Market Roundup
- Compromise? Time ticking down for Britain to come to Brexit agreement
- Cain, Moore nominations for Federal Reserve seats on track -Kudlow
- U.S. Homeland Security Secretary Nielsen resigns amid Trump anger over border
- As latest round of U.S.-China talks end, 'significant work' remains
- China moves to boost individuals' gov't bond purchases
- China's March forex reserves rise to 7-month high
- China to step up bank reserve ratio cuts to help small firms
- BOJ's Kuroda sticks to view Japan's economy expanding moderately
- Australia job ads slip further in March – survey
- Italy to hike 2020 deficit goal to around 2.1 percent -sources
Economic Data Ahead
- (0430 ET/0830 GMT) EZ Apr Sentix Index, -2.1 f'cast, -2.2 prev
Key Events Ahead
- N/A French Finance Minister Bruno Le Maire opens a conference in Paris on competition policy
- (0330 ET/0730 GMT) ECB's Nowotny speaks at a conference on European enlargement and integration featuring speakers from the Polish, Romanian and Croatian central banks, Vienna
- (0845 ET/1245 GMT) ECB's Andrea Enria chairing panel at a Banque de France conference in Paris, France
- (1000 ET/1400 GMT) Federal Reserve board holds an open meeting, Washington
- (1200 ET/1600 GMT) Bank of France Governor Francois Villeroy de Galhau speaks at a competition conference at the French central bank
FX Beat
DXY: The dollar index slightly eased as the 10-year U.S. Treasury note stretched Friday's fall, pulling further back from a 2-week high recorded late last week. The greenback against a basket of currencies traded 0.1 percent down at 97.28, having touched a peak of 97.52 on Tuesday, its highest since Mar. 8. FxWirePro's Hourly Dollar Strength Index stood at 2.88 (Neutral) by 0400 GMT.
EUR/USD: The euro rose, halting a 2-day losing streak after data released on Friday showed German industrial output rose by 0.7 percent in February as mild weather supported a surge in construction activity. The European currency traded 0.1 percent up at 1.1229, having touched a low of 1.1183 on Tuesday, its lowest since Mar. 7. FxWirePro's Hourly Euro Strength Index stood at 111.85 (Highly Bullish) by 0400 GMT. Investors’ attention will remain on the Eurozone, ahead of the U.S. factory orders. 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 Japanese yen surged, after falling for three consecutive sessions as Bank of Japan Governor Haruhiko Kuroda said the Japanese economy was expected to continue expanding moderately, although exports and output could get affected from slowing overseas demand. The major was trading 0.3 percent down at 111.39, having hit a high of 111.82 on Friday, its highest since Mar. 15. FxWirePro's Hourly Yen Strength Index stood at -48.87 (Neutral) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. factory orders. 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 steadied after easing to a 1-week low in the previous session on doubts over British Prime Minister Theresa May's attempt to further delay Brexit. The major traded 0.2 percent up at 1.3063, having hit a low of 1.2986 on Friday; it’s lowest since Mar. 29. FxWirePro's Hourly Sterling Strength Index stood at -76.56 (Slightly Bearish) 0400 GMT. Investors’ attention will remain on the U.S. fundamental drivers, amid a lack of economic data from the UK docket. 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 1.3003 (Mar. 21 Low), a break below targets 1.2976 (Mar. 29 Low). Against the euro, the pound was trading 0.1 percent up at 85.93 pence, having hit a low of 86.36 on Friday, it’s lowest since Mar. 29.
AUD/USD: The Australian dollar plunged, extending losses for the third straight session after data showed domestic job ads declined 1.7 percent in March from a drop of 0.8 percent in February. Moreover, renewed optimism about the U.S. economy's health following better-than-expected March jobs report further dented the bid tone around the major. The Aussie trades 0.2 percent down at 0.7092, having hit a low of 0.7087, it’s lowest since Apr. 3. FxWirePro's Hourly Aussie Strength Index stood at 101.14 (Highly Bullish) by 0400 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7070 (Mar. 29 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 declined, hovering towards a 10-week low hit in the previous session, as further signs of strong momentum in the U.S. economy boosted the greenback. The Kiwi trades 0.05 percent down at 0.6729, having touched a low of 0.6718 on Friday, its lowest level Jan. 22. FxWirePro's Hourly Kiwi Strength Index was at -35.83 (Neutral) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6773 (Feb. 11 High), a break above could take it near 0.6827 (Mar. 5 High). On the downside, support is seen at 0.6706 (Jan. 22 Low), a break below could drag it below 0.6668 (Jan. 4 Low).
Equities Recap
Asian shares rallied to 7-month highs, boosted by a rebound in U.S. payrolls and hints of more stimulus in China.
MSCI's broadest index of Asia-Pacific shares outside Japan surged 0.4 percent.
Tokyo's Nikkei eased 0.3 percent to 21,749.91 points, Australia's S&P/ASX 200 index rose 0.6 percent to 6,216.00 points and South Korea's KOSPI plunged 0.2 percent to 2,205.50 points.
Shanghai composite index declined 1.05 percent to 3,212.22 points, while CSI 300 index traded 1.05 percent down at 4,019.66 points.
Hong Kong’s Hang Seng traded 0.05 percent higher at 29,951.49 points. Taiwan shares added 0.9 percent to 10,800.57 points
Commodities Recap
Crude oil prices rose to their highest level since Nov. 2018, supported by OPEC's ongoing supply cuts and U.S. sanctions against Iran and Venezuela. International benchmark Brent crude was trading 0.4 percent up at $70.63 per barrel by 0436 GMT, having hit a high of $70.76, its highest since Nov. 12. U.S. West Texas Intermediate was trading 0.2 percent up at $63.37 a barrel, after rising as high as $63.47, its highest since the Nov. 5.
Gold prices rose to a 1-week peak as the greenback edged lower, while investors awaited minutes of the U.S. Federal Reserve's March meeting later this week. Spot gold gained about 0.4 percent to $1,296.47 per ounce by 0442 GMT, having touched a high of $1,296.89, its highest since April 1. U.S. gold futures were also up 0.4 percent at $1,300.10 an ounce.
Treasuries Recap
The Japanese government bond prices rose broadly, with the 5-year JGB yield falling 1 basis point to minus 0.170 percent, while the 10-year yield dropped 1.5 basis points to minus 0.050 percent. The 30-year yield declined 1 basis point to 0.535 percent.
The Australian government bond futures gained, with the three-year and the 10-year bond contracts off 2 ticks each at 98.605 and 98.11 respectively.
The New Zealand government bonds were slightly higher, sending yields about two basis points lower at the long end of the curve.
