Market Roundup
• Dollar eyes biggest weekly rise since early April
• US March Core Durable Goods Orders (MoM) -5.8% forecast,-0.6% previous
• US March Durable Goods Orders (MoM) -11.9% forecast, 1.2% previous
• US March Durables Excluding Defense (MoM) 0.1% previous
• Belgium April NBB Business Climate -21.0 forecast, -10.9 previous
• Russia March Unemployment Rate 4.8% forecast, 4.6% previous
• US April Michigan 5-Year Inflation Expectations 2.50% , 2.30% previous
• US April Michigan Consumer Expectations 70.0 forecast, 79.7 previous
• US April Michigan Consumer Sentiment 68.0 forecast, 89.1 previous
• US April Michigan Current Conditions 72.4 forecast, 103.7 previous
• Canada Feb Budget Balance 0.42B previous
• Canada Feb Budget Balance (YoY) -10.56B previous
Looking Ahead - Economic Data (GMT)
• No economic data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro roared past 1.08 on Friday, as markets remained focused on European Central Bank action to mitigate euro zone economic stress and prevent Italy’s credit rating from tumbling into junk territory. European Union leaders agreed a 1.5 trillion euro rescue package but delayed a decision on the programme’s details until the summer. The other worry is an S&P Global ratings review for Italy later on Friday, with the risk of a one-notch downgrade. Immediate resistance can be seen at 1.0831(5 DMA), an upside break can trigger rise towards 1.0873 (11 DMA).On the downside, immediate support is seen at 1.0740 (5 DMA), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling traded slightly higher on Friday, as some traders bought back into a currency that had slipped earlier due to downbeat UK retail sales. British retail sales fell by the most on record in March as a surge in food buying for the coronavirus lockdown was dwarfed by a plunge in sales of clothing and most other goods, and the slump is likely to be even worse in April. Official figures showed sales volumes plunged by 5.1% in March from February, the sharpest drop since the Office for National Statistics’ records began in 1996. Sterling was last trading up 0.2% at $1.2367.Imediate resistance can be seen at 1.2406 (5 DMA), an upside break can trigger rise towards 1.2431 (11 DMA).On the downside,strong support is seen at 1.2212 (Lower BB), a break below could take the pair towards 1.2200 (Psychological level).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday as the price of oil extended its rebound from historically depressed levels, but the loonie was on track to end the week lower .Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital. U.S. crude oil futures were up 6.8% at $17.62 a barrel but were headed for their third straight weekly loss as production shutdowns failed to keep pace with sliding demand due to the coronavirus crisis. Immediate resistance can be seen at 1.4144(30 DMA), an upside break can trigger rise towards 1.4264 (Higher BB).On the downside, immediate support is seen at 1.4048 (11 DMA), a break below could take the pair towards 1.3854 (50 DMA).
USD/JPY: The dollar declined against the Japanese yen on Friday as some U.S. states began reopening businesses despite the disapproval of health experts, and as the European Union put off addressing details of its new economic rescue plan. Safe-haven Japanese yen gained while the dollar slipped, reflecting the market’s unsettled direction. Oil’s recovery lost some momentum as the day wore on. At (GMT 19:56),the dollar was 0.16 percent lower versus the Japanese yen at 107.39. Strong resistance can be seen at 107.54 (9 DMA), an upside break can trigger rise towards 107.89 (21 DMA).On the downside, immediate support is seen at 107.34 (Daily low), a break below could take the pair towards 106.72 (Lower BB).
Equities Recap
European shares tumbled on Friday on fears of a severe and lasting economic hit from the coronavirus pandemic after a report raised doubts about progress in developing a treatment for COVID-19.
UK's benchmark FTSE 100 closed down by 1.28 percent, Germany's Dax ended down by 1.69 percent, France’s CAC finished the day down by 1.30 percent.
U.S. stock index futures gained on Friday with bargain hunters returning at the end of a tumultuous week marked by a record collapse in oil prices and growing evidence of the economic damage from the coronavirus pandemic.
Dow Jones closed up by 1.03% percent, S&P 500 closed up by 1.44% percent, Nasdaq settled down by 1.55% percent.
Treasuries Recap
U.S. Treasury yields were little changed on Friday as investors stuck with riskier assets like stocks despite dim prospects of a quick economic rebound after the novel coronavirus outbreak.
The benchmark 10-year yield was down one basis point at 0.6008%.
Commodities Recap
Gold prices slipped on Friday as investors booked profits, but concerns over the global economic slowdown and massive stimulus measures from major central banks kept bullion on track for a weekly gain.
Spot gold was down 0.4% at $1,724.73 per ounce by 1002 GMT, after hitting a more than one-week high in the previous session. Bullion has risen more than 2% so far this week.U.S. gold futures edged 0.1% lower to $1,744.60 an ounce.
Crude prices rose on Friday as energy producers continued to cut the number of rigs drilling for oil in the United States and Canada.
Brent futures for June delivery rose 72 cents, or 3.4%, to $22.05 a barrel by 2:01 p.m. EDT (1801 GMT), while U.S. WTI crude rose 67 cents, or 4.1%, to $17.17. Both contracts traded up over 5% earlier in the day.
