America’s Roundup: Dollar recovers after overnight drop, Wall Street climbs, Gold prices hold steady, Oil gains on production cut hopes as inventory build limits gains-April 9th,2020

Market Roundup

• Canada March Housing Starts 195.2K, 180.0K forecast, 210.6K previous

• Canada Feb Building Permits (MoM)  -7.3%,-4.5% forecast, 3.3% previous

• US Crude Oil Inventories 15.177M,9.271M forecast, 13.834M previous

• US Cushing Crude Oil Inventories 6.417M, 3.521M previous

• US Gasoline Inventories -1.638M, 4.333M forecast, 7.524M 

• Brazil April Thomson Reuters IPSOS PCSI  50.35 previous

Looking Ahead - Economic Data (GMT)

• 22:45 New Zealand March Electronic Card Retail Sales (MoM) 0.6% previous

• 22:45 New Zealand March Electronic Card Retail Sales (YoY)  8.6% previous

• 23:50 Japan Foreign Bonds Buying -1.7B previous

• 23:50 Japan Foreign Investments in Japanese Stocks  -1,421.9B previous

• 23:50 Japan Household Confidence ¬30.9 previous    

Looking Ahead - Events, Other Releases (GMT)    

• 00:30 Japan  BoJ Governor Kuroda Speaks 

• 00:30 Australia RBA Financial Stability Review       
  
Currency Summaries

EUR/USD: The euro dipped against dollar on Wednesday after euro zone finance ministers failed to agree during all-night talks on more support for their coronavirus-hit economies. Eurogroup chairman Mario Centeno said on Wednesday he was suspending the discussions until Thursday. A feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments were blocking progress. The euro was last trading 0.04 % lower to $1.0886 .Immediate resistance can be seen at 1.0934 (9 DMA), an upside break can trigger rise towards 1.0978 (50 DMA).On the downside, immediate support is seen at 1.0834 (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD: Sterling gained ground against the dollar on Wednesday as the U.S. currency’s rally eased a touch, and on news that British Prime Minister Boris Johnson was in “clinically stable” condition after being rushed into intensive care. Recent trading sessions have seen the pound jerked around by news of the British leader’s health but overall, the currency has traded sideways against a fluctuating dollar as investors parse incoming news on the coronavirus pandemic. By 1947 GMT, the pound was 0.3% higher against the dollar at $1.2381. Immediate resistance can be seen at 1.2400 (30 DMA), an upside break can trigger rise towards 1.2650 (50 DMA).On the downside, immediate support is seen at 1.2289 (11 DMA), a break below could take the pair towards 1.2149 (21 DMA).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, giving back some of the previous day's gains as domestic housing data showed signs of economic damage from the coronavirus outbreak. Canadian housing starts fell 7.3% in March from the previous month in a sign that the coronavirus outbreak began to hit residential construction activity, data from the national housing agency showed. At   (1324 GMT), the Canadian dollar was trading 0.28% lower at 1.4024 to the greenback. The currency, which touched on Tuesday an 11-day high at 1.3941, traded in an range of 1.3988 to 1.4081. Immediate resistance can be seen at 1.4084(Jan 9th High), an upside break can trigger rise towards 1.4142 (21 DMA).On the downside, immediate support is seen at 1.3936 (30 DMA), a break below could take the pair towards 1.3900 (Psychological level).

USD/JPY: The dollar gained against the Japanese yen on Wednesday as optimism that the coronavirus crisis was slowing waned, increasing investor concerns over the economic impact of the pandemic. The dollar’s rise came as global stocks turned negative after two days of gains as deaths from the coronavirus mounted across the globe. European equities fell amid renewed concern about the spread of the virus and the continent’s response to it, mirroring Asian markets and a fall on Wall Street late on Tuesday. At (1937 GMT),the dollar gained 0.11% against the Japanese currency to 108.92 yen. Strong resistance can be seen at 108.96 (100 DMA), an upside break can trigger rise towards 109.78 (Feb 28th high).On the downside, immediate support is seen at 108.38 (21 DMA), a break below could take the pair towards 108.00 (Psychological level).

Equities Recap

European stock dipped on Wednesday as the coronavirus death toll mounted and euro zone finance ministers failed to agree a rescue package to help economies recover from the impact of the outbreak.

UK's benchmark FTSE 100 closed down by 1.44 percent, Germany's Dax ended down by -0.23 percent, France’s CAC finished the day down by 0.10 percent.

Wall Street rose on Wednesday on hopes the coronavirus outbreak in the United States was close to its peak, with health insurers boosted by Democratic presidential candidate Bernie Sanders suspending his campaign.

Dow Jones closed down by 3.50 percent, S&P 500 ended down by 3.31 percent, Nasdaq finished up by 2.43 percent.

Treasuries Recap

Yields on longer-dated U.S. Treasuries inched higher on Wednesday ahead of an auction of 30-year bonds and the prospect of more stimulus spending to ward off the detrimental impact of the coronavirus outbreak.

The yield on the benchmark U.S. 10-year note was flat at 0.7341% after moving slightly higher earlier in the day.

Commodities Recap

Gold edged higher on Wednesday as the rising coronavirus death toll hammered risk sentiment.

Spot gold were little changed at $1,647.93 per ounce by 11:01 a.m. EDT (1501 GMT), having hit a near one-month high on Tuesday at $1,671.40. U.S. gold futures rose 0.3% to $1,687.90.

Crude prices edged up on Wednesday, buoyed by hopes that OPEC and its allies will strike a production cut agreement, but surging U.S. crude inventories muted the gains.

Brent crude  was up 32 cents, or 1%, at $32.19 by 12:46 p.m. EDT (1646 GMT). U.S. West Texas Intermediate (WTI) crude   45 cents to $24.08 a barrel, after trading as high as $25.29 a barrel.