Market Roundup
• U.S. nonfarm payrolls drop 701,000 in March
• Dollar heads for a 2% weekly rise
• US March Average Hourly Earnings (YoY) (YoY) 3.1%, 3.0% forecast, 3.0% previous
• US March Average Hourly Earnings (MoM) 0.4%, 0.2% forecast, 0.3% previous
• US March Nonfarm Payrolls -701K, -100K forecast, 273K previous
• US March Participation Rate 62.7%,63.3% forecast, 63.4% previous
• US March Private Nonfarm Payrolls -713K, -163K forecast, 228K previous
• US March U6 Unemployment Rate 8.7%,7.0% previous
• US March Unemployment Rate 4.4%,3.8% forecast, 3.5% previous
• US March Markit Composite PMI 40.9, 40.5 forecast, 49.6 previous
• US March Services PMI 39.8, 39.1 forecast, 49.4 previous
• US March ISM Non-Manufacturing PMI 52.5, 44.0 forecast, 57.3 previous
Looking Ahead - Economic Data (GMT)
• No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Friday as investors took shelter in the U.S. currency amid worsening economic fallout from the coronavirus pandemic. The dollar largely shrugged off the U.S. non-farm payrolls report that showed massive job losses of 701,000 last month, compared with expectations of 100,000 lost jobs.March’s contraction abruptly ended a historic 113 straight months of employment growth. The Labor Department also revised February’s number upward to 275,000 job gains. The unemployment rate rose to 4.4% from 3.5% the previous month. The euro was down 0.6% against the dollar at $1.0823 , on pace for a 3.1% weekly loss. Immediate resistance can be seen at 1.0904 (11 DMA), an upside break can trigger rise towards 1.0934 (5 DMA).On the downside, immediate support is seen at 1.0754 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling fell 1% on Friday after a record slump among Britain’s services and manufacturing firms deepened in late March as businesses and households paused activity to prevent the spread of the coronavirus. The final composite Purchasing Managers’ Index covering the two sectors fell to 36.0 from a preliminary “flash” reading of 37.1, and 53.0 in February.As COVID-19 spread around the world, claiming more victims and effectively shutting down many cities, the pound sunk to its weakest in decades last month as investors turned to less risky currencies, such as the U.S. dollar. Immediate resistance can be seen at 1.2307 (50% fib ), an upside break can trigger rise towards 1.2521 (61.8% fib).On the downside, immediate support is seen at 1.2090 (38.2 %fib), a break below could take the pair towards 1.2000 (Psychological level ).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday as oil prices rallied for a second straight day, while data showing a plunge in U.S. jobs added to evidence of the economic damage from the coronavirus pandemic. U.S. crude oil futures were up 8.5% at $27.48 a barrel on rising hopes of a new global deal to cut global crude supply. At (1929 GMT), the Canadian dollar was last trading nearly unchanged at 1.4138 to the greenback. The currency, which was on track to decline 1% for the week, traded in a range of 1.4118 to 1.4223. Immediate resistance can be seen at 1.4239(38.2% fib), an upside break can trigger rise towards 1.4406 (23.6% fib).On the downside, immediate support is seen at 1.4077 (5 DMA), a break below could take the pair towards 1.4039 (21 DMA)
USD/JPY: The dollar strengthened against the Japanese yen on Friday as investors once again made safety bids, amid worsening economic fallout from the coronavirus pandemic. The Japanese yen, Swiss franc, sterling and the Australian and New Zealand dollars all also lost ground as the dollar strengthened across the board. The U.S. economy shed 701,000 jobs in March, ending a historic 113 straight months of employment growth as stringent measures to control the novel coronavirus hurt businesses and factories, confirming a recession is underway. Strong resistance can be seen at 108.56 (50% fib), an upside break can trigger rise towards 109.49 (61.8% fib).On the downside, immediate support is seen at 107.76 (38.2% fib), a break below could take the pair towards 106.71 (23.6% fib).
Equities Recap
European shares ended down on Friday, closing the week lower as dismal business activity data heralded a deep economic and earnings recession due to the novel coronavirus outbreak.
UK's benchmark FTSE 100 closed down by 1.18 percent , Germany's Dax ended down by 0.47percent, France’s CAC finished the day down by 1.57 percent.
Wall Street’s main indexes fell on Friday as the longest period of employment growth on record in the United States came to an abrupt end, with data showing that hundreds of thousands of people lost their jobs last month due to the coronavirus.
Dow Jones closed down by 2.46 percent, S&P 500 ended down by 2.29 percent, Nasdaq finished the down up by 2.37 percent.
Treasury Recap
U.S. Treasury yields held steady on Friday despite a grim federal jobs report for the second day in a row, as investors tried to grasp the full impact of the COVID-19 pandemic caused by the new coronavirus.
The yield on the benchmark U.S. 10-year note was down 3.8 basis points at 0.5885% in morning trading.
Commodities Recap
Gold prices inched up on Friday, after gloomy U.S. nonfarm payrolls data magnified the economic toll from the coronavirus, although a stronger dollar capped bullion's advance.
Spot gold rose 0.2% to $1,615.62 per ounce by 11:03 am EDT (1503 GMT). The metal has declined nearly 0.2% so far this week. U.S. gold futures edged 0.4% higher to $1,644.10 per ounce.
Crude futures surged for a second day on Friday, with benchmark Brent up 10% on hopes that a global deal to cut crude supply worldwide will emerge early next week.
Brent soared as much as 47% on Thursday for its highest intraday percentage gain on record. It closed up 21%. The contract is on track to end the week 31% higher.
U.S. West Texas Intermediate (WTI) crude rose 6.8%, or $1.74, to $27.06, a day after jumping 24.7%. The contract is up about 25% so far this week, following five consecutive weeks of declines.
