Market Roundup
- Oil rises on record output cut by OPEC+
- Italy PM extends virus lockdown
- UK deaths pass 10,000 mark
Economic Data Ahead
- No Major Economic Releases
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index eased to a near 2-week peak after Minneapolis Federal Reserve Bank President Neel Kashkari on Sunday stated that the U.S. economic recovery from the disruptions caused by the coronavirus outbreak will likely be a long, hard road in which some parts of the economy will periodically shut down and restart. The greenback against a basket of currencies traded 0.3 percent down at 99.22, having touched a low of 99.21 earlier, its lowest since Apr. 1.
EUR/USD: The euro declined, hovering away from a 1-week peak hit in the previous session, after Italian Prime Minister Giuseppe Conte on Friday extended a nationwide lockdown to contain the coronavirus until May 3. Italy has recorded almost 19,000 deaths from the virus since its outbreak came to light on Feb. 21, more than any other country. The European currency traded down at 1.0937, having touched a high of 1.0952 on Thursday, its highest since April 2. Immediate resistance is located at 1.0968, a break above targets 1.0994. On the downside, support is seen at 1.0907, a break below could drag it below 1.0880 (5-DMA).
USD/JPY: The dollar plunged to a 10-day low as markets remain on edge over the spread of the coronavirus pandemic as severe restrictions on personal movement drag the global economy into a deep recession. The selling pressure intensified as investors digested last week's data that showed 16.8 million Americans have filed for unemployment benefits in the last three weeks, with weekly new claims rose 6 million for the second straight time last week as the coronavirus outbreak dented the economy. Trading is likely to remain subdued as financial markets in Australia, New Zealand, Hong Kong, and Britain are closed for the Easter Monday holiday. The major was trading 0.4 percent down at 107.88, having hit a low of 107.85 earlier, its lowest since Apr. 3. Immediate resistance is located at 108.71 (5-DMA), a break above targets 109.22. On the downside, support is seen at 107.68, a break below could take it near at 107.25.
GBP/USD: Sterling rallied to a 1-month peak after British Prime Minister Boris Johnson left the hospital on Sunday and thanked staff for saving his life from COVID-19. However, the government was forced to defend its response to the coronavirus outbreak as the national death toll passed 10,000. Official figures showed on Sunday that the death toll in hospitals across the United Kingdom stood at 10,612 as of on Saturday, an increase of 737 over a 24-hour period. The major traded 0.4 percent up at 1.2520, having hit a high of 1.2525 earlier, it’s highest since March 13. Immediate resistance is located at 1.2600, a break above could take it near 1.2648. On the downside, support is seen at 1.2370 (10-DMA), a break below targets 1.2331. Against the euro, the pound was trading 0.2 percent up at 87.51 pence, having hit a high of 87.24 on Thursday, it’s highest since Mar. 11.
AUD/USD: The Australian dollar surged as oil prices rose in choppy trade following a landmark deal by OPEC and its allies to cut output. OPEC, Russia and other oil-producing nations agreed on Sunday to cut output by a record amount of 9.7 million barrels per day, representing around 10 percent of global supply to support oil prices amid the pandemic. The Aussie trades 0.1 percent up at 0.6355, having hit a high of 0.6367 on Friday, it’s highest since Mar. 12. Immediate resistance is located at 0.6402, a break above could take it near 0.6432. On the downside, support is seen at 0.6287, a break below targets 0.6234.
Equities Recap
Asian shares slumped as investors braced for more signs of economic damage from the coronavirus pandemic.
MSCI's broadest index of Asia-Pacific shares outside Japan declined.
Tokyo's Nikkei eased 2.3 percent to 19,043.40 points and South Korea's KOSPI declined 1.9 percent to 1,825.76 points.
Shanghai composite index eased 0.5 percent to 2,783.05 points, while CSI 300 index traded 0.4 percent down at 3,753.26 points. Taiwan shares shed 0.6 percent to 10,099.22 points.
Commodities Recap
Crude oil prices surged after major oil producers reached a deal for a record 10 million-bpd output cut, although the upside appears limited as analysts said the agreement was insufficient to head off oversupply as the coronavirus pandemic hammered demand. International benchmark Brent crude was trading 2.8 percent higher at $32.66 per barrel by 0552 GMT, having hit a high of $36.37 on Thursday, its highest since March 11. U.S. West Texas Intermediate was trading 1.9 percent up at $23.60 a barrel, after falling as low as $22.07 earlier, its lowest since Apr. 2.
Gold prices rallied to an over 1-month peak amid worries over a coronavirus-driven steeper global economic downturn, however, the U.S. Federal Reserve’s stimulus measures limited gains. Spot gold edged up 0.1 percent to $1,684.09 per ounce by 0556 GMT, having touched a high of $1692.83 earlier, its highest since Mar. 9. U.S. gold futures fell 1.4 percent to $1,728.40.
Treasuries Recap
The Japanese government bond prices were mostly steady as trading volume remained low amid absence of foreign investors due to the Easter holidays. The benchmark 10-year JGB futures fell 0.06 point to 152.29. In the cash bond market, the 10-year JGB yield rose half a basis point to zero percent. The 20-year, the 30-year and the 40-year yields rose half a basis point each to 0.325 percent, 0.445 percent and 0.465 percent, respectively. In the shorter maturities, five-year yield slipped half a basis point to minus 0.135 percent and the two-year yield fell 1.5 basis points at minus 0.195 percent
