850 (61.8%fib).
GBP/USD: The British pound dopped on Monday as the U.S. dollar gained strength following a surprise truce in the U.S.–China trade conflict. Both countries agreed to temporarily ease tariffs—cutting U.S. levies on Chinese imports to 30% from 145% and reducing Chinese duties on U.S. goods to 10% from 125%—a move that exceeded investor expectations after intensive weekend talks. The unexpected scale of the tariff rollback boosted market confidence and eased fears of a prolonged trade war between the world’s two largest economies. Attention now shifts to key U.S. economic data, with the Consumer Price Index due Tuesday, followed by the Producer Price Index and retail sales later in the week, all of which could shape the Federal Reserve’s next policy steps .Immediate resistance can be seen at 1.3396(38.2%fib), an upside break can trigger rise towards 1.3497(23.6%fib).On the downside, immediate support is seen at 1.3117(50%fib), a break below could take the pair towards 1.2965(61.8%fib).
USD/CAD: the Canadian dollar slid to a one-month low against the U.S. dollar as a U.S.–China trade war truce bolstered broad strength in the greenback..Easing U.S.-China trade tensions could lift American business confidence, attract foreign investment to the United States and reduce prospects of Federal Reserve interest rate cuts, Francis said.In contrast, downbeat Canadian employment data on Friday has led to investors raising bets on a Bank of Canada interest rate cut next month.Investors see a 55% chance that the Canadian central bank would resume its easing cycle at a policy decision on June 4 after pausing in April. The loonie was trading 0.5% lower at 1.4007 per U.S. dollar, or 71.39 U.S. cents, after touching its weakest intraday level since April 10 at 1.4015 .Immediate resistance can be seen at 1.4001(50%fib), an upside break can trigger rise towards 1.4119(61.8%fib).On the downside, immediate support is seen at 1.3883(38.2%fib), a break below could take the pair towards 1.3750 (23.6%fib)
USD/JPY: The U.S. dollar rose against yen on Monday after the U.S. and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy. After weekend talks in Geneva, the U.S. and China agreed to reduce tariffs during a 90-day negotiation period—cutting U.S. levies on Chinese goods from 145% to 30%, and Chinese duties on U.S. imports from 125% to 10%. In a joint statement on Monday, both countries emphasized the importance of their trade ties to the global economy, a tone that analysts said improved market sentiment. An index tracking the dollar against other major currencies rose further from last month's three-year trough with an almost 1.17% gain, while Japan's yen fell 2.1% to 148.39 per dollar .Immediate resistance can be seen at 148.55 (38.2%fib)an upside break can trigger rise towards 150.00(Psychological level) .On the downside, immediate support is seen at 146.43(50%fib)a break below could take the pair towards 146.43(50%fib)
Equities Recap
European shares started the week on a positive note on Monday after the United States and China agreed to temporarily slash tariffs, providing some relief to global markets roiled by the trade war.
UK's benchmark FTSE 100 closed up by 0.59percent, Germany's Dax ended up by 0.29percent, France’s CAC finished the day up by 1.35 percent.
Wall Street’s major indexes posted strong gains on Monday, driven by renewed optimism after the United States and China reached an agreement to temporarily reduce tariffs.
Dow Jones closed down by 2.82 %percent, S&P 500 closed up by 3.25% percent, Nasdaq settled up by 4.35% percent.
Commodities Recap
Gold fell 3% on Monday as investors shifted away from safe-haven assets amid improved risk sentiment following a temporary trade agreement between the United States and China.
Spot gold was down 3% at $3,225.28 an ounce, as of 1344 ET (17:44 GMT).U.S. gold futures settled 3.5% lower at $3,228.
Oil prices climbed roughly 1.5% on Monday, closing at a two-week high, as a temporary tariff-cutting deal between the U.S. and China boosted hopes of easing trade tensions.
Brent crude futures rose $1.05, or 1.6%, to settle at $64.96 a barrel. U.S. West Texas Intermediate (WTI) crude gained 93 cents, or 1.5%, to settle at $61.95.