America’s Roundup: Dollar rises with stocks, investors stay cautious, Wall Street bounces, Gold pares gains, Oil prices drop to lowest in more than a year as coronavirus spreads-February 27th,2020

Market Roundup

• US Jan  New Home Sales  764K, 710K forecast, 708K previous

• US Jan New Home Sales (MoM)  7.9%, 3.5% forecast, 2.3% previous

• US Crude Oil Inventories 0.452M, 2.005M forecast, 0.414M previous    

• US Gasoline Production 0.272M, 0.284M previous

• Brazil CAGED Net Payroll Jobs    -307.31K previous

• Brazil   Foreign Exchange Flows 1.878B    previous    

Looking Ahead - Economic Data (GMT)    

• 21:45 New Zealand Jan Exports 5.54B previous

• 21:45 New Zealand Jan Imports  5.00B previous

• 21:45  New Zealand Jan Trade Balance (MoM)  547M previous

• 00:00 New Zealand Jan ANZ Business Confidence  -7.9 forecast, -13.2 previous
    
• 00:00    New Zealand Jan    NBNZ Own Activity  17.2% previous    

• 00:30 Australia Building Capital Expenditure (MoM) (Q4) 2.7% previous    

• 00:30 Australia Private New Capital Expenditure (QoQ) (Q4) 0.4% forecast, -0.2% previous    

Looking Ahead - Events, Other Releases (GMT)    

• 01:30 Japan BoJ Board Member Kataoka Speech

• 05:00 Japan BOJ Deputy Governor Amamiya Speech

Currency Summaries

EUR/USD: The euro was back in negative territory against dollar on Wednesday after the China coronavirus outbreak spread to Italy, increasing concern over the outlook for the euro zone economy.In the worst flare-up of the virus in Europe, Italy reported a sixth death and more than 220 infections, raising fears that Italy’s contracting economy could soon be thrown into another recession. A sharp rise in infections in South Korea and Iran has also helped to fuel fears that the coronavirus outbreak will become a pandemic. The euro was last trading down  0.01% at $1.0881 . Immediate resistance can be seen at 1.0917 (21 DMA), an upside break can trigger rise towards 1.0959 (30 DMA).On the downside, immediate support is seen at 1.0835  (5 DMA), a break below could take the pair towards 1.0800 (Psychological level).

GBP/USD:  Sterling declined against dollar on Wednesday as investors cut positions on concerns that Britain’s new finance minister Rishi Sunak’s budget announcement in March may disappoint those waiting for a pick-up in fiscal spending. Traders sold the pound around the $1.30 level after Tuesday’s gains as risky assets broadly came under pressure in response to a deadly virus spreading outside China, with the British currency leading losers. The British currency fell as much as 0.7% to $1.2913 and held close to those levels in late trade.  Immediate resistance can be seen at 1.2966 (11DMA), an upside break can trigger rise towards 1.3004 (30 DMA).On the downside, immediate support is seen at 1.2837 (Lower BB), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar lost ground against greenback on Wednesday as spreading of the coronavirus weighed on the price of oil, one of Canada's major exports, with the loonie approaching its lowest level in about two weeks. U.S. oil  fell to its lowest level since January 2019 as Asia, Europe and oil-producing countries in the Middle East reported hundreds of new coronavirus cases and the United States warned of an inevitable pandemic. Immediate resistance can be seen at 1.3324 (Higher BB), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3273 (5 DMA), a break below could take the pair towards 1.3215 (30 DMA).

USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors remained cautious as the coronavirus continues to spread. The dollar was also dented as investors scaled back expectations that the U.S. Federal Reserve would signal more policy easing in response to the spread of the coronavirus outside of China. As the coronavirus spread, some investors no longer saw the U.S. economy as immune and started to bet the Fed would have to cut interest rates to support growth.At (GMT 22:11),the dollar was 0.04 percent lower versus the Japanese yen at 110.37. Strong resistance can be seen at 110.63 (9 DMA), an upside break can trigger rise towards 111.00(Psychological level ).On the downside, immediate support is seen at 109.95 (21 DMA), a break below could take the pair towards 109.59  (50 DMA). 

Equities Recap

European shares fell for a fifth straight session on Wednesday, as investors fretted over the growing impact of a fast-spreading coronavirus that has pushed companies world-wide to sound the alarm on earnings. 

UK's benchmark FTSE 100 closed up by 0.35 percent, Germany's Dax ended down by 0.12 percent, France’s CAC finished the day up by 0.09 percent.      
 
U.S. stocks attempted a recovery on Wednesday after a rocky start to the week that shaved off more than 6% from the main indexes on growth concerns stemming from a global spread of the coronavirus.

Dow Jones closed down by 0.46 percent, S&P 500 ended down by 0.38 percent, Nasdaq finished the day up by 0.17 percent.

Treasuries Recap

U.S. bonds steadied on Wednesday after a volatile trading session that saw the benchmark 10-year Treasury yield hit a record low for a second consecutive day, as investors focused on the economic risks of the spreading coronavirus epidemic.

 The 10-year yield was up less than a basis point at 1.3354% in late afternoon trading, after reaching as high as 1.3821% earlier and touching an all-time low of 1.3005%.

Commodities Recap

Gold pared earlier gains on Wednesday as investors took profits and U.S. share markets gained footing, even as the spread of the coronavirus dimmed the global outlook.

Spot gold was up 0.1% at $1,637.03 per ounce by 11:02 a.m. EST (1602 GMT), having earlier jumped over 1% to 1654.68. U.S. gold futures eased 0.7% to $1,639.

Oil prices fell to their lowest in more than a year on Wednesday after hundreds of new coronavirus cases reported in Europe and the Middle East stoked fears that energy demand would decline, and on concerns that the virus could spread across the United States.

Brent crude settled at $53.43 a barrel, shedding $1.52, or 2.77%, while U.S. West Texas Intermediate (WTI) crude settled at $48.73 a barrel, down $1.17, or 2.34%.