Market Roundup
• Russia GDP Quarterly (YoY) (Q4) 2.1%,2.1% forecast, 1.7% previous
• Canada March RBC Manufacturing PMI 46.1, 53.3 forecast, 51.8 previous
• US March Manufacturing PMI 48.5, 49.2 forecast, 50.7 previous
• US March ISM Manufacturing Employment 43.8, 43.6 forecast, 46.9 previous
•US March ISM Manufacturing New Orders Index 42.2, 49.8 previous
• US March ISM Manufacturing PMI 49.1, 45.0 forecast, 50.1 previous
• US Feb Construction Spending (MoM) -1.3%,0.5% forecast, 2.8% previous
• US Gasoline Production -1.502M, -1.016M previous
• US Crude Oil Inventories 3.997M forecast, 1.623M previous
• Brazil Foreign Exchange Flows -5.999B, -3.847B previous
Looking Ahead - Economic Data (GMT)
• 23:50 Japan Foreign Bonds Buying -65.7B
• 23:50 Japan Foreign Investments in Japanese Stocks -1,462.1B
• 23:50 Japan Monetary Base (YoY) 3.6% previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
EUR/USD: The euro declined against dollar on Wednesday as downbeat German manufacturing data and stronger dollar across the board weighed on euro. The greenback, the world's leading global reserves currency, rose against the euro, sterling and most other major currencies as selling in global shares highlighted growing risks from the pandemic that has shown little sign of easing. The ADP National Employment Report on Wednesday showed private payrolls fell by 27,000 jobs last month, the first decline since September 2017, compared with forecasts of 150,000 job losses. Immediate resistance can be seen at 1.1049 (21 DMA), an upside break can trigger rise towards 1.1081 (200 DMA).On the downside, immediate support is seen at 1.0918 (5 DMA), a break below could take the pair towards 1.0902 (Ichimoku Cloud Base).
GBP/USD: Sterling slipped on Wednesday, losing ground to a surging dollar amid a wider selloff in global stock markets as data showed factory activity across the world contracting sharply due to the coronavirus pandemic. Manufacturing gauges tumbled across the globe, with Purchasing Managers’ Index (PMI) surveys in Asia, the euro zone and the UK underscoring the widening damage wrought by the pandemic that has infected more than 700,000 people, upended supply chains and led to city lockdowns worldwide. Sterling’s movements over the last few weeks have largely been dollar driven, with recent gains against the greenback due to an easing of demand for the U.S. currency as central banks pump billions of dollars of liquidity into markets. Immediate resistance can be seen at 1.2466 (Daily high), an upside break can trigger rise towards 1.2515 (38.2% fib).On the downside, immediate support is seen at 1.2300 (50% fib), a break below could take the pair towards 1.2093(10 DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, adding to a sharp first-quarter decline, as the economic threat of the spreading coronavirus pandemic weighed on global financial markets. Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the flow of global trade and capital. At (1947 GMT), the Canadian dollar was trading 1.1% lower at 1.4226 to the greenback. The currency traded in a range of 1.4065 to 1.4272.In March, the loonie declined 4.7%, while it was down 7.6% for the first quarter. Immediate resistance can be seen at 1.4277 (Daily high), an upside break can trigger rise towards 1.4260 (23.6% fib).On the downside, immediate support is seen at 1.4016 (21 DMA), a break below could take the pair towards 1.3946(50 % fib).
USD/JPY: The dollar declined against the Japanese yen Wednesday as evidence mounted that the coronavirus pandemic was sending the global economy into a deep recession. Traders headed for the safety of yen and gold following sharp slowdown in manufacturing activity in Germany, one day after data showed U.S. consumer confidence fell to 3-year lows. New orders for U.S.-made goods fell to an 11-year low and private payrolls fell for the first time since 2017. Strong resistance can be seen at 108.00 (5 DMA), an upside break can trigger rise towards 109.35 (11 DMA).On the downside, immediate support is seen at 107.29 (Daily low), a break below could take the pair towards 107.00 (Psychological level ).
Equities Recap
European stock index futures fell more than 3% on Wednesday as dismal economic data from Asia underlined the damage to the economy from the coronavirus pandemic and fanned fears of a deep global recession.
UK's benchmark FTSE 100 closed down by 3.84 percent , Germany's Dax ended down by 3.94 percent, France’s CAC finished the day down by 4.30 percent.
The Dow Jones tumbled more than 700 points on Wednesday as investors fled to safe-haven assets after new orders for U.S.-made goods plunged to an 11-year low and private payrolls fell for the first time since 2017.
Dow Jones closed down by 4.30 percent, S&P 500 ended down by 4.34 percent, Nasdaq finished the down up by 4.42 percent.
Treasuries Recap
Longer-term U.S. Treasury yields fell on Wednesday as investors grew more cautious about the economic impact of the coronavirus and braced for further equity market declines.
The benchmark 10-year yield was down 7.5 basis points in afternoon trading at 0.6238%, about the middle of its range during the session.
Commodities Recap
Gold jumped more than 1.5% on Wednesday as concerns the near global lockdown to fight the coronavirus pandemic would spark a deep economic downturn prompted investors to seek safe havens.
Spot gold was up 1.1% at $1,587.61 per ounce at 1114 GMT, rebounding from a 3.1% slump in the last session. U.S. gold futures gained 0.4% to $1,603.60.
Oil prices fell on Wednesday after data showed U.S. crude inventories rose last week by the most since 2016 while gasoline demand suffered its biggest weekly drop ever due to the coronavirus pandemic.
West Texas Intermediate (WTI) crude fell 29 cents, or 1.5%, to $20.19 a barrel by 1:30 p.m. ET (1730 GMT), after hitting a low at $19.90.
Brent crude fell $1.45, or 5.5%, to $24.90 a barrel. The global benchmark fell to $21.65 on Monday, its lowest since 2002, when the now-expired May contract was the front month.
