Market Roundup
- Trump says U.S-China trade deal may be reached in four weeks
- Trump picks former presidential candidate Cain for Fed board
- As Trump eyed Cain for Fed, Cain raised money for Trump
- Soft Japanese consumer, wages data casts doubt over household sector
- Saudi Arabia threatens to ditch dollar oil trades to stop 'NOPEC'
- POLL-ECB rate hike timing pushed further back again
- U.S. muni bond funds post $713.6 mln in inflows-Lipper
- Japan Mar Foreign Reserves, 1,291.8 bln, 1,281.8 bln
Economic Data Ahead
- (0330 ET/0730 GMT) Great Britain Mar Halifax House Prices MM, -2.4% f'cast, 5.9% prev
- (0330 ET/0730 GMT) Great Britain Mar HalifaxHousePrice 3M/YY, 2.3% f'cast, 2.8% prev
Key Events Ahead
- (1500 ET/1900 GMT) Federal Reserve issues Consumer Installment Credit for February in Washington
- (1530 ET/1930 GMT) Atlanta Fed President Raphael Bostic to deliver a lecture followed by discussion on "Disruption and Opportunity: Shaping Policy in a Digital World" at an event hosted by the Andrew Young School of Policy Studies and the Fiscal Research Center at Georgia State University, in Atlanta, Ga.
FX Beat
DXY: The dollar index slightly eased despite strong U.S. economic data and broad improvement in risk appetite, with investors now await the U.S. jobs numbers for more signals on the strength of the economy. The greenback against a basket of currencies traded 0.1 percent down at 97.21, having touched a peak of 97.52 on Tuesday, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 9.58 (Neutral) by 0500 GMT.
EUR/USD: The euro rose, reversing some of its previous session losses, despite a Reuters poll showed the European Central Bank will delay any interest rate hikes further into next year than previously expected as eurozone economic growth and inflation prospects dimmed. The European currency traded 0.1 percent up at 1.1226, having touched a low of 1.1183 on Tuesday, its lowest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 101.27 (Highly Bullish) by 0500 GMT. Investors’ attention will remain on a series of data from the Eurozone economies, ahead of the U.S. nonfarm payrolls, unemployment rate, and consumer credit change. Immediate resistance is located at 1.1285 (Mar. 28 High), a break above targets 1.1331 (Mar. 25 High). On the downside, support is seen at 1.1176 (Mar. 7 Low)., a break below could drag it till 1.1155.
USD/JPY: The dollar rallied to a 3-week peak, amid growing expectations that a protracted trade dispute between the United States and China would be resolved soon. The major was trading 0.05 percent down at 111.67, having hit a high of 111.80, its highest since Mar. 15. FxWirePro's Hourly Yen Strength Index stood at -116.36 (Highly Bearish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. nonfarm payrolls, unemployment rate, and consumer credit change. Immediate resistance is located at 111.92 (Mar. 6 High), a break above targets 112.13 (Mar. 5 High). On the downside, support is seen at 111.06 (Mar. 13 Low), a break below could take it lower at 110.74 (Mar. 8 Low).
GBP/USD: Sterling rebounded after falling below the 1.3100 handle in the previous session, on news that Britain could ask the European Union for a long Brexit delay next week if crisis talks between Prime Minister Theresa May's government and the opposition Labour Party fail to find a solution over the departure from the EU. The major traded 0.4 percent up at 1.3115, having hit a high of 1.3196 on Wednesday; it’s highest since Mar. 28. FxWirePro's Hourly Sterling Strength Index stood at 30.84 (Neutral) 0500 GMT. Investors’ attention will remain on the UK Halifax House prices, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.3149 (Apr. 1 High), a break above could take it near 1.3227 (Mar. 21 High). On the downside, support is seen at 1.3034 (Mar. 28 Low), a break below targets 1.3003 (Mar. 21 Low). Against the euro, the pound was trading 0.2 percent up at 85.60 pence, having hit a high of 85.02 on Wednesday, it’s highest since Mar. 27.
AUD/USD: The Australian dollar surged, as signs of progress in the U.S.-China trade dispute lifted risk assets and commodity prices. The Aussie trades 0.2 percent up at 0.7124, having hit a low of 0.7052 on Tuesday, it’s lowest since Mar. 14. FxWirePro's Hourly Aussie Strength Index stood at 131.73 (Highly Bullish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7078 (Mar. 18 Low), a break below targets 0.7041 (Mar. 14 Low). On the upside, resistance is located at 0.7149 (Mar. 20 High), a break above could take it near 0.7198 (Feb. 27 High).
NZD/USD: The New Zealand dollar gained, as signs of progress in the U.S.-China trade dispute boosted risk appetite. The Kiwi trades 0.2 percent up at 0.6762, having touched a low of 0.6738 on Tuesday, its lowest level Feb. 13. FxWirePro's Hourly Kiwi Strength Index was at -98.24 (Slightly Bearish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6827 (Mar. 5 High), a break above could take it near 0.6874 (Mar. 18 High). On the downside, support is seen at 0.6719 (Feb. 12 Low), a break below could drag it below 0.6691 (Dec. 31 Low).
Equities Recap
Asian shares consolidated within narrow ranges amid holiday-thinned trading, while U.S.-China talks produced a lot of headlines but no conclusions.
MSCI's broadest index of Asia-Pacific shares outside Japan eased0.1 percent.
Tokyo's Nikkei rose 0.4 percent to 21,807.50 points, Australia's S&P/ASX 200 index fell 0.8 percent to 6,181.30 points and South Korea's KOSPI rallied 0.2 percent to 2,209.87 points.
Commodities Recap
Crude oil prices declined after briefly rising above the $70 level in the previous session, weighed down by supply concerns and worries about progress in U.S.-China trade talks. International benchmark Brent crude was trading 0.05 percent down at $69.22 per barrel by 0440 GMT, having hit a high of $70.00 on Thursday, its highest since Nov. 12. U.S. West Texas Intermediate was trading 0.1 percent down at $62.06 a barrel, after rising as high as $62.96 on Wednesday, its highest since the Nov. 7.
Gold prices plunged, but were trading above the 10-week low touched in the previous session, as the dollar surged against the yen on signs of progress in the U.S.-China trade dispute and strong U.S. economic data. Spot gold declined 0.2 percent to $1,289.27 per ounce by 0448 GMT, having touched a low of $1,280.80 on Thursday, its lowest since March 7 and was down about 0.3 percent so far this week.
Treasuries Recap
The Japanese government bond prices dipped slightly, with the benchmark 10-year JGB yield rising one basis point to minus 0.035 percent. The 20-year yield gained 1.0 basis point, to 0.370 percent, while the 30-year yield advanced half a basis point to 0.535 percent. Ten-year JGB futures dipped 0.10 point to 152.73.
The Canadian government bond prices were higher across a flatter yield curve, with the two-year up 2 Canadian cents to yield 1.577 percent and the 10-year rising 16 Canadian cents to yield 1.692 percent.
