America’s Roundup: Dollar climbs to 3-week peak, Wall Street drops, Gold jumps to 3-week high, Oil prices rise on dip in U.S. crude stockpiles and IEA data-May 15th,2020

Market Roundup

• Weekly jobless claims total 2.981 million

• Fed, BOJ and BoE all say rates aren’t going any lower

• Brent, WTI just above $30/bbl, $26/bbl respectively

• US Continuing Jobless Claims     22,833K,22,833K, 25,100K forecast, 22,647K previous

• US Jobless Claims 4-Week Avg 3,616.50K,  4,173.50K previous

• US Initial Jobless Claims 2,981K, 2,500K forecast, 3,169K previous

• Canada March Manufacturing Sales (MoM) -2.6%,-9.2%,  -5.7% forecast, 0.5% previous

• US Import April Price Index (MoM)
 -2.6%,3.1% forecast, -2.3% previous

• US Export April Price Index (MoM)  -3.3%,-2.1% forecast, -1.6% previous

• Russia Central Bank Reserves (USD) 562.4B, 567.3B previous

Looking Ahead Economic Data

•22:30 New Zealand April Business NZ PMI  53.2 previous

•22:45 New Zealand April FPI (MoM)  0.7% previous

• 23:50Japan April  PPI (MoM)  -0.9% forecast, -0.9% previous

• 02;00 China April Retail Sales (YoY) -7.0% forecast, -15.8% previous

• 02;00 China May  China Thomson Reuters IPSOS PCSI  67.96 previous

• 02;00 Chinese April Industrial Production YTD (YoY ) -8.4% previous

• 02;00 Chinese April Chinese Retail Sales YTD (YoY)   -19.64% previous

• 02;00 Chinese April Fixed Asset Investment (YoY)  -10.0% forecast, -16.1% previous

• 02;00 Chinese April Industrial Production (YoY)  1.5% forecast, -1.1% previous

• 02;00 Chinese Unemployment Rate  5.9% previous

Looking Ahead - Events, Other Releases (GMT)

• 02;00 China NBS Press Conference

Currencies summaries

EUR/USD: The euro strengthened on Thursday   as stock markets weakened broadly after Federal Reserve Chairman Jerome Powell dismissed speculation over U.S. interest rates entering negative territory.European stock markets fell, and U.S. stocks were also down, the third consecutive session of losses and sending investors to the relative safety of the greenback.The euro was down 0.2% against the dollar at $1.0798. Immediate resistance can be seen at 1.0827(38.2% fib), an upside break can trigger rise towards 1.0890 (50% fib).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).

GBP/USD: Sterling edged lower against dollar on Thursday as sterling was held down by a combination of coronavirus-induced economic woes and Brexit risks. Sterling fell after the government reiterated its refusal to extend the Brexit transition period deadline beyond December this year, signalled its unwillingness to compromise in trade negotiations with the EU and said that there would be border checks.Cable was also held down by the fact that the dollar strengthened after Federal Reserve Chair Jerome Powell squashed growing speculation about negative interest rates in the United States. Immediate resistance can be seen at 1.2241 (Daily high), an upside break can trigger rise towards 1.2273 (5 DMA).On the downside, immediate support is seen at 1.2179 (Daily low), a break below could take the pair towards 1.2144 (Lower BB).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, rebounding from an earlier one-week low as Wall Street fluctuated and the Bank of Canada said that measures taken to ease financial market strains were working. In an annual review of Canada's financial systems, the central bank said that "access to liquidity has greatly improved in key financial markets" even as it expressed concern over vulnerabilities in the energy sector. The Canadian dollar  was last trading 0.2% higher at 1.4066 to the greenback. Immediate resistance can be seen at 1.4142 (Daily high), an upside break can trigger rise towards 1.4256 (Higher BB).On the downside, immediate support is seen at 1.4026 (5 DMA), a break below could take the pair towards 1.3996 (55 DMA).

USD/JPY: The dollar rose against the Japanese yen Thursday after Federal Reserve Chair Jerome Powell squashed growing speculation about negative interest rates in the United States and warned of an “extended period” of weak economic growth. Powell's comments sent investors moving to the relative safety of the greenback, with the dollar index rising to a near three-week high. Strong resistance can be seen at 107.07 (21 DMA), an upside break can trigger rise towards 107.45 (30 DMA).On the downside, immediate support is seen at 106.80 (9 DMA), a break below could take the pair towards 106.00(Psychological level). 

Equities Recap

European shares declined  on Thursday after a sobering warning from the World Health Organization that the coronavirus may never go away and signals that top central banks may have hit the bottom with interest rates.

UK's benchmark FTSE 100 closed down by  2.75 percent, Germany's Dax ended down by 1.96 percent, France’s CAC finished the day down by 1.65 percent.        

Wall Street’s main indexes were lower in choppy trading on Thursday, as renewed worries about Sino-U.S. trade relations added to fears of an extended economic downturn due to the virus outbreak.

Dow Jones closed down  by  1.62% percent, S&P 500 closed up by 1.15 % percent, Nasdaq settled down  by 0.91%  percent.

Treasuries Recap

Investors pushed U.S. Treasury yields lower on Thursday as they took stock of another grim jobs report and tried to gauge the success of efforts to reopen the economy in the face of the COVID-19 pandemic.

 The benchmark 10-year yield was down 3.1 basis points in afternoon trading at 0.6202%.

Commodities Recap

Gold climbed to a near three-week high on Thursday, propelled by safe-haven demand, as investors ditched riskier assets on concerns over long-drawn economic weakness and renewed U.S.-China trade tensions. 

 Spot gold   rose 0.8% to $1,729.46 per ounce by 11:06 a.m. EDT (1506 GMT), having hit a high since April 24 at $1,734.39. U.S. gold futures   gained 1.3% to $1,738.90.

Oil prices settled higher on Thursday after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months.

Brent crude futures settled up $1.94, or 6.7 percent, to $31.13 a barrel.U.S. West Texas Intermediate (WTI) crude futures settled up $2.27, or 9%, to $27.56 a barrel.