Market Roundup
• World stocks race towards second best week on record
• Gold on track for second straight weekly rise
• China’s economy shrinks for first time since 1992 in Q1
• COVID-19 patients respond to Gilead's remdesivir –report
• U.S. 10-year, 30-year yields fall to two-week lows
• U.S. Indexes rise: Dow Jones 2.99%, S&P 500 2.68%, Nasdaq 1.38%
• US March Leading Index (MoM) -7.0% forecast,0.1% previous
• U.S. Baker Hughes Oil Rig Count 438 , 504 previous
Looking Ahead - Economic Data (GMT)
• No major economic data
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Currency summaries
EUR/USD: The euro strengthened against the U.S. dollar on Friday as investors, cautiously optimistic about the results of a drug trial and President Donald Trump’s plan to reopen the economy, regained some appetite for risk. Sentiment was boosted overnight by a media report detailing encouraging partial data from experimental drug trials on severely ill COVID-19 patients at a University of Chicago hospital. News of Trump’s plans to reopen the world’s largest economy was also taken by investors as a positive sign, even after Thursday’s jobless data showed a record 22 million Americans sought unemployment benefits in the last month. Immediate resistance can be seen at 1.0862 (9 DMA), an upside break can trigger rise towards 1.0902 (21 DMA).On the downside, immediate support is seen at 1.0808 (9 DMA), a break below could take the pair towards 1.0768 (April 6th low).
GBP/USD: The pound strengthened against the dollar on Friday, after the UK said it would extend its coronavirus lockdown for at least three more weeks. Foreign Secretary Dominic Raab said Britain could not risk the progress it had made in fighting the outbreak by easing up on restrictions at this “delicate and dangerous stage”. The pound had sunk to its lowest level in decades as COVID-19 spread across Europe, killing thousands and overwhelming healthcare systems. The UK announced a nationwide lockdown at the end of March. Immediate resistance can be seen at 1.2513 (Daily high), an upside break can trigger rise towards 1.2556 (50 DMA).On the downside, immediate support is seen at 1.2419 (11 DMA), a break below could take the pair towards 1.2300 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday, with the currency clawing back some of this week's decline as risk appetite rose and the federal government offered C$2.5 billion in support for the hard-hit oil and gas industry. World stock markets rose after U.S. President Donald Trump laid out plans to gradually reopen the coronavirus-hit American economy following similar moves elsewhere. At (1943 GMT), the Canadian dollar was trading 0.3% higher at 1.4035 to the greenback. Immediate resistance can be seen at 1.4566 (Daily high), an upside break can trigger rise towards 1.4677 (19th March high).On the downside, immediate support is seen at 1.4430 (23.6% fib), a break below could take the pair towards 1.4293 (38.2% fib).
USD/JPY: The dollar declined against the Japanese yen on Friday, as investors globally drew comfort from Trump’s plans to gradually re-open the U.S. economy in a staggered, three-stage approach. China along with Germany, Italy, Spain and other parts of Europe also have plans to reopen their economies even as the death toll from the pandemic rises. The dollar index fell 0.221%. The yen strengthened 0.40% versus the greenback at 107.54 per dollar. Strong resistance can be seen at 107.80 (5 DMA), an upside break can trigger rise towards 108.04 (Higher BB).On the downside, immediate support is seen at 107.55 (21 DMA), a break below could take the pair towards 107.00 (Psychological level).
Equities Recap
European shares closed higher on Friday, as President Donald Trump’s plans to reopen the U.S. economy, following similar steps announced in Europe, supported hopes of a resumption of activity after weeks of lockdown.
UK's benchmark FTSE 100 closed up by 2.24 percent, Germany's Dax ended up by 1.28 percent, France’s CAC finished the day up by 2.51 percent.
U.S. stocks rose on Friday, helped by a surge in Boeing shares, President Donald Trump’s plan to reopen the economy and hopes of a potential drug by Gilead to treat COVID-19.
Dow Jones was last trading up by 2.99 percent, S&P 500 ended up at 2.68 percent, Nasdaq finished the day up by 1.38 percent.
Treasuries Recap
U.S. Treasury yields rose on Friday in choppy trading after the New York Federal Reserve announced a further decline in purchases of Treasuries next week as the market stabilizes after heavy central bank interventions last month.
U.S. 10-year and 30-year yields earlier fell to two-week lows before moving higher on a day when risk aversion has eased a bit. The yield curve also steepened on Friday after the Fed news.
Commodities Recap
Gold fell as much as 2% on Friday after President Donald Trump’s new guidelines to re-open the U.S. economy and encouraging early data related to a potential COVID-19 treatment drove investors towards riskier assets.
Spot gold was down 1.7% at $1,689.22 an ounce by 11:53 a.m. EDT (1553 GMT), more than $60 lower than the 7-1/2 peak hit earlier this week on concerns over the worst recession in decades.
Oil prices were mixed on Friday, with weak Chinese economic figures and rapidly filling U.S. crude storage offsetting bullishness built on U.S. President Donald Trump’s outlines for the U.S. economy to emerge from the coronavirus shutdown.
Brent futures rose 26 cents, or 0.9%, to settle at $28.08 a barrel while West Texas Intermediate crude contract (WTI) for June , which became the day’s more active contract, ended the session down 50 cents, or 2%, at $25.03.
