Market Roundup
- Oil prices tumble as world's storage tanks fill up
- Gold slips on lockdown easing plans
Economic Data Ahead
- (0400 ET/0800 GMT) ECB Bank Lending Survey
- (0600 ET/1000 GMT) UK CBI Distributive Trades Survey - Realized (MoM)(Apr)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index surged as easing lockdown restrictions by some countries and U.S. states buoyed sentiment. The greenback against a basket of currencies traded 0.2 percent up at 100.19, having touched a high of 100.87 on Friday, its highest since Apr. 6.
EUR/USD: The euro eased, reversing most of its previous session gains, as investors worry about the shape of a rescue package for hardest hit and heavily indebted Spain and Italy. The European currency traded 0.1 percent down at 1.0820, having touched a low of 1.0727 on Friday, its lowest since Mar. 24. Investors’ attention will remain on a series of economic data from the Eurozone economies and ECB Bank lending survey, ahead of the U.S. wholesale inventories, goods trade balance, consumer confidence and Richmond Fed Manufacturing Index. Immediate resistance is located at 1.0856 (10-DMA), a break above targets 1.0884 (21-DMA). On the downside, support is seen at 1.0803, a break below could drag it below 1.0783.
USD/JPY: The dollar steadied after tumbling to a near 2-week low in the prior session as risk appetite was boosted by plans of some countries to ease coronavirus curbs in a phased manner. The U.S. state of Georgia has begun letting residents dine at restaurants and watch movies at theatres as more states, from Minnesota to Mississippi, took steps to ease restrictions. The major was trading 0.05 percent up at 107.25, having hit a low of 106.99 on Monday, its lowest since Apr. 15. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. wholesale inventories, goods trade balance, consumer confidence and Richmond Fed Manufacturing Index. Immediate resistance is located at 107.43, a break above targets 107.70. On the downside, support is seen at 106.92, a break below could take it near at 106.75.
GBP/USD: Sterling declined, halting a 4-day winning streak after British Prime Minister Boris Johnson said it was too early to relax restrictions. The major traded 0.2 percent down at 1.2403, having hit a high of 1.2454 on Monday, it’s highest since April 20. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2464, a break above could take it near 1.2502. On the downside, support is seen at 1.2374, a break below targets 1.2351 (5-DMA). Against the euro, the pound was trading 0.05 percent down at 87.16 pence, having hit a high of 87.06 earlier, it’s highest since April 20.
AUD/USD: The Australian dollar tumbled after rising to a 6-1/2 week peak hit in the previous session on signs of progress in re-opening economies. The Aussie trades 0.2 percent down at 0.6453, having hit a high of 0.6471 earlier, it’s highest since Mar. 12. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6492, a break above could take it near 0.6532. On the downside, support is seen at 0.6400, a break below targets 0.6361 (10-DMA).
Equities Recap
Asian shares slumped as a renewed decline in oil prices overshadowed optimism about the easing of coronavirus-related restrictions worldwide.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent.
Tokyo's Nikkei fell 0.05 percent to 19,771.19 points, Australia's S&P/ASX 200 index declined 0.2 percent to 5,313.10 points and South Korea's KOSPI gained 0.6 percent to 1,934.09 points.
Shanghai composite index eased 0.2 percent to 2,810.26 points, while CSI 300 index traded 0.7 percent up at 3,847.96 points.
Hong Kong’s Hang Seng traded 0.9 percent higher at 24,509.50 points. Taiwan shares added 0.5 percent to 10,616.06 points.
Commodities Recap
Crude oil prices slumped, extending the previous session decline, on worries about limited capacity to store crude worldwide. International benchmark Brent crude was trading 3.5 percent lower at $19.29 per barrel by 0542 GMT, having hit a low of $15.91 on Wednesday, its lowest since June 1999. U.S. West Texas Intermediate was trading 12.41 percent down at $11.39 a barrel, after recording a historic decline last week.
Gold prices declined by more than 1 percent as risk appetite improved by plans of some countries to ease coronavirus curbs in a phased manner. Spot gold eased 1.1 percent to $1,694.42 per ounce by 0545 GMT, having touched a high of $1,738.87 on Thursday, its highest since Apr. 14. U.S. gold futures fell 0.3 percent to $1,719.20 per ounce.
Treasuries Recap
On Monday, the U.S. benchmark 10-year yield was still up 5.8 basis points at 0.6542 percent, while the five-year note yield was up 3.7 basis points at 0.4005 perent.
