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America’s Roundup: Dollar gains for second day, shrugs off record U.S. jobless claims, Wall Street rallies, Gold gains, Oil soars after Trump says Saudis and Russians to cut output-April 3rd ,2020

Market Roundup

• US Continuing Jobless Claims 3,029K, 4,882K forecast, 1,803K previous               

• US Exports 207.50B,208.60B previous                                  

• US Imports 247.50B, 253.90B previous

• US Initial Jobless Claims 6,648K ,3,500K forecast, 3,283K previous

• US Jobless Claims 4-Week Avg 2,612.00K,1,004.25K previous

• US Feb Trade Balance-39.90B,                -40.00B forecast, -45.30B previous

• Canada Feb Exports 48.34B, 47.70B forecast, 48.14B previous 

• Canada Feb Imports 49.32B, 49.00B forecast, 49.61B previous 

• Canada Feb Trade Balance -0.98B, -1.87B forecast, -1.47B previous      

• US March ISM NY Business Conditions 12.9%,51.9% previous   

•US March ISM-New York Index 849.3,867.9 previous   

• US Feb Durables Excluding Defense (MoM) 0.1%,0.1%  previous

• US Feb Factory Orders (MoM) 0.0%, 0.2% forecast, -0.5% previous

• US Feb Factory orders ex transportation (MoM) -0.9%, -0.1% previous

Looking Ahead - Economic Data (GMT) 

• 21:45 Australia March  AIG Construction Index  42.7 previous   

• 21:30   Australia Services PMI 39.8 forecast, 49.0 previous

• 00:30   Australia Feb Retail Sales (MoM)  0.4% forecast, -0.3% previous

•00:30   Japan March Services PMI  32.7, 46.8 previous   

Looking Ahead - Events, Other Releases (GMT)

• No significant events 

Currency Summaries        

EUR/USD: The euro declined against dollar on Thursday as the single currency slid broadly on investor concerns at disagreement between euro zone governments over a rescue package for countries struggling to cope with the coronavirus pandemic. The dollar stood at 99.625 against a basket of six major currencies after a gain of 0.53% overnight. The euro extended its decline, falling 1.2% to $1.0828, after hitting a one-week low. Immediate resistance can be seen at 1.0897 (11 DMA), an upside break can trigger rise towards 1.0985 (50 DMA).On the downside, immediate support is seen at 1.0821 (23.6% fib), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD: Sterling strengthened against dollar on Thursday as the British currency rebounded further after crashing last month amid coronavirus-driven panic on money markets. Sterling has benefited broadly in recent weeks from co-ordinated action by central banks including the Bank of England to ease a mad scramble for U.S. dollars, the world’s most liquid currency seen as a safe haven in times of crisis. This has eased selling pressure on other major currencies, including the pound. Immediate resistance can be seen at 1.2480 (Daily high), an upside break can trigger rise towards 1.2660 (50 DMA).On the downside, immediate support is seen at 1.2262 (20 DMA), a break below could take the pair towards 1.2200 (Psychological level ).

USD/CAD: The Canadian dollar strengthened slightly in choppy trading against its U.S. counterpart on Thursday, as oil prices rallied but a spike in U.S. jobless claims weighed on investor sentiment.    After a sharp decline on Wednesday, stock markets globally remained jittery, with data showing the number of Americans filing claims for unemployment benefits soared to a record high of more than 6 million as more jurisdictions enforced stay-at-home measures to curb the coronavirus pandemic. The Canadian dollar was last trading 0.2% higher at 1.4147to the greenback. Immediate resistance can be seen at 1.4198 (9 DMA), an upside break can trigger rise towards 1.4260 (23.6% fib).On the downside, immediate support is seen at 1.4039 (21 DMA), a break below could take the pair towards 1.3946(50 % fib).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday as investors, worried about the prospect of a global recession, took shelter in the greenback. U.S. jobless claims in the latest week soared to a record level, yet the dollar’s reaction was tepid at most. Data showed initial claims for unemployment benefits rose to 6.65 million in the latest week from an unrevised 3.3 million the previous week. The figures far exceeded the median estimate of 3.50 million. Strong resistance can be seen at 108.11 (Daily high), an upside break can trigger rise towards 108.72(50 DMA).On the downside, immediate support is seen at 106.66 (38.2% fib), a break below could take the pair towards 106.00  (Psychological level).

Equities Recap

A late-session rally in the energy sector helped European stocks end slightly higher on Thursday, with sentiment remaining fragile after a sharp rise in U.S. unemployment claims showed further evidence of the coronavirus’ economic impact.

UK's benchmark FTSE 100 closed up by 0.47 percent , Germany's Dax ended up by 0.27 percent, France’s CAC finished the day up by 0.33 percent.

U.S. stocks rallied on Thursday as hopes for a truce in the price war between Saudi Arabia and Russia and a cut in oil output drove gains, taking some sting out of a shocking jump in Americans filing jobless claims due to coronavirus-led lockdowns.

Dow Jones closed up by 2.24 percent, S&P 500 ended up by 2.29 percent, Nasdaq finished the down up by 1.72 percent.

Treasuries Recap

U.S. Treasury yields were little changed on Thursday despite a  record rise in jobless claims, as investors struggled with the unprecedented data and tried to gauge when the coronavirus pandemic's economic impact might peak.

The benchmark 10-year yield was down 2.4 basis points at 0.6111% in afternoon trading.

Commodities Recap

Gold prices jumped over 1% on Thursday, as record high U.S. jobless claims for a second week in a row intensified fears of economic damage due to the coronavirus and drove investors towards the safe-haven metal.

Spot gold   gained 1.3% to $1,610.68 per ounce by 1:31 p.m. EDT (1731 GMT), while U.S. gold futures   settled 2.9% higher at $1,637.70.           

Crude prices soared on Thursday after U.S. President Donald Trump said he expects Russia and Saudi Arabia to announce a major oil production cut, and Saudi state media said the kingdom was calling an emergency meeting of producers to deal with the market turmoil.

Brent futures  rose $4.44, or 18.0%, to $29.18 a barrel by 2:03 p.m. EDT (1803 GMT), while U.S. West Texas Intermediate (WTI) crude   rose $3.43, or 16.9%, to $23.74.

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