Market Roundup
• Trump says China trade talks going well, will only accept 'great' deal
• Trump to pick former presidential candidate Herman Cain for Fed seat -official
• Fed's Harker sees 'at most' one rate hike in 2019
• Fed's Mester sees scope for U.S. rates to move 'a bit higher'
• Trump pulls back from threat to shut down border with Mexico
• Go "extra step" to get Brexit deal, UK Labour lawmakers urge Corbyn
• Brexiteer lords try to thwart law forcing PM May to request EU exit delay
• "Upswing at an end" as German institutes slash growth forecast
• German industrial orders slump 4.2 percent in February
• Italy stocks and euro fall, bonds rise after report govt to cut 2019 GDP forecast
• U.S. w/e 30 Mar Initial Jobless Claims, 202k, 216k forecast, 211k previous, 212k revised
• U.S. w/e 23 Mar Continued Jobless Claims, 1.717 mln, 1.750 mln forecast, 1.756 mln previous, 1.755 mln revised
• U.S. w/e 30 Mar Jobless Claims 4-Wk Avg, 213.50k, 217.25k previous, 217.50k revised
• CA March Ivey PMI SA, 54.3, 51.1 forecast, 50.6 previous
• CA March Ivey PMI, 57.6, 48.9 previous
Looking Ahead - Economic Data (GMT)
• 4 Apr 22:30 Australia Mar AIG Construction Index, 43.8 previous
• 4 Apr 23:30 Japan Feb All Household Spending YY, 2.1% forecast, 2.0% previous
• 4 Apr 23:30 Japan Feb All Household Spending MM, -0.5% forecast, 0.7% previous
• 5 Apr 02:00 New Zealand Mar Reserve Assets Total (NZD), 28,786 mln previous
Looking Ahead - Events, Other Releases (GMT)
• 5 Apr 19:30 Atlanta Fed's Raphael Bostic delivers lecture followed by discussion on "Disruption and Opportunity: Shaping Policy in a Digital World" - Atlanta
Currency Summaries
EUR/USD: The euro dipped against dollar on Thursday, as weak German economic data and a report that Italy would slash its growth forecasts raised fears about weakening growth in Eurozone. German industrial orders fell by the sharpest rate in more than two years in February as they were hit by a slump in foreign demand, compounding worries that Europe's largest economy had a weak start to the year. The single currency fell 0.15% against the greenback to $1.1217.An index that tracks the dollar versus a basket of six major currencies was up 0.20 at 97.29 . Immediate resistance can be seen at 1.1255 (11 DMA), an upside break can trigger rise towards 1.1276 (21 DMA).On the downside, immediate support is seen at 1.1200 (Psychological level), a break below could take the pair towards 1.1158 (Lower Bollinger Band).
GBP/USD: British pound declined against the dollar on Thursday, as pound was weighed down on concerns that Britain may be headed for Brexit delay. Britain could ask the European Union for a long Brexit delay next week if crisis talks between Prime Minister Theresa May's government and the opposition Labour Party fail to find a way out of the impasse over the divorce from the European Union. The pound slipped more than half a percent to the day's low at $1.3077. Against the euro, it weakened half a percent at 85.78 pence.Immediate resistance can be seen at 1.3100 (Psychological level), an upside break can trigger rise towards 1.3158 (21 DMA).On the downside, immediate support is seen at 1.2987 (Lower Bollinger Band), a break below could take the pair towards 1.24924 (100 DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, as the price of oil steadied below this year's high and as investors awaited domestic jobs data on Friday. Canada's employment report for March will come as blockbuster Canadian job gains this year have helped bolster investor sentiment for the loonie, offsetting weak gross domestic product data and a slowdown in the global economy that could hurt Canada's exports. The price of oil, one of Canada's major exports, edged lower after posting a near five-month high on Wednesday. The Canadian dollar was last trading nearly unchanged at 1.3352 to the greenback. Immediate resistance can be seen at 1.3371 (11 DMA), an upside break can trigger rise towards 1.3442 (Higher Bollinger Bands).On the downside, immediate support is seen at 1.3314 (100 DMA), a break below could take the pair towards 1.3283 (50 DMA).
USD/JPY: The U.S. dollar strengthened against the yen on Thursday, as signs of progress in the Sino-U.S. trade dispute supported greenback. A deal between the world's two biggest economies would remove a concern that has been hanging over financial markets since the two nations imposed tariffs on each other last year.Analysts now await the closely watched U.S. non-farm payrolls data on Friday for further clues on the strength of the U.S. economy. The dollar was 0.12 higher versus the Japanese yen at 111.61. Strong resistance can be seen at 111.98 (Bollinger Band), an upside break can trigger rise towards 112.12 (Match 5th high).On the downside, immediate support is seen at 111.05 (21 DMA), a break below could take the pair towards 110.74(50 DMA).
Equities Recap
European shares snapped a four session winning run on Thursday, as bank stocks drew close attention after sources said Italy's UniCredit was interested in buying Germany's Commerzbank.
The UK's benchmark FTSE 100 closed down by 0.17 percent, FTSEurofirst 300 ended the day down by 0.21 percent, Germany's Dax ended up by 0.31 percent, and France’s CAC finished the down by 0.02 percent.
The benchmark S&P 500 stock index edged higher, nearing a six-month high on Thursday, with losses in technology stocks countered by gains in Boeing Co and Facebook Inc as investors waited for more clarity on the U.S.-China trade talks.
Dow Jones closed up by 0.63 percent, S&P 500 ended up 0.21 percent, Nasdaq finished the day down by 0.05 percent.
Treasuries Recap
U.S. Treasury yields slipped modestly on Thursday, below 1-1/2-week highs, as traders awaited a possible breakthrough in the latest round of trade negotiations between China and the United States.
In late U.S. trading, yields on benchmark 10-year Treasury notes were 2.513%, down marginally from late on Wednesday. They hit a 1-1/2-week peak of 2.528% in the previous session.
Commodities Recap
Brent oil prices rose on Thursday, briefly touching $70 a barrel for the first time since November as expectations of tight global supply outweighed pressure from rising U.S. production and less robust global demand indicators.
International benchmark Brent futures settled up 9 cents at $69.40. Brent touched a session high of $70.03, the highest since Nov. 12 when it last traded above $70.
U.S. West Texas Intermediate (WTI) crude fell 36 cents a barrel to settle at $62.10. The contract hit $62.99 on Wednesday, its highest since November.
Gold inched higher on Thursday, after touching a near 10-week low earlier in the session as the dollar firmed on U.S. jobs data, while investors awaited clarity on U.S.-China trade talks.
Spot gold inched 0.2 percent higher to $1,293 per ounce as (2039 GMT).U.S. gold futures settled little changed at $1,294.3.
