Market Roundup
- China warns U.S. not to open Pandora's Box, unleash trade ills on world
- China still considering curbs on U.S. soybean imports -U.S. soybean council
- Japan's Aso rules out bilateral trade deal with U.S.
- Japan offers N Korea summit, Pyongyang discussing meetings with Japan -Asahi
- China's leaders approve rules to rein in $15 trillion asset management sector
- U.S. upbeat about fast NAFTA deal, Canada says much work is left
- Trump pushes out Shulkin at VA, nominates Jackson as replacement
- Australia job vacancies climb to fresh record in Feb qtr
Economic Data Ahead
- (0400 ET/0800 GMT) Germany Mar Unemployment Total NSA, 2.55 mln last
- (0400 ET/0800 GMT) Germany Mar Unemployment Rate SA, 5.3% eyed; 5.4% last
- (0400 ET/0800 GMT) Germany Mar Unemployment Chg SA,-15k eyed; -22k last
- (0430 ET/0830 GMT) Great Britain Feb BOE Consumer Credit, 1.4 bln eyed; 1.36 bln last
- (0430 ET/0830 GMT) Great Britain Feb Mortgage Approvals, 66k eyed; 67.48k last
- (0430 ET/0830 GMT) Great Britain Feb Mortgage Lending, 3.5 bln eyed; 3.39 bln last
- (0800 ET/1200 GMT) Germany Mar HICP Prelim, 0.5% m/m, 1.6% y/y, eyed; 0.5%, 1.2% last
Key Events Ahead
- (1300 ET/1700 GMT) Philadelphia Fed President Patrick Harker speaks on the economic outlook before a New York Association of Business Economics luncheon
FX Beat
DXY: The dollar index declined as investors speculated that a diplomatic breakthrough over North Korea's nuclear programme might be closer at any time before, even though the obstacles to a solution remain in place. The greenback against a basket of currencies 0.1 percent down at 89.96, having touched a high of 90.15 the day before, its highest since Mar. 21. FxWirePro's Hourly Dollar Strength Index stood at 67.48 (Neutral) by 0500 GMT.
EUR/USD: The euro steadied after slumping to 1.2300 handle in the previous session, undermined by soft eurozone economic data and comments from European Central Bank policymakers indicating the ECB is in no hurry to wind back its stimulus given the spectre of low inflation. The European currency traded 0.2 percent up at 1.2327, having touched a high of 1.2476 on Tuesday, its highest since Feb. 16. FxWirePro's Hourly Euro Strength Index stood at 13.95 (Neutral) by 0500 GMT. Investors’ attention will remain on series of data from the Eurozone economies, ahead of the U.S. unemployment benefit claims, personal consumption expenditures, and FOMC member Harker's speech. Immediate resistance is located at 1.2362 (5-DMA), a break above targets 1.2421 (Mar. 28 High). On the downside, support is seen at 1.2285, a break below could drag it lower 1.2258.
USD/JPY: The dollar declined after rising to an over 2-week peak in the previous session on news that North Korea's leader Kim Jong Un pledged his commitment to denuclearization. The major was trading 0.4 percent down at 106.46, having hit a low of 104.62 on Monday, its lowest since Nov. 2016. FxWirePro's Hourly Yen Strength Index stood at -35.97 (Neutral) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. unemployment benefit claims, personal consumption expenditures and FOMC member Harker's speech. Immediate resistance is located at 107.05 (Mar. 9 High), a break above targets 107.30. On the downside, support is seen at 106.08 (21-DMA), a break below could take it lower 105.84 (10-DMA).
GBP/USD: Sterling steadied after falling to a 1-week low earlier in the day on a survey that showed British retail sales fell for the first time in 5-months in March. However, report that Britain will propose a new solution for the Irish border dispute holding up Brexit talks supported the British pound. The major traded 0.1 percent up at 1.4084, having hit a low of 1.4060 earlier, it’s lowest since Mar. 21. FxWirePro's Hourly Sterling Strength Index stood at -23.37 (Neutral) by 0500 GMT. Investors’ focus will remain on UK gross domestic product, consumer credit, total business investment and current account report. Immediate resistance is located at 1.4138 (5-DMA), a break above could take it near 1.4218 (Mar. 22 High). On the downside, support is seen at 1.4025 (Jan 29 Low), a break below targets 1.3982 (Mar. 20 Low). Against the euro, the pound was trading 0.1 percent down at 87.51 pence, having hit a low of 87.97 pence on Tuesday, it’s lowest since Mar 20.
