Market Roundup
• Price of U.S. oil ends negative for first time in history
• U.S. crude front-month drops to record low -$37.63 a barrel
• Canadian wholesale trade rises 0.7% in February
• US Indexes: Dow -2.44% ,S&P 500 -1.79% Nasdaq -1.03%
• US March Chicago Fed National Activity -4.19, 0.16 previous
• Canada Feb Wholesale Sales (MoM) 0.7%, -0.4% forecast, 1.8% previous
• US 3-Month Bill Auction 0.125%,0.280% previous
• US 6-Month Bill Auction 0.145%,0.290% previous
Looking Ahead - Economic Data (GMT)
• 22:30 New Zealand April Business NZ PMI 53.2 previous
• 03:00 New Zealand March RBNZ Offshore Holdings 48.90% previous
Looking Ahead - Economic events and other releases (GMT)
• 01:30 Australia RBA Meeting Minutes
• 05:00 Australia RBA Governor Lowe Speaks
Looking Ahead - Economic events and other releases (GMT)
• No Significant events
Currency summaries
EUR/USD: The euro declined against the U.S. dollar on Monday, as euro attracted sellers as traders were skeptical about outcome of a European Union summit this week. EU heads of governments are scheduled to hold a video summit over how to tackle the economic fallout of the crisis on Thursday, where differing views on coronabonds, mostly demanded by southern EU member states, are expected to be voiced. At (GMT 20:30), the euro was down 0.12 percent at $1.0860.Immediate resistance can be seen at 1.0896 (5DMA), an upside break can trigger rise towards 1.0962 (55 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0732 (Lower BB).
GBP/USD: Sterling declined against dollar on Monday as sterling was weighed down after the death toll from the novel coronavirus increased and officials said it was too soon to lift the lockdown to stop the virus spreading further. Britain reported 596 deaths from COVID-19, the respiratory disease caused by the virus, in hospitals in its daily update on Sunday, raising the country’s total to more than 16,000. Sterling fell 0.49% against both the dollar, trading last at $1.2434 at (GMT 20:36). Immediate resistance can be seen at 1.2494 (5DMA), an upside break can trigger rise towards 1.2535 (50 DMA).On the downside, immediate support is seen at 1.2315 (21 DMA), a break below could take the pair towards 1.2261 (30 DMA).
USD/CAD: The Canadian dollar declined against its U.S. counterpart on Monday as the price of U.S.crude slumped to a record low at well below zero, with the loonie posting the second biggest decline among G10 currencies. Among G10 currencies, only the Norwegian krone lost more ground. Canada and Norway are both major oil producers. At (20:48 GMT), the Canadian dollar was trading 1% lower at 1.4115 to the greenback, or 70.85 U.S. cents .Immediate resistance can be seen at 1.4150 (Daily high), an upside break can trigger rise towards 1.4318 (Higher BB).On the downside, immediate support is seen at 1.4093 (21 DMA), a break below could take the pair towards 1.4003 (9 DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Monday, as investors awaited the outcome of a European Union summit this week on how to tackle economic fallout from the novel coronavirus crisis. The U.S. Dollar Currency Index , which measures the greenback’s strength against six major currencies, was up 0.07% at 99.912.The index has pulled back from the three-year high of 102.97 hit in mid-March as the rapid deployment of monetary stimulus measures by the U.S. Federal Reserve eased the strain on dollar funding.. Strong resistance can be seen at 107.91 (5 DMA), an upside break can trigger rise towards 108.51 (21 DMA).On the downside, immediate support is seen at 107.60 (5 DMA), a break below could take the pair towards 105.85 (Lower BB).
Equities Recap
European stock markets closed higher after a volatile session on Monday, recovering losses caused by a collapse in oil prices and fears of the worst quarterly earnings season since the global financial crisis.
UK's benchmark FTSE 100 closed up by 0.45 percent, Germany's Dax ended up by 0.47 percent, France’s CAC finished the day up by 0.65 percent.
Wall Street fell sharply on Monday after U.S. crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.
Dow Jones closed down by 2.44%percent, S&P 500 closed down by 1.79% percent, Nasdaq settled down by 1.03 % percent.
Treasuries Recap
Safety-seeking investors drove U.S. Treasury yields slightly lower on Monday, as plunging oil prices led traders to discount inflation risks while Congress struggled to prop up economic activity amid the COVID-19 pandemic.
The yield on the benchmark 10-year note was down 3 basis points at 0.6258% on Monday afternoon.
Commodities Recap
Gold edged higher from a more than one-week low hit earlier on Monday, helped by dwindling share markets as U.S. crude prices plunged and concerns about coronavirus-linked economic damage persisted.
Spot gold rose 0.5% $1,691.88 per ounce at 11:25 a.m. EDT (1525 GMT), having touched its lowest since April 9, at $1,670.55 earlier in the session. U.S. gold futures climbed 0.7% to $1,709.90.
U.S. crude oil futures turned negative on Monday for the first time in history, ending the day at a stunning minus $37.63 a barrel as traders sold heavily because of rapidly filling storage space at the key Cushing, Oklahoma, delivery point.
The May U.S. WTI contract fell $55.9, or 306%, to settle at a discount of $37.63 a barrel after touching an all-time low of -$40.32 a barrel. Brent was down $2.51, or 9%, to settle at $25.57 a barrel.
