Market Roundup
• Price of U.S. oil increases by nearly 20%
• US Continuing Jobless Claims 15,976K, 16,476K forecast, 11,976K previous
• US Initial Jobless Claims 4,427K, 4,200K forecast, 5,245K previous
• US Jobless Claims 4-Week Avg 5,786.50K, 5,508.50K previous
• Russia Central Bank reserves (USD) 569.7B, 564.9B previous
• Russia March PPI (YoY) -3.2% ,-1.2% previous
• US April Manufacturing PMI 36.9 , 38.0 forecast, 48.5 previous
• US April Markit Composite PMI 27.4, 40.9 previous
• US April Services PMI 27.0, 31.5 forecast, 39.8 previous
• US March New Home Sales 627K, 645K forecast, 765K previous
• US March New Home Sales (MoM) -15.4%, -15.0% forecast, -4.4% previous
• US April KC Fed Composite Index -30, -17 previous
• US April KC Fed Manufacturing Index-62, -18 previous
Looking Ahead - Economic Data (GMT)
• 23:00 Japan National CPI (MoM) -0.1% previous
• 23:30 Japan March CPI, n.s.a (MoM) -0.2% previous
• 23:30 Japan March National Core CPI (YoY) 0.4% forecast, 0.6% previous
• 23:30 Japan March National CPI (YoY) 0.4% previous
• 23:30 Japan Corporate Services Price Index (CSPI) (YoY) 2.1% previous
• 23:30 Japan All Industries Activity Index (MoM) 0.8% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro declined against dollar on Thursday after a video conference of European Union leaders looking to set up a joint fund to avert an economic collapse in parts of the 27-member bloc ended without any agreement on details. Earlier in the session the euro took a hit after a survey showed economic activity in the euro zone all but ground to a halt this month as the coronavirus outbreak sweeping across the world forced governments to impose lockdowns and companies to halt production and shut their businesses. Immediate resistance can be seen at 1.0822 (5DMA), an upside break can trigger rise towards 1.0866(11DMA).On the downside, immediate support is seen at 1.0738 ((Lower BB), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling little changed against greenback on Thursday as market activity appears immune to new data about the disastrous economic fallout from the coronavirus. The IHS Markit/CIPS Flash UK Composite Purchasing Managers’ Index (PMI) fell to a record low of 12.9 from 36.0 in March - not even close to the weakest forecast in a Reuters poll of economists that had pointed to a reading of 31.4..The British currency was last up 0.3% against the dollar, trading at $1.2318 respectively. Immediate resistance can be seen at 1.2444 (11 DMA), an upside break can trigger rise towards 1.2523 (55 DMA).On the downside, immediate support is seen at 1.2224(30DMA), a break below could take the pair towards 1.2157 (April 7th low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as the prospect of further economic stimulus and higher prices for crude oil, one of Canada's major exports, boosted investor sentiment. U.S. crude oil futures were up nearly 20% at $16.53 a barrel, spurred by the promise of more government stimulus, as well as rising tensions in the Middle East and output cuts by producing nations to tackle oversupply. At (1324 GMT), the Canadian dollar was trading 0.5% higher at 1.4083 to the greenback. Immediate resistance can be seen at 1.4084(Jan 9th High), an upside break can trigger rise towards 1.4144 (30 DMA).On the downside, immediate support is seen at 1.4050(11 DMA), a break below could take the pair towards 1.3990 (April 23rd low).
USD/JPY: The dollar edged higher against the Japanese yen on Thursday as expectation of more stimulus from central banks to limit the economic damage from the coronavirus pandemic supported dollar. The U.S. House of Representatives expects to pass a coronavirus relief bill worth nearly $500 billion on Thursday but will put off any decision on changing its voting rules to avoid a potential partisan fight. The pandemic, which has battered global growth and rattled financial markets around the world, has prompted governments and central banks to roll out a wave fiscal and monetary support. Strong resistance can be seen at 107.70 (11 DMA), an upside break can trigger rise towards 109.90 (21 DMA).On the downside, immediate support is seen at 107.29 (April 22nd low), a break below could take the pair towards 106.86 (lower BB).
Equities Recap
A rally in energy and bank shares lifted European stock markets on Thursday, while investors counted on more stimulus to revive the bloc’s economy as the coronavirus-induced lockdowns brought activity to a halt in April.
UK's benchmark FTSE 100 closed up by 0.97 percent, Germany's Dax ended up by 0.96 percent, France’s CAC finished the day up by 0.89 percent.
U.S. stock markets climbed higher at the open on Thursday as jobless claims declined for a third straight week, raising hopes that the worst of the coronavirus pandemic’s impact on the labor market might be over.
Dow Jones closed up by 0.17 percent, S&P 500 ended down by 0.05 percent, Nasdaq finished down by 0.01 percent.
Treasury Recap
Longer-term U.S. Treasury yields were slightly lower on Thursday as investors set aside the latest grim jobs report to focus on how quickly the U.S. economy might reopen amid the coronavirus pandemic.
The benchmark 10-year yield was down 1.8 basis points at 0.6015%, with shorter-term yields still positive.
Commodities Recap
Gold rose to a one-week high on Thursday on the expectation of more stimulus from central banks to limit the economic damage from the coronavirus pandemic as most countries extend lockdowns to curtail its spread.
Spot gold was up 0.7% at $1,726.11 an ounce by 1203 GMT. U.S. gold futures gained 0.8% to $1,752.40.
Oil soared on Thursday, extending its rebound after major oil-producing nations said they would accelerate planned production cuts to combat the dramatic slump in demand due to the COVID-19 pandemic.
Brent rose 96 cents, or 4.7%, to settle at $21.33 a barrel, while WTI jumped $2.72, or 19.7%, to settle at $16.50.
