Markets were little changed in Monday’s European session, as US dollar stayed near fresh eight-month high against the basket of major counterparts. The greenback pulled back from fresh high at 98.81 but stayed within the perimeter, remaining supported by expectations for a US rate hike towards the end the year.

Hawkish comments from Fed NY President Dudley and SF President Williams last week, boosted strong dollar-bullish sentiment and maintained strong demand for the dollar.

US dollar index dipped to European low at 98.53, on pullback from fresh high at 98.81, while the Euro and Sterling recovered ground after hitting Asian session lows at 1.0858 and 1.2183 respectively.
Technicals for both pairs remain bearishly aligned and see risk of fresh weakness after completion of near-term corrective phase.

Dollar-yen attacked 104 barrier again, but so far without clear break higher and remaining within initial 103.50/104.00 range, but biased higher for now. The pair looks for daily close above important technical resistance at 104.43, for confirmation of bullish resumption.
Aussie dollar has managed to recover part of heavy losses from Thursday and Friday, on bounce to 0.7639, but gains look limited and risk of fresh weakness remains in play.

Spot gold was the top winner of European session, as the price broke above near-term consolidation range top at $1268 and probed above $1270 level that sidelined the risk of testing downside pivot at $1260 and turned focus towards recovery high at $1274.

US Crude oil remains at the back foot in the near-term, nearly $2 below fresh high at $52.21, but still holding above initial support at $50.20 and triggers at $50.00/$49.80.

European Stocks showed mixed performance on Monday. FTSE 100 repeated attempt above 7000 handle stalled, increasing risk of pullback, while DAX and CAC-40 shined on Monday.

German DAX gained 1.05% at the first day of the week and cracked strong resistance at 10803, on extension of two consecutive bullish weeks.

French CAC-40 Index was also positive on Monday and gained 0.68% from opening, also cracking important barrier at 4569 (08 Sep former high).

Wall Street opened higher on Monday, according to market expectations, as investors’ confidence was boosted by a number of deals.

Dow Jones was up 0.59% after opening; Nasdaq100 up 0.64%, while S&P500 was up 0.44% after Monday’s Wall Street opening bell.

AT&T announced it would buy Time Warner Company, if approved by regulators. This would be the biggest deal in the world this year.
Also, a number of quarterly earnings reports are scheduled this week, with more than third of S&P500 components due to report earnings, signaling busy week ahead in the stock markets., Market Analysis