Market Roundup
• US IBD/TIPP Economic Optimism 47.8, 53.9 previous
• US Feb JOLTs Job Openings 6.882M,6.600M forecast, 6.963M previous
• Canada March Ivey PMI n.s.a 28.2,53.2 previous
• Canada March Ivey PMI 26.0, 41.0 forecast, 54.1 previous
• New Zealand GlobalDairyTrade Price Index 1.2%, -3.9% previous
• US Feb Consumer Credit 22.33B, 14.00B forecast, 12.02B previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Adjusted Current Account 1.63T previous
• 23:50 Japan Feb Core Machinery Orders (MoM) -2.7% forecast, 2.9% previous
• 23:50 Japan Feb Core Machinery Orders (YoY) -2.9%, -0.3% previous
• 23:50 Japan Feb Current Account 3.062T forecast, 0.612T previous
• 01:30 Australia Home Loans (MoM) 3.1% previous
• 01:30 Australia Invest Housing Finance (MoM) 3.6% previous
Currencies summaries
EUR/USD: The euro strengthened against dollar on Tuesday as weaker dollar and signs of progress against the coronavirus in both Europe and the United States boosted euro. Worldwide, the novel coronavirus has infected more than 1.3 million people and killed over 74,000, and although the numbers are still rising in many highly populated countries, some tentative improvements have given hope. The euro was last trading 1.08 % higher to $1.0908.Immediate resistance can be seen at 1.0927 (9 DMA), an upside break can trigger rise towards 1.0978 (50 DMA).On the downside, immediate support is seen at 1.0872 (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).
GBP/USD: Sterling rose against dollar on Tuesday as increased risk appetite encouraged some selling of the dollar, while traders awaited news on British Prime Minister Boris Johnson, who is fighting worsening coronavirus symptoms in intensive care. Johnson, 55, was moved into an intensive care unit in a London hospital late on Monday after his condition had deteriorated rapidly over the preceding 24 hours. His foreign minister is deputizing for him to lead the government’s response to the outbreak. Immediate resistance can be seen at 1.2400 (30 DMA), an upside break can trigger rise towards 1.2450 (2nd April high).On the downside, immediate support is seen at 1.2249 (11 DMA), a break below could take the pair towards 1.2164 (21 DMA).
USD/CAD: The Canadian dollar strengthened to an 11-day high against its U.S. counterpart on Tuesday as investors welcomed a potential slowdown in the spread of the coronavirus pandemic and hopes rose that the world's biggest oil producers will cut output. U.S. crude oil futures were up 1.4% to $26.44 a barrel as hopes of production cuts outweighed analyst fears that a global recession in the wake of the coronavirus crisis could be deeper than expected. At (1949 GMT), the Canadian dollar was trading 0.9% higher at 1.3984 to the greenback. Immediate resistance can be seen at 1.4082 (9 DMA), an upside break can trigger rise towards 1.4137 (21 DMA).On the downside, immediate support is seen at 1.3924 (30 DMA ), a break below could take the pair towards 1.3711 (Lower BB)
USD/JPY: The dollar declined against the Japanese yen on Tuesday as Japanese Prime Minister Shinzo Abe declared a state of emergency for parts of the country to counter the spread of coronavirus. The country is to impose a state of emergency in Tokyo and six other prefectures as early as Tuesday to contain the coronavirus, while the government prepares a $990 billion stimulus package to soften the economic blow. At (1955 GMT),the dollar dipped 0.14% against the Japanese currency to 108.77 yen. Strong resistance can be seen at 109.43 (Daily high), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 108.75 (50 DMA), a break below could take the pair towards 108.28 (5 DMA).
Equities Recap
European shares rallied for a second straight day on Tuesday, with investors focusing on early signs that the coronavirus pandemic may be easing, even as major companies still take steps to shore up cash after lockdowns crushed global demand.
The UK's benchmark FTSE 100 closed up by 2.93 percent, Germany's Dax ended up by 2.79 percent, and France’s CAC finished the up by 2.12 percent.
Wall Street rose on Tuesday on early signs of the coronavirus outbreak plateauing in some of the biggest U.S. hot spots, with the New York governor saying social distancing measures to curtail the spread of the virus were working.
Dow Jones closed down at 0.12 percent, S&P 500 ended down 0.26 percent, Nasdaq finished the day down by 0.33 percent.
Treasuries Recap
U.S. Treasury yields climbed on Tuesday as the bond market mulled a looming supply deluge and Wall Street rose on hopes the coronovirus outbreak may slow down.
The yield on the benchmark U.S. 10-year note was last up 6.4 basis points at 0.7422%.
Commodities Recap
Gold prices fell over 1% on Tuesday, retreating from a near one-month high hit earlier in the session, as signs of slowdown in coronavirus cases in major epicentres boosted equity markets, drawing away some of the bullion's safe haven appeal.
Spot gold fell 0.6% to $1,651.15 an ounce by 10:24 a.m. EDT (1424 GMT), having earlier touched a near one-month high of $1,671.40.
Oil slumped on Tuesday in the face of swelling crude supplies and weak fuel demand due to the coronavirus pandemic, while investors also grew cautious over expectations that the world’s biggest producers would quickly agree on output cuts.
West Texas Intermediate (WTI) crude futures settled $2.45, or 9.4%, lower at $23.63 a barrel, accelerating their losses late in the day. Brent crude futures settled at $31.87 a barrel, losing $1.18, or 3.6%.
