Market Roundup
- China says N.Korea pledges denuclearisation during friendly visit
- U.S., S.Korea to revise trade pact with currency side-deal, autos concessions
- China preparing list of retaliatory tariffs on U.S. imports - Global Times
- WTO chief sees no sign of US walking away from WTO
- Japan PM Abe likely to meet President Trump on April 18-source
- China's economic growth stayed strong in Q1, but outlook cloudy-Beige Book
- New Zealand business confidence falls in March - ANZ survey
- EXCLUSIVE-Spurned by top lawyers, Trump's defense elevates Washington outsider
- Worried about Bolton? Pentagon chief Mattis dismisses concerns
Economic Data Ahead
- (0300 ET/0700 GMT) Spain Feb Retail Sales YY, 2.2% last
- (0345 ET/0745 GMT) France Mar Consumer Confidence, 100 eyed; 100 last
Key Events Ahead
- (0330 ET/0730 GMT) Sweden central bank publishes the report, Account of Monetary Policy, in 2017
- (1130 ET/1530 GMT) Atlanta Fed President Raphael Bostic participates in an armchair chat before the Atlanta Society of Finance and Investment Professionals in Atlanta, Georgia
- (1730 ET/2130 GMT) Deutsche Bundesbank board member Joachim Wuermeling will give a speech titled "Current challenges in Europe – a central banker's perspective" at the Forum Money Marketeers in New York
- N/A Republic of France long-dated 2036 OAT€i benchmark via Barclays, BNP Paribas, HSBC, JP Morgan and Natwest markets
FX Beat
DXY: The dollar index rose, extending previous session gains, as fears of a global trade war faded. The greenback against a basket of currencies 0.1 percent up at 89.42, having touched a low of 88.94 the day before, its lowest since Feb. 16. FxWirePro's Hourly Dollar Strength Index stood at 24.48 (Neutral) by 0500 GMT.
EUR/USD: The euro rose after falling from a 1-1/2 month high touched in the previous session on soft eurozone economic data and dovish-sounding comments from Erkki Liikanen, a member of European Central Bank's Governing Council. The European currency traded 0.1 percent up at 1.2411, having touched a high of 1.2476 earlier, its highest since Feb. 16. FxWirePro's Hourly Euro Strength Index stood at 115.22 (Highly Bullish) by 0400 GMT. Investors’ attention will remain on series of data from the Eurozone, ahead of the U.S. gross domestic product price index, goods trade balance, pending home sales. Immediate resistance is located at 1.2510 (Feb. 15 High), a break above targets 1.2555 (Feb. 16 High). On the downside, support is seen at 1.2368 (5-DMA), a break below could drag it lower 1.2327 (21-DMA).
USD/JPY: The dollar steadied against the Japanese yen on hopes that negotiations between the United States and China would produce a compromise and avoid a global trade war. Moreover, news that North Korea's Kim Jong Un is committed to denuclearization of the Korean Peninsula weighed on yen’s safe-haven appeal. The major was trading 0.2 percent up at 105.55, having hit a low of 104.62 on Monday, its lowest since Nov. 2016. FxWirePro's Hourly Yen Strength Index stood at -96.32 (Slightly Bearish) by 1000 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. gross domestic product price index, goods trade balance, pending home sales. Immediate resistance is located at 105.88 (38.2% retracement of 106.64 and 104.62), a break above targets 106.10 (21-DMA). On the downside, support is seen at 105.20, a break below could take it lower 105.05.
GBP/USD: Sterling steadied after falling to a 6-day low in the previous session on a large corporate healthcare deal that triggered an unwinding of long sterling bets. However, Britain clinching a transition deal last week supported the bid tone around the British currency. The major traded 0.2 percent up at 1.4192, having hit a high of 1.4255 on Tuesday, it’s highest since Feb. 2. FxWirePro's Hourly Sterling Strength Index stood at 86.19 (Slightly Bullish) by 0400 GMT. Investors’ focus will remain on UK CBI Distributive Trades Survey, ahead of U.S. fundamental drivers. Immediate resistance is located at 1.4233 (Jan 31 High), a break above could take it near 1.4278. On the downside, support is seen at 1.4130 (Mar 26 Low), a break below targets 1.4061 (10-DMA). Against the euro, the pound was trading 0.2 percent up at 87.41 pence, having hit a high of 86.68 pence on Thursday, it’s highest since June 2016.
