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  |   Market Roundups


America’s Roundup: Dollar drops as U.S. jobless claims surge, Wall Street rallies for third day, Gold edges higher, Oil prices sink as crippled demand outweighs stimulus hopes-March 27th,2020

Market Roundup

• US Core PCE Prices (Q4) 1.30%,1.20% forecast, 1.20% previous    

• US GDP (QoQ) (Q4) 2.1%,2.1% forecast    , 2.1% previous  
• US GDP Price Index (QoQ) (Q4)    1.4%,1.3% forecast, 1.3% previous    

• US Feb Goods Trade Balance  -59.89B, -65.90B previous    

• US Initial Jobless Claims    3,283K, 1,650K forecast,  282K previous

 • US Jobless Claims 4-Week Avg  998.25K, 232.50K previous

• US Wholesale Inventories (MoM)  -0.5%,-0.5%    previous

• US March KC Fed Composite Index  -17, 5 previous

Looking Ahead - Economic Data (GMT)    

• 19:30 Japan March Tokyo Core CPI (YoY)  0.4%,0.5% previous

• 19:30 Japan March Tokyo CPI (YoY)  0.4% previous

• 21:30 ChineseFeb  Industrial profit (YoY)   5.40% previous

• 21:30  Chinese Industrial profit YTD   3.3% previous    

Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries     

EUR/USD: The euro strengthened on Thursday after the European Central Bank said it will not apply its self-imposed purchase limits on a 750 billion euro coronavirus crisis-fighting bond purchase scheme. The ECB also said it would buy debt with maturity as short as 70 days, compared with one year under previous purchases. The single currency was also boosted after the German lower house on Wednesday suspended the country’s constitutionally enshrined debt brake, approving a massive stimulus package by Chancellor Angela Merkel’s government. Immediate resistance can be seen at 1.1070 (61.8% fib), an upside break can trigger rise towards 1.1100 (Psychological level).On the downside, immediate support is seen at 1.0989 (50% fib), a break below could take the pair towards 1.0919 (38.2% fib).

GBP/USD: Sterling was on track for its biggest daily gain in three years on Thursday, rebounding more than 2% as grim U.S. unemployment data weakened the dollar across the board. The pound was last trading above $1.21, after falling as low as $1.14 last week, levels not seen since 1985. It is heading for its best week since 2009, up 4% since Monday. Sterling has been hammered in recent weeks as fears about the economic impact of the coronavirus pandemic sent investors scrambling for dollars  the world’s most liquid currency and one seen as a safe haven in times of crisis. Immediate resistance can be seen at 1.2182 (20 DMA), an upside break can trigger rise towards 1.2360 (61.8% fib).On the downside, immediate support is seen at 1.2000 (Psychological level), a break below could take the pair towards 1.1821(38.2% fib).

USD/CAD: The Canadian dollar strengthened to a nine-day high against its U.S. counterpart on Thursday as data showing a surge in American unemployment benefit claims weighed on the greenback, with the loonie adding to the prior day's largest rally in four years. The rally for the loonie on Wednesday came as Canada doubled the value of an aid package to C$52 billion ($36.9 million) to help people and businesses deal with losses from the coronavirus outbreak.(1531 GMT), the Canadian dollar was last trading 0.7% higher at 1.4092 to the greenback. Immediate resistance can be seen at 1.4566 (Daily high), an upside break can trigger rise towards 1.4677 (19th March high).On the downside, immediate support is seen at 1.4430 (23.6% fib), a break below could take the pair towards 1.4293 (38.2% fib).

USD/JPY: The dollar declined against the Japanese yen Thursday after data showed an unprecedented surge in Americans filing for unemployment benefits, as businesses across the country shut down in an attempt to stem the spread of the coronavirus. The number of Americans filing claims for unemployment benefits shot to record of more than 3 million last week. The dollar index   fell to 99.92, the lowest since March 18.The greenback dipped 1.53% against the Japanese yen to 109.41 yen. Strong resistance can be seen at 110 .04 (50% fib), an upside break can trigger rise towards 110.94(38.2% fib).On the downside, immediate support is seen at 109.10 (61.8 % fib), a break below could take the pair towards 109.00 (Psychological level). 

Equities Recap

European stocks reversed course to end higher on Thursday, tracking gains on Wall Street, while investors awaited a vote by EU lawmakers on emergency funds to cushion the blow from the coronavirus outbreak.

UK's benchmark FTSE 100 closed up by 2.24 percent, Germany's Dax ended up by 1.28 percent, France’s CAC finished the day up by 2.51 percent.

Wall Street rallied for a third straight session on Thursday as record weekly jobless claims came in below investors’ worst fears and investors focused on an unprecedented $2 trillion stimulus awaiting approval by the U.S. House of Representatives.

Dow Jones was last trading up by 4.10 percent, S&P 500 ended up at 4.29 percent, Nasdaq finished the day up by 3.62 percent.    
Treasuries Recap

Prices on U.S. Treasury bonds rallied on Thursday morning with the equity market after weekly applications for unemployment benefits surged to an all-time high, suggesting the market had already priced in expectations for an abysmal data release.

The benchmark 10-year U.S. Treasury yield was last 4 basis points lower to 0.816%, with the long bond last down 2.9 basis points to 1.392%. At the short end, the two-year yield was 3.3 basis points lower at 0.293%. Yields move inversely to price.

Commodities Recap

Gold prices edged up on Thursday, recovering from initial losses, after data showed U.S. jobless claims surged to a record high due to the coronavirus pandemic.

Spot gold was up 0.3% at $1,618.60 per ounce by 1235 GMT.U.S. gold futures rose 1% to $1,649.40 per ounce, and held above the London spot contract.

Oil prices fell on Thursday after three sessions of gains as restrictions on travel worldwide crimped fuel demand, with U.S. crude futures plunging about 4% after the United States scrapped plans to buy domestic oil for its emergency reserve.

West Texas Intermediate (WTI) crude   futures dropped 91 cents, or 3.7%, to $23.58 a barrel by 11:11 a.m. EDT (1511 GMT). Brent crude   futures fell 11 cents to $27.28 a barrel. Both contracts are down about 60% this year

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