Market Roundup
• US Feb Pending Home Sales (MoM) 2.4%, -1.0% forecast, 5.2% previous
• US Feb Pending Home Sales Index111.5, 108.8 previous
• US March Dallas Fed Mfg Business Index-70.0, 6.2 forecast, 1.2 previous
Looking Ahead - Economic Data (GMT)
•21:45 New Zealand Feb Building Consents (MoM) 1.0% forecast,-2.0% previous
• 23:01 UK March GfK Consumer Confidence -15 forecast, -7 previous
•23:30 Japan Feb Jobs/applications ratio 2.4% forecast, 2.4% previous
• 23:30 Japan Feb Industrial Production (MoM) 0.1% forecast,1.0% previous
•23:30 Japan March Industrial Production forecast 1m ahead (MoM) 5.3% previous
• 23:30 Japan Feb Retail Sales (YoY) -1.2% forecast,-0.4% previous
• 00:00 Australia HIA New Home Sales (MoM) -1.9% forecast, 5.7% previous
• 00:00 New Zealand March ANZ Business Confidence -24.1 forecast , -19.4 previous
• 00:30 Australia Feb Private Sector Credit (MoM) 0.2%,0.4% previous
• 01:30 China March Chinese Composite PMI 28.9 previous
•01:30 China March Manufacturing PMI 45.0 forecast, 35.7 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Monday as coronavirus lockdowns tightened across the world and investors braced for a prolonged period of uncertainty. The euro, sterling and Aussie dollar were all down 0.6 % to 1% in London trading, bringing an end to recent rebounds that followed the Federal Reserve’s efforts to calm the rush to own the U.S. currency earlier this month. Concern about the spreading coronavirus and the economic impact of shutdowns continued to dominate foreign exchange markets, but price moves on Monday were relatively well-contained and much smaller than in recent sessions. Immediate resistance can be seen at 1.1152 (38.2% fib), an upside break can trigger rise towards 1.1280 (23.6% fib).On the downside, immediate support is seen at 1.0949 (61.8% fib), a break below could take the pair towards 1.0900 (Psychological level).
GBP/USD: Sterling edged lower against the dollar on Monday, as the greenback reasserted itself as a safe haven for investors amid the coronavirus pandemic and Britain’s economic outlook took another hit in the face of a credit ratings downgrade. The pound rose nearly 7 percent against the dollar last week as measures to inject liquidity into markets by the U.S. Federal Reserve and a $2 trillion stimulus bill passed by the U.S Congress cooled demand for the U.S. currency as a safe haven. Immediate resistance can be seen at 1.2522 (38.2% fib), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2305 (50 % fib), a break below could take the pair towards 1.2095 (61.8 %fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Monday as the price of oil fell and the greenback climbed against a basket of major currencies, with the loonie giving up some of the previous week's sharp gains. U.S. crude oil futures on Monday were down 6% at $20.21 a barrel, while the U.S. dollar snapped a week of declines as investors braced for prolonged uncertainty and governments tightened lockdowns to fight the coronavirus. Immediate resistance can be seen at 1.4170 (5 DMA), an upside break can trigger rise towards 1.4253 (11 DMA).On the downside, immediate support is seen at 1.4000 (Psychological level), a break below could take the pair towards 1.4943 (21 DMA).
USD/JPY: The dollar declined against the Japanese yen Monday as recession fears grew across the world as the coronavirus continued to spread across the world. Total deaths are nearly 34,000 and the United States has emerged as the latest epicentre, with more than 137,000 cases and 2,400 deaths. Lockdowns are toughening worldwide and U.S. President Donald Trump, who had talked about reopening the economy for Easter, on Sunday extended guidelines for social restrictions to April 30. Strong resistance can be seen at 108.69(61.8% fib), an upside break can trigger rise towards 109.35 (61.8%fib).On the downside, immediate support is seen at 107.07 (23.6 % fib), a break below could take the pair towards 106.69 (18th March low ).
Equities Recap
European stocks closed higher on Monday after last-minute gains, with buying focused largely on defensive sectors amid plummeting oil prices and continued anxiety over the coronavirus.
UK's benchmark FTSE 100 closed up by 0.97percent, Germany's Dax ended up by 1.90 percent, France’s CAC finished the day up by 0.62 percent.
Wall Street rose on Monday as President Donald Trump followed last week’s massive fiscal stimulus package by extending his stay-at-home guidelines, leaving investors hopeful that the economic impact of the coronavirus could still be contained.
Dow Jones closed up by 3.19 percent, S&P 500 ended down at 3.35 percent, Nasdaq finished the day up by 3.62 percent.
Treasuries Recap
U.S. Treasury yields were mostly lower but steady on Monday morning after U.S. President Donald Trump extended stay-at-home guidelines to battle the worsening coronavirus pandemic.
The benchmark 10-year yield was down 12 basis points in morning trading at 0.6243%, with most of the decline taking place overnight.
Commodities Recap
Gold prices inched up on Monday after an extension of restrictions in the United States exacerbated concerns about the economic toll of the coronavirus pandemic, driving investors to safe-haven assets.
Spot gold rose 0.1% at $1,618 an ounce by 2:37 p.m. EDT (1837 GMT). U.S. gold futures settled 0.2% lower to $1,622 an ounce.
Oil took another eyewatering 8% tumble on Monday and world shares buckled again as fears mounted that the global coronavirus shutdown could last for months.
Brent futures were down 8%, or $2, at $22.50 a barrel their lowest for 18 years. U.S. West Texas Intermediate (WTI) crude futures fell as far as $19.92, near a 2002 low hit this month.