AUD/USD: The Australian dollar gained, reversing some of its previous session losses, amid fading prospects of a full-blown US-China trade war and the easing tensions in Korean Peninsula. The Aussie trades 0.2 percent up at 0.7690, having hit a high of 0.7783 on Thursday; it’s highest since Mar. 16. FxWirePro's Hourly Aussie Strength Index stood at -123.78 (Highly Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7672 (Mar. 21 Low), a break below targets 0.7653 (Dec. 21 Low). On the upside, resistance is located at 0.7767 (61.8% retracement of 0.7916 and 0.7672), a break above could take it near 0.7796 (50.0% retracement).
NZD/USD: The New Zealand dollar consolidated within narrow ranges after data released earlier showed New Zealand business sentiment deteriorated in March, even as firms' outlooks for their own activity improved. The Kiwi trades flat at 0.7266, having touched a high of 0.7303 the day before, its highest level since Mar. 15. FxWirePro's Hourly Kiwi Strength Index was at 97.41 (Slightly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7307 (23.6% retracement of 0.7354 and 0.7153), a break above could take it near 0.7354 (Mar 14 High). On the downside, support is seen at 0.7247 (5-DMA), a break below could drag it below 0.7176 (Mar 20 Low).
Equities Recap
Asian shares declined, weighed down by concerns about tighter controls on the tech industry, while the dollar rose against the yen on hopes that the risk of a U.S.-China trade war was easing.
MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 0.9 percent.
Tokyo's Nikkei declined 1.3 percent to 21,031.31 points, Australia's S&P/ASX 200 index eased 0.7 percent to 5,789.50 points and South Korea's KOSPI slumped 1.5 percent to 2,415.29 points.
Shanghai composite index declined 1.4 percent to 3,122.16 points, while CSI300 index was trading 1.8 percent down at 3,840.15 points.
Hong Kong’s Hang Seng was trading 1.8 percent lower at 30,241.88 points. Taiwan shares shed 1.1 percent to 10,865.66 points.
Commodities Recap
Crude oil prices rose after easing from multi-week highs in the previous session, weighed down by a report of increasing U.S. crude inventories that surprised many traders. International benchmark Brent crude was trading 0.2 percent up at $69.65 per barrel by 0444 GMT, having hit a high of $71.00 the day before, its highest since Jan. 25. U.S. West Texas Intermediate was trading 0.5 percent up at $65.77 a barrel, after rising as high as $66.52 on Monday, its strongest since Jan 25.
Gold prices steadied after recording its biggest one-day percentage fall in nearly two weeks on Tuesday as U.S.-China trade war concerns eased. Spot gold trading flat at $1,356.76 per ounce at 0447 GMT, after touching a high of $1,356.76 in the prior session, its highest since Feb. 16. U.S. gold futures for April delivery rose 0.3 percent to $1,346.20 per ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.786 percent lower by 0.002 bps, while 5-year yield was 0.008 bps low at 2.583 percent.
The Japanese government bonds remained narrowly mixed in a silent session amid lack of economically significant data. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained tad higher at 0.03 percent, the yield on the long-term 30-year note slid 1/2 basis point to 0.73 percent and the yield on short-term 2-year too traded flat at -0.14 percent.
The Australian government bonds gained as investors moved to safe-haven buying following heavy sell-off in the high yielding alternative assets like equities. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell nearly 7 basis points to 2.601 percent, the yield on the long-term 30-year note dipped 7-1/2 basis points to 3.184 percent and the yield on short-term 2-year slumped 5-1/2 basis points to 1.995 percent.
The Canadian government bond prices were higher across a flatter yield curve, with the two-year up 9.5 Canadian cents to yield 1.831 percent and the 10-year rising 68 Canadian cents to yield 2.146 percent. The gap between Canada's 10-year yield and its U.S. equivalent widened by 2.7 basis points to a spread of -63.5 basis points.
