Market Roundup
• OPEC+ delays meeting on output cuts to April 9
• Trump threatens tariffs on U.S. oil imports
• Saudi, Russia blame each other for collapse of March talks
• Russia March CPI (YoY) 2.5%, 2.7% forecast, 2.3% previous
• Russia March CPI (MoM) 0.6%,0.7% forecast, 0.3% previous
• US March CB Employment Trends Index 60.39, 109.00 previous
• Brazil March Auto Production (MoM) -7.0%,6.5% previous
• Brazil March Auto Sales (MoM) -18.6%, 3.9% previous
Looking Ahead - Economic Data (GMT)
•22:00 New Zealand NZIER Business Confidence (Q1) -21% previous
•22:00 New Zealand NZIER QSBO Capacity Utilization (Q1) 92.0% previous
•22:30 Australia March AIG Services Index 47.0 previous
•23:30 Japan Average Cash Earnings (YoY) 2.1% forecast, 1.5% previous
• 23:30 Japan Feb Household Spending (MoM) 0.2% forecast, -1.6% previous
• 23:30 Japan Feb Household Spending (YoY) -3.9% forecast, -3.9% previous
• 01:30 Australia ANZ Job Advertisements (MoM) -2.9% forecast, 0.7% previous
• 01:30 Australia Feb Exports (MoM) -3% previous
• 01:30 Australia Feb Imports (MoM) -3% previous
• 01:30 Australia Feb Trade Balance 5.210B previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro was little changed against dollar on Monday ahead of a Eurogroup conference on Tuesday. Euro zone finance ministers are expected to converge on Tuesday on three quick options to support the economy during the epidemic. Officials have until April 9 to design a package that satisfies members with completely opposing views those calling for joint debt issuance and those fiercely against it. The euro was last trading 0.11 % lower to $1.0794.Immediate resistance can be seen at 1.0833 (38.2% fib), an upside break can trigger rise towards 1.0893 (50% fib).On the downside, immediate support is seen at 1.0753 (23.6% fib), a break below could take the pair towards 1.0700 (Psychological level).
GBP/USD: Sterling declined against dollar on Monday as the British currency weighed down on news that UK Prime Minister Boris Johnson was admitted to hospital for tests.The British currency fell as much as 0.4% in a knee-jerk reaction after the news to a low of $1.2215 before recouping some losses to stand 0.3% down at $1.2241.Johnson was admitted in what Downing Street said was a “precautionary step” because he was showing persistent symptoms of coronavirus 10 days after testing positive for the virus. Immediate resistance can be seen at 1.2285 (5EMA), an upside break can trigger rise towards 1.2350 (5DMA).On the downside, immediate support is seen at 1.2185 (11 DMA), a break below could take the pair towards 1.2100 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as signs of a slowdown in coronavirus-related deaths bolstered investors sentiment, offsetting lower oil prices. Stocks globally rose as the death toll from the virus slowed across major European nations including France and Italy. Canada runs a current account deficit and is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital. Immediate resistance can be seen at 1.4147 (5 EMA), an upside break can trigger rise towards 1.4251 (38.2% fib).On the downside, immediate support is seen at 1.4147 (5 EMA), a break below could take the pair towards 1.4098 (50 % fib).
USD/JPY: The dollar strengthened against the Japanese yen on Monday as investors were encouraged by a slowdown in coronavirus-related deaths and new cases. Italy reported its lowest daily death toll for more than two weeks on Sunday. France also reported a slowing daily death toll, and Germany its fourth straight daily drop in new cases. Japan also will declare a state of emergency as early as Tuesday, media reported, as a shortage of beds and a rise in cases linked to hospitals push Tokyo’s medical system to the brink of collapse. Strong resistance can be seen at 109.32(Daily high), an upside break can trigger rise towards 110.00(Psychological level).On the downside, immediate support is seen at 108.75 (50 DMA), a break below could take the pair towards 107.92 (5 DMA).
Equities Recap
German shares jumped 5.8% on Monday to lead a strong bounce in European shares as a slowdown in coronavirus deaths raised hopes that nationwide lockdowns may gradually be eased.
UK's benchmark FTSE 100 closed down by 2.32 percent , Germany's Dax ended up by 5.74 percent, France’s CAC finished the day down by 4.30 percent.
U.S. stocks rocketed higher on Monday, with each of the major indexes rallying about 7%, after a fall in the daily death toll in New York, the country’s biggest coronavirus hot spot, fueled optimism a leveling off of the pandemic was on the horizon.
Dow Jones closed up by 4.30 percent, S&P 500 ended up by 4.34 percent, Nasdaq finished the down up by 4.42 percent.
Treasuries Recap
U.S. Treasury yields rose on Monday as stocks rallied on hopes the coronavirus health crisis may be slowing, with hard-hit New York and New Jersey eying possible plateaus.
The yield on the benchmark U.S. 10-year note was last up 7.8 basis points at 0.6666%, while all three main stock indexes jumped more than 5%.
Commodities Recap
Gold prices surged over 2% to a more than three-week high on Monday on expectations of global stimulus measures to counter the economic damage caused by the outbreak of the novel coronavirus.
Spot gold was up 2.3% at $1,653.35 per ounce by 1:49 p.m. EDT (1749 GMT), having hit its highest level since March 11 at $1,655.69 earlier in the session.
Oil prices slipped more than $1 a barrel on Monday, after the world’s top producers delayed a meeting to discuss output cuts that could partly alleviate oversupply in global markets as the coronavirus pandemic pummels demand.
Brent crude slipped close to $30 a barrel in early trade and was at $32.82 by 0203 GMT, down $1.29, or 3.8%. West Texas Intermediate (WTI) crude fell $1.66, or 5.9%, to $26.68 a barrel, after earlier touching a low of $25.28.
