America’s Roundup: Dollar slips as U.S. data disappoints, Gold surges 1.5%, Oil retreats in face of renewed coronavirus uncertainties-February 22nd, 2020

Market Roundup

• Markets spooked as virus spreads outside China

• Dollar slips as U.S. data disappoints

• Yen rebounds on safe-haven demand

• Canada Jan Core Retail Sales (MoM) 0.5%, 0.4% forecast, 0.5% previous

• Canada Dec Retail Sales (MoM) 0.0%,0.1% forecast, 1.1% previous

• US Feb US Manufacturing PMI 50.8, 51.5 forecast, 51.9 previous

• US Feb US Markit Composite PMI 49.6, 53.3 previous

• US Feb US Services PMI 49.4, 53.0 forecast, 53.4 previous

• US Jan Existing Home Sales 5.46M, 5.43M forecast, 5.53M previous

Looking Ahead - Economic Data (GMT)  
 
• No data ahead

Looking Ahead - Economic events and other releases (GMT)

• No significant events

Currency Summaries

EUR/USD: The euro strengthened against dollar on Friday, after a batch of business surveys delivered healthier-than-expected views of the euro zone economy. Purchasing managers’ surveys showed the private sector in Germany, the bloc’s biggest economy, expanded steadily in February as growth in services activity made up for an easing recession in manufacturing. Business activity in France and the wider euro zone also expanded faster than expected in February, PMI surveys showed. The euro was last trading up 0.15% at $1.0799 . Immediate resistance can be seen at 1.0846 (Daily high), an upside break can trigger rise towards 1.0933 (21 DMA).On the downside, immediate support is seen at 1.0766 (Lower BB), a break below could take the pair towards 1.0700 (Psychological level).

GBP/USD: Sterling rose against the dollar on Friday after data showed British factory data rose in February. IHS Markit/CIPS UK Purchasing Managers’ Index (PMI) showed the expansion of Britain’s vast services sector slowed slightly this month, but this was cancelled out by an unexpected upturn in manufacturing. The manufacturing PMI rose to its highest level since April and beat all forecasts. Sterling, which was already trading higher against a broadly weaker dollar, rose to hit the day’s high of $1.2955. It last traded 0.7% higher at $1.2966. Immediate resistance can be seen at 1.2996 (21 DMA), an upside break can trigger rise towards 1.3015 (30 DMA).On the downside, immediate support is seen at 1.2845 (Lower BB), a break below could take the pair towards 1.2800 (Psychological level).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Friday as the greenback gave back some recent gains against a basket of other major currencies and a measure of domestic underlying retail sales rose in December. Canadian retail sales were unchanged in December from November at C$51.65 billion, undershooting the 0.1% gain that analysts had expected, data from Statistics Canada showed. But sales were more robust after excluding motor vehicles and parts dealers, rising 0.5%.Immediate resistance can be seen at 1.3321 (21 DMA), an upside break can trigger rise towards 1.3400 (Psychological level).On the downside, immediate support is seen at 1.3201(Daily low), a break below could take the pair towards 1.3146 (50 DMA).

USD/JPY: The dollar declined against the Japanese yen on Friday as fear of fast spreading coronavirus drove investors into safe-haven yen. The new coronavirus has infected hundreds of people in Chinese prisons, authorities said on Friday, contributing to a jump in reported cases beyond the epidemic’s epicenter in Hubei province, including 100 more in South Korea.  The yen typically rises during geopolitical or financial stress as Japan is the world’s biggest creditor nation. Strong resistance can be seen at 112.21 (Daily high), an upside break can trigger rise towards 112.39 (23.6% Fib ).On the downside, immediate support is seen at 111.46 (50% Fib), a break below could take the pair towards 111.08  (61.8% Fib). 

Equities Recap

European shares fell on Friday after data showing stalling business activity in the United States exacerbated a fall spurred by a spike in the number of coronavirus cases within and outside China. 

UK's benchmark FTSE 100 closed down by 0.44 percent, Germany's Dax ended down by 0.62 percent, France’s CAC finished the day down by 0.54 percent.        

U.S. stocks fell and the Nasdaq had its worst daily percentage decline in about three weeks on Friday as a spike in new coronavirus cases and data showing a stall in U.S. business activity in February fueled investors’ fears about economic growth.

Dow Jones closed down by 0.78 percent, S&P 500 ended up by 1.05 percent, Nasdaq finished the day up by 1.79 percent.
Treasuries Recap

 U.S. Treasury yields were down on Friday as mounting concerns about the economic impact of the coronavirus epidemic drove investors into safe-haven assets.    

The benchmark 10-year yield was down 5.4 basis points in afternoon trade at 1.4713%. It was the first time the note yielded less than 1.5% since early September.

The 30-year bond was down 5.4 basis points at 1.9181%. The session low was 1.886%, an all-time low.  

Commodities Recap

Gold jumped more than 1.5% on Friday to its highest level in seven years as investors rushed to the metal’s safety due to concerns over the global economic fallout from the fast-spreading coronavirus.

Spot gold rose 1.4% to $1,641.87 per ounce by 11:23 a.m. EST (1623 GMT), after hitting its highest level since Feb. 13, 2013, at $1,648.75 earlier in the session. U.S. gold futures jumped 1.5% to $1,644.70.

Oil prices fell on Friday as a rise in new cases of coronavirus and weak Asian data fuelled uncertainty about the economic outlook while leading crude producers appeared to be in no rush to curb output.

Brent crude   was down $1.06, or 1.8%, at $58.25 a barrel by 1258 GMT, while U.S. crude  dropped 84 cents, or 1.6%, to $53.04.