Posted at 09 April 2020 / Categories Market Roundups
Market Roundup
• US Continuing Jobless Claims 7,455K, 8,000K forecast, 3,029K previous
• US March Core PPI (MoM) 1.4%, 0.1% forecast, -0.3% previous
• US March Core PPI (YoY) 0.2% , 1.2% forecast, 1.4% previous
• US Initial Jobless Claims 6,606K, 5,250K forecast, 6,648K previous
• US Jobless Claims 4-Week Avg 4,265.50K, 2,612.00K previous
• US March PPI (MoM) 0.7%,-0.4% forecast, -0.6% previous
• Canada March Employment Change -1,010.7K, -350.0K forecast, 30.3K previous
• Canada March Part Time Employment Change -7.3K previous
• Canada March Unemployment Rate 7.2% forecast, 5.6% previous
• Russia Central Bank Reserves (USD) 564.4B,551.2B previous
• US April Michigan 5-Year Inflation Expectations 2.50% ,2.20% previous
• US April Michigan Consumer Expectations 70, 88.2 forecast, 79.7 previous
• Wholesale Inventories (MoM) -0.7%, -0.5%,-0.4% previous
• Feb Wholesale Trade Sales (MoM) -0.8%, 1.6% previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan March Bank Lending (YoY) 2.1% previous
• 23:50 Japan March PPI (MoM) -0.7% forecast, -0.4%previous
• 23:50 Japan March PPI (YoY) -0.1% forecast, 0.8% previous
• 01:30 China March CPI (MoM) -0.7% forecast,0.8% previous
• 01:30 China March CPI (YoY) 4.8% forecast, 5.2% previous
• 01:30 China March PPI (YoY) -1.1% forecast, -0.4% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro dipped against dollar on Thursday euro was dented by the European Union’s failure to agree on more support for their weakened economies. The euro stood at $1.086, having slipped 0.35% on Wednesday, after European Union finance ministers failed in all-night talks to agree on more economic support for their coronavirus-stricken economies. Two main sticking points were conditions for access to emergency credit lines in the euro zones’s bailout fund and the notion of issuing joint debt by the bloc, so-called coronabonds.Immediate resistance can be seen at 1.0934 (9 DMA), an upside break can trigger rise towards 1.0978 (50 DMA).On the downside, immediate support is seen at 1.0834 (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).
GBP/USD: The pound climbed to a three-week high on Thursday as the dollar tumbled against its rivals after the Federal Reserve rolled out a $2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to support the U.S. economy. The central bank’s announcement came as data showed that the number of Americans seeking unemployment benefits topped 6 million for the second straight week, with businesses closed across the country in an attempt to stem the spread of the coronavirus. The pound, which was already stronger on the day, extended gains to hit a session high of $1.2481, up 0.8% on the day as risk appetite improved across the board following the dollar’s fall. Immediate resistance can be seen at 1.2500 (Psychological level), an upside break can trigger rise towards 1.2657 (200 DMA).On the downside, immediate support is seen at 1.2339 (11 DMA), a break below could take the pair towards 1.2300 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday along with gains for stocks and higher oil prices, with the currency fluctuating after domestic data showed a record level of job losses. Canada shed one million jobs in March while the unemployment rate soared to 7.8%, official data showed, as the coronavirus outbreak forced the closure of non-essential businesses. At (2016 GMT), the Canadian dollar was trading 0.3% higher at 1.3968 to the greenback, or 71.59 U.S. cents. The currency, which on Tuesday touched an 11-day high at 1.3941, traded in a range of 1.3955 to 1.4076. Immediate resistance can be seen at 1.4014(5 DMA), an upside break can trigger rise towards 1.4041(11 DMA).On the downside, immediate support is seen at 1.3912 (March 27th low), a break below could take the pair towards 1.3702 (50 DMA).
USD/JPY: The dollar declined against the Japanese yen on Thursday after the Federal Reserve rolled out a $2.3 trillion effort to bolster local governments and small and mid-sized businesses in its latest move to keep the U.S. economy intact as the country battles the coronavirus pandemic. The central bank's announcement came as data showed that the number of Americans seeking unemployment benefits topped 6 million for the second straight week, with businesses closed across the country in an attempt to stem the spread of the virus Strong resistance can be seen at 108.96 (100 DMA), an upside break can trigger rise towards 109.78 (Feb 28th high).On the downside, immediate support is seen at 108.15 (21 DMA), a break below could take the pair towards 108.00 (Psychological level).
Equities Recap
European stock dipped on Wednesday as the coronavirus death toll mounted and euro zone finance ministers failed to agree a rescue package to help economies recover from the impact of the outbreak.
UK's benchmark FTSE 100 closed up by 3.93 percent, Germany's Dax ended up by 2.23 percent, France’s CAC finished the day up by 1.44 percent.
Wall Street rose for the third time in four days on Thursday as the U.S. Federal Reserve unleashed its latest program designed to buttress local governments and businesses crushed by moves to slow the coronavirus outbreak.
Dow Jones closed up by 1.22 percent, S&P 500 ended down by 1.45 percent, Nasdaq finished up by 0.77 percent.
Treasuries Recap
Most U.S. Treasury yields fell on Thursday as the Federal Reserve rolled out aggressive steps to prop up the economy during the COVID-19 pandemic, and weekly jobless claims remained huge.
The yield on the benchmark 10-year note was down 4.8 basis points at 0.7159% in afternoon trading.
Commodities Recap
Gold prices surged over 2% to their highest in a month on Thursday after the U.S. Federal Reserve announced a massive stimulus to combat the economic toll of the coronavirus pandemic.
Spot gold jumped 2% at $1,678.53 per ounce by 11:19 a.m. EDT (1519 GMT), having earlier hit its highest since March 9 at $1,684.84. It has risen about 3.8% so far this week.U.S. gold futures soared 3% to $1,734.20.
Oil prices slumped on Thursday, giving back an earlier 10% surge as investors doubted the emerging supply-cut agreement between members of OPEC and its allies would adequately address the global fuel demand collapse caused by the coronavirus pandemic.
Brent futures fell $1.36, or 4.1%, to settle at $31.48 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped $2.33, or 9.3%, to settle at $22.76. That was the lowest settlement price for both contracts in a week.