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America’s Roundup: Dollar retreats as coronavirus fallout lifts rate cut expectations, Gold pares gains, Oil prices dive to lowest in over a year on coronavirus fears-February 28th,2020

Market Roundup

• US Continuing Jobless Claims 1,724K, 1,715K forecast, 1,733K previous

• US Jan Core Durable Goods Orders (MoM) 0.9%,0.2% forecast, 0.1% previous

• US Core PCE Prices (Q4) 1.20% , 1.30% forecast, 2.10% previous

• US GDP (QoQ) (Q4) 2.1%,2.1% forecast, 2.1% previous

• US GDP Price Index (QoQ) (Q4) 1.3%,1.4% forecast, 1.5% previous

• US Initial Jobless Claims 219K, 212K forecast, 211K previous

• US Jobless Claims 4-Week Avg     209.75K, 209.25K previous

• Canada Current Account (Q4) 8.8B, -9.0B forecast, -10.9B previous

• US Jan Pending Home Sales (MoM)  5.2%,2.2% forecast, -4.3%    previous

Looking Ahead - Economic Data (GMT)
    
• 23:30 Japan Jan Jobs/applications ratio 1.57 forecast, 1.57 previous

• 23:30 Japan Feb Tokyo Core CPI (YoY) 0.6%forecast,0.7% previous

• 23:30 Japan Feb Tokyo CPI (YoY) 0.8% forecast, 0.6% previous

• 23:30 Japan Jan Unemployment Rate   2.2% forecast, 2.2% previous

• 23:30 Japan Jan Industrial Production (MoM) 0.2% forecast, 1.2% previous

• 23:30 Japan Jan Retail Sales (YoY)  -1.1% forecast,-2.6% previous

• 00:00 Australia Jan Housing Credit 0.2% previous

• 00:00  Australia Jan Private Sector Credit (MoM)  0.3% previous

Looking Ahead - Economic events and other releases (GMT)

• 00:00 US FOMC Member Mester Speech

Currency Summaries

EUR/USD: The euro gained against dollar on Thursday as upbeat economic sentiment data and weaker dollar across the board supported euro. Euro zone economic sentiment improved more then expected in February on more confidence among consumers and in industry despite the global outbreak of the coronavirus, European Commission data showed on Thursday.The Commission said economic sentiment in the 19 countries sharing the euro rose to 103.5 points this month from 102.6 in January, continuing a steady upward trend since October. The euro rose 0.04% to $1.1003. Last week it had dropped below $1.0800, although it remains down 2.4% so far in 2020. Immediate resistance can be seen at 1.0999 (50 DMA), an upside break can trigger rise towards 1.1094 (Higher BB).On the downside, immediate support is seen at 1.0891  (5 DMA), a break below could take the pair towards 1.0849 (11 DMA).

GBP/USD:  Sterling declined against dollar on Thursday as Britain confirmed a hardline stance on trade talks with the EU and disappointment grew that the new finance minister may not increase spending as much as expected. Britain said on Thursday it wanted binding obligations on access to the European Union’s financial market. London, Europe’s biggest financial centre, risks being locked out of its biggest market for services such as banking, insurance and asset management if it loses access to the EU in January. The pound slipped 0.2% to a one-week low of $1.2860 and held near this level in late trade.  Immediate resistance can be seen at 1.2962 (11 DMA), an upside break can trigger rise towards 1.2996 (30 DMA).On the downside, immediate support is seen at 1.2858 (Daily low), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar edged lower to hit a fresh six-month low against its U.S. counterpart on Thursday as oil prices fell for a fifth straight day on a rise in new coronavirus cases outside China that fueled fears of a pandemic. Oil prices fell nearly 3% on Thursday to their lowest since January 2019 as rising new coronavirus cases outside China fueled fears of a pandemic that could slow the global economy and dent demand for crude. Oil is one of Canada's major exports. At  (1352 GMT), the Canadian dollar  was trading down about 0.02% at 1.3366 to the greenback.Immediate resistance can be seen at 1.3400 (Psychological level), an upside break can trigger rise towards 1.3434 (June 17th high).On the downside, immediate support is seen at 1.3339 (5DMA), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Thursday after the first coronavirus infection of unknown origin was confirmed in the United States, adding to fears of a pandemic. New infections of the virus are now growing faster outside of China than within, stoking fears that the economic impact of travel curbs, supply chain disruptions, and falling demand might be far greater than previously anticipated. The dollar fell 0.16% to 109.51 yen, extending a pullback from a 10-month high of 112.23 yen reached on Feb. 20.Strong resistance can be seen at 109.94(21 DMA), an upside break can trigger rise towards 110.48(5 DMA).On the downside, immediate support is seen at 109.00 (Psychological level), a break below could take the pair towards 108.41 (Lower BB). 

Equities Recap

Europe’s STOXX 600 officially entered correction territory on Thursday as a jump in coronavirus cases outside China, especially in Europe, raised worries about a prolonged economic slowdown. 

UK's benchmark FTSE 100 closed up by  3.49 percent, Germany's Dax ended up by 3.19 percent, France’s CAC finished the day up by 3.32 percent.        

Wall Street’s main indexes tumbled for the sixth straight session on Thursday, reaching a territory that could mark a nosedive from record highs last week amid a global spread of coronavirus that intensified fears about growth and earnings.

Dow Jones closed down by 4.42 percent, S&P 500 closed down by 4.42 percent, Nasdaq settled down   by -4.61% percent.

Treasuries Recap

U.S. Treasury yields continued to decline on Thursday as investors piled into the assets seen as safe havens, with the yield on the benchmark 10-year note reaching an all-time low for the third consecutive day.

 The yield on the 10-year note was down 3.9 basis points in morning trading at 1.2706%, after reaching as low as 1.2491%.

Commodities Recap

Gold pared gains on Thursday as investors booked profits after prices climbed more than 1% earlier in the session on mounting worries about how the coronavirus outbreak might hurt the global economy.

Spot gold was up 0.4% at $1,645.59 per ounce by 2:20 p.m. EST (1920 GMT). Prices have retreated since hitting a seven-year peak of $1,688.66 on Monday.U.S. gold futures settled little changed at $1,642.50.      
Oil prices tumbled for a fifth day on Thursday to their lowest since January 2019, as further novel coronavirus cases outside China fanned fears that a pandemic could slow the global economy and erode demand for crude.    

Brent crude dropped $1.88, or 3.5%, at $51.55 a barrel at 1:36 p.m. ET (1836 GMT), off the session low of $50.97 a barrel, the lowest since December 2018. West Texas Intermediate (WTI) futures  sank $2.13, or 4.4%, to $46.60, after hitting their lowest since January 2019.
 

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