Market Roundup
- Gold dips on profit-taking
- Dollar heads for weekly gain
Economic Data Ahead
- (0400 ET/0800 GMT) Italy Business Confidence(Apr)
- (0400 ET/0800 GMT) Italy Consumer Confidence(Apr)
- (0400 ET/0800 GMT) Germany IFO - Business Climate(Apr)
- (0400 ET/0800 GMT) Germany IFO - Current Assessment(Apr)
- (0400 ET/0800 GMT) Germany IFO - Expectations(Apr)
Key Events Ahead
- No Significant Events Scheduled
FX Beat
DXY: The dollar index advanced to a 2-1/2 week peak after the U.S. House of Representatives approved a $484 billion coronavirus relief bill, funding small businesses and hospitals and pushing the total spending response to the crisis to an unprecedented near $3 trillion. The greenback against a basket of currencies traded 0.2 percent up at 100.69, having touched a high of 100.70 earlier, its highest since Apr. 7.
EUR/USD: The euro plunged to a 1-month low after data released yesterday showed economic activity in the eurozone virtually halted by government-imposed lockdowns to stop the coronavirus pandemic. The IHS Markit's Flash Composite Purchasing Managers' Index sank to by far its lowest reading since the survey began in 1998. Moreover, the selling pressure around the major intensified after a video conference of European Union leaders looking to set up a joint fund to avert an economic collapse in parts of the 27-member bloc ended without any agreement on details. The European currency traded 0.2 percent down at 1.0759, having touched a low of 1.0753 earlier, its lowest since Mar. 24. Investors’ attention will remain on a series of economic data from the Eurozone economies and German IFO survey, ahead of the U.S. durable goods and Michigan consumer sentiment index. Immediate resistance is located at 1.0806, a break above targets 1.0837 (5-DMA). On the downside, support is seen at 1.0726, a break below could drag it below 1.0697.
USD/JPY: The Japanese yen eased after a report in the Nikkei newspaper said the Bank of Japan will discuss scrapping its cap on government bond purchases at its next policy meeting on April 27. On Thursday, the dollar fell from a near 1-week peak after the U.S. Labor Department said 4.427 million more people applied for unemployment benefits for the first time last week. The major was trading 0.05 percent up at 107.61, having hit a low of 106.92 last week, its lowest since Apr. 1. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. durable goods and Michigan consumer sentiment index. Immediate resistance is located at 107.84, a break above targets 108.00 (21-DMA). On the downside, support is seen at 107.41, a break below could take it near at 107.16.
GBP/USD: Sterling declined, halting a 2-day winning streak after yesterday's dire UK preliminary PMI readings for April fell far below even the most pessimistic forecasts. The major traded 0.1 percent down at 1.2321, having hit a low of 1.2247 on Tuesday, it’s lowest since April 9. Investors’ attention will remain on the geopolitical developments ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2379 (5-DMA), a break above could take it near 1.2403. On the downside, support is seen at 1.2305, a break below targets 1.2274. Against the euro, the pound was trading 0.05 percent up at 87.25 pence, having hit a low of 88.63 on Tuesday, it’s lowest since April 1.
AUD/USD: The Australian dollar eased as the greenback surged against a basket of currencies. On Thursday, the major rallied to a 1-week peak as crude oil prices rallied on tensions in the Middle East and signs that producers were cutting production to address collapsing demand for fuel. The Aussie trades 0.3 percent down at 0.6352, having hit a high of 0.6406 on Thursday, it’s highest since Apr. 15. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate resistance is located at 0.6405, a break above could take it near 0.6429. On the downside, support is seen at 0.6324, a break below targets 0.6302.
Equities Recap
Asian shares slumped, spurred by doubts about progress in the development of drugs to treat COVID-19.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4 percent.
Tokyo's Nikkei fell 0.9 percent to 19,262.00 points, Australia's S&P/ASX 200 index rose 0.5 percent to 5,242.60 points and South Korea's KOSPI declined 1.3 percent to 1,889.01 points.
Shanghai composite index eased 1.1 percent to 2,808.53 points, while CSI 300 index traded 0.9 percent down at 3,796.97 points.
Hong Kong’s Hang Seng traded 0.4 percent lower at 23,877.64 points. Taiwan shares shed 0.2 percent to 10,347.36 points.
Commodities Recap
Crude oil prices eased, halting a 2-day winning streak and were heading for their eighth weekly loss in the last nine, recording one of the most tumultuous weeks in the history of oil trading. International benchmark Brent crude was trading 1.5 percent lower at $21.40 per barrel by 0611 GMT, having hit a low of $15.91 on Wednesday, its lowest since June 1999. U.S. West Texas Intermediate was trading 0.6 percent down at $16.97 a barrel, after recording a historic decline on Monday.
Gold prices declined as investors booked profits after a 1 percent rise in the previous session, although weak economic data from the United States and Europe due to the novel coronavirus kept bullion on track for a weekly gain. Spot gold eased 0.5 percent to $1,723.14 per ounce by 0614 GMT, having touched a high of $1,738.87 on Thursday, its highest since Apr. 14 and was up about 2.2 percent for the week so far. U.S. gold futures were little changed at $1,744.70 per ounce.
Treasuries Recap
On Thursday, the benchmark 10-year yield was down 1.8 basis points at 0.6015 percent, while the yield on the 30-year bond fell as low as 1.168 percent before recovering.
