News

America’s Roundup: U.S. dollar rises on quarter-end flows, Wall Street slides, Gold slides, Oil steady on U.S.-Russia energy talks but still near 18-year lows-April 1st,2020

Posted at 31 March 2020 / Categories Market Roundups


Market Roundup

• Canada Jan GDP (MoM)  0.1%,0.1% forecast, 0.3% previous

• Canada Feb IPPI (YoY)  -0.3%,0.5% previous

• Canada Feb IPPI (MoM)  -0.5%    , 0.1% forecast, -0.3% previous

• Canada Feb RMPI (YoY) -5.9%,1.7% previous

• US Redbook (MoM) 1.3%,1.7% previous

• US Redbook (YoY) 6.3%.9.1% previous

• US March CB Consumer Confidence 120.0, 110.0 forecast, 132.6 previous

• US March Chicago PMI 47.8. 40.0 forecast. 49.0 previous

• US March Dallas Fed Services Revenues -67.0, 14.0 previous 
       
Looking Ahead - Economic Data (GMT)  
 
• 21:30 Australia March AIG Manufacturing Index  44.3 previous    

• 21:30 Australia  Manufacturing PMI 50.1 forecast. 50.2 previous

• 23:50 Japan Tankan All Big Industry CAPEX (Q1) -1.1% forecast.6.8% previous

• 23:50 Japan Tankan Big Manufacturing Outlook Index (Q1)  -14 forecast, 0 previous

• 23:50 Japan Tankan Large Manufacturers Index (Q1) -10 forecast,5 previous  
 
• 23:50 Japan Tankan Large Non-Manufacturers Index (Q1) 6 forefast. 20 previous

• 00:00 Australia  Feb Building Approvals (MoM)  4.5% forecast, -15.3% previous

• 00:00 Australia Feb Private House Approvals 0.3% previous

• 01:45 China March Caixin Manufacturing PMI 45.5,  40.3 previous

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currencies summaries

EUR/USD: The euro declined against dollar on Tuesday as investors assed the impact of massive official stimulus efforts against a near total shut down in global supply chains due to the coronavirus pandemic. Fears of a deep and lasting global recession, an unexpected expansion in Chinese factory data offered a glimmer of hope for economic growth, but analysts cautioned that a durable near-term recovery was still far from assured. Immediate resistance can be seen at 1.1011 (55 DMA), an upside break can trigger rise towards 1.1055 (21 DMA).On the downside, immediate support is seen at 1.0928 (Daily low), a break below could take the pair towards 1.0900  (Psychological level).

GBP/USD: The pound fell against the dollar on Tuesday as the U.S. currency gained strength due to its safe-haven properties amid the spread of the coronavirus. Concerned by the number of growing COVID-19 cases in the United States, where the reported cases are nearly double those in China, investors bought the dollar against sterling and other major currencies considered riskier than the U.S. currency. The pound traded 0.13% lower at $1.2415. Immediate resistance can be seen at 1.2416 (38.2 %fib), an upside break can trigger rise towards 1.2500 (Psychological level).On the downside, immediate support is seen at 1.2219 (50% fib), a break below could take the pair towards 1.2040 (61.8% fib).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Tuesday as oil prices rose and domestic data showed the economy grew in January, but the loonie was on track for its biggest monthly decline in more than five years. U.S. crude oil futures were up 2.4% at $20.58 a barrel on Tuesday after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks on stabilizing energy markets. At (19:30 GMT), the Canadian dollar was trading 0.3% higher at 1.4119 to the greenback .Immediate resistance can be seen at 1.4170 (5 DMA), an upside break can trigger rise towards 1.4253 (11 DMA).On the downside, immediate support is seen at 1.4000 (Psychological level), a break below could take the pair towards 1.4943 (21 DMA).

USD/JPY: The dollar rose against the yen on Tuesday amid fiscal year-end demand by Japanese companies. Tuesday is the last trading day of Japan’s fiscal year and the end of the quarter for major investors elsewhere, which has fueled some volatility as big currency market players closed their books. The bulk of those positioning changes caused the dollar to strengthen. At ( GMT 18:00) The dollar against basket of six currencies was last trading 0.4% higher at 99.8. It reached 102.99, its highest in more than three years, earlier this month as a global market selloff fuelled a rush for dollars. Strong resistance can be seen at 108.66 (6.8% fib), an upside break can trigger rise towards 109.00 (Psychological level).On the downside, immediate support is seen at 107.56 (50 % fib), a break below could take the pair towards 106.46 (38.2 % fib). 

Equities Recap

European stocks rose on Tuesday as strong Chinese factory data held out hope for an economic revival even as much of the rest of the world shut down to fight the coronavirus.

UK's benchmark FTSE 100 closed up by 1.95 percent, Germany's Dax ended down  by 1.22 percent, France’s CAC finished the day down by 0.40 percent.

Wall Street’s slide deepened on Tuesday, with the S&P 500 was set for its worst first quarter since 1938 on growing evidence of a largescale corporate damage from the coronavirus pandemic as well as a near collapse in oil prices.

At (GMT 19:43) Dow Jones  was last trading down by 1.61 percent, S&P 500 was down by 1.52 percent, Nasdaq was  down by 1.12 percent.

Treasuries Recap

U.S. Treasury yields were little changed on Tuesday as the Federal Reserve continued its aggressive purchases and managers rebalanced their portfolios with the end of the first quarter.

The benchmark 10-year yield was up 2.4 basis points at 0.69475% in morning trading.

Commodities  Recap

Gold prices dipped over 2% to their lowest in a week on Tuesday as the dollar firmed, but the metal was on track for a sixth straight quarterly rise on concerns of global economic damage due to the coronavirus pandemic.

 Spot gold fell 0.8% at $1,609.64 per ounce by 11:14 am EDT (1514 GMT). U.S. gold futures  lost 0.6% to $1,611.60.

Oil prices steadied on Tuesday, with the U.S. crude benchmark climbing off 18-year lows after U.S. President Donald Trump and Russian counterpart Vladimir Putin agreed to talks on stabilizing energy markets.

Brent crude futures  was 2 cents lower at $22.74 a barrel by 12:48 p.m. ET (1648 GMT) ahead of expiration after closing on Monday at $22.76, its lowest finish since November 2002.

U.S. crude was up 23 cents at $20.32 after settling in the previous session at $20.09, its lowest since February 2002.
 


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