America’s Roundup: Dollar edges higher as investors wait on fiscal stimulus,Wall Street surges, Gold gains, Oil little changed as falling demand offsets hopes of U.S. aid package-March 25th,2020

Market Roundup

• US March Manufacturing PMI  49.2, 42.8 forecast, 50.7   previous

• US March Markit Composite PMI  40.5, 49.6 previous    

• US March Services PMI  39.1, 42.0 forecast, 49.4 previous  
 
• US March New Home Sales (MoM)  -4.4%,-2.0% forecast, 10.5% previous

• US Feb New Home Sales 765K, 750K forecast, 800K previous

• US March Richmond Manufacturing Index  2, -9 forecast, -2 previous

Looking Ahead - Economic Data (GMT)
    
• 21:45 New Zealand Feb Exports 4.73B previous

• 21:45 New Zealand Feb Imports  5.07B previous

• 21:45 New Zealand Feb Trade Balance (MoM)  -340M previous   
 
• 21:45 New Zealand Feb Trade Balance (YoY)  -3,870M previous  
   
Looking Ahead - Events, Other Releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro declined on Tuesday as after March purchasing manager index readings that laid bare the extent of the impact of the coronavirus outbreak on euro zone economies.Euro zone business activity crumbled, with IHS Markit’s euro zone composite flash purchasing managers index (PMI) plummeting to a record low of 31.4 from February’s 51.6, far below the 50 level that signals growth and far lower than Reuters poll expectations. Immediate resistance can be seen at 1.0848 (50% fib), an upside break can trigger rise towards 1.0891 (61.8%fib).On the downside, immediate support is seen at 1.0771 (Daily low), a break below could take the pair towards 1.0739 (23.6% fib).

GBP/USD: Sterling rallied more than 1.5% against the dollar on Tuesday, winning a respite from a battering in recent days. Sterling, along with most currencies, has seen a massive wave of selling against the U.S. dollar, the world’s most liquid currency and the safe haven of choice when confidence evaporates from financial markets. Sterling was last up 1.8% on the day at $1.1739 having briefly touched a 35-year low of $1.1413 last week. It was poised for its biggest one-day jump against the greenback since last October. Immediate resistance can be seen at 1.1796 (Daily high), an upside break can trigger rise towards 1.1916 (9 DMA).On the downside, immediate support is seen at 1.1398 (Lower BB), a break below could take the pair towards 1.1300 (Psychological level).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as the prospect of stimulus efforts to ease the economic pain of the coronavirus pandemic tempered risk aversion.    All three main U.S. stock indexes jumped more than 5%, with hopes running high that the U.S. Senate will pass a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and helping distressed industries. Immediate resistance can be seen at 1.4553 (Daily high), an upside break can trigger rise towards 1.3298 (200 DMA).On the downside, immediate support is seen at 1.3434 (19th March), a break below could take the pair towards 1.4344 (50% fib).

USD/JPY: The dollar strengthened against the Japanese yen Tuesday as investors waited on a Senate stimulus bill meant to blunt the economic impact of the spreading coronavirus, and after U.S. President Donald Trump pressed his case for a re-opening of the U.S. economy by mid-April. Senior Democrats and Republicans said on Tuesday they were close to a deal on a $2 trillion coronavirus economic stimulus package, raising hopes that the divided U.S. Congress could soon act to try to limit the pandemic’s economic fallout. Strong resistance can be seen at 111.73 (Daily high), an upside break can trigger rise towards 112.40 (23.6% fib).On the downside, immediate support is seen at 111.65 (Daily high), a break below could take the pair towards 112.00 (Psychological level). 

Equities Recap

European shares surged on Tuesday, recovering a week’s worth of losses as the prospect of some stability from recent stimulus measures saw buying into markets wallowing around seven-year lows.

UK's benchmark FTSE 100 closed up 9.35 percent, Germany's Dax ended up by 11.49 percent, France’s CAC finished the day up by 8.39 percent.

Wall Street snapped back from three-year lows and the Dow jumped more than 1,500 points on Tuesday, as hopes of Washington passing an economic rescue package provided a shot of optimism to markets reeling under the biggest selloff since the financial crisis.

Dow Jones closed up by 11.37% percent,S&P 500 ended up by 9.38% percent, Nasdaq finished the day up by 8.12% %percent.

Treasuries Recap

U.S. government bond yields rose on Tuesday and one measure of the yield curve steepened as investors waited for Congress to vote on a $2 trillion stimulus bill to combat the blow dealt to the U.S. economy by the coronavirus pandemic.

The benchmark 10-year yield was up 7 basis points to 0.837%, with the two-year yield up 9.4 basis points to 0.389%. The 30-year long bond yield was last up 4.7 basis points to 1.393%.

Commodities Recap

Oil prices rose modestly on Tuesday, but settled off the day’s highs as the coronavirus pandemic’s heavy toll on demand offset hopes for a forthcoming $2 trillion U.S. economic relief package.

Brent futures rose 12 cents, or 0.4%, to settle at $27.15 a barrel. U.S. West Texas Intermediate (WTI) crude gained 65 cents, or 2.8%, to settle at $24.01.

Gold prices fell far below U.S. gold futures on Tuesday in a sign the market is worried air travel restrictions and precious metal refinery closures will hamper shipments of bullion to the United States to meet contractual requirements.

At 1516 GMT, spot gold was up 3% at around $1,600 an ounce, while March futures on the Comex exchange were up nearly 5% at $1,642 an ounce - a price difference of $4