Market Roundup
• US retail sales collapse in March
• NY Fed Empire State manufacturing index slumps to record low
• US Indexes down: Dow 1.8%, S&P 2.20 %, Nasdaq 1.44 %
• U.S 10-year, 30-year yields slips to one-week low
• US March Core Retail Sales (MoM) -4.5% -4.8% forecast, -0.4% previous
• US April NY Empire State Manufacturing Index -78.20, -35.00 forecast, -21.50 previous
• US Retail Control (MoM) 1.7%,-2.0% forecast, 0.4% previous
• US March Retail Sales (MoM) -8.7%, -8.0% forecast, -0.5% previous
• US March Capacity Utilization Rate72.7%, 73.8% forecast, 77.0% previous
• US March Industrial Production (YoY) -5.49%, 0.04% previous
• US March Industrial Production (MoM) -5.4%,-4.0% forecast, 0.6% previous
• US Feb Business Inventories (MoM) -0.4%,-0.4% forecast, -0.1% previous
• US April NAHB Housing Market Index 30, 55 forecast, 72 previous
• US Feb Retail Inventories Ex Auto 0.0%, 0.0% previous
• Canada BoC Interest Rate Decision 0.25%,0.25% forecast, 0.25% previous
• US Crude Oil Inventories 19.248M,11.676M forecast, 15.177M previous
Looking Ahead - Economic Data (GMT)
• 23:00 Japan April Reuters Tankan Index -20 previous
• 23:00 Japan Foreign Bonds Buying -1,056.4B previous
• 23:00 Japan Foreign Investments in Japanese Stocks 422.7B previous
• 01:00 Australia MI Inflation Expectations 4.0% previous
• 01:00 Australia March Employment Change -40.0K, 26.7K previous
• 01:00 Australia March Full Employment Change 6.7K previous
• 01:00 Australia March Participation Rate 65.9% forecast, 66.0% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro edged lower against dollar on Wednesday as weak US retail sales data sent the dollar higher as investors fled risk assets for safe havens. The Commerce Department on Wednesday reported that U.S. retail sales suffered a record drop in March as mandatory business closures to control the spread of the novel coronavirus outbreak depressed demand for a range of goods, setting up consumer spending for its worst decline in decades. The euro was last trading 0.62% lower to $1.0913.Immediate resistance can be seen at 1.0930 (5 DMA), an upside break can trigger rise towards 1.0991 (30 DMA).On the downside, immediate support is seen at 1.0892 (21 DMA), a break below could take the pair towards 1.0848 (Daily low).
GBP/USD: The pound fell back on Wednesday from one-month highs against the dollar as investors realised it was too early to be optimistic about a recovery from the coronavirus crisis.Sterling’s 1.3% fall against the dollar was driven by a dire global economic forecast from the International Monetary Fund, which diminished risk appetite broadly, boosting the dollar. A weakening global economy enhances the safe-haven appeal of the U.S. dollar as it is the major currency in global trade and the predominant medium of exchange in world markets. Immediate resistance can be seen at 1.2624 (55 DMA), an upside break can trigger rise towards 1.2795 (100 DMA).On the downside, immediate support is seen at 1.2503 (5 DMA), a break below could take the pair towards 1.2404 (11 DMA).
USD/CAD: The Canadian dollar declined against its U.S. counterpart on Wednesday as the Bank of Canada broadened the suite of assets it is purchasing to cushion the economic blow of the coronavirus pandemic. The Bank of Canada on Wednesday said the coronavirus outbreak was set to trigger the biggest ever near-term Canadian slump. The central bank held interest rates steady at 0.25% as expected, added provincial and corporate bonds to its quantitative easing program. Immediate resistance can be seen at 1.3954 (5 DMA), an upside break can trigger rise towards 1.4035 (200 DMA).On the downside, immediate support is seen at 1.3856 (Daily low), a break below could take the pair towards 1.3723 (50 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as investors fled to safety of greenback after data showed the U.S. economy in a deep downturn. U.S. retail sales plunged 8.7% last month, the biggest decline since the government started tracking the series in 1992, while manufacturing output dropped by the most in just over 74 years in March. The retail sales data set U.S. consumer spending up for its worst decline in four decades. At (GMT 20:20), the dollar gained 0.20% versus the Japanese yen at 107.50 per dollar. Strong resistance can be seen at 108.50 (50 DMA), an upside break can trigger rise towards 108.91 (100 DMA).On the downside, immediate support is seen at 106.89 (Daily low), a break below could take the pair towards 106.30 (lower BB).
Equities Recap
European shares closed firmly in the red on Wednesday, ending a five-day rally as the first batch of earnings reports underlined the business damage from the coronavirus pandemic, while energy stocks sank on worries of a plunge in oil demand.
UK's benchmark FTSE 100 closed down by 3.40 percent, Germany's Dax ended dow by 3.90 percent, France’s CAC finished the day down by 3.74 percent.
U.S. stocks fell on Wednesday as dismal economic and first-quarter earnings reports compounded concerns over the extent of damage from the coronavirus outbreak.
Dow Jones closed up by 1.86 percent, S&P 500 ended down by 2.20 percent, Nasdaq finished the down by 1.44 percent.
Treasuries Recap
U.S. Treasury yields fell across the board on Wednesday as risk aversion flared up again after data showed the coronavirus pandemic decimating U.S. consumer demand and manufacturing activity.
U.S. two-year yields dropped below 0.2% for the first time in three years, while those on 10-year notes and 30-year bonds dipped to one-week lows.
Commodities Recap
Gold prices fell on Wednesday, a day after scaling over seven-year highs, as the dollar firmed and investors booked profits, although concerns of a global recession put a floor under prices.
Spot gold fell 0.7% to $1,716.40 per ounce, by 11:29 am (1529 GMT). On Tuesday, prices had jumped as much as 1.9% to their highest since November 2012 at $1,746.50.U.S. gold futures dropped 1.5% to $1,742.80.
Oil prices were mixed on Wednesday after the United States reported a 19 million-barrel jump in inventories, the biggest weekly build ever, while forecasts showed global demand crumbling to its lowest levels in a quarter-century due to the coronavirus pandemic.
Brent crude dropped $1.17, or 3.9%, to $28.43 a barrel by 1:20 p.m. EDT (1720 GMT). U.S. West Texas Intermediate crude rose 6 cents to $20.17, after hitting an 18-year low earlier in the day of $19.20. Brent reached its lowest since 2002 at $21.65 a barrel on March 30.
