America’s Roundup: US dollar falls as lockdowns ease and traders turn less averse to risk,Wall Street gains, Gold slides, U.S. oil plunges 27%, Brent below $20 a barrel -April 28th,2020

Market Roundup

• Price of U.S. oil decreases about 27%

• Japanese yen rises to two-week high vs US dollar

•Italy, some U.S. states prepare for relaxing lockdown

• Russian Feb Real Wage Growth (YoY)  5.7%, 5.5%,6.5% previous

• Russian Retail March Sales (YoY) 5.6%,     2.6%,4.7% previous    

• Japan Interest rate decision -0.10%, -0.10% forecast, -0.10% previous  
             
• US April Dallas Fed Mfg Business Index  -73.7,    -70.0 previous    

Looking Ahead - Economic Data (GMT)

• 23:30 Japan March Jobs/applications ratio  1.40, 1.45 previous    

• 23:30 Japan March Unemployment Rate  2.5% , 2.4% previous    

• 05:00 Japan BoJ Core CPI (YoY) 0.2% previous    

Looking Ahead - Events, Other Releases (GMT)

• 03:00 Japan BoJ Monetary Policy Statement      

• 07:00 Japan BoJ Press Conference

Fxbeat

EUR/USD: The euro gained against dollar on Monday as traders grew less averse to risk amid an easing in coronavirus lockdowns in several countries. Credit-rating agency S&P reaffirmed on Friday Italy’s BBB rating, although many had expected a downgrade, supporting the common currency by limiting the escalation of an economic and political crisis on the continent. The U.S. dollar was weaker against the euro as investors turned more positive on Italy and saw the Bank of Japan continuing to support an economy battered by the virus. At  (GMT 18:33), the euro was last trading up 0.2% at $1.0829. Immediate resistance can be seen at 1.0863 (11 DMA), an upside break can trigger rise towards 1.0883 (21 DMA).On the downside, immediate support is seen at 1.0800 (Psychological level), a break below could take the pair towards 1.0750 (Lower BB).

GBP/USD:  Sterling rose against dollar on Monday as sterling was boosted by improving global risk appetite and hopes that lockdown measures may start to be eased as the number of coronavirus cases in Britain appears to slow. Britain is now seeing a downward trend in the number of people who are in hospital with the new coronavirus, the national medical director of England’s health service said on Sunday. The pound against a broadly weaker dollar,was up 0.4% at $1.2435.  Immediate resistance can be seen at 1.2458 (Higher BB), an upside break can trigger rise towards 1.3050(55 DMA).On the downside, immediate support is seen at 1.2351 (5 DMA), a break below could take the pair towards 1.2240(lower BB).

USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as additional stimulus measures to ease the economic pain of the coronavirus pandemic and some countries' plans to loosen lockdown restrictions bolstered investor sentiment globally.  Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive from the global flow of trade and capital. At   (1830 GMT), the Canadian dollar was trading 0.33% higher at 1.4047 to the greenback. The currency, which last week fell 0.8%, traded in a range of 1.4040 to 1.4117.  .Immediate resistance can be seen at 1.4063 (11 DMA), an upside break can trigger rise towards 1.4116 (5 DMA).On the downside, immediate support is seen at 1.4027 (Daily low), a break below could take the pair towards 1.4000 (Psychological level).

USD/JPY: The dollar declined against the Japanese yen on Monday after the Bank of Japan expanded stimulus to help companies hit by the coronavirus crisis while the pound rose against the dollar and euro on optimism Britain may soon ease a month-long lockdown.The BOJ’s decision to remove limits on its government bond purchases and increase corporate debt buying was widely expected and puts it in line with other major central banks that have unleashed unprecedented amounts of monetary suppor. Strong resistance can be seen at 110.50 (11 DMA), an upside break can trigger rise towards 111.00(Psychological level ).On the downside, immediate support is seen at 107.03 (Daily low), a break below could take the pair towards 107.60  (Lower BB). 

Equities Recap

Airline stocks led European shares higher on Monday on hopes of state support, while upbeat earnings from Deutsche Bank and others added to optimism fuelled by signs that many countries will soon ease coronavirus-driven lockdown measures.

The UK's benchmark FTSE 100 closed up by 1.64 percent, Germany's Dax ended up  by 3.13 percent, and France’s CAC finished the up by 2.55 percent.

U.S. stock markets opened higher on Monday as more states prepared to ease the coronavirus-induced curbs and investors awaited quarterly earnings reports from marquee companies including Apple and Microsoft later this week.

At (GMT 18:33),Dow Jones was trading up by 1.34 percent, S&P 500 was up 1.40 percent, Nasdaq was up   by 1.04 percent.

Treasuries Recap

U.S. Treasury yields rose on Monday as the market looked ahead to the day's looming note auctions as well as this week's meeting of the Federal Reserve and its take on the economic impact of the coronavirus outbreak.

 The benchmark 10-year yield was up 4.9 basis points at 0.6447%.

Commodities Recap

Gold fell on Monday as U.S. Treasury yields rose and plans to ease coronavirus-induced lockdowns by many countries whetted investor appetite for riskier assets, but unprecedented stimulus measures from governments provided underlying support.

Spot gold fell 0.8% to $1,712.99 per ounce by 11:08 a.m. EDT (1508 GMT), having earlier fallen as much as 1.3% to $1,704.45. U.S. gold futures were down 0.5% at $1,726.70.

Brent crude fell below $20 a barrel and U.S. crude plunged 27% on Monday, driven lower by skittish investors fleeing the U.S. benchmark due to lack of available storage to deal with a coronavirus-induced collapse in demand.

U.S. West Texas Intermediate crude futures (WTI) fell $4.33, or 26.8%, to $12.62 a barrel by 12:26 p.m. EDT (1626 GMT). Brent crude slid $1.64, or 7.7%, to $19.81 a barrel.