Market Roundup
• US weekly jobless claims point to tightening labor market, 234k v 245k forecast; 4-wk Avg -3k.
• US PPI final demand y/y 2.3% v 2.4% forecast, 2.2% previous, m/m -0.1% v 0% forecast, 0.3% previous.
• US core PPI y/y 1.6% v 1.8% forecast, 1.5% previous; m/m 0% v 0.2% forecast, 0.3% previous.
• U Mich prelim sentiment 98 v 96.5 forecast, 96.9 previous, expectations prelim 86.9 v 86 forecast, 86.5 previous.
• U Mich 1/5-yr inflation prelim unchanged at 2.5% 1-yr & 2.4% 5-yr.
• Senior US Treasury official: US to reiterate to IMF/G20 meetings next week its role in monitoring forex, global imbalances.
• Loan growth stalls despite profit, trading gains at some big banks.
• Italy March EU-harmonized CPI gained a revised 1.9% m/m, 1.4% y/y.
• IEA: Global oil market nears balance even as stocks rise, IEA trims 2017 oil demand growth forecast by 40,000 bpd.
Looking Ahead - Economic Data (GMT)
• No Significant Data
Looking Ahead - Events, Other Releases (GMT)
• No Significant Events
Currency Summaries
EUR/USD is likely to find support at 1.0562 levels and currently trading at 1.0617 levels. The pair has made session high at 1.0635 and hit lows at 1.0608 levels. The euro declined against the U.S. dollar on Thursday as the dollar recovered from its previous day's slide as investors discounted remarks by President Donald Trump. Dollar took a heavy hit after Trump's comments to the Wall Street Journal, in which he said the strength of the dollar would hurt the economy. But after losing 0.6 percent on Wednesday, its biggest one-day fall in more than three weeks, the dollar recovered against a basket of major currencies that tracks its value. Trump's remarks went against a long-standing practice of both U.S. Democratic and Republican administrations of refraining from commenting on policy set by the independent Federal Reserve. It is also unusual for a president to talk about the value of the dollar, a subject usually left to the U.S. Treasury secretary. The dollar has shed 1.7 percent against the yen so far this week, its fourth week lower against the safe-haven Japanese currency in five, as a rise in tensions in Asia and Europe prompted yen buying. The euro fell 0.5 percent to $1.0619 after touching a one-week high in overnight trading.
GBP/USD is supported in the range of 1.2480 levels and currently trading at 1.2503 levels. It reached session high at 1.2531 and dropped to session low at 1.2500 levels. Britain's pound rose against the dollar on Thursday as upbeat economic data, and jitters ahead of the first round of the French presidential, pulled the pound up. Consumer prices in Britain increased in March by 2.3 percent compared with a year earlier above the Bank of England's target while earnings including bonuses rose by an annual 2.3 percent in the three months to February. British manufacturers reported the fastest export growth in more than two years in early 2017 and the services sector also recovered to rack up its strongest sales growth since last June's Brexit vote, a business survey showed on Thursday. Britain's pound gained for the fourth successive day versus the dollar in early London trade, but lost momentum in the US session as the greenback recovered from a dip following U.S. President Donald Trump's comments on its strength. It last traded at $1.2503, down 0.2 percent on the day, but still up 1 percent for the week.
USD/CAD is supported at 1.3260 levels and is trading at 1.3331 levels. It has made session high at 1.3334 and lows at 1.3227 levels. The Canadian dollar declined against its U.S. counterpart on Thursday, as the Lonnie was pressured by geopolitical tensions and stronger dollar across the board. Investors are concerned about the upcoming French presidential election as well as possible more U.S. military action against Syria and news of a massive bomb being dropped by the United States in eastern Afghanistan on Thursday added to uncertainty. oil prices were little changed on modest volume on Thursday, in a week in which crude benchmarks recouped more of March's losses on increased hopes world supply and demand were nearing balance.On the data front, Canadian manufacturing sales fell 0.2 percent in February after three consecutive months of increases, weighed down by declines in the vehicle assembly sector, data from Statistics Canada showed. The decrease was not as steep as the 0.7 percent decline economists had expected, while sales volumes rose 0.1 percent.
AUD/USD is supported around 0.7550 levels and currently trading at 0.7570 levels. It hit session high at 0.7590 and made session lows at 0.7564 levels. The Australian dollar dipped slightly against US dollar on Thursday as geopolitical tensions took on more significance after news that the United States had dropped a massive bomb in Afghanistan. The U.S. military said it dropped "the Mother of All Bombs," the largest non-nuclear device it has ever unleashed in combat, on a network of caves and tunnels used by Islamic State in eastern Afghanistan on Thursday. The Australian dollar dipped to trade at 0.7564 from an earlier high of 0.7564 hit following upbeat readings on employment at home and trade in China where both exports and imports beat expectations. Australia's jobless rate steadied at 5.9 percent in March as employment surged the most in 1-1/2 years, a relief for the country's central bank which had been worried about recent labour market softness. Data from the Australian Bureau of Statistics (ABS) showed the jobless rate held at a 13-month peak of 5.9 percent, in line with expectations. Yet employment leapt 64,900, far exceeding anticipation of a 20,000 increase.
Equities Recap
European shares were led lower by declines in the bank sector on Thursday, leaving an index of the continent's top companies to nurse a weekly loss.
The UK's benchmark FTSE 100 closed down by 0.4 percent, FTSEurofirst 300 ended the day down by 0.47 percent, Germany's Dax ended down 0.4, and France’s CAC finished the day down by 0.7 percent.
Major U.S. stock indexes fell on Thursday for a third straight day as investors weighed earnings reports from big U.S. banks and geopolitical tensions, while the tech sector fell for a tenth consecutive session.
Dow Jones closed down by 0.66 percent, S&P 500 ended down 0.67 percent, Nasdaq finished the day down by 0.52 percent.
Treasuries Recap
U.S. Treasury yields fell on Thursday, with benchmark yields hitting near five-month lows as President Donald Trump's favorable view of low-interest rates intensified a bond market rally that was underpinned by geopolitical worries.
The yield on 10-year Treasury notes fell 14 basis points, for the biggest weekly decline since January 2016, while the gap between two-year and 10-year yields contracted to under 103 basis points, the tightest since Nov. 9 after Trump's presidential win.
Commodities Recap
Gold prices eased from five-month highs on Thursday as the dollar rebounded from a slide triggered by comments from U.S. President Donald Trump that the greenback was too strong and that he would prefer the Federal Reserve keep interest rates low.
Spot gold was up 0.06 percent at $1,286.84 an ounce by 2:26 p.m. EDT (1826 GMT), having earlier hit its strongest since early November at $1,288.64 an ounce. U.S. gold futures for June delivery ended 0.8 percent higher at $1,288.50.
Oil prices were little changed in modest volume on Thursday, during a week in which crude benchmarks recouped more of March's losses on increased hopes world supply and demand were nearing balance.
Benchmark Brent crude futures settled up 3 cents to $55.89 a barrel after touching a one-month high on Wednesday.
U.S. West Texas Intermediate crude futures settled up 7 cents at $53.18 a barrel. Both benchmarks were set for a third consecutive weekly gain.