AUD/USD: The Australian dollar edged up after falling to a 3-month low earlier in the day on data that showed the US fourth-quarter GDP was revised higher to 2.9 percent yesterday, well above the estimated upward revision to 2.7 percent from 2.5 percent. The Aussie trades 0.2 percent up at 0.7676, having hit a low of 0.7643 earlier; it’s lowest since Dec. 21. FxWirePro's Hourly Aussie Strength Index stood at -1.95 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7626 (Dec. 14 Low), a break below targets 0.7600. On the upside, resistance is located at 0.7694 (5-DMA), a break above could take it near 0.7725 (Mar. 19 Low).
NZD/USD: The New Zealand dollar tumbled to an over 1-week low as lingering worries about a global trade war weighed heavily on commodity prices. The Kiwi trades 0.2 percent down at 0.7200, having touched a low of 0.7188 earlier, its lowest level since Mar. 21. FxWirePro's Hourly Kiwi Strength Index was at -100.01 (Highly Bullish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.7230 (61.8% retracement of 0.7354 and 0.7153), a break above could take it near 0.7255 (21-DMA). On the downside, support is seen at 0.7176 (Mar 20 Low), a break below could drag it below 0.7153 (Mar 21 Low).
Equities Recap
Asian shares declined, while the dollar eased against the safe-haven yen amid perceived tensions on North Korea issues.
MSCI's broadest index of Asia-Pacific shares outside Japan tumbled 0.2 percent.
Tokyo's Nikkei rose 0.6 percent to 21,159.08 points, Australia's S&P/ASX 200 index eased 0.5 percent to 5,759.40 points and South Korea's KOSPI gained 0.8 percent to 2,438.23 points.
Shanghai composite index rallied 1.6 percent to 3,170.75 points, while CSI300 index was trading 1.8 percent up at 3,909.28 points.
Hong Kong’s Hang Seng was trading 0.1 percent higher at 30,241.92 points. Taiwan shares shed 0.2 percent to 10,845.92 points.
Commodities Recap
Crude oil prices declined, reversing most of its previous session losses, despite the producer cartel OPEC and other suppliers look set to continue withholding output for the rest of 2018 and potentially into 2019. International benchmark Brent crude was trading 1.2 percent down at $68.97 per barrel by 0454 GMT, having hit a high of $71.00 on Thursday, its highest since Jan. 25. U.S. West Texas Intermediate was trading 0.1 percent up at $64.64 a barrel, after rising as high as $66.52 on Monday, its strongest since Jan 25.
Gold prices steadied, after falling to a 1-week low in the previous session as a rebound in the dollar pushed the safe-haven metal to its biggest 1-day fall in nearly nine months. Spot gold rose 0.2 percent to $1,327.75 per ounce at 0457 GMT, after touching a high of $1,356.76 on Tuesday, its highest since Feb. 16. U.S. gold futures for April delivery rose 0.2 percent to $1,326.50 per ounce.
Treasuries Recap
The 10-year U.S Treasury yield stood at 2.778 percent higher by 0.004 bps, while 5-year yield was 0.003 bps up at 2.593 percent.
The Japanese government bonds fell as investors hope to see an improvement in the country’s industrial production for the month of February, scheduled to be released today by 23:30GMT. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 1 basis point to 0.04 percent, the yield on the long-term 30-year note remained tad higher at 0.74 percent and the yield on short-term 2-year traded 1 basis point higher at -0.13 percent.
The Australian government bonds mixed as investors continued to stay on the sidelines ahead of long Easter holiday. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, fell 1 basis point to 2.590 percent, the yield on the long-term 30-year note dipped 1/2 basis point to 3.183 percent and the yield on short-term 2-year rose 2 basis points to 2.017 percent.
The Canadian government bond prices were higher across the maturity curve, with the two-year price up 4.5 Canadian cents to yield 1.806 percent and the benchmark 10-year rising 20 Canadian cents to yield 2.119 percent.
